OMVIC Certification Exam — Questions and Answers

Question 1: What is the primary purpose of the OMVIC Motor Vehicle Dealers Compensation Fund?

To compensate consumers who suffer financial losses due to the fraudulent or dishonest actions of a registered dealer (Correct answer)
To provide loan guarantees for consumers who finance vehicles through dealers
To reimburse dealers who experience theft from their inventory
To fund OMVIC's public awareness campaigns about curbsiding

Correct answer: To compensate consumers who suffer financial losses due to the fraudulent or dishonest actions of a registered dealer

The Compensation Fund exists to compensate consumers who lose money due to fraud or dishonest conduct by a registered OMVIC dealer.

Question 2: A registered salesperson leaves Dealer A and begins working at Dealer B. While at Dealer A, the salesperson developed personal relationships with several clients. The salesperson now contacts those former clients using personal notes taken while employed at Dealer A to solicit business for Dealer B. Under the OMVIC Code of Ethics, what issue does this raise?

Using confidential customer information obtained while employed at Dealer A for competitive solicitation at Dealer B raises ethical and potentially legal concerns (Correct answer)
No issue arises because a salesperson's personal relationships belong to the individual, not the employing dealer
The salesperson must wait 90 days after leaving Dealer A before contacting former clients
The salesperson may contact clients but only for vehicles in a different segment than those sold at Dealer A

Correct answer: Using confidential customer information obtained while employed at Dealer A for competitive solicitation at Dealer B raises ethical and potentially legal concerns

The OMVIC Code of Ethics requires registrants to act with integrity and honesty. Customer records and contact information compiled while employed at a dealership are considered confidential business assets of that dealer, not personal property of the salesperson. Using such information to solicit former clients for a competing dealership constitutes a breach of confidentiality and potentially violates Ontario's privacy legislation (PIPEDA/PHIPA principles). OMVIC registrants must maintain ethical conduct even in competitive transitions between employers.

Question 3: A dealer's advertisement states that a used vehicle is 'accident-free' based solely on a clean Carfax report. Later, a buyer discovers the vehicle had two minor collisions that were repaired privately and never reported to insurance. Which statement best describes the dealer's liability under OMVIC rules?

The dealer is only liable if the repairs materially affected the vehicle's structural integrity
The dealer has no liability because reliance on a third-party database report constitutes due diligence
The dealer may face a complaint for making an unverifiable absolute claim; 'no reported accidents' is the permissible language (Correct answer)
The dealer is protected because private (non-insurance) repairs are legally not considered accidents under the MVDA

Correct answer: The dealer may face a complaint for making an unverifiable absolute claim; 'no reported accidents' is the permissible language

OMVIC's advertising rules prohibit making absolute claims that cannot be verified. Because accident history databases only capture reported (insurance-filed) incidents, stating a vehicle is 'accident-free' as an absolute fact is an unverifiable claim. The compliant alternative is 'no reported accidents' or 'clean according to [source],' which accurately limits the claim to available data. Dealers can face OMVIC complaints for the broader absolute claim even when acting in good faith on a clean database report.

Question 4: A registered OMVIC dealer is also the personal owner of a 2018 pickup truck that they wish to sell privately — not through the dealership. They plan to list it on a private-party classifieds platform, identify themselves only as a private seller, and omit any mention of their dealer registration. Under OMVIC regulations, which of the following is accurate?

A registered dealer must identify themselves as a dealer in any vehicle sale advertisement they place, because OMVIC's definition of 'trading' applies to dealers acting in any capacity involving motor vehicles (Correct answer)
This is permissible provided the dealer discloses the vehicle's history accurately and the price is fair market value
This is permissible if the dealer sells fewer than five personal vehicles per calendar year, which falls within the private seller exemption under the MVDA
This is permissible because the truck is the dealer's personal property and the transaction is entirely private in nature

Correct answer: A registered dealer must identify themselves as a dealer in any vehicle sale advertisement they place, because OMVIC's definition of 'trading' applies to dealers acting in any capacity involving motor vehicles

Under the Motor Vehicle Dealers Act, a registered dealer who engages in the buying or selling of motor vehicles — even vehicles they personally own — is considered to be 'trading' and must comply with all OMVIC registration and disclosure requirements. A dealer cannot shed their registrant obligations by listing a personal vehicle on a private platform and omitting their dealer status. Advertising without identifying oneself as a registered dealer is a breach of OMVIC regulations, exposes the dealer to enforcement action, and denies the buyer protections they are entitled to (such as the right to a Used Vehicle Information Package and statutory protections under the MVDA). There is no 'five vehicles per year' private exemption for registered dealers.

Question 5: Which of the following actions would constitute a violation of OMVIC's all-in price advertising standard?

Charging a $395 'eco fee' that was not included in the advertised all-in price (Correct answer)
Clearly labeling HST as a separate item on the bill of sale
Including the cost of mandatory freight in the advertised price
Advertising a vehicle at $0 down and $500 per month with all-in price also shown

Correct answer: Charging a $395 'eco fee' that was not included in the advertised all-in price

Adding any fee such as an 'eco fee' that was not included in the advertised all-in price is a direct violation of OMVIC's advertising standards.

Question 6: If OMVIC determines that a registered dealer has engaged in fraudulent conduct, what regulatory action can OMVIC take?

Automatically issue a refund of the consumer's purchase price from OMVIC funds
Refer the matter solely to the Automobile Protection Association
Issue a formal written warning letter only
Suspend or revoke the dealer's registration and impose conditions or restrictions (Correct answer)

Correct answer: Suspend or revoke the dealer's registration and impose conditions or restrictions

OMVIC has authority under the MVDA to suspend, revoke, or impose conditions on a registrant's registration for fraudulent or dishonest conduct.

Question 7: A consumer negotiates a vehicle purchase and the contract is signed. Before delivery, the dealer discovers the vehicle's actual acquisition cost was lower than expected, creating additional profit margin. The dealer instructs the salesperson to add a $400 'pre-delivery inspection fee' to the contract that was not in the original signed agreement. The salesperson complies. This scenario most directly violates which OMVIC Code of Ethics principle?

The prohibition on advertising misrepresentation, since the fee was not disclosed in any promotional material
The requirement to report dealer misconduct to OMVIC within 48 hours of becoming aware of it
The obligation to deal honestly and not alter agreed contract terms without the consumer's informed consent (Correct answer)
The salesperson's duty to independently verify vehicle acquisition costs before finalizing contracts

Correct answer: The obligation to deal honestly and not alter agreed contract terms without the consumer's informed consent

The OMVIC Code of Ethics places a fundamental obligation on registrants to deal honestly and fairly with consumers. Adding charges to a signed contract without the consumer's knowledge and informed consent is a deceptive practice that violates both the Code of Ethics and the Consumer Protection Act. The salesperson is not absolved by following dealer instructions — registrants are personally responsible for their conduct. The salesperson should have refused to comply and, in this case, faced an obligation to protect the consumer's interests rather than the dealer's profit.

Question 8: A dealer who sells vehicles without being registered with OMVIC is subject to what consequence?

Mandatory retraining
Temporary suspension of advertising
Fines and potential prosecution (Correct answer)
A warning letter only

Correct answer: Fines and potential prosecution

Operating as an unregistered dealer is an offence under the MVDA and can result in significant fines and criminal prosecution.

Question 9: A customer is pressured by a salesperson into signing a purchase agreement immediately, being told 'this price disappears in one hour and another buyer is waiting.' In reality, no competing buyer exists. This sales tactic:

Does not violate the Code since the salesperson's statements are not warranties about the vehicle
Violates the Code of Ethics by using false urgency to pressure a consumer into a decision (Correct answer)
Is acceptable only if the consumer is given a 10-minute cooling-off period after signing
Is permitted as a standard negotiation technique if no written claim is made

Correct answer: Violates the Code of Ethics by using false urgency to pressure a consumer into a decision

The Code of Ethics prohibits high-pressure, deceptive tactics; fabricating competing buyers to coerce a decision is misrepresentation that violates the duty of honest dealing.

Question 10: A customer's trade-in appraisal is listed as $12,000 in the purchase agreement, but the vehicle is subject to a $14,500 lien — meaning the trade-in is 'upside down' by $2,500. The dealer agrees to absorb the negative equity into the new vehicle's financing. How must this negative equity be disclosed in the contract under OMVIC's requirements?

Negative equity on a trade-in only requires disclosure if it exceeds $5,000 or 15% of the new vehicle's purchase price
The dealer may add the negative equity to the new vehicle's price without specific disclosure since the total amount financed will be visible on the financing agreement
The dealer must obtain the lender's written approval before including negative equity in the transaction disclosure
The negative equity must be clearly itemized as a separate line in the contract, not buried within the price of the new vehicle, so the customer understands they are financing the shortfall (Correct answer)

Correct answer: The negative equity must be clearly itemized as a separate line in the contract, not buried within the price of the new vehicle, so the customer understands they are financing the shortfall

OMVIC's disclosure requirements and the principle against unfair practices mandate that all material financial terms be transparent. Rolling negative equity into the new vehicle's price without explicit disclosure is a deceptive practice — it inflates the apparent price of the new vehicle and obscures the true cost of the transaction. The customer must be able to see exactly how much of their new financing relates to the old vehicle's shortfall. There is no minimum threshold for this disclosure obligation.

Question 11: OMVIC receives credible evidence that a registered dealer is actively defrauding consumers. The Registrar believes the public interest requires immediate action before the dealer can dispose of assets or contact further victims. Which of the following powers does the Registrar possess under the MVDA, 2002?

