Licensing Requirements Flashcards

A registered dealer wishes to open a second sales location in Ontario. What must they do regarding OMVIC registration?

Answer: Register the additional location as a branch under their existing dealer registration

Each additional sales location must be registered as a branch premise with OMVIC, as registrations are location-specific under the MVDA.

Which of the following is a mandatory condition that ALL registered motor vehicle dealers in Ontario must maintain throughout the period of their registration?

Answer: Adequate premises appropriate for the class of registration

Registered dealers must continuously maintain premises that meet OMVIC's standards appropriate for their registration class as a condition of ongoing registration.

What action must an OMVIC-registered dealer take if they decide to permanently close their business?

Answer: Return their registration certificate and notify OMVIC of the closure

Dealers who permanently cease operations must surrender their registration certificate and formally notify OMVIC to avoid ongoing obligations and regulatory issues.

An OMVIC-registered salesperson wants to operate as an independent contractor rather than an employee of a dealership. How does OMVIC treat this arrangement?

Answer: Not permitted — salespersons must be registered under a specific licensed dealer

Under the MVDA, salespersons cannot operate independently and must be registered under a specific licensed dealer who acts as their sponsor.

Which of the following scenarios would trigger OMVIC to investigate whether an unregistered person is illegally trading in motor vehicles?

Answer: Someone consistently advertising and selling multiple vehicles for profit

Consistent, repeated vehicle sales conducted for profit are the hallmark of trading in vehicles and trigger OMVIC investigation for unregistered dealer activity.

Under OMVIC rules, what is a 'curbsider' and why are they a concern?

Answer: An unregistered person who sells vehicles privately while disguising themselves as a private seller

Curbsiders are unregistered dealers who fraudulently pose as private sellers to avoid consumer protection obligations and OMVIC oversight.

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

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.