Contracts and Consumer Rights Flashcards
7 cards from real OMVIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts and Consumer Rights flashcards as text
When a vehicle purchase is financed through a dealership, what must the financing agreement disclose to the consumer?
Answer: The total amount financed, annual interest rate (APR), total cost of borrowing, and full payment schedule
Under Ontario's Consumer Protection Act, financing agreements must fully disclose the total amount financed, APR, total cost of borrowing, and all payment terms so consumers understand the true cost.
A dealer arranges financing for a buyer at 7.9% APR, but the lending institution's buy rate is 5.9%. The dealer's additional 2% earnings are commonly called:
Answer: A dealer reserve or financing markup
The additional interest rate above the lender's actual buy rate that a dealer earns is called a dealer reserve or finance reserve, which should be disclosed to consumers under OMVIC transparency requirements.
A buyer signs a purchase contract that is conditional on financing approval, but financing is subsequently denied. What is the typical outcome?
Answer: The contract becomes void and the buyer's deposit must be returned in full
A contract with a financing condition allows either party to cancel without penalty if financing cannot be secured, and any deposit paid must be returned to the buyer.
Under OMVIC regulations, if a dealer charges an administration fee, that fee must be:
Answer: Included in and disclosed through the all-in advertised price of the vehicle
Administration fees, if charged, must be incorporated into the all-in advertised price and cannot be added as a surprise charge at the point of sale.
What is the primary purpose of requiring motor vehicle dealers to be registered with OMVIC?
Answer: To ensure dealers meet professional, ethical, and financial standards that protect consumers
OMVIC registration ensures dealers meet education requirements, ethical standards, and financial accountability measures, providing consumers with confidence in the dealers they purchase from.
A consumer wants to verify that a dealership and its salespeople are legitimately registered with OMVIC. The most reliable method is to:
Answer: Search OMVIC's publicly accessible online dealer and salesperson registry
The OMVIC website maintains a public dealer and salesperson registry search tool that consumers can use to verify current registration status.
Under the MVDA 2002, what must happen to a consumer's deposit if a dealer is unable to deliver the vehicle as described in the signed contract?
Answer: The deposit must be returned to the consumer in full without deduction
If a dealer cannot fulfill the contracted vehicle delivery, the consumer's deposit must be fully refunded, as the dealer has failed to meet their contractual obligations.