The Registrar may immediately suspend the dealer's registration without a prior hearing when the Registrar believes the public interest requires it, with the dealer retaining the right to subsequently request a hearing (Correct answer)
The Registrar may revoke the dealer's registration immediately and permanently, but must obtain a Superior Court order before making the suspension effective
The Registrar's only recourse prior to a formal hearing is to issue a public consumer warning advisory; suspension requires a completed LPAT proceeding
The Registrar may freeze the dealer's bank accounts and trust accounts pending a formal tribunal hearing, but cannot suspend the registration until after the hearing

Correct answer: The Registrar may immediately suspend the dealer's registration without a prior hearing when the Registrar believes the public interest requires it, with the dealer retaining the right to subsequently request a hearing

The MVDA grants the Registrar authority to immediately suspend a dealer's or salesperson's registration without holding a prior hearing, specifically when the Registrar believes suspension is necessary in the public interest. This is a critical consumer-protection tool for situations where waiting for a hearing would allow ongoing harm. Following the immediate suspension, the dealer has the right to request a hearing before the Licence Appeal Tribunal (LAT) to contest the decision. This balances urgent consumer protection against the dealer's procedural rights.

Question 12: A dealer knows a vehicle's odometer has been replaced but the prior mileage records are lost and the true history is unverifiable. The dealer lists the odometer reading as 'actual' on the contract. Under OMVIC disclosure obligations, what should the dealer have done?

The dealer needed only to note the replacement in the service records section of the contract; odometer status declarations are optional when physical replacement is disclosed separately.
Listed the odometer as 'actual' is acceptable because the current instrument reading is the only verifiable fact available to the dealer.
The dealer should have declined to sell the vehicle entirely, as a replaced odometer with unverifiable history makes the sale non-compliant under OMVIC regulations.
The dealer should have listed the odometer status as 'not actual / TMU (True Mileage Unknown)' and disclosed that the odometer was replaced with no prior mileage verification possible. (Correct answer)

Correct answer: The dealer should have listed the odometer status as 'not actual / TMU (True Mileage Unknown)' and disclosed that the odometer was replaced with no prior mileage verification possible.

When a vehicle's odometer has been replaced and prior mileage cannot be verified, the dealer is obligated to disclose the odometer status as 'not actual' or 'TMU (True Mileage Unknown)' on the contract. Representing an unverifiable reading as 'actual' constitutes a false statement of fact, which is a serious MVDA offence. The obligation is to accurately represent the knowable state of information — including uncertainty itself.

Question 13: A dealership's salesperson inflates the appraised value of a consumer's trade-in on paper while simultaneously reducing the selling price by the same amount, to make the deal appear more favourable than it is. This is:

Acceptable because the net cost to the consumer is unchanged
A violation only if it triggers a tax liability for the consumer
Deceptive because it misrepresents the true economic terms of the transaction to the consumer (Correct answer)
Permissible if both the salesperson and consumer verbally agree to the arrangement

Correct answer: Deceptive because it misrepresents the true economic terms of the transaction to the consumer

Inflating numbers to create a false impression of value, even if net cost is identical, is a deceptive practice prohibited under the Code of Ethics and consumer protection law.

Question 14: Under Ontario's Motor Vehicle Dealers Act, 2002, which of the following entities is most likely EXEMPT from the requirement to register as a motor vehicle dealer when selling vehicles?

A charity that sells 4 donated vehicles per year through its website to raise funds for its programs.
A corporation that sells its entire fleet of 12 company-owned vehicles as part of a corporate dissolution, with no intent to carry on an ongoing trade. (Correct answer)
A licensed auctioneer who conducts a single public auction of 15 repossessed vehicles on behalf of a financial institution.
An individual who privately sells 8 personally-owned vehicles within a 12-month period, all of which were previously titled in their name.

Correct answer: A corporation that sells its entire fleet of 12 company-owned vehicles as part of a corporate dissolution, with no intent to carry on an ongoing trade.

The MVDA, 2002 exempts certain one-time or isolated disposals from dealer registration. A corporation liquidating its own fleet assets as part of a corporate dissolution — with no ongoing or repeated trade in vehicles — falls outside the definition of 'carrying on the business' of a dealer. By contrast, an unlicensed auctioneer handling repossessed vehicles for third parties, a high-volume private seller, or a charity running an ongoing vehicle sales program would each likely trigger registration requirements.

Question 15: A dealer's salesperson leaves the dealership on a Friday. The dealer discovers on Monday that the salesperson had been submitting falsified credit applications to lenders. Under OMVIC's rules, when must the dealer report this to OMVIC?

At the next scheduled OMVIC audit, since the salesperson is no longer registered at the dealership
Only if the dealer intends to pursue civil litigation against the salesperson
Within 5 business days of becoming aware of the misconduct (Correct answer)
Within 30 calendar days of the salesperson's departure

Correct answer: Within 5 business days of becoming aware of the misconduct

Dealers have an obligation to report known or reasonably suspected misconduct by registrants to OMVIC promptly. The 5-business-day window applies to reporting material changes and misconduct. Waiting for litigation or an audit would constitute a failure to fulfill the dealer's compliance and reporting obligations under the MVDA, 2002.

Question 16: A consumer's vehicle purchase results in a $60,000 loss due to dealer fraud. How much can they recover from the Compensation Fund?

$30,000, because the Fund covers only 50% of any loss
$45,000, because that is the maximum per-claim limit under the MVDA (Correct answer)
The full $60,000, as the Fund covers all proven losses
Nothing, because losses over $50,000 are ineligible

Correct answer: $45,000, because that is the maximum per-claim limit under the MVDA

The MVDA caps Compensation Fund payouts at $45,000 per qualifying claim. The consumer could pursue the dealer directly for the remaining $15,000 through civil action.

Question 17: At the time of a trade-in, a dealer discovers the vehicle has a PPSA lien registered against it. The dealer and customer agree that the dealer will 'handle' the lien payout. The dealer pays out the lien 22 days after taking possession of the trade-in vehicle and resells the vehicle on day 18. What obligation, if any, has the dealer violated?

The dealer violated OMVIC conduct standards by reselling an encumbered vehicle before confirming lien discharge, exposing the new buyer to an undisclosed security interest (Correct answer)
No obligation is violated — lien discharge is the responsibility of the original vehicle owner, not the dealer
No obligation is violated — the dealer can resell a trade-in before the lien is discharged as long as the payout funds are held in trust
The dealer violated the PPSA by failing to register a new security interest within 15 days of acquiring the trade-in

Correct answer: The dealer violated OMVIC conduct standards by reselling an encumbered vehicle before confirming lien discharge, exposing the new buyer to an undisclosed security interest

A dealer who accepts a trade-in with a known lien and represents they will discharge it takes on the obligation to ensure the lien is cleared before resale. Reselling an encumbered vehicle — even if payout funds are set aside — exposes the subsequent buyer to a security interest that was not disclosed and not yet removed. OMVIC registrant conduct standards and the common law of misrepresentation treat this as a material breach of the dealer's duty of honest dealing. The new buyer purchased a vehicle they reasonably expected to receive free of encumbrances.

Question 18: A consumer wants to trade in their vehicle as part of a deal. Under OMVIC rules, the dealer must disclose:

Only the cash value of the trade-in
The trade-in allowance separately from the purchase price on the contract (Correct answer)
The trade-in amount only after the deal is finalized
The trade-in value only if it exceeds $5,000

Correct answer: The trade-in allowance separately from the purchase price on the contract

OMVIC regulations require that trade-in allowances be clearly and separately itemized on the purchase contract to ensure transparency.

Question 19: What document must a registered OMVIC dealer display prominently in their place of business?

A list of all registered salespersons' criminal record checks
Proof of vehicle insurance for all inventory
Their OMVIC registration certificate (Correct answer)
Their personal financial statements

Correct answer: Their OMVIC registration certificate

OMVIC requires all registered dealers to display their current registration certificate at their premises so consumers can verify the dealer's legitimacy.

Question 20: What information must a dealer provide to a consumer in writing before a vehicle sale is finalised?

A completed and signed bill of sale with all required disclosures (Correct answer)
A manufacturer's suggested retail price breakdown
The dealer's profit margin
The vehicle's complete service history

Correct answer: A completed and signed bill of sale with all required disclosures

Dealers must provide a written bill of sale containing all legally required disclosures before the transaction is complete.

Question 21: A registered salesperson suspects a colleague is submitting inflated financing applications on behalf of customers without their knowledge. What does the OMVIC Code of Ethics require the salesperson to do?

Confront the colleague privately and only escalate if the behaviour continues
Document the behaviour but take no action unless personally asked by a consumer
Ignore the conduct since it is the colleague's personal responsibility
Report the suspected misconduct to OMVIC or dealership management to protect consumers (Correct answer)

Correct answer: Report the suspected misconduct to OMVIC or dealership management to protect consumers

The Code of Ethics requires registrants to uphold the integrity of the industry; knowingly allowing fraudulent conduct without reporting it contravenes the registrant's professional obligations.

Question 22: When a dealer accepts a trade-in vehicle, which document confirms the transfer of ownership in Ontario?

A bill of sale signed by the customer only
A signed and completed Application for Transfer (Permit) submitted to ServiceOntario (Correct answer)
A statutory declaration witnessed by a lawyer
The vehicle's Safety Standards Certificate

Correct answer: A signed and completed Application for Transfer (Permit) submitted to ServiceOntario

Vehicle ownership in Ontario transfers legally through a completed Application for Transfer (commonly called a Permit/ownership permit) submitted to ServiceOntario.

Question 23: A corporation applies to OMVIC for dealer registration. During the review, OMVIC discovers that one of the corporation's directors had their personal motor vehicle dealer registration revoked three years ago for fraudulent misrepresentation. How will the Registrar MOST LIKELY treat this application?

