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OMVIC Dealer Operations and Business Practices 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 OMVIC Dealer Operations and Business Practices flashcards as text

  1. An OMVIC-registered dealer sells a vehicle 'as-is.' Under Ontario consumer protection law, which statement is correct?

    Answer: The dealer is still liable for known defects not disclosed to the buyer

    Even in an 'as-is' sale, a registered dealer must disclose known material defects; concealment can constitute misrepresentation.

  2. When a dealer takes a vehicle in on trade, the dealer must provide the trade-in value to the customer:

    Answer: As a separately itemized figure in the bill of sale

    OMVIC regulations require the trade-in value to be separately disclosed in the purchase agreement so buyers can see the actual credit applied.

  3. A dealer charges a buyer an 'administrative fee' not mentioned in the advertised price. Under OMVIC's all-in pricing rules, this is:

    Answer: A violation — all mandatory fees must be included in the advertised price

    OMVIC's all-in price advertising rules require that all mandatory fees be included in the advertised price, not added at the point of sale.

  4. Under OMVIC registration conditions, a dealer operating a curbsider operation (unlicensed dealer posing as private seller) could face:

    Answer: Fines up to $50,000 and/or imprisonment under the MVDA

    Operating as an unregistered dealer is a serious offence under the Motor Vehicle Dealers Act, carrying fines up to $50,000 and possible imprisonment.

  5. A dealer wants to sell vehicles at a temporary off-site location such as a fairground. Under OMVIC rules, the dealer must:

    Answer: Obtain permission from OMVIC and ensure the location meets approval requirements

    OMVIC requires dealers to obtain prior approval before conducting sales at locations other than their registered business address.

  6. Which of the following is a dealer's obligation regarding the Trillium Gift of Life Network (organ donation) under Ontario vehicle sales law?

    Answer: There is no obligation related to organ donation in vehicle sales

    Ontario motor vehicle dealers have no statutory obligation relating to organ donation under vehicle sales or OMVIC legislation.

  7. When a dealer arranges third-party financing for a customer, OMVIC requires the dealer to:

    Answer: Disclose all material terms of the financing arrangement to the buyer

    Dealers must disclose all material financing terms — including interest rate, total cost of borrowing, and payment schedule — so buyers can make informed decisions.