MVDA and Legislation 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 MVDA and Legislation flashcards as text
What is the primary purpose of the Motor Vehicle Dealers Compensation Fund (MVDCF) under the MVDA?
Answer: To compensate consumers who suffer financial loss due to the fraudulent or dishonest conduct of a registered dealer or salesperson
The MVDCF is a consumer protection fund that provides compensation to eligible buyers who have lost money due to fraudulent or dishonest acts by a registrant.
Which prior use of a vehicle must a registered dealer disclose on the Condition Disclosure Statement?
Answer: The vehicle was previously used as a daily rental or police vehicle
Dealers must disclose on the CDS if a vehicle was previously used as a taxi, limousine, police car, emergency vehicle, or daily rental, as these uses can significantly affect value and condition.
If OMVIC determines that a registered dealer has engaged in fraudulent conduct, what regulatory action can OMVIC take?
Answer: Suspend or revoke the dealer's registration and impose conditions or restrictions
OMVIC has authority under the MVDA to suspend, revoke, or impose conditions on a registrant's registration for fraudulent or dishonest conduct.
Under the MVDA, which of the following best describes the scope of the term 'motor vehicle'?
Answer: Automobiles, trucks, motorcycles, motor-assisted bicycles, and other prescribed motorized vehicles
The MVDA applies to a broad category of motorized vehicles including motorcycles, snowmobiles, and other prescribed vehicles, not just passenger cars.
A dealer completes a vehicle sale without providing the buyer with any written contract. Under the MVDA, this failure is:
Answer: A violation of the MVDA that can result in regulatory action against the dealer
The MVDA requires dealers to provide buyers with a written contract, and failure to do so is a violation subject to regulatory action.
Which statement correctly describes the nature of a salesperson's OMVIC registration?
Answer: It is tied to a specific registered dealer, and trading vehicles outside that authorization is prohibited
A salesperson's registration is linked to a specific registered dealer, and the salesperson may only trade motor vehicles on behalf of that dealer.
A dealer advertises a vehicle at $19,999 but adds undisclosed dealer administration and documentation fees at the point of sale. Under OMVIC rules, this practice is:
Answer: A violation of advertising standards, because all dealer-controlled fees must be included in the advertised price
OMVIC's all-in pricing requirement mandates that dealer-controlled fees be included in the advertised price to prevent deceptive low-price advertising.