OMVIC 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 OMVIC MVDA and Legislation flashcards as text
Under the MVDA, what is the minimum period a dealer must retain a copy of a completed contract of purchase and sale?
Answer: 3 years
Dealers are required to keep copies of completed contracts and related transaction records for a minimum of three years.
Which of the following is an example of an unfair practice prohibited under the MVDA's consumer protection provisions?
Answer: Representing a used vehicle as new
Misrepresenting a used vehicle as new is an unfair practice under the MVDA and constitutes deceptive dealing.
OMVIC's Registrar has the authority to conduct inspections of a dealership under the MVDA. Which of the following cannot be demanded during such an inspection?
Answer: The dealer's personal tax returns unrelated to the business
OMVIC inspectors can examine business records relevant to the dealership, but personal tax returns unrelated to the business are beyond the scope of an MVDA inspection.
Under OMVIC rules, when a dealer takes a trade-in vehicle, the dealer must provide the customer with:
Answer: Written confirmation of the trade-in value and vehicle identification
The dealer must document the agreed trade-in value and identify the trade-in vehicle in writing as part of the transaction record.
A consumer signs a purchase contract at a dealership but wishes to cancel it the following day citing buyer's remorse. Under the MVDA, what is the general rule?
Answer: There is no automatic right to cancel; the dealer's cancellation policy governs
Unlike some consumer contracts, there is no statutory cooling-off period for motor vehicle purchases under the MVDA; cancellation rights depend on the contract terms and circumstances.
Under the MVDA, which of the following situations would most likely constitute 'conducting business from an unregistered location'?
Answer: A salesperson regularly meeting clients and closing deals from a personal residence not listed on the registration
Using an unregistered location — such as a personal residence — to habitually conduct sales activities violates the MVDA requirement that all business locations be registered.
The MVDA requires dealers to place customer deposits into a trust account. Which statement about this trust obligation is correct?
Answer: Deposits must be kept separate from the dealer's general operating funds at all times
Customer deposits must be held in a designated trust account and kept completely separate from the dealer's general funds, regardless of the deposit amount or vehicle type.