Refuse registration on the basis that a director's prior revocation constitutes sufficient grounds to deny the corporate applicant (Correct answer)
Approve it only if the director formally resigns before the registration certificate is issued
Defer the decision for one year and reassess if no further complaints are filed against the director during that period
Approve it unconditionally, since the revocation was against the individual and carries no legal weight against a separate corporate entity

Correct answer: Refuse registration on the basis that a director's prior revocation constitutes sufficient grounds to deny the corporate applicant

The MVDA, 2002 explicitly empowers the Registrar to look through corporate structures. The past conduct of directors, officers, and partners is a direct ground for refusing registration to a corporate applicant. A prior revocation for fraud is a serious finding that does not disappear simply because the applicant entity is a corporation rather than an individual.

Question 24: A dealer advertises a certified pre-owned vehicle at an 'all-in' price of $22,999. When a customer arrives, the dealer adds a $499 'documentation fee' and a $299 'window tint protection' charge at the point of sale, stating these are mandatory. Under OMVIC's Price Advertising Rule, which statement is most accurate?

Both charges violate the all-in price rule because any mandatory fee must be included in the advertised price (Correct answer)
Neither charge violates the rule, as long as the total is disclosed before the customer signs
Only the window tint charge violates the rule because it is a dealer-installed aftermarket product
Only the $499 documentation fee violates the rule; optional add-ons like paint protection are exempt

Correct answer: Both charges violate the all-in price rule because any mandatory fee must be included in the advertised price

Ontario's all-in price advertising rule requires that the advertised price represent the total price a consumer pays, excluding only HST and licensing/registration fees. Any charge that is mandatory — regardless of what it is called — must be included in the advertised price. Both a mandatory documentation fee and a mandatory dealer-installed product fee are prohibited add-ons when not reflected in the advertised price.

Question 25: A used vehicle dealer acquires a trade-in that was previously used as a daily rental vehicle for 22 months, then privately owned for four years. The dealer has rental history documentation in the vehicle's file. The prospective buyer does not ask about prior use. Under MVDA disclosure obligations, the dealer must:

Disclose the rental history only if the buyer specifically asks about prior vehicle use
Disclose the rental history only if the vehicle is fewer than five years old at the time of sale
Disclose the rental history, because prior use as a daily rental is a prescribed material fact regardless of subsequent private ownership (Correct answer)
Omit disclosure, because intervening private ownership severs the materiality of the prior rental use

Correct answer: Disclose the rental history, because prior use as a daily rental is a prescribed material fact regardless of subsequent private ownership

Under Ontario Regulation 333/08, prior use of a vehicle as a daily rental is a prescribed material fact that must be disclosed by the dealer — regardless of how many subsequent owners the vehicle has had or how old the vehicle is. The obligation to disclose is proactive, not contingent on a buyer's inquiry. The existence of the documentation in the dealer's file further reinforces the disclosure obligation.

Question 26: What must dealers and salespersons disclose regarding the vehicles they are selling?

Only information about safety features
Only information about previous ownership and mileage
Only information specifically asked for by the customer
All "material facts" about the vehicle, even if not asked (Correct answer)

Correct answer: All "material facts" about the vehicle, even if not asked

Dealers and salespersons are legally required to disclose all 'material facts' about the vehicles they are selling, even if not specifically asked by the customer. This is a cornerstone of consumer protection under OMVIC regulations, ensuring transparency in transactions. Material facts include any information that could reasonably influence a buyer's decision, such as significant damage history or previous use.

Question 27: A dealer's advertisement lists a vehicle at $19,995 'plus applicable taxes.' The vehicle also carries a $699 administration fee and a $349 documentation fee. Under OMVIC's advertising standards and the Consumer Protection Act, 2002, this advertisement is:

Non-compliant only if the total fees exceed $500, at which point full disclosure becomes mandatory
Compliant, because taxes are legally excluded from advertised prices and fees are disclosed verbally at the point of sale
Non-compliant, because all mandatory charges payable by the buyer — including dealer fees — must be included in the advertised price (Correct answer)
Compliant only if the fees are disclosed in fine print elsewhere in the same advertisement

Correct answer: Non-compliant, because all mandatory charges payable by the buyer — including dealer fees — must be included in the advertised price

OMVIC's advertising standards require that the advertised price include ALL charges the consumer must pay to take possession of the vehicle, except government fees and taxes. Dealer-imposed fees such as administration and documentation fees are not government-mandated and therefore must be incorporated into the advertised price. Burying them separately violates OMVIC advertising rules and constitutes an unfair practice under the Consumer Protection Act, 2002.

Question 28: Which of the following best describes OMVIC's Compensation Fund?

A government grant for dealership renovations
An insurance pool for dealer liability claims
A fund that pays dealer advertising costs
A consumer protection fund for losses from fraudulent dealers (Correct answer)

Correct answer: A consumer protection fund for losses from fraudulent dealers

OMVIC's Compensation Fund protects consumers who suffer financial loss as a result of a registered dealer's fraudulent or dishonest act.

Question 29: What is the purpose of OMVIC's Consumer Protection Code?

To promote sales of vehicles to consumers
To reduce dealership operating costs
To increase dealer profitability
To protect consumers from unfair practices (Correct answer)

Correct answer: To protect consumers from unfair practices

OMVIC's Consumer Protection Code, along with other regulations, is designed to create a fair and ethical marketplace for vehicle sales in Ontario. Its core purpose is to safeguard consumers from unfair, deceptive, misleading, or unconscionable practices by dealers and salespeople. This ensures consumers are treated honestly and have recourse if issues arise.

Question 30: What should dealers do before advertising a vehicle's price?

Use generic photos to attract more customers
Ensure it is the lowest in the market
Increase the price to cover hidden costs
Include all fees except HST and licensing (Correct answer)

Correct answer: Include all fees except HST and licensing

OMVIC's all-in pricing rule mandates that advertised vehicle prices must include all fees and charges that a dealer intends to collect, with the only exceptions being HST (Harmonized Sales Tax) and licensing costs. This regulation ensures transparency for consumers, preventing hidden fees and allowing them to compare prices accurately. It's a cornerstone of ethical advertising in the Ontario motor vehicle industry.

Question 31: Which statement correctly describes the nature of a salesperson's OMVIC registration?

It is valid only for the category of vehicles the salesperson completed training for
It is optional for individuals who work at a family-owned dealership with fewer than five employees
It is tied to a specific registered dealer, and trading vehicles outside that authorization is prohibited (Correct answer)
It is independent, allowing the salesperson to trade vehicles for any registered dealer at any time

Correct answer: It is tied to a specific registered dealer, and trading vehicles outside that authorization is prohibited

A salesperson's registration is linked to a specific registered dealer, and the salesperson may only trade motor vehicles on behalf of that dealer.

Question 32: A buyer signs a purchase agreement and then discovers the vehicle's accident history online that the dealer did not disclose. Under OMVIC rules, what remedy is available?

The dealer must only provide a written apology
The buyer must accept the vehicle but receives a $500 credit
The buyer may file a complaint with OMVIC and potentially rescind the contract due to misrepresentation (Correct answer)
None — the buyer signed the contract and is bound

Correct answer: The buyer may file a complaint with OMVIC and potentially rescind the contract due to misrepresentation

Failure to disclose mandatory accident history constitutes misrepresentation, allowing the buyer to rescind the contract and file a complaint with OMVIC.

Question 33: What is the maximum number of vehicles a private individual can sell in Ontario before requiring dealer registration?

4 (Correct answer)
2
6
10

Correct answer: 4

Selling more than 4 vehicles in a 12-month period generally triggers the requirement to register as a dealer under the MVDA.

Question 34: A consumer bought a 4-year-old vehicle from a franchised dealer whose manufacturer participates in CAMVAP. The vehicle has a persistent assembly defect the dealer cannot fix after three repair attempts. The consumer wants CAMVAP arbitration. Which statement most accurately describes CAMVAP's jurisdiction in this situation?

CAMVAP can arbitrate only after OMVIC has investigated and issued a finding of dealer misconduct
CAMVAP can arbitrate assembly defects and warranty disputes, but applies eligibility criteria that include defined vehicle age and odometer thresholds (Correct answer)
CAMVAP jurisdiction requires that the vehicle still be within its original factory warranty period at the time of the application
CAMVAP can arbitrate any vehicle defect dispute as long as the manufacturer participates, regardless of vehicle age or mileage

Correct answer: CAMVAP can arbitrate assembly defects and warranty disputes, but applies eligibility criteria that include defined vehicle age and odometer thresholds

CAMVAP (Canadian Motor Vehicle Arbitration Plan) handles assembly defects and warranty disputes independently of OMVIC — no OMVIC finding is a prerequisite. However, CAMVAP eligibility is not unlimited: vehicles must meet defined age and mileage thresholds (generally no more than 4 model years old and under a specified odometer limit) and the manufacturer must participate. A 4-year-old vehicle may be at the edge of eligibility, making the consumer's eligibility something to verify, not assume.

Question 35: After a thorough investigation, OMVIC concludes that a dealer violated the MVDA by misrepresenting a vehicle's accident history to a consumer. Which of the following outcomes can OMVIC directly compel as part of its regulatory enforcement action?

Mandate binding arbitration between the consumer and the dealer
Require the dealer to reimburse the consumer's legal costs
Suspend or revoke the dealer's OMVIC registration (Correct answer)
Order the dealer to issue a full refund to the consumer

Correct answer: Suspend or revoke the dealer's OMVIC registration

OMVIC is a regulator, not an arbitrator or civil court. Its enforcement powers are disciplinary — it can suspend, revoke, or impose conditions on a dealer's or salesperson's registration, and levy administrative penalties. OMVIC cannot directly order a dealer to refund consumers, pay legal costs, or enter arbitration. Those civil remedies must be pursued through CAMVAP, Small Claims Court, or the courts.

Question 36: Under OMVIC's advertising standards, a dealer must include which element in all advertised prices for vehicles?

