MVDA and Legislation Flashcards

According to the Motor Vehicle Dealers Act (MVDA), what is the 'all-in pricing' rule for vehicle advertisements?

Answer: The advertised price must include all fees and charges a dealer intends to collect, except for HST and licensing.

The MVDA requires that the advertised price for a motor vehicle must include all fees and charges the dealer intends to collect. The only exceptions are the Harmonized Sales Tax (HST) and licensing fees, which must be clearly and prominently indicated as extra.

A consumer purchases a used vehicle from an OMVIC-registered dealer. Two weeks later, they discover the vehicle was previously used as a daily rental, a fact that was not disclosed on the bill of sale. Under the MVDA, what is the consumer's primary recourse?

Answer: The consumer may have the right to cancel the contract and return the vehicle.

The MVDA has mandatory disclosure requirements for dealers. Failing to disclose that a vehicle was previously a daily rental is a significant omission. This may give the consumer the right to rescind (cancel) the contract within a specific timeframe because it's a material fact that was not disclosed.

Which of the following statements about a dealer's responsibility under the OMVIC Code of Ethics is MOST accurate?

Answer: A salesperson must not engage in any activity that would cause the dealer to breach the Code of Ethics.

The OMVIC Code of Ethics outlines the professional standards of conduct for both dealers and salespeople. A key principle is that a salesperson, as a representative of the dealership, must act ethically and not lead the dealer into a breach of the code. Dealers are ultimately responsible for the actions of their employees. The code also applies to dealer-to-dealer transactions to ensure fairness in the marketplace.

When advertising a vehicle as 'as-is', what specific disclosure must be included in the advertisement according to MVDA regulations?

Answer: A specific, mandated statement explaining the vehicle may not be roadworthy and may require substantial repairs at the purchaser's expense.

Simply stating 'as-is' is not enough. The MVDA requires a very specific statement to be included in any advertisement for an 'as-is' vehicle. This statement clearly informs potential buyers that the vehicle is unfit, not e-tested, not represented as roadworthy, and may require significant repairs at their own cost.

A dealer advertises a car for a specific price. A customer comes in and is told that the advertised price is only for financing and the cash price is $1,000 higher. According to OMVIC's advertising guidelines, this practice is:

Answer: Permitted, provided both the finance price and the cash price are clearly and prominently displayed in the advertisement.

Dealers are allowed to advertise different prices for cash and financing. However, to be compliant with the MVDA and OMVIC guidelines, both prices must be stated clearly, comprehensibly, and with equal prominence in the advertisement. It is misleading to only advertise the finance price and then surprise a cash buyer with a higher cost.

Under the MVDA, which of the following is NOT a mandatory written disclosure that a dealer must provide on the bill of sale for a used vehicle?

Answer: The name and address of the vehicle's previous owner.

While dealers must disclose many crucial facts about a vehicle's history and condition, the personal information of the previous owner is not one of the mandated disclosures under the MVDA. The other options are all specific, required disclosures designed to protect consumers by providing them with material facts about the vehicle they are purchasing.