OMVIC - Ontario Motor Vehicle Industry Council Contracts and Consumer Rights Questions and Answers

Question 1

Under Ontario's Motor Vehicle Dealers Act (MVDA), which of the following gives a consumer the right to cancel a vehicle purchase contract within 90 days of delivery?

Accepted Answer

The contract failed to disclose that the vehicle was previously used as a police cruiser.

Answer

The consumer found a better price for the same vehicle at another dealership.

Answer

The consumer was not approved for financing with the terms they wanted.

Answer

The consumer decides they no longer like the colour of the vehicle.

Question 2

A dealership advertises a used car for $15,000. According to OMVIC's 'All-In Price Advertising' regulations, what is the only additional amount that can be charged on top of this advertised price?

Accepted Answer

Harmonized Sales Tax (HST) and the actual cost of licensing.

Answer

Administration fees and freight charges.

Answer

A mandatory extended warranty and tire stewardship fee.

Answer

The cost of the safety standard certificate and the OMVIC transaction fee.

Question 3

A customer signs a contract to purchase a new vehicle. Two days later, they experience 'buyer's remorse' and want to cancel the deal. What is the general rule in Ontario regarding this situation?

Accepted Answer

There is no general 'cooling-off period' for vehicle contracts in Ontario, and the sale is considered final once signed.

Answer

The customer has a mandatory 48-hour 'cooling-off period' to cancel any contract.

Answer

The contract can be cancelled without penalty if the vehicle has not yet been delivered.

Answer

The customer can cancel but will automatically forfeit their entire deposit, regardless of the amount.

Question 4

A salesperson tells a customer that a used vehicle has never been in an accident. The customer later discovers the vehicle had $4,000 in collision repairs. Under the Consumer Protection Act (CPA), this could be considered an example of what?

Accepted Answer

An unfair practice (a false or misleading representation).

Answer

A breach of contract.

Answer

A failure of all-in pricing.

Answer

A non-material fact disclosure error.

Question 5

A bill of sale for a used vehicle shows the odometer reading as 80,000 km. Upon delivery, the customer notices the actual odometer reading is 81,500 km. What are the customer's rights in this situation according to the MVDA?

Accepted Answer

The customer can demand immediate cancellation of the contract and a full refund.

Answer

The customer must accept the vehicle as the discrepancy is minor.

Answer

The dealer is required to provide a cash discount for the extra mileage.

Answer

The dealer has 30 days to correct the odometer reading on the vehicle.

Question 6

Which of the following scenarios would legally require a written disclosure on the vehicle sale contract?

Accepted Answer

The vehicle was previously registered in another province.

Answer

The previous owner was a smoker.

Answer

The vehicle's tires were replaced with a different brand.

Answer

The vehicle was used to commute to work daily.