The MSRP established by the vehicle manufacturer regardless of dealer adjustments
The price the dealer paid for the vehicle plus a maximum 15% markup
Only the base vehicle price before any additional dealer fees
All fees and charges that the consumer will be required to pay, excluding HST and licensing (Correct answer)

Correct answer: All fees and charges that the consumer will be required to pay, excluding HST and licensing

OMVIC advertising standards require dealers to use all-in pricing that includes all mandatory fees and charges (other than HST and licensing) so consumers can make accurate comparisons.

Question 37: A dealer's registration can be revoked by OMVIC for which of the following?

Having too many vehicles in inventory
Failing to meet ongoing fit and proper requirements (Correct answer)
Employing more than 10 salespersons
Charging above MSRP

Correct answer: Failing to meet ongoing fit and proper requirements

OMVIC can revoke or refuse to renew a registration if a registrant no longer meets the fit and proper standards required by the MVDA.

Question 38: Which document must an OMVIC-registered dealer prominently display in their place of business?

Fire safety permit
OMVIC membership certificate
Dealer registration certificate (Correct answer)
Municipal business licence

Correct answer: Dealer registration certificate

Dealers are required by the MVDA to prominently display their dealer registration certificate at their premises.

Question 39: A dealer's advertisement states a vehicle is 'accident-free' based solely on the customer trade-in's CarProof showing no reported accidents. OMVIC's position on this claim is:

The claim is acceptable as long as CarProof is cited in the advertisement
The claim is fully acceptable because a CarProof report is an authoritative source
The claim could be misleading if the dealer has not independently verified the vehicle's history through a physical inspection (Correct answer)
The claim is always acceptable for vehicles under 3 years old

Correct answer: The claim could be misleading if the dealer has not independently verified the vehicle's history through a physical inspection

CarProof/Carfax reports only capture reported incidents. An 'accident-free' claim can mislead consumers if the dealer relies solely on a database report without conducting a proper physical inspection to verify the vehicle's actual condition.

Question 40: Why is the consumer unable to access the Compensation Fund after buying from a curbsider?

The Compensation Fund maximum payout is too low to cover used vehicle disputes
Consumers must file within 30 days, which is impossible to meet
The Compensation Fund only covers new vehicle purchases
The Compensation Fund only applies to transactions with OMVIC-registered dealers (Correct answer)

Correct answer: The Compensation Fund only applies to transactions with OMVIC-registered dealers

OMVIC's Motor Vehicle Dealers Compensation Fund is only available when the transaction involves a registered OMVIC dealer.

Question 41: Under OMVIC rules, which of the following fees can a dealer legitimately charge a buyer?

A fee for every test drive
A mandatory colour upgrade fee
A fee for using a competitor's financing
A documentation fee disclosed in advance (Correct answer)

Correct answer: A documentation fee disclosed in advance

Dealers may charge documentation or administration fees as long as they are clearly disclosed to the buyer in advance.

Question 42: A registered salesperson at a franchise dealership personally acquires a used vehicle, reconditions it, and resells it for a profit without disclosing their registrant status to the buyer. Under the MVDA, 2002 and OMVIC's standards, this conduct is:

Permissible only if the transaction is processed through the employing dealership's books
A violation only if the salesperson advertised the vehicle using the dealership's name or branding
Permissible, provided the salesperson sells no more than one such vehicle per calendar year
A violation, because registrants must disclose their status when trading in motor vehicles, even in a personal capacity (Correct answer)

Correct answer: A violation, because registrants must disclose their status when trading in motor vehicles, even in a personal capacity

Under the MVDA and OMVIC's Code of Ethics, registrants have ongoing disclosure and conduct obligations that extend beyond their employment role. A registrant who trades in motor vehicles — even personally and privately — must disclose their status as a registered motor vehicle salesperson to the other party. Failure to do so constitutes a breach of the Act and OMVIC standards, and the salesperson may also be conducting an unauthorized trade outside the scope of their dealer's registration.

Question 43: A dealership posts an online advertisement for a vehicle at $18,500 but adds $2,800 in undisclosed administrative fees at the point of sale. What does the OMVIC Code of Ethics and MVDA require?

Administrative fees under $3,000 are exempt from pre-disclosure requirements
All fees must be included in the advertised price or clearly disclosed before any agreement is signed (Correct answer)
Fees may be added at the point of sale provided they are itemized on the bill of sale
Online prices are non-binding and fees may be added at the dealer's discretion

Correct answer: All fees must be included in the advertised price or clearly disclosed before any agreement is signed

Under OMVIC's advertising standards and the Code of Ethics, the total price including all mandatory fees must be disclosed in advertising to prevent deception.

Question 44: A consumer visits a dealership, signs a purchase agreement for a new vehicle, and pays a $2,000 deposit. Three days later, they attempt to cancel, claiming the right to rescind under Ontario consumer protection law. The dealer refuses, citing the signed contract. Which statement BEST reflects the legal position?

The consumer has no statutory right to cancel this contract, as new vehicle purchases at a dealership are excluded from the CPA cooling-off period (Correct answer)
The consumer can rescind because all vehicle sales have a mandatory 10-day cooling-off period under the Consumer Protection Act
The consumer can rescind within 48 hours under MVDA regulations regardless of where the sale occurred
The consumer may rescind within 10 days only if the purchase was financed through a third-party lender

Correct answer: The consumer has no statutory right to cancel this contract, as new vehicle purchases at a dealership are excluded from the CPA cooling-off period

Ontario's Consumer Protection Act, 2002, provides cooling-off rights for certain contracts (such as direct agreements), but purchases made at a dealer's premises — where the consumer goes to the business — are generally not subject to a statutory cooling-off period. The dealer's refusal to cancel is legally supportable. Consumers negotiating away from a dealership (e.g., at their home) may have different rights under direct agreement rules, but an in-dealership purchase does not automatically trigger rescission rights.

Question 45: Under OMVIC regulations, how long must a registered dealer retain vehicle sales records?

1 year
10 years
3 years
6 years (Correct answer)

Correct answer: 6 years

Ontario's Motor Vehicle Dealers Act requires dealers to keep records for a minimum of 6 years.

Question 46: A dealer registered in Ontario wishes to hold an off-site sales event at a local fairground for three days. Which of the following correctly describes the dealer's obligations under OMVIC requirements?

The dealer may operate the event freely provided all vehicles display the registered dealer's name
Off-site sales are prohibited entirely under the Motor Vehicle Dealers Act, 2002
The dealer must notify OMVIC and obtain approval for a temporary off-premise sales location before the event (Correct answer)
No additional registration is required as long as the dealer's main lot registration is current

Correct answer: The dealer must notify OMVIC and obtain approval for a temporary off-premise sales location before the event

OMVIC regulations require dealers to obtain prior approval for off-premise sales events. The temporary location must be approved, and the dealer must comply with specific conditions, including displaying registration information. Simply having a valid lot registration does not automatically extend trading authority to unregistered locations.

Question 47: A consumer who cannot afford the listed price asks the salesperson to falsify their income on a financing application to qualify for a loan. The salesperson should:

Submit the application as requested but document the consumer's request in the file
Refer the consumer to the finance manager, who is authorized to adjust income figures
Refuse and explain that falsifying a credit application is illegal and unethical (Correct answer)
Proceed since the consumer has full knowledge and has consented

Correct answer: Refuse and explain that falsifying a credit application is illegal and unethical

Falsifying a financing application is fraud; the Code of Ethics and the law prohibit registrants from participating in or facilitating fraudulent conduct regardless of consumer consent.

Question 48: A dealer registered exclusively as a 'wholesale motor vehicle dealer' is approached by a retail consumer who explicitly states they want to bypass retail dealers and purchase directly. The consumer signs a written waiver of retail protections. May the wholesale dealer proceed with the sale?

Yes, provided the transaction price does not exceed the vehicle's Black Book retail value
No, a wholesale registration prohibits sales to the general public regardless of consumer consent or waivers (Correct answer)
No, unless the wholesale dealer also holds an active retail registration at the same physical location
Yes, because the consumer has voluntarily waived their retail protections in writing

Correct answer: No, a wholesale registration prohibits sales to the general public regardless of consumer consent or waivers

A wholesale dealer registration under the MVDA strictly limits sales to other registered dealers — the general public is categorically excluded. A consumer's consent, written waiver, or specific request has no bearing on the dealer's registration conditions. Selling retail would constitute selling outside the scope of registration, a violation regardless of the buyer's intentions.

Question 49: A customer trades in their vehicle as part of a deal. After the trade-in is accepted and the new vehicle is delivered, the dealer discovers the trade-in has a $4,200 outstanding lien. Who bears responsibility for this lien under OMVIC regulations?

The lender, because the lien registration is the lender's responsibility to enforce
The customer alone, as it is their obligation to disclose all encumbrances on their trade-in
The dealer bears primary responsibility, as the dealer is required to conduct a lien search on any vehicle they take in trade before completing the transaction (Correct answer)
Responsibility is split equally between the dealer and the customer

Correct answer: The dealer bears primary responsibility, as the dealer is required to conduct a lien search on any vehicle they take in trade before completing the transaction

Registered dealers are required to conduct proper due diligence — including a lien search via a Personal Property Security Act (PPSA) search — on any vehicle they accept as a trade-in. Failing to do so does not transfer liability to the customer. If the dealer skips this step and subsequently resells the vehicle with an undisclosed lien attached, the dealer can face regulatory consequences and potential civil liability. The onus is on the registered dealer, not the consumer, to perform this check.

Question 50: An OMVIC-registered dealer principal is convicted of fraud unrelated to the motor vehicle trade. OMVIC reviews the registration. Which of the following best describes OMVIC's authority in this situation?

