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Motor Vehicle Dealers Compensation Fund Flashcards

6 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 6 Motor Vehicle Dealers Compensation Fund flashcards as text

  1. What is the maximum amount a consumer can recover from the Motor Vehicle Dealers Compensation Fund for a single claim?

    Answer: $45,000

    $45,000 is the legislated maximum payout per claim under the MVDA. This cap applies regardless of the total loss suffered by the consumer.

  2. Who funds the Motor Vehicle Dealers Compensation Fund?

    Answer: Registered dealers through a transaction fee remitted for each vehicle sold or leased

    Registered dealers remit a transaction fee to OMVIC for every vehicle sold or leased, including fleet and as-is transactions. These fees fund the Compensation Fund.

  3. How much is the transaction fee that a registered dealer must remit to OMVIC for each vehicle sold or leased?

    Answer: $10 per vehicle

    $10 per transaction is the prescribed fee dealers must remit to OMVIC for each vehicle sold or leased, which flows into the Compensation Fund.

  4. When must a registered dealer remit their transaction fees to OMVIC?

    Answer: Annually, with their dealer registration renewal

    Transaction fees are remitted annually at the same time the dealer submits their registration renewal fee, not on a per-sale or quarterly basis.

  5. Which of the following scenarios would most likely qualify for a valid claim against the Motor Vehicle Dealers Compensation Fund?

    Answer: A consumer suffers a financial loss because a registered dealer committed fraud in the sale

    The Compensation Fund exists to reimburse consumers who suffer financial losses as a direct result of a registered dealer's fraudulent or dishonest conduct. Buyer's remorse and valuation disputes are not covered.

  6. A consumer's vehicle purchase results in a $60,000 loss due to dealer fraud. How much can they recover from the Compensation Fund?

    Answer: $45,000, because that is the maximum per-claim limit under the MVDA

    The MVDA caps Compensation Fund payouts at $45,000 per qualifying claim. The consumer could pursue the dealer directly for the remaining $15,000 through civil action.