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
OMVIC was established as the delegated administrative authority under which Ontario legislation?
Answer: Motor Vehicle Dealers Act, 2002
The Motor Vehicle Dealers Act, 2002 (MVDA) is the legislation under which OMVIC was given authority to register and regulate dealers and salespeople in Ontario.
Under the MVDA, when must a registered dealer provide the buyer with a written purchase contract?
Answer: Before or at the time the transaction is completed
The MVDA requires that the written contract be provided before or at the time the deal is completed so the buyer has full documentation of what was agreed.
Which of the following is NOT a function authorized under the MVDA for OMVIC?
Answer: Setting maximum retail selling prices for motor vehicles in Ontario
OMVIC regulates the conduct of registrants and enforces the MVDA, but has no authority to control vehicle pricing — that is determined by market forces.
A dealer completes a vehicle sale but fails to properly transfer the certificate of registration (ownership document) to the buyer. This failure:
Answer: Violates the dealer's obligations under the MVDA to complete the transaction properly
Properly completing a vehicle transaction — including facilitating ownership transfer — is part of a registered dealer's obligations under the MVDA.
When a customer provides a deposit on a vehicle, what must a registered dealer do under the MVDA?
Answer: Issue a written receipt and, if the sale is conditional, hold the deposit in trust
Dealers must issue a written receipt for deposits and, where the sale is conditional, hold those funds in trust separate from operating accounts.
A dealer who purchases vehicles at wholesale auctions for resale exclusively to other registered dealers, and not to retail consumers, would typically hold which class of OMVIC registration?
Answer: Wholesaler
A Wholesaler class registration covers dealers who buy and sell motor vehicles only to or from other registered dealers, not directly to the public.
Under OMVIC's advertising requirements, which piece of information must appear in all dealer advertisements?
Answer: The dealer's OMVIC registration number
Including the OMVIC registration number in all advertisements allows consumers to verify the dealer's registration status and is a mandatory requirement under OMVIC's advertising standards.