OMVIC may refuse to renew or may revoke the dealer's registration on the basis that the conviction calls into question the registrant's honesty and integrity, even though the offence was unrelated to vehicle sales (Correct answer)
OMVIC's authority is limited to imposing a fine; revocation requires a separate court order
OMVIC has no jurisdiction over criminal matters unrelated to the motor vehicle trade and must renew the registration if all other criteria are met
OMVIC may only suspend the registration pending an appeal of the criminal conviction

Correct answer: OMVIC may refuse to renew or may revoke the dealer's registration on the basis that the conviction calls into question the registrant's honesty and integrity, even though the offence was unrelated to vehicle sales

The MVDA, 2002 grants OMVIC broad authority to refuse or revoke registration based on character criteria — specifically whether an applicant or registrant is of good character and honest. A fraud conviction, even outside the motor vehicle industry, directly bears on the registrant's integrity and can form grounds for registration refusal or revocation. OMVIC is not limited to trade-specific offences when assessing fitness.

Question 51: Under the Ontario Motor Vehicle Dealers Act 2002, what is 'curbsiding'?

A licensed dealer transferring vehicles between branch locations
A consumer reselling a single personal-use vehicle
A registered dealer selling vehicles from a temporary outdoor lot
An unregistered individual selling motor vehicles for profit on a repeated basis (Correct answer)

Correct answer: An unregistered individual selling motor vehicles for profit on a repeated basis

Curbsiding occurs when an unregistered person repeatedly sells vehicles for profit, which is illegal under the MVDA 2002 without OMVIC registration.

Question 52: A salesperson at a used car lot tells a customer that the odometer reading of 85,000 km is accurate, but the salesperson has not verified this with a UVIP or any documentation. This statement may violate the Code of Ethics because:

Registrants must not make unverified representations about material facts such as odometer readings (Correct answer)
The statement is only a violation if the vehicle has had an odometer rollback of more than 5,000 km
Odometer accuracy can only be verified by a licensed mechanic, not a salesperson
Verbal statements about odometer readings are not covered by the Code of Ethics

Correct answer: Registrants must not make unverified representations about material facts such as odometer readings

The Code of Ethics requires that all representations about material facts be accurate and verifiable; asserting unverified odometer accuracy is a misrepresentation risk.

Question 53: Under OMVIC's disclosure requirements, a dealer is selling a vehicle that was previously used as a daily rental. The vehicle has a clean CARFAX report. The dealer is aware of the rental history through the wholesale auction record. Which statement is MOST accurate?

The auction record is confidential wholesale information and the dealer is under no obligation to share it with retail buyers
No disclosure is required because the CARFAX report serves as the official disclosure document under the MVDA
Disclosure is only required if the rental period exceeded 12 months or 20,000 km
The dealer must disclose the rental history to the buyer regardless of what appears on third-party vehicle history reports (Correct answer)

Correct answer: The dealer must disclose the rental history to the buyer regardless of what appears on third-party vehicle history reports

OMVIC's Code of Ethics and the MVDA impose a positive duty on dealers to disclose all material facts about a vehicle known to them, regardless of what third-party reports show. 'Previously used as a daily rental' is a material fact that affects value and the buyer's purchase decision. A clean CARFAX report does not discharge the dealer's own duty to disclose information they already possess. There is no minimum threshold (no 12-month/20,000 km rule) that triggers the disclosure obligation — knowledge of the fact alone is sufficient.

Question 54: Which government body oversees OMVIC and the administration of the MVDA in Ontario?

Ministry of Transportation
Ministry of Public and Business Service Delivery (Correct answer)
Financial Services Regulatory Authority
Ministry of Finance

Correct answer: Ministry of Public and Business Service Delivery

OMVIC operates under a delegation agreement with Ontario's Ministry of Public and Business Service Delivery to administer the MVDA.

Question 55: In a wholesale dealer-to-dealer contract, what is the selling dealer obligated to disclose about the vehicle being sold?

Only the vehicle's current odometer reading
Known material facts about the vehicle, including any damage history, branding, or defects (Correct answer)
The names and contact details of all previous retail owners
The dealer's original acquisition price and financing arrangements

Correct answer: Known material facts about the vehicle, including any damage history, branding, or defects

Even in wholesale transactions, the selling dealer must disclose known material facts — including known damage history, brand status (rebuilt/irreparable), and material defects. Misrepresentation between dealers is still prohibited under the MVDA.

Question 56: A vehicle purchase contract contains the following clause: 'The purchaser acknowledges having read and understood this agreement and hereby waives all rights and remedies available under the Consumer Protection Act.' A consumer who initialled the clause later attempts to assert a CPA remedy. What is the legal status of this waiver clause?

Enforceable, because the consumer initialled it and demonstrated informed consent
Enforceable only if the consumer also received independent legal advice before signing
Void, because the CPA expressly prohibits any term that purports to waive or limit its protections (Correct answer)
Voidable at the dealer's discretion within 30 days if they choose not to rely on it

Correct answer: Void, because the CPA expressly prohibits any term that purports to waive or limit its protections

Section 7 of the Consumer Protection Act states that any term or acknowledgment in a consumer agreement that purports to waive or limit rights under the Act is void. This is an anti-avoidance provision — consumers cannot be contractually stripped of CPA protections regardless of whether they initialled or signed such a clause. The consumer retains full access to CPA remedies. Dealers who include such clauses may also face regulatory scrutiny under OMVIC's Code of Ethics for unfair dealing.

Question 57: OMVIC's registration requirement applies to which of the following sellers?

A private individual selling their own car once
An estate selling a deceased person's vehicle
A charity auctioning a donated vehicle
A dealer selling vehicles on consignment (Correct answer)

Correct answer: A dealer selling vehicles on consignment

Dealers selling vehicles on consignment are engaged in the business of selling motor vehicles and must be registered with OMVIC.

Question 58: An OMVIC-registered dealer principal is aware that one of their salespeople has been verbally promising buyers a 'lifetime powertrain warranty' that does not exist, relying on buyers not reading the written contract carefully. The dealer principal has not reported this to OMVIC. Under the MVDA, what is the dealer principal's exposure?

Civil liability only — OMVIC has no authority over the dealer principal in this scenario
A warning letter only, since the salesperson is the registered individual responsible for the representations
None, because the dealer principal did not personally make the misrepresentations
Potential disciplinary action including registration conditions, suspension, or revocation for permitting deceptive practices (Correct answer)

Correct answer: Potential disciplinary action including registration conditions, suspension, or revocation for permitting deceptive practices

Under the MVDA, a dealer principal is responsible for the conduct of all registrants employed at their dealership. Knowingly permitting a salesperson to engage in deceptive practices — and failing to report it — constitutes a breach of the dealer principal's own registration obligations. OMVIC can impose conditions, suspend, or revoke the dealer's registration. The dealer principal's personal non-involvement in making the false statements does not shield them from disciplinary action when they had knowledge and failed to act.

Question 59: What ethical principle underlies OMVIC's requirement that registrants use plain language in contracts and communications with consumers?

Liability protection — clear language reduces the dealer's legal risk
Standardization — all dealers must use the same terminology
Efficiency — plain language speeds up the transaction process
Informed consent — consumers must understand what they are agreeing to (Correct answer)

Correct answer: Informed consent — consumers must understand what they are agreeing to

Plain language requirements exist to ensure consumers can give genuinely informed consent, which is a cornerstone of OMVIC's consumer protection mandate.

Question 60: A used vehicle dealer marks up the price of a vehicle for a visible minority customer compared to prices quoted to other customers for an identical vehicle, without any objective business reason. Under the OMVIC Code of Ethics:

The violation only applies if the consumer can prove the dealer quoted a different price to another buyer
Dealers may set individualized prices as long as they are below the manufacturer's suggested retail price
Discriminatory pricing violates the Code's requirement to deal fairly with all consumers (Correct answer)
Pricing is a business decision and not regulated under the Code of Ethics

Correct answer: Discriminatory pricing violates the Code's requirement to deal fairly with all consumers

The Code of Ethics requires fair dealing with all consumers; discriminatory pricing based on protected characteristics violates both the Code and Ontario's Human Rights Code.

Question 61: A consumer files a complaint with OMVIC about a registered dealer. OMVIC investigates and finds the dealer violated the MVDA. What enforcement actions can OMVIC take?

OMVIC may only issue a warning letter; criminal penalties require the consumer to pursue a private prosecution
OMVIC can only require the dealer to refund the consumer; it cannot affect the dealer's registration status
OMVIC may only refer the matter to civil court; it has no direct enforcement power
OMVIC may issue conditions on a registration, suspend, or revoke a dealer's or salesperson's registration, and impose administrative penalties (Correct answer)

Correct answer: OMVIC may issue conditions on a registration, suspend, or revoke a dealer's or salesperson's registration, and impose administrative penalties

OMVIC has broad enforcement powers under the MVDA, including the ability to impose conditions, suspend or revoke registrations, and impose administrative monetary penalties.

Question 62: A registered dealer lists a vehicle for $24,000 on their website. When a buyer arrives and negotiates, the dealer insists the price is $26,800, claiming the website price was a 'typo.' Under the OMVIC Code of Ethics:

Dealers are not bound by online prices since internet listings are not regulated advertisements
The consumer has no recourse unless they paid a deposit at the advertised price
Advertising a price and then refusing to honor it is deceptive and inconsistent with honest dealing (Correct answer)
The dealer may adjust the price as long as the adjustment is within 15% of the listed price

Correct answer: Advertising a price and then refusing to honor it is deceptive and inconsistent with honest dealing

OMVIC advertising standards require all-in price transparency; repeatedly using 'typo' claims to bait-and-switch consumers is deceptive conduct under the Code of Ethics.

Question 63: A dealer holds a consumer's $5,000 deposit in trust while a vehicle is being sourced from another province. The sourcing falls through after 45 days. The consumer requests a refund, but the dealer claims the deposit is non-refundable under the signed contract. What is the correct outcome under Ontario law?

