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

A vehicle with a rebuilt title must have its branded status disclosed to any potential buyer before the sale is completed, regardless of the vehicle's current condition.

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

The dealer is responsible for clearing all liens on trade-in vehicles before reselling them, as selling a vehicle with an undisclosed lien is illegal.

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

Failure to disclose mandatory accident history constitutes misrepresentation, allowing the buyer to rescind the contract and file a complaint with OMVIC.

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 agreed purchase price is a fundamental required element of any sales contract under Ontario consumer protection and MVDA requirements.

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 written contract governs over verbal representations; the 'sold as-is' clause in the written agreement would typically prevail under contract law.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Vehicle Sales Process and Documentation 6