OMVIC OMVIC Vehicle Sales Process and Documentation 3

Question 1

Under the MVDA 2002, which of the following is considered a 'material fact' that a dealer must always disclose to a buyer?

Accepted Answer

That the vehicle was previously used as a police cruiser

Answer

Prior use as a police vehicle is a specifically enumerated mandatory material fact disclosure under OMVIC regulations.

Question 2

A buyer signs a purchase agreement for a new vehicle but later discovers the model is delayed by 6 months. Under the MVDA, what right does the buyer have?

Accepted Answer

Cancel the agreement and receive a full deposit refund

Answer

If a dealer cannot deliver a vehicle within a reasonable time or as specified, the buyer is entitled to cancel and receive a full deposit refund.

Question 3

What is the primary purpose of requiring dealers to record the odometer reading on the bill of sale under OMVIC/MVDA?

Accepted Answer

To help prevent and detect odometer fraud

Answer

Recording the odometer reading at time of sale creates a documented baseline that helps detect and deter odometer rollback fraud.

Question 4

A buyer wants to cancel a purchase agreement for a vehicle bought at a dealership three days after signing. Under Ontario law, does the buyer have a cooling-off cancellation right?

Accepted Answer

No, there is no cooling-off period for in-dealership vehicle purchases

Answer

Ontario's Consumer Protection Act cooling-off rights apply to door-to-door sales, not to purchases made at a permanent business establishment like a car dealership.

Question 5

When a dealer accepts a trade-in with an outstanding lien, what is the dealer's obligation under OMVIC regulations?

Accepted Answer

Ensure the lien is paid out from the trade-in proceeds and title is clear before reselling

Answer

Dealers who accept trade-ins with outstanding liens must discharge those liens from the proceeds to ensure clear title before the trade-in can be resold.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Vehicle Sales Process and Documentation 3