The deposit must be refunded because the dealer failed to fulfill the contract through no fault of the consumer, making the non-refundable clause unenforceable in these circumstances (Correct answer)
The non-refundable deposit clause is fully enforceable regardless of the reason the deal collapsed
The consumer must pursue the matter through Small Claims Court before OMVIC can intervene
The dealer may retain 50% of the deposit as a restocking fee, releasing the balance within 10 business days

Correct answer: The deposit must be refunded because the dealer failed to fulfill the contract through no fault of the consumer, making the non-refundable clause unenforceable in these circumstances

Under Ontario's Consumer Protection Act and OMVIC's framework, a non-refundable deposit clause cannot be enforced when the dealer is unable to deliver the vehicle — the failure is on the dealer's side, not the consumer's. Deposits serve as security for the consumer's commitment; when the dealer cannot perform, the legal basis for retention evaporates. OMVIC can pursue this as an unfair practice.

Question 64: Under OMVIC's all-in price rules, a 'dealer admin fee' that varies by customer is:

Prohibited — all fees must be uniform and included in the advertised all-in price (Correct answer)
Only prohibited if it exceeds $500
Acceptable if the maximum amount is posted in the showroom
Acceptable as long as it is disclosed before contract signing

Correct answer: Prohibited — all fees must be uniform and included in the advertised all-in price

Variable fees that differ by customer are inconsistent with the all-in price advertising standard, which requires a transparent, consistent price inclusive of all dealer charges.

Question 65: What happens to a dealer's registration if they fail to renew it on time?

It remains valid for 90 days grace period
OMVIC sends a provisional licence for 30 days
It automatically renews with a late fee
It expires and the dealer must cease operations (Correct answer)

Correct answer: It expires and the dealer must cease operations

An expired registration means the dealer is no longer authorised to operate and must stop selling vehicles until registration is renewed.

Question 66: A salesperson is showing a pre-owned vehicle and the customer asks, 'Has this car ever been in an accident?' The salesperson pulled a CarProof report six weeks ago showing no accidents, but has since seen body shop invoices in the deal jacket suggesting front-end work. The salesperson should:

Disclose the body shop invoices to the customer and advise them to obtain an independent inspection before purchase (Correct answer)
Answer 'no' based on the clean CarProof, since that is the official third-party record the salesperson relied upon
Decline to answer the question and direct the customer to review the CarProof themselves
Tell the customer the CarProof showed no accidents and that the body shop work may have been cosmetic

Correct answer: Disclose the body shop invoices to the customer and advise them to obtain an independent inspection before purchase

OMVIC's disclosure obligations require registrants to disclose all material facts known to them — not merely what appears on third-party reports. Once the salesperson became aware of information suggesting prior damage (body shop invoices in the deal jacket), that knowledge supersedes reliance on an older CarProof. Answering 'no' or deflecting to the CarProof while possessing contradictory information constitutes misrepresentation. The ethical obligation is active disclosure of the conflicting evidence and recommending an independent inspection, which also protects the registrant from future liability.

Question 67: The MVDA requires dealers to keep business records for a specified period so that OMVIC can audit them. How long must a registered dealer keep transaction records under the MVDA regulations?

Records may be destroyed at the dealer's discretion once a deal closes
At least seven years to satisfy CRA requirements
At least one year
At least three years (Correct answer)

Correct answer: At least three years

MVDA regulations require registered dealers to maintain transaction and business records for at least three years to support OMVIC's audit and compliance functions.

Question 68: What should a salesperson do if they suspect a colleague is engaging in unethical behavior?

Ignore the behavior to avoid conflict
Join the colleague in the unethical behavior
Report the behavior to OMVIC (Correct answer)
Encourage the colleague to continue the behavior

Correct answer: Report the behavior to OMVIC

OMVIC (Ontario Motor Vehicle Industry Council) is the regulatory body for motor vehicle sales in Ontario. Salespeople have a professional and ethical obligation to uphold industry standards and consumer protection. Reporting unethical behavior to OMVIC ensures that such misconduct is investigated and addressed, maintaining the integrity of the industry.

Question 69: A competing dealership approaches a salesperson and offers them a 'referral fee' paid in cash if they send customers who don't qualify for in-house financing to the competitor's lot. The salesperson tells neither their employer nor the referred customers about the arrangement. Under OMVIC's ethical framework, which statement is MOST accurate?

The arrangement violates the duty of loyalty to the employing dealer and the obligation to act transparently, constituting an undisclosed conflict of interest (Correct answer)
The arrangement is permissible as long as the referred customers are told verbally about the fee before they visit the competitor
The arrangement is only a problem if the salesperson fails to report the income to the Canada Revenue Agency
The arrangement is acceptable because referral fees between industry registrants are a standard business practice not restricted by the MVDA

Correct answer: The arrangement violates the duty of loyalty to the employing dealer and the obligation to act transparently, constituting an undisclosed conflict of interest

Accepting secret payments from a competitor for redirecting customers creates a direct conflict of interest and violates the salesperson's fiduciary-like duty of loyalty to their employer and the obligation of transparency with consumers. OMVIC's Code of Ethics requires registrants to disclose conflicts of interest. Verbal disclosure alone (option D) would be insufficient and does not address the breach of duty to the employer. Income tax reporting (option B) is a separate obligation and irrelevant to the ethics violation.

Question 70: A dealer's salesperson, acting without the dealer principal's knowledge, promises a customer a $2,000 accessories package as an inducement to sign. The dealer principal discovers this only after the contract is signed and refuses to honour the promise. Under OMVIC's framework, which outcome is most legally accurate?

The dealer has no obligation because the salesperson acted outside their authority
The customer's only remedy is to seek personal compensation from the salesperson directly
OMVIC will void the contract automatically and refund the customer's deposit
The dealer may be bound by the salesperson's representation under apparent authority principles, and OMVIC may hold the dealer responsible for the unfair practice (Correct answer)

Correct answer: The dealer may be bound by the salesperson's representation under apparent authority principles, and OMVIC may hold the dealer responsible for the unfair practice

Under agency law and the Consumer Protection Act, 2002, a dealer can be held vicariously liable for the representations made by their registered employees acting in the scope of employment. A salesperson negotiating on a dealer's lot is acting with apparent authority. OMVIC can hold the dealer responsible for the unfair practice even if the dealer principal was unaware, and the consumer may have recourse through the MVDA Compensation Fund or civil remedies.

Question 71: Which OMVIC-administered program helps consumers verify that a dealer is currently registered?

OMVIC's online dealer search tool (Correct answer)
ServiceOntario vehicle history report
Transport Canada recall database
CARFAX Canada

Correct answer: OMVIC's online dealer search tool

OMVIC maintains a publicly accessible online dealer search that allows consumers to verify whether a dealer is currently registered.

Question 72: Under the Motor Vehicle Dealers Act, 2002, a dealer sells a vehicle 'as-is' to a consumer and includes a written 'as-is' acknowledgment signed by the buyer. Two weeks later, the consumer discovers the odometer was rolled back. Which statement is most accurate?

The dealer is only liable if the consumer can prove the dealer personally altered the odometer
The dealer is liable for odometer fraud regardless of the 'as-is' clause, as it constitutes an unfair practice (Correct answer)
The dealer is liable only if the vehicle was under 10 years old at the time of sale
The 'as-is' clause fully protects the dealer because the buyer signed the acknowledgment

Correct answer: The dealer is liable for odometer fraud regardless of the 'as-is' clause, as it constitutes an unfair practice

An 'as-is' clause cannot contract out of statutory protections under the Motor Vehicle Dealers Act, 2002 or the Consumer Protection Act, 2002. Odometer misrepresentation is classified as an unfair practice — a form of fraudulent misrepresentation — and no signed waiver can immunize a dealer against such a claim. The 'as-is' designation covers unknown latent defects, not deliberate misrepresentation of material facts.

Question 73: A dealer is required to provide a Safety Standards Certificate for a used vehicle sold in Ontario. Who is authorized to issue this certificate?

OMVIC inspectors upon request
Any licensed mechanic employed by the dealer
The original vehicle manufacturer's dealer network only
A licensed motor vehicle inspection station approved by the Ministry of Transportation (Correct answer)

Correct answer: A licensed motor vehicle inspection station approved by the Ministry of Transportation

Safety Standards Certificates in Ontario can only be issued by a motor vehicle inspection station licensed by the Ministry of Transportation.

Question 74: A principal dealer is aware that one of their registered salespersons has been making false statements to customers about warranty coverage. The principal takes no action. Under OMVIC's regulatory framework:

The principal is exempt from liability if they were not present during the transactions
The principal is responsible for supervising registrants and may be held accountable for failing to address known misconduct (Correct answer)
Only the individual salesperson is liable since the principal did not personally make the statements
OMVIC can only discipline the principal if the false statements were in writing

Correct answer: The principal is responsible for supervising registrants and may be held accountable for failing to address known misconduct

Under the MVDA, principal dealers have supervisory responsibilities; knowingly allowing misconduct without corrective action exposes the principal to regulatory liability.

Question 75: A lender has a PPSA-registered lien on a vehicle. The registered dealer sells the vehicle to a consumer without disclosing the lien and does not pay it out. Which statement is TRUE?

The consumer is fully protected by OMVIC once the vehicle is registered in their name
The lender loses its right to the vehicle because the consumer is an innocent purchaser
The lender can only pursue the dealer and has no claim against the vehicle
The lender may still have the right to repossess the vehicle from the consumer since the lien was properly registered (Correct answer)

Correct answer: The lender may still have the right to repossess the vehicle from the consumer since the lien was properly registered

A properly registered PPSA lien gives the creditor rights that can survive a transfer; the consumer may be subject to repossession, and must then seek recovery from the dealer.

Question 76: Which of the following practices would be considered a breach of OMVIC's professional ethics regarding vehicle condition disclosure?

