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 obligation does the MVDA place on a registered dealer regarding known material facts about a vehicle?
Answer: Dealers must disclose all known material facts that could reasonably affect a buyer's decision to purchase
The MVDA imposes a duty on dealers to proactively disclose all known material facts, not just those meeting an arbitrary damage threshold.
Which of the following advertising claims would comply with OMVIC's advertising standards?
Answer: 'All-in price of $24,995 plus applicable taxes and licensing' reflecting all dealer fees
An all-in price that includes all dealer-controlled fees and clearly states that only taxes and licensing are extra is fully compliant with OMVIC advertising requirements.
When OMVIC investigates a consumer complaint against a registered dealer, what role does OMVIC play?
Answer: OMVIC investigates and may take regulatory action, but does not act as an advocate in civil disputes between the parties
OMVIC is a regulatory body that investigates and enforces the MVDA but does not resolve civil disputes or act as the consumer's legal representative.
OMVIC's Code of Ethics applicable to registered dealers and salespeople is best described as:
Answer: A legislatively backed standard whose violation can result in disciplinary action including suspension or revocation of registration
The Code of Ethics is incorporated into the regulatory framework under the MVDA, and breaches can lead to serious disciplinary outcomes including loss of registration.
In the context of the MVDA, the term 'retail sale' of a motor vehicle primarily refers to:
Answer: A sale made directly to an end-use consumer who does not intend to resell the vehicle
A retail sale is a transaction with an end consumer, distinguishing it from wholesale transactions between registered dealers.
A salesperson makes a fraudulent misrepresentation to a buyer about a vehicle's accident history. Under the MVDA, who may face regulatory consequences?
Answer: Both the salesperson and the registered dealer can face regulatory action
Under the MVDA, both the salesperson who committed the act and the registered dealer can be subject to regulatory action, as the dealer is responsible for the conduct of their staff.
If a dealer advertises a specific financing rate under OMVIC guidelines, which disclosure is required?
Answer: The advertised rate must be accompanied by clear disclosure of terms, conditions, and eligibility criteria
Advertising financing rates without disclosing the full terms, conditions, and who qualifies is misleading and violates OMVIC's advertising standards.