OMVIC Warranties and Vehicle Condition Representations Flashcards

In Ontario, what is the general rule regarding mandatory warranties for used vehicles sold by registered dealers?

Answer: Ontario does not impose a mandatory statutory warranty on used vehicles sold by dealers

Ontario has no mandatory statutory warranty for used vehicles sold by registered dealers, meaning warranty terms are negotiated voluntarily between the parties.

When a dealer knowingly makes a false statement about a vehicle's accident history to induce a sale, this constitutes:

Answer: Fraudulent misrepresentation

Knowingly making a false statement of fact to induce a buyer to enter a contract constitutes fraudulent misrepresentation, exposing the dealer to serious civil and regulatory liability.

In vehicle sales, 'puffery' refers to:

Answer: General promotional statements that reasonable buyers would not treat as factual guarantees

Puffery consists of exaggerated, non-specific sales talk such as 'this is the best car you'll ever drive' that no reasonable person would rely on as a factual guarantee, and it does not create legal liability.

Even in an 'as-is' vehicle sale, a registered dealer is still obligated to:

Answer: Disclose all known material defects to the buyer

Regardless of an 'as-is' designation, dealers must disclose all known material defects; failing to do so may constitute fraudulent misrepresentation.

Under the Consumer Protection Act, 2002, which statement about buyer protections in a vehicle sale is TRUE?

Answer: Certain CPA protections, such as those against unconscionable representations, cannot be waived

The Consumer Protection Act, 2002 contains core protections against unconscionable representations and unfair practices that cannot be contracted away, regardless of what documents the buyer signs.

A dealer sells a vehicle representing it as a 'one-owner' car when it actually had four previous owners. The buyer's most likely legal remedy is:

Answer: Rescission of the contract and potentially damages for misrepresentation

Misrepresenting the number of previous owners is a material misrepresentation that may entitle the buyer to rescind the contract and seek damages from the dealer.

Which organization is responsible for handling consumer complaints against registered motor vehicle dealers in Ontario?

Answer: The Ontario Motor Vehicle Industry Council (OMVIC)

OMVIC is the regulatory body that oversees registered motor vehicle dealers and salespeople in Ontario and is the primary body for investigating consumer complaints about dealer conduct.