OMVIC - Ontario Motor Vehicle Industry Council MVDA and Legislation Questions and Answers

Question 1

According to the Motor Vehicle Dealers Act (MVDA), what is the 'all-in pricing' rule for vehicle advertisements?

Accepted Answer

The advertised price must include all fees and charges a dealer intends to collect, except for HST and licensing.

Answer

The advertised price represents the vehicle's base price before any additional options or fees.

Answer

All-in pricing is optional for used vehicles but mandatory for new vehicles.

Answer

The price must include HST and licensing, but not administration or freight charges.

Question 2

A consumer purchases a used vehicle from an OMVIC-registered dealer. Two weeks later, they discover the vehicle was previously used as a daily rental, a fact that was not disclosed on the bill of sale. Under the MVDA, what is the consumer's primary recourse?

Accepted Answer

The consumer may have the right to cancel the contract and return the vehicle.

Answer

The consumer can only file a complaint with the vehicle manufacturer.

Answer

The dealer is not obligated to disclose previous use as a rental.

Answer

The consumer's only option is to sue the dealer in small claims court.

Question 3

Which of the following statements about a dealer's responsibility under the OMVIC Code of Ethics is MOST accurate?

Accepted Answer

A salesperson must not engage in any activity that would cause the dealer to breach the Code of Ethics.

Answer

The Code of Ethics is a set of voluntary guidelines with no real penalties for non-compliance.

Answer

Dealers are responsible for their own ethical conduct but not for that of their salespeople.

Answer

The Code of Ethics applies only to interactions with consumers, not to transactions between dealers.

Question 4

When advertising a vehicle as 'as-is', what specific disclosure must be included in the advertisement according to MVDA regulations?

Accepted Answer

A specific, mandated statement explaining the vehicle may not be roadworthy and may require substantial repairs at the purchaser's expense.

Answer

A statement that the vehicle comes with a 30-day limited warranty.

Answer

The phrase 'as-is' is sufficient on its own.

Answer

A list of all known defects and required repairs for the vehicle.

Question 5

A dealer advertises a car for a specific price. A customer comes in and is told that the advertised price is only for financing and the cash price is $1,000 higher. According to OMVIC's advertising guidelines, this practice is:

Accepted Answer

Permitted, provided both the finance price and the cash price are clearly and prominently displayed in the advertisement.

Answer

Acceptable, as dealers can set different prices for different payment methods.

Answer

Unacceptable and a violation of the all-in pricing rule.

Answer

Acceptable, but only if the higher cash price is mentioned in the fine print of the advertisement.

Question 6

Under the MVDA, which of the following is NOT a mandatory written disclosure that a dealer must provide on the bill of sale for a used vehicle?

Accepted Answer

The name and address of the vehicle's previous owner.

Answer

The total distance the vehicle has been driven, if determinable.

Answer

If the vehicle was previously declared a total loss by an insurance company.

Answer

If two or more adjacent body panels (excluding bumpers) have been replaced.