Legal Requirements Flashcards

Under OMVIC regulations, what is the maximum period a dealer can hold a deposit before returning it if a vehicle sale does not proceed?

Answer: As soon as reasonably possible

OMVIC requires dealers to return deposits as soon as reasonably possible when a sale does not proceed, with no set fixed maximum period.

Which document must an OMVIC-registered dealer provide to a consumer before finalizing a used vehicle sale that discloses known defects?

Answer: Mechanical Fitness Assessment (MFA)

Dealers must offer consumers a Mechanical Fitness Assessment (MFA) for used vehicles to disclose the vehicle's mechanical condition.

Under the Motor Vehicle Dealers Act (MVDA), what happens if a dealer fails to register with OMVIC and sells vehicles?

Answer: They may face fines and criminal prosecution

Operating as an unregistered dealer is illegal under the MVDA and can result in significant fines and criminal prosecution.

When a dealer advertises a vehicle price, OMVIC rules require that the advertised price must:

Answer: Include all fees except government taxes

OMVIC's Truth in Advertising rules require that advertised prices include all fees and charges except government taxes.

A consumer purchases a vehicle and later discovers the odometer was rolled back. Under OMVIC regulations, this constitutes:

Answer: A material misrepresentation and fraud

Odometer rollback is a serious offense constituting material misrepresentation and fraud under OMVIC and provincial law.

Under OMVIC's registration requirements, how often must a dealer renew their registration?

Answer: Every year

OMVIC dealer registrations must be renewed annually to remain in good standing.

If an OMVIC dealer sells a vehicle 'as-is,' what legal obligation does the dealer still have?

Answer: Must disclose all known material defects

Even when selling 'as-is,' dealers must still disclose all known material defects — 'as-is' does not permit concealment of known problems.