OMVIC Vehicle Sales Process and Documentation Flashcards
7 cards from real OMVIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 OMVIC Vehicle Sales Process and Documentation flashcards as text
Under the MVDA 2002, which of the following is considered a 'material fact' that a dealer must always disclose to a buyer?
Answer: That the vehicle was previously used as a police cruiser
Prior use as a police vehicle is a specifically enumerated mandatory material fact disclosure under OMVIC regulations.
A buyer signs a purchase agreement for a new vehicle but later discovers the model is delayed by 6 months. Under the MVDA, what right does the buyer have?
Answer: Cancel the agreement and receive a full deposit refund
If a dealer cannot deliver a vehicle within a reasonable time or as specified, the buyer is entitled to cancel and receive a full deposit refund.
What is the primary purpose of requiring dealers to record the odometer reading on the bill of sale under OMVIC/MVDA?
Answer: To help prevent and detect odometer fraud
Recording the odometer reading at time of sale creates a documented baseline that helps detect and deter odometer rollback fraud.
A buyer wants to cancel a purchase agreement for a vehicle bought at a dealership three days after signing. Under Ontario law, does the buyer have a cooling-off cancellation right?
Answer: No, there is no cooling-off period for in-dealership vehicle purchases
Ontario's Consumer Protection Act cooling-off rights apply to door-to-door sales, not to purchases made at a permanent business establishment like a car dealership.
When a dealer accepts a trade-in with an outstanding lien, what is the dealer's obligation under OMVIC regulations?
Answer: Ensure the lien is paid out from the trade-in proceeds and title is clear before reselling
Dealers who accept trade-ins with outstanding liens must discharge those liens from the proceeds to ensure clear title before the trade-in can be resold.
Which of the following must a dealer disclose if known, even if the damage was repaired and the vehicle looks normal?
Answer: Accident damage where repairs exceeded $3,000
Accident damage repairs exceeding $3,000 must be disclosed regardless of how well the vehicle was repaired or how cosmetically sound it appears.
A salesperson verbally promises a buyer that the vehicle comes with an extended warranty, but this is not written in the bill of sale. Under OMVIC standards, what is the legal status of this promise?
Answer: It may not be enforceable as vehicle sales contracts must be in writing
Under the MVDA, all material terms including warranties must be in writing on the bill of sale to be reliably enforceable; verbal promises are difficult to enforce.