Practice Test GeeksOMVIC (Ontario Motor Vehicle Industry Council) Practice Test
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Wholesale Transactions and Dealer-to-Dealer Disclosures Flashcards

7 cards from real OMVIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Wholesale Transactions and Dealer-to-Dealer Disclosures flashcards as text

  1. Which registration class lets a business act as an agent arranging vehicle sales between parties without owning the inventory?

    Answer: Broker

    A broker acts on behalf of others to arrange trades, which is different from a wholesaler who buys and sells to dealers.

  2. A vehicle bought wholesale shows signs of flood damage. What should the retail dealer do?

    Answer: Disclose the flood damage to the consumer in writing

    Fire or water damage is a material fact that must be disclosed to the consumer.

  3. A dealer agrees with another dealer to sell a vehicle 'as-is' between them. Can the retail dealer then sell it to a consumer as-is without the required disclosures?

    Answer: No, consumer disclosure obligations still apply to the retail sale

    Wholesale terms between dealers cannot override the dealer's legal disclosure duties to a consumer.

  4. Which document should a dealer always get when buying a vehicle from another registrant?

    Answer: A bill of sale or invoice showing the vehicle's VIN and transaction details

    A written bill of sale or invoice with the VIN records ownership transfer and supports later disclosures and record-keeping.

  5. An Ontario dealer wants to sell vehicles wholesale to an out-of-province dealer. Which is true?

    Answer: The Ontario dealer must be registered with OMVIC to trade from Ontario

    Anyone trading motor vehicles in Ontario, including wholesale, must hold the right OMVIC registration.

  6. A selling dealer discloses in writing that a vehicle was previously leased to a daily rental company. What is the buying dealer's next obligation?

    Answer: Pass this history on to any consumer buyer in writing

    Prior daily rental use is a required consumer disclosure, so the buying dealer must carry it forward.

  7. Which practice best protects a dealer that buys at dealer-only auctions?

    Answer: Reviewing announcements, condition reports, and vehicle history reports before bidding

    Due diligence before purchase helps the dealer find material facts it will later be required to disclose.