Recommending an independent inspection to a used vehicle buyer
Selling a vehicle 'as-is' without disclosing known structural damage (Correct answer)
Providing a Carfax report to a prospective buyer
Performing a safety inspection before putting a vehicle on the lot

Correct answer: Selling a vehicle 'as-is' without disclosing known structural damage

Selling a vehicle 'as-is' does not relieve a registrant of the duty to disclose known material defects; concealing structural damage violates OMVIC's disclosure requirements.

Question 77: A dealer receives a $4,000 deposit on a vehicle on Thursday afternoon. Due to a statutory holiday, the bank is closed on Friday. Under the MVDA, by when must the deposit be placed in the dealer's trust account?

Within 48 hours of receipt, regardless of banking hours
Within 72 hours, with weekends and holidays excluded from the count
By the close of business on the next banking day, which would be Monday (Correct answer)
By the close of business Thursday, the same day it was received

Correct answer: By the close of business on the next banking day, which would be Monday

Under the MVDA, trust funds must be deposited by the close of business on the next banking day following receipt. Since Friday is a statutory holiday and banks are closed, the next banking day is Monday. The 48-hour and 72-hour options are incorrect — the MVDA standard is tied to banking days, not calendar hours.

Question 78: A registered OMVIC dealer sells a vehicle at a public auction under their dealer registration. The vehicle had previously been used as a fleet rental for 18 months. The auction listing describes it only as a 'used 2022 sedan.' Under OMVIC's material disclosure rules, what is the dealer's obligation regarding the rental history?

The dealer must disclose the rental history, as prior use as a daily rental is considered a material fact regardless of the sales channel (Correct answer)
No disclosure is required because public auctions operate under separate rules exempt from OMVIC's retail disclosure standards
Rental history disclosure is triggered only when the vehicle has more than 40,000 km of rental use
Disclosure is required only if the buyer specifically asks about the vehicle's history before bidding

Correct answer: The dealer must disclose the rental history, as prior use as a daily rental is considered a material fact regardless of the sales channel

OMVIC-registered dealers are bound by their disclosure obligations in all transactions conducted under their registration, including auction sales. Prior use as a daily rental vehicle is explicitly recognized as a material fact under the MVDA framework — it affects resale value, wear patterns, and maintenance history. The obligation to disclose is not contingent on the buyer asking, nor does it disappear in an auction setting.

Question 79: In Ontario, which ServiceOntario transaction records the formal transfer of vehicle ownership from seller to buyer?

Filing of the UVIP with the provincial registry
Completion of the Application for Transfer (Permit) and submission to ServiceOntario (Correct answer)
Issuance of a new Safety Standards Certificate
Issuance of a new vehicle identification decal by the MTO

Correct answer: Completion of the Application for Transfer (Permit) and submission to ServiceOntario

The legal transfer of vehicle ownership is completed when the new owner submits the Application for Transfer (ownership permit) to ServiceOntario.

Question 80: A consumer purchases a used vehicle and signs a contract that includes a clause stating 'sold as-is, no warranties expressed or implied.' Two days later, the engine fails due to a pre-existing internal fault that a pre-sale inspection would likely have detected. The salesperson was unaware of the fault. Under OMVIC's Code of Ethics, which statement is most accurate?

The consumer's sole recourse is a civil lawsuit since OMVIC does not govern post-sale mechanical disputes
An 'as-is' clause does not override the consumer's rights under the Consumer Protection Act, and known latent defects must always be disclosed (Correct answer)
The 'as-is' clause fully protects the dealer and salesperson from any obligation since the consumer signed voluntarily
The dealer has no obligation because the salesperson genuinely did not know about the fault at time of sale

Correct answer: An 'as-is' clause does not override the consumer's rights under the Consumer Protection Act, and known latent defects must always be disclosed

Under OMVIC's Code of Ethics and Ontario's Consumer Protection Act, an 'as-is' clause cannot be used to contract out of statutory consumer rights or to avoid disclosure of known material defects. While a salesperson who genuinely did not know about a defect may have a different standing than one who concealed it, the broader principle is that 'as-is' clauses do not eliminate the dealer's legal obligations. Furthermore, dealers have a duty to inspect vehicles they sell, and a pre-existing fault detectable by inspection raises questions about adequate disclosure practices.

Question 81: A dealership's OMVIC registration is suspended during a dispute investigation. Which of the following activities may the dealer STILL lawfully continue during the suspension period?

Negotiating lease terms with customers who had visited the lot before the suspension
Advertising vehicles for sale provided no actual trades occur
Accepting new deposits on vehicles already in transit from the manufacturer
Completing deliveries on contracts that were fully executed and paid prior to the suspension (Correct answer)

Correct answer: Completing deliveries on contracts that were fully executed and paid prior to the suspension

A suspension prohibits a registrant from trading in motor vehicles, which includes buying, selling, leasing, and negotiating. However, fulfilling obligations under contracts that were fully formed and paid before the suspension commenced is generally permissible, as these are completions of prior legal obligations rather than new trades.

Question 82: A salesperson tells a customer that a used vehicle has never been in an accident. The customer later discovers the vehicle had $4,000 in collision repairs. Under the Consumer Protection Act (CPA), this could be considered an example of what?

A failure of all-in pricing.
A non-material fact disclosure error.
An unfair practice (a false or misleading representation). (Correct answer)
A breach of contract.

Correct answer: An unfair practice (a false or misleading representation).

The Consumer Protection Act (CPA) defines unfair practices as making false, misleading, or deceptive representations. Misrepresenting the accident history of a vehicle is a prime example of this. The CPA provides remedies for consumers who are victims of such practices, potentially including contract cancellation.

Question 83: A dealer advertises an 'all-in price' but adds $800 in government fees, registration, and licensing to the final invoice that were not shown in the advertised price. Under OMVIC advertising standards:

Government fees, licensing, and registration are exempt from all-in pricing and may be added separately (Correct answer)
All fees including government fees must be included in the advertised price
The $800 in fees may be added only if they are disclosed in fine print in the advertisement
Government fees may be added separately only if the consumer is purchasing with financing

Correct answer: Government fees, licensing, and registration are exempt from all-in pricing and may be added separately

Under OMVIC's all-in pricing standard, HST and licensing/registration fees are the two exempted items; these specific government fees may be added separately from the advertised all-in price.

Question 84: A consumer asks a salesperson about the fuel efficiency of a vehicle. The salesperson is unsure of the exact figures. What is the ethical response?

Acknowledge uncertainty and direct the customer to the official EnerGuide rating or manufacturer specifications (Correct answer)
State the best-case fuel efficiency scenario to maintain customer interest
Suggest the customer research it themselves after purchase
Provide a rough estimate to keep the conversation moving

Correct answer: Acknowledge uncertainty and direct the customer to the official EnerGuide rating or manufacturer specifications

Providing inaccurate information, even unintentionally, can mislead consumers; a registrant must direct buyers to verified sources when uncertain.

Question 85: A dealer in Ontario sells a vehicle 'as-is' to a consumer. Three days later, the consumer discovers the vehicle has a branded title status (previously rebuilt) that was not disclosed. The dealer argues the 'as-is' clause in the contract covers all defects and non-disclosures. Which statement most accurately reflects the legal position?

The dealer is liable only if the branded title was caused by the dealer's own actions
The 'as-is' clause does not override the dealer's statutory duty to disclose a branded title, and the consumer may have grounds for rescission (Correct answer)
The 'as-is' clause is legally binding and absolves the dealer of all pre-sale disclosure obligations
The consumer's only remedy is through OMVIC's compensation fund, not rescission

Correct answer: The 'as-is' clause does not override the dealer's statutory duty to disclose a branded title, and the consumer may have grounds for rescission

Ontario's Consumer Protection Act and OMVIC regulations impose affirmative disclosure duties on dealers for material facts such as branded title status. An 'as-is' clause cannot waive statutory consumer protections or override the prohibition on misrepresentation by omission. Non-disclosure of a branded title is a material misrepresentation, potentially entitling the consumer to rescission regardless of the as-is language.

Question 86: Under the MVDA 2002, what is the prescribed minimum information that must appear on a vehicle inspection certificate presented at time of sale?

Only the VIN and pass/fail result
The service technician's signature only
A general statement that the vehicle passed provincial safety standards
The VIN, inspection date, inspector's name, and all items inspected with results (Correct answer)

Correct 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.

Question 87: If a dealer sells a vehicle to a consumer and fails to pay out an outstanding lien as agreed, the lender can:

Report the dealer to the Ministry of Transportation only
Only pursue the dealer for damages since the vehicle has already been sold
Cancel the vehicle's registration plates automatically
Repossess the vehicle from the buyer since the lien remains legally registered against the vehicle (Correct answer)

Correct answer: Repossess the vehicle from the buyer since the lien remains legally registered against the vehicle

A registered lien travels with the vehicle; if the dealer fails to pay it out, the lender retains the right to repossess the vehicle from the new owner.

Question 88: Under the Sale of Goods Act, the implied condition of 'merchantable quality' means a vehicle must be:

Sold with a minimum 90-day dealer warranty
Free of any accident history and cosmetic defects
Priced at or below the prevailing market value
Reasonably fit for the ordinary purpose for which such vehicles are typically used (Correct answer)

Correct answer: Reasonably fit for the ordinary purpose for which such vehicles are typically used

Merchantable quality means the vehicle meets a basic standard of quality suitable for its ordinary use — driving on public roads. It does not imply perfection, nor does it set a price standard.

Question 89: A used vehicle was declared a total loss by an insurer and later rebuilt and re-registered. What branded title status must a dealer disclose to a prospective buyer under MVDA regulations?

