OMVIC Advertising and Disclosure Rules 3 — Questions and Answers
Question 1: Under OMVIC regulations, a dealer must proactively disclose to a buyer if a used vehicle was previously used as:
- A family vehicle with more than two owners
- A taxi, police cruiser, or daily rental unit (Correct answer)
- Any vehicle driven over 80,000 km
- A vehicle serviced at an independent shop
Correct answer: A taxi, police cruiser, or daily rental unit
Previous use as a taxi, police vehicle, or rental is a material fact that must be disclosed under OMVIC's Code of Ethics because it can significantly affect vehicle value and reliability.
Question 2: When is a dealer required to disclose that a used vehicle was involved in a collision?
- Only if repair costs exceeded $3,000
- Only if the airbags were deployed
- When the damage or repair materially affects the vehicle's value or safety (Correct answer)
- Only when the buyer specifically requests accident history
Correct answer: When the damage or repair materially affects the vehicle's value or safety
OMVIC requires disclosure of any material fact, including collision damage, that could reasonably influence a buyer's decision to purchase or the price they pay.
Question 3: A dealer discovers there is a lien registered against a used vehicle on their lot. Their obligation under OMVIC's Code of Ethics is to:
- Disclose the lien to the buyer before completing the sale (Correct answer)
- Remove the lien within 30 days of the sale date
- Only disclose the lien if the buyer asks about encumbrances
- Reduce the vehicle price to account for the lien
Correct answer: Disclose the lien to the buyer before completing the sale
An existing lien is a material fact that must be disclosed to the buyer before the sale, as it could affect their ability to obtain clear title.
Question 4: Under Ontario law, which document must a registered dealer provide to a buyer before the sale of a used vehicle to disclose its history?
- A CARFAX vehicle history report
- A Used Vehicle Information Package (UVIP) (Correct answer)
- An OMVIC registