OMVIC Code of Ethics Scenarios Flashcards

A used vehicle dealer marks up the price of a vehicle for a visible minority customer compared to prices quoted to other customers for an identical vehicle, without any objective business reason. Under the OMVIC Code of Ethics:

Answer: Discriminatory pricing violates the Code's requirement to deal fairly with all consumers

The Code of Ethics requires fair dealing with all consumers; discriminatory pricing based on protected characteristics violates both the Code and Ontario's Human Rights Code.

A dealer delivers a vehicle to a consumer after the safety certificate was issued. The dealer subsequently discovers the mechanic who issued the certificate did not inspect the brakes. What is the ethical obligation of the dealer?

Answer: Contact the consumer immediately, disclose the certification issue, and arrange a proper brake inspection

Safety-related certification failures that come to light after delivery require immediate disclosure to the consumer; the dealer's duty of honesty and consumer protection require prompt action.

A registered salesperson at a buy-here-pay-here lot knows that the interest rates charged to consumers are extremely high and that many buyers do not understand the total cost of credit. The Code of Ethics requires the salesperson to:

Answer: Ensure consumers clearly understand the total cost of credit and all financing terms before signing

The Code of Ethics and consumer protection principles require that consumers understand material financial terms including interest rates and total cost of credit before committing.

A sales manager at a used car dealership notices that one of their salespeople has been consistently misrepresenting warranty terms to close deals. The manager thinks the misrepresentations are minor and does not intervene. This is:

Answer: An ethical failure by the manager because supervisors must correct known misconduct within their team

The Code of Ethics imposes supervisory responsibilities on managers; knowingly ignoring repeated misconduct by subordinates is itself an ethical failure.

A consumer has a signed purchase agreement and shows up to take delivery, but the vehicle has been sold to another buyer at a higher price. The dealer tries to substitute a different, less desirable vehicle. Under the Code of Ethics:

Answer: The dealer must honour the original agreement or provide a full refund; substituting a vehicle without consent is a breach

Honouring agreements is a fundamental element of honest dealing; selling a reserved vehicle to another buyer and then trying to substitute a different vehicle without consumer consent is a clear ethical breach.

A consumer puts a $500 deposit on a vehicle and signs an agreement stating the deposit is 'non-refundable.' The next day the consumer discovers the dealer misrepresented the vehicle's accident history and wishes to cancel. Under OMVIC guidelines:

Answer: Non-refundable deposit clauses do not override the consumer's right to rescind based on misrepresentation

Consumer protection principles and OMVIC guidelines provide that misrepresentation vitiates the agreement; a 'non-refundable' clause cannot be used to retain deposits obtained through dishonest conduct.

A salesperson at a new car dealership is aware that the factory allocation of a highly demanded vehicle is limited, and the dealership adds a $5,000 'market adjustment' markup above MSRP. However, when advertising, the dealership only shows the MSRP. Under the Code of Ethics:

Answer: Advertising MSRP without disclosing the market adjustment markup is misleading to consumers

OMVIC advertising standards require all-in pricing transparency; advertising MSRP when the actual selling price includes a mandatory markup misleads consumers.