OMVIC Code of Ethics Scenarios Flashcards

A salesperson at a used car lot tells a customer that the odometer reading of 85,000 km is accurate, but the salesperson has not verified this with a UVIP or any documentation. This statement may violate the Code of Ethics because:

Answer: Registrants must not make unverified representations about material facts such as odometer readings

The Code of Ethics requires that all representations about material facts be accurate and verifiable; asserting unverified odometer accuracy is a misrepresentation risk.

A consumer is buying a vehicle and the salesperson realizes there is a lien registered against it that the dealer has not yet discharged. The salesperson should:

Answer: Inform the consumer of the outstanding lien before the sale is finalized

Selling a vehicle with an undisclosed lien is contrary to honest dealing and could leave the consumer with an encumbered asset; disclosure before completion is ethically required.

After a sale is completed, a customer returns complaining the vehicle was misrepresented. The dealer's salesperson refuses to communicate with the customer and hangs up the phone. This conduct violates which principle of the OMVIC Code of Ethics?

Answer: Professionalism and the obligation to handle consumer complaints in a respectful and responsive manner

The Code of Ethics requires registrants to behave professionally at all times, including when dealing with dissatisfied customers; refusing to engage with a complaint is unprofessional conduct.

A dealership owner instructs their salesperson to describe a vehicle as 'accident-free' in all verbal and written communications, even though the owner knows it was in a minor collision. The salesperson who follows this instruction:

Answer: Is personally in violation of the Code of Ethics regardless of the instruction from ownership

Each registered salesperson is individually responsible for their own representations; following an instruction to misrepresent does not insulate a registrant from personal liability.

A consumer who cannot afford the listed price asks the salesperson to falsify their income on a financing application to qualify for a loan. The salesperson should:

Answer: Refuse and explain that falsifying a credit application is illegal and unethical

Falsifying a financing application is fraud; the Code of Ethics and the law prohibit registrants from participating in or facilitating fraudulent conduct regardless of consumer consent.

A salesperson is simultaneously representing both the buyer and the seller in the same private-sale facilitation transaction at the dealership. What does the Code of Ethics require?

Answer: Full disclosure of the dual representation to both parties and their informed consent

The Code of Ethics requires that conflicts of interest, including dual representation, be fully disclosed so that all parties can give informed consent.

A customer is pressured by a salesperson into signing a purchase agreement immediately, being told 'this price disappears in one hour and another buyer is waiting.' In reality, no competing buyer exists. This sales tactic:

Answer: Violates the Code of Ethics by using false urgency to pressure a consumer into a decision

The Code of Ethics prohibits high-pressure, deceptive tactics; fabricating competing buyers to coerce a decision is misrepresentation that violates the duty of honest dealing.