Legal Requirements Flashcards

Under OMVIC rules, which of the following is a salesperson required to disclose when selling a vehicle previously used as a rental?

Answer: That the vehicle was previously used as a rental

Previous rental use is a material fact that dealers must proactively disclose to consumers under OMVIC's disclosure requirements.

Under the MVDA, who is responsible for ensuring that all salespeople working at a dealership are properly registered with OMVIC?

Answer: The registered dealer (owner/operator)

The registered dealer bears responsibility for ensuring all salespeople on their roster are properly registered with OMVIC.

A dealer's registration is suspended by OMVIC. During the suspension period, the dealer may:

Answer: Not buy, sell, or trade in motor vehicles

A suspended dealer is prohibited from all buying, selling, and trading of motor vehicles during the suspension period.

Which of the following is NOT a ground for OMVIC to refuse or revoke a dealer's registration?

Answer: Insufficient business experience

OMVIC cannot refuse registration solely based on insufficient business experience; the grounds relate to honesty, financial fitness, and compliance history.

Under OMVIC regulations, a contract of purchase and sale for a motor vehicle must be provided to the buyer:

Answer: At the time of signing

The dealer must provide the buyer with a copy of the signed contract at the time of signing, not after the fact.

OMVIC's Compensation Fund provides financial protection to consumers who suffer losses due to:

Answer: Fraudulent acts by a registered dealer

The OMVIC Compensation Fund compensates consumers for financial losses caused by fraudulent acts or misrepresentations by registered dealers.

When a vehicle dealer takes a trade-in, OMVIC regulations require that the value of the trade-in must be:

Answer: Clearly stated in the purchase contract

The agreed trade-in value must be clearly disclosed and documented in the written purchase contract.