OMVIC OMVIC Vehicle Sales Process and Documentation 6

Question 1

Under OMVIC rules, a dealer discovers a vehicle has been rebuilt after being declared a total loss. What must the dealer do?

Accepted Answer

Disclose the rebuilt/salvage brand to the buyer before the sale

Answer

Sell the vehicle as-is since it passed the safety inspection

Answer

Only disclose the rebuilt status in the warranty documentation

Answer

Remove the rebuilt brand by applying for a clear title

Question 2

When a buyer trades in a vehicle as part of a purchase, what is the dealer's duty regarding any undisclosed lien on the trade-in?

Accepted Answer

Pay off the lien from the proceeds and clear the title before resale

Answer

Transfer the lien to the buyer of the traded vehicle

Answer

Disclose the lien only to the new buyer of the traded vehicle

Answer

Ignore the lien if the trade-in buyer accepted all liability

Question 3

A buyer signs a purchase agreement and then discovers the vehicle's accident history online that the dealer did not disclose. Under OMVIC rules, what remedy is available?

Accepted Answer

The buyer may file a complaint with OMVIC and potentially rescind the contract due to misrepresentation

Answer

None — the buyer signed the contract and is bound

Answer

The buyer must accept the vehicle but receives a $500 credit

Answer

The dealer must only provide a written apology

Question 4

Which of the following is a mandatory item in a motor vehicle sales contract in Ontario?

Accepted Answer

The agreed purchase price of the vehicle

Answer

The buyer's employment details

Answer

The dealer's profit margin on the sale

Answer

The vehicle's complete ownership history

Question 5

A consumer buys a used vehicle and the dealer provides a 30-day warranty verbally. The written bill of sale states 'sold as-is.' Which applies?

Accepted Answer

The written 'sold as-is' clause because written agreements govern

Answer

The verbal 30-day warranty because it was stated first

Answer

Both are equally valid and the buyer can choose either

Answer

Neither — OMVIC provides a mandatory 90-day warranty on all used vehicles

Question 6

What must a dealer include in the bill of sale when selling a vehicle that is subject to a manufacturer's recall that has not yet been repaired?

Accepted Answer

Disclosure of the open recall so the buyer is aware

Answer

Nothing, as the manufacturer is responsible for recalls

Answer

A statement that the buyer assumes all recall liability

Answer

The expected repair date from the manufacturer

Question 7

A dealer must provide a completed safety standards certificate when selling a used vehicle. When is a safety certificate NOT required?

Accepted Answer

When selling to another registered OMVIC dealer

Answer

When the vehicle is more than 10 years old

Answer

When the sale is to a family member

Answer

When the vehicle sells for less than $5,000