OMVIC MVDA and Legislation Flashcards

Under the Motor Vehicle Dealers Act (MVDA), 2002, which classes of persons are required to be registered with OMVIC?

Answer: Motor vehicle dealers, motor vehicle salespersons, and motor vehicle brokers who trade in Ontario

The MVDA requires that anyone who carries on the business of trading in motor vehicles in Ontario — including dealers, salespersons, and brokers — must be registered with OMVIC. Trading without registration is a provincial offence.

What is the role of OMVIC's Discipline Committee under the MVDA?

Answer: To hear and decide cases where OMVIC's Registrar has proposed to revoke, suspend, or impose conditions on a registrant's registration

OMVIC's Discipline Committee is an adjudicative body that hears cases where the Registrar proposes adverse action against a registrant, such as revoking or suspending their registration or imposing conditions. It ensures procedural fairness for registrants facing regulatory action.

Under the MVDA and OMVIC regulations, what must a dealer do when they take a vehicle in on consignment for sale?

Answer: Enter into a written consignment agreement with the owner specifying the terms, and disclose to buyers that the vehicle is being sold on consignment

Consignment sales require a written agreement between the dealer and the vehicle's owner. Dealers must also disclose the consignment arrangement to prospective buyers, as this affects representations about the vehicle's history and the dealer's knowledge of it.

The MVDA grants OMVIC inspectors the authority to:

Answer: Enter registered dealer premises, examine records, and inspect vehicles to ensure compliance with the MVDA

OMVIC inspectors have statutory powers under the MVDA to enter dealer premises, examine books and records, and inspect vehicles as part of compliance audits or complaint investigations. These are administrative inspection powers, not criminal enforcement powers.

Under the MVDA, which of the following is a ground for refusing to grant or renew a dealer's registration?

Answer: The applicant has been convicted of a relevant criminal offence or has a history of conduct that demonstrates they are not suitable to act as a dealer

The MVDA gives the Registrar broad grounds to refuse registration, including past criminal convictions for relevant offences and a history of conduct inconsistent with the honest and competent carrying on of the vehicle trade. Character and suitability are key criteria.

Which regulation made under the MVDA establishes the specific requirements for what must be included in a vehicle purchase contract?

Answer: Ontario Regulation 333/08 (General) under the MVDA

Ontario Regulation 333/08 made under the MVDA is the key general regulation that prescribes contract requirements, records retention, consignment rules, advertising standards, and other operational requirements for registered dealers and salespersons.