Branded title status only needs to be disclosed if the consumer specifically requests a CARFAX report
The vehicle's branded (salvage/rebuilt) title status must be disclosed before any agreement is signed (Correct answer)
Total loss history need not be disclosed if the vehicle has passed a Safety Standards Certificate inspection
The dealer must disclose the brand only after the consumer takes delivery

Correct answer: The vehicle's branded (salvage/rebuilt) title status must be disclosed before any agreement is signed

Under MVDA regulations, branded title status (including salvage and rebuilt designations) is a mandatory disclosure that must be made to consumers before any purchase agreement is executed.

Question 90: A consumer purchased a used vehicle 'as-is' with a written acknowledgment signed at time of sale. Two weeks later, the consumer discovers a hidden structural defect the dealer knew about but did not disclose. The consumer escalates to OMVIC. What is the MOST ACCURATE statement about the effect of the 'as-is' clause in this scenario?

The 'as-is' clause fully protects the dealer because the consumer waived all rights to claim defects in writing
The 'as-is' clause shifts liability entirely to the manufacturer if the defect is structural in nature
The 'as-is' clause may protect the dealer for unknown defects but does not shield against deliberate non-disclosure of known material defects (Correct answer)
The 'as-is' clause is unenforceable in Ontario and provides dealers with no legal protection whatsoever

Correct answer: The 'as-is' clause may protect the dealer for unknown defects but does not shield against deliberate non-disclosure of known material defects

An 'as-is' clause in Ontario can limit dealer liability for unknown or latent defects where the consumer acknowledges accepting the vehicle in its current condition. However, it does NOT protect a dealer who knew about a material defect and deliberately concealed it. Such deliberate non-disclosure constitutes misrepresentation under the MVDA, and OMVIC can still act against the dealer. The 'as-is' acknowledgment is not a blanket license to hide known problems.

Question 91: A salesperson working at a registered dealership wants to buy a vehicle from a customer for personal use. Under OMVIC rules, this transaction:

Is prohibited unless the salesperson is also a registered dealer
Must be disclosed and the customer must be treated as in any dealer purchase (Correct answer)
Requires written approval from OMVIC before proceeding
Is completely unrestricted as it is personal

Correct answer: Must be disclosed and the customer must be treated as in any dealer purchase

Salespersons who purchase vehicles from consumers must follow the same disclosure and fairness obligations that apply to dealer purchases.

Question 92: Under OMVIC regulations, salespeople are required to disclose:

Current market values of similar vehicles
Personal information about previous owners
Material facts that may affect a consumer’s decision (Correct answer)
Only the positive features of a vehicle

Correct answer: Material facts that may affect a consumer’s decision

Under OMVIC regulations, salespeople have a legal and ethical obligation to disclose all 'material facts' about a vehicle. These are facts that could reasonably influence a consumer's decision to purchase, such as accident history, previous use (e.g., as a taxi or rental), or significant damage. This ensures consumers make informed purchasing decisions.

Question 93: A dealer delivers a vehicle to a consumer after the safety certificate was issued. The dealer subsequently discovers the mechanic who issued the certificate did not inspect the brakes. What is the ethical obligation of the dealer?

File a complaint against the mechanic and wait for the outcome before contacting the consumer
Arrange a brake inspection only if the consumer returns the vehicle for service
Contact the consumer immediately, disclose the certification issue, and arrange a proper brake inspection (Correct answer)
Keep a record of the issue and address it only if the consumer reports brake problems

Correct answer: Contact the consumer immediately, disclose the certification issue, and arrange a proper brake inspection

Safety-related certification failures that come to light after delivery require immediate disclosure to the consumer; the dealer's duty of honesty and consumer protection require prompt action.

Question 94: A consumer is buying a used vehicle and the dealer offers to sell it without a Safety Standards Certificate (SSC). The consumer agrees to accept the vehicle without an SSC. Under the MVDA, this arrangement:

Is not permitted under any circumstances; dealers must always provide an SSC
Is permitted only if the vehicle is sold unfit and the consumer receives a signed disclosure of unfit status (Correct answer)
Is only permitted for vehicles more than 10 years old or with more than 200,000 km
Is permitted if the consumer signs a waiver and the price is reduced by at least $500

Correct answer: Is permitted only if the vehicle is sold unfit and the consumer receives a signed disclosure of unfit status

A used vehicle may be sold without an SSC under the MVDA provided it is sold 'unfit' with a written disclosure signed by the buyer acknowledging the vehicle does not meet safety standards.

Question 95: A consumer who has purchased a vehicle under a conditional sale agreement (subject to financing approval) is told three days later that financing was not approved. The dealer, rather than unwinding the deal as required, pressures the consumer to find alternative financing within 24 hours or lose their deposit. This conduct:

Is a civil matter between the consumer and lender, not an OMVIC issue
Is acceptable because the consumer should have pre-arranged financing before signing
Violates the Code of Ethics by using pressure tactics and attempting to retain a deposit when the sale condition failed (Correct answer)
Is permissible since the dealer is only offering additional time for the consumer to secure financing

Correct answer: Violates the Code of Ethics by using pressure tactics and attempting to retain a deposit when the sale condition failed

When a sale condition such as financing approval is not met, the deal is void and the deposit must be returned; pressure tactics to circumvent this violate fair dealing under the Code.

Question 96: A dealership advertises a new SUV online with a headline price of $42,888 (all-in). The vehicle has a manufacturer-installed sunroof and dealer-installed winter tire package ($1,200) and remote starter ($650). The $42,888 reflects only the base vehicle with the sunroof. Which statement best describes the dealer's compliance position?

The dealer is non-compliant only if the winter tires and remote starter were installed before the vehicle was listed for sale and are included in the sale (Correct answer)
The dealer is compliant because winter tires and a remote starter are optional accessories, not mandatory fees
The dealer is compliant as long as the accessory prices are disclosed in a pop-up window before the customer contacts the store
The dealer is automatically non-compliant because any dealer-installed accessory must always be excluded to avoid inflating the all-in price

Correct answer: The dealer is non-compliant only if the winter tires and remote starter were installed before the vehicle was listed for sale and are included in the sale

OMVIC's all-in price rule requires that the advertised price reflect what a specific consumer will pay for that specific vehicle. If dealer-added accessories (winter tires, remote starter) are physically installed on the unit being advertised and will be included in the sale, their cost must be incorporated into the all-in price — they are no longer 'optional.' If the accessories were installed after listing, or if the dealer offers to remove them, the compliance analysis changes. The key question is whether a buyer of this specific unit must pay for those items.

Question 97: Which item is NOT required to be included in a motor vehicle bill of sale under OMVIC standards?

Purchase price including applicable taxes
Description of any warranties provided
Buyer's social insurance number (Correct answer)
Vehicle Identification Number (VIN)

Correct answer: Buyer's social insurance number

A buyer's social insurance number is personal tax information not required on a vehicle bill of sale; the VIN, price, and warranties are required.

Question 98: A registered OMVIC dealer operates exclusively as an online broker: the dealer never takes physical possession of vehicles, instead connecting buyers with sellers and charging a mandatory $1,495 'broker facilitation fee' on every transaction. The dealer's website displays third-party seller asking prices without including the $1,495 fee. Which of the following is the most accurate compliance assessment?

The dealer is compliant because broker facilitation fees are treated as professional service fees outside OMVIC's all-in price scope
The dealer is compliant because the prices displayed are the seller's prices, not the dealer's own prices, so OMVIC's advertising rules do not apply
The dealer is non-compliant only if the broker fee exceeds the OMVIC-regulated cap for dealer fees
The dealer is non-compliant because as a registered OMVIC dealer, any mandatory fee the dealer charges must be reflected in the advertised price (Correct answer)

Correct answer: The dealer is non-compliant because as a registered OMVIC dealer, any mandatory fee the dealer charges must be reflected in the advertised price

Registration as an OMVIC dealer brings all of a registrant's advertising within the scope of OMVIC's standards, regardless of the business model. An online broker that charges a mandatory $1,495 facilitation fee on every transaction must ensure that fee is incorporated into every advertised price on its platform — the consumer cannot purchase through the dealer without paying it. The fact that the underlying vehicle price originates from a third-party seller does not eliminate the dealer's obligation to present an all-in price that includes its own mandatory charges.

Question 99: When a consumer requests a copy of the signed purchase contract, under OMVIC regulations the dealer must provide it:

Within 10 business days upon written request
Only after the vehicle has been delivered
Immediately at the time of signing (Correct answer)
Within 30 days for used vehicles and 60 days for new vehicles

Correct answer: Immediately at the time of signing

Dealers are required to provide the consumer with a copy of the signed contract immediately at the time of signing.

Question 100: A registered salesperson at a buy-here-pay-here lot knows that the interest rates charged to consumers are extremely high and that many buyers do not understand the total cost of credit. The Code of Ethics requires the salesperson to:

Proceed with the sale since consumers are responsible for understanding contracts they sign
Add a disclosure notice to the contract that rates are 'subject to change' to limit liability
Offer high-rate financing only after the consumer has been declined by two other lenders
Ensure consumers clearly understand the total cost of credit and all financing terms before signing (Correct answer)

Correct answer: Ensure consumers clearly understand the total cost of credit and all financing terms before signing

The Code of Ethics and consumer protection principles require that consumers understand material financial terms including interest rates and total cost of credit before committing.

OMVIC Certification Exam

This exam certifies individuals to be registered as motor vehicle salespeople or dealers in Ontario, ensuring they understand relevant laws and ethical practices.

100

Questions

120 min

Time Limit

70%

To Pass

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Exam Rules

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No feedback shown until you submit the entire exam
Unanswered questions count as wrong — answer everything
10 pretest questions are mixed in and don't affect your score
Timer auto-submits when time runs out
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These practice questions were written with AI tools. They are not real exam questions. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

georgiancollege.ca — Test delivery, fees, retake policy, score release, test dates, exam information · verified Oct 2026
omvic.ca — Fees, late registration, renewal, eligibility, exam format, passing score, time limit, score validity, exam information · verified Oct 2026