OMVIC Mandatory Disclosures and Consumer Protection Flashcards

Under OMVIC's advertising standards, a dealer must include which element in all advertised prices for vehicles?

Answer: All fees and charges that the consumer will be required to pay, excluding HST and licensing

OMVIC advertising standards require dealers to use all-in pricing that includes all mandatory fees and charges (other than HST and licensing) so consumers can make accurate comparisons.

A consumer alleges that a dealer's salesperson verbally promised a free one-year oil change service at the time of sale. This promise was not included in the written purchase agreement. Under the MVDA, what is the status of this promise?

Answer: Verbal promises not included in the written agreement are difficult to enforce; the written agreement governs the transaction

While misrepresentation is actionable, verbal promises not recorded in the written purchase agreement are difficult to enforce; consumers should insist all promises are documented in writing.

A consumer notices that the final bill of sale includes a $399 'window etching' charge they did not request or authorize. Under OMVIC consumer protection rules, the consumer:

Answer: Has the right to refuse and have the charge removed, as unauthorized additions to the contract are not permissible

Adding unauthorized products or charges to a consumer's contract without their prior knowledge and consent violates OMVIC's consumer protection standards; the consumer has the right to have it removed.

OMVIC requires all registered dealers to display their registration certificate at their place of business. Why is this a consumer protection measure?

Answer: It allows consumers to confirm the dealer is licensed and subject to OMVIC's regulatory oversight and Compensation Fund protection

Displaying the registration certificate confirms to consumers that the dealer is regulated by OMVIC, giving them access to regulatory protections including the Compensation Fund.

Under the MVDA, what obligation does a dealer have when a consumer asks for the total cost of financing, including all interest and charges?

Answer: The dealer must provide a clear disclosure of the total cost of borrowing, including the APR and total amount payable

Consumer protection under the MVDA and federal cost of credit rules requires full disclosure of the APR and total cost of borrowing so consumers can make informed financing decisions.

A consumer who purchased a vehicle from a dealer later discovers the vehicle was involved in a collision but the dealer has gone out of business. The consumer may be able to claim compensation from:

Answer: The Motor Vehicle Dealers Compensation Fund, if the dealer was registered at the time of sale and the loss resulted from fraud or dishonesty

The Compensation Fund provides recourse even after a dealer closes, as long as the dealer was registered at the time of the fraudulent transaction and the claim meets fund criteria.

An OMVIC inspector arrives at a dealership without prior notice to conduct a compliance inspection. Under the MVDA, the dealer is required to:

Answer: Allow the inspector access to the premises, records, and vehicles as required by the inspection

OMVIC inspectors have authority under the MVDA to conduct unannounced inspections; dealers must cooperate and provide access to records and premises as required.