OMVIC Curbsiding and Illegal Sales Practices Flashcards

Under the MVDA 2002, what is the limitation period for laying charges against an individual suspected of curbsiding?

Answer: Two years from the date of the alleged offence

The MVDA 2002 has a two-year limitation period for laying charges, giving investigators time to build evidence before prosecution.

Which of the following is a legitimate tool OMVIC uses to identify curbsiders operating through online classifieds?

Answer: Monitoring publicly posted advertisements for patterns consistent with dealer activity

OMVIC investigators monitor publicly available classified advertisements to identify patterns — multiple listings, repeated contacts, rapid turnovers — that suggest commercial activity.

A dealer's registration under the MVDA covers which of the following activities?

Answer: Both the sale and lease of motor vehicles

OMVIC registration covers all forms of motor vehicle trading including retail sales, leasing, and wholesale activity.

A buyer realizes after purchase that the vehicle was previously used as a taxi, a fact the (unregistered) seller concealed. Under MVDA, this non-disclosure is:

Answer: A material misrepresentation that can support a civil claim regardless of seller registration, and grounds for criminal charges

Prior use as a taxi is a material fact; concealing it supports civil fraud claims, and the criminal misrepresentation may support charges under both MVDA and the Criminal Code.

Which of the following best explains why curbsiding is harmful to legitimate registered dealers?

Answer: Curbsiders undercut market prices because they avoid the compliance costs and obligations of registered dealers

Curbsiders avoid the costs of OMVIC registration, premises, insurance, and compliance, enabling them to undercut registered dealers who must bear those legitimate business costs.

An OMVIC registrant who is found to have engaged in curbsiding on behalf of unregistered third parties may have their registration:

Answer: Revoked and be prohibited from reapplying for registration

Serious MVDA violations including facilitation of illegal trade can result in revocation of registration and prohibition from future registration.

Which statement is TRUE regarding the OMVIC certification exam required for dealer registration?

Answer: All principals and salespeople of a registered dealership must complete the OMVIC certification course

Every person who works in a registered dealership in a sales or management role must complete the OMVIC certification course and pass the exam.