Contracts and Consumer Rights Flashcards

Under the MVDA 2002, what warranty protection generally applies to used vehicles sold by registered dealers?

Answer: Implied conditions of fitness and merchantable quality apply unless the vehicle is sold 'as is'

Under Ontario law, used vehicles sold by dealers carry implied conditions of fitness and merchantable quality, which can only be excluded through a clear and conspicuous 'as is' disclosure.

When a used vehicle is sold 'as is' by a registered dealer, what does this mean for the consumer?

Answer: The consumer accepts the vehicle in its current condition, but protections against dealer misrepresentation still apply

'As is' means the buyer accepts the vehicle's existing condition, but dealers still cannot make false or misleading representations about material facts even in 'as is' transactions.

Which of the following is a prohibited representation under OMVIC regulations?

Answer: Claiming a vehicle has never been in an accident when collision repairs are on record

Falsely claiming a vehicle has no accident history when collision repairs exist on record is a prohibited misrepresentation under the MVDA 2002 and OMVIC regulations.

Before selling a vehicle with a rebuilt or salvage title in Ontario, a registered dealer must:

Answer: Clearly disclose the salvage or rebuilt status to the buyer before the sale is completed

Dealers must clearly disclose salvage or rebuilt title status to buyers prior to purchase, as this is a material fact that significantly affects vehicle value and insurability.

A registered dealer is found to have rolled back a vehicle's odometer. Under the MVDA 2002, this violation could result in:

Answer: Fines of up to $50,000 and potential licence revocation

Odometer fraud is a serious violation that can result in significant OMVIC fines and licence revocation under the MVDA 2002, as well as potential criminal charges.

When selling a demonstrator vehicle as 'new,' what must a registered dealer disclose under OMVIC rules?

Answer: Prior demonstrator use, any significant prior damage, and repairs above a specified threshold

For demonstrator or previously used 'new' vehicles, dealers must disclose prior demonstrator use, significant damage history, and repairs — these are material facts buyers are entitled to know.

Within what general timeframe can a consumer file a complaint with OMVIC regarding a dealer violation?

Answer: Within 2 years of the incident or discovery

Consumers generally have up to 2 years to file a complaint with OMVIC regarding a dealer violation, consistent with Ontario's standard limitation periods under the Limitations Act.