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 OMVIC's Code of Ethics, a dealer who discovers a known defect in a vehicle after the sale has been completed should:
Answer: Contact the buyer and disclose the defect as soon as possible
OMVIC's Code of Ethics requires dealers to act honestly and disclose material facts even after a sale, particularly regarding safety-related defects.
A dealer is selling a vehicle on consignment. Under the MVDA, how must this arrangement affect the sales documentation?
Answer: The consignment arrangement must be disclosed to the buyer
When selling on consignment, the dealer must disclose that the vehicle is being sold on behalf of a third party, which is a material fact for the buyer.
What is the correct procedure when a dealer realizes that a vehicle's odometer reading cannot be certified because of an instrument cluster replacement?
Answer: Disclose on the bill of sale that the true mileage is unknown
When true mileage cannot be confirmed, the dealer must state 'true mileage unknown' on the bill of sale rather than certifying an unverifiable reading.
Which of the following would be grounds for OMVIC to discipline a registered salesperson under the MVDA?
Answer: Failing to disclose prior taxi use of a vehicle to a buyer
Failing to make mandatory disclosures such as prior taxi use is a breach of the MVDA and OMVIC's Code of Ethics, subject to disciplinary action.
A buyer is financing a vehicle through a dealer. Under OMVIC regulations, the cost of borrowing (interest charges) must be:
Answer: Clearly disclosed in writing as part of the financing agreement
Consumer protection laws require full written disclosure of financing costs including the total cost of borrowing in the financing agreement.
When can a registered dealer legally refuse to refund a deposit to a buyer who has decided not to proceed with a purchase?
Answer: When the buyer cancels without cause after the dealer incurred specific documented costs on the buyer's behalf
A dealer may retain all or part of a deposit if the buyer cancels without valid cause and the dealer can demonstrate actual losses incurred in reliance on the agreement.
Under the MVDA 2002, what is the prescribed minimum information that must appear on a vehicle inspection certificate presented at time of sale?
Answer: The VIN, inspection date, inspector's name, and all items inspected with results
A safety standards certificate must include the VIN, inspection date, inspector identification, and the results for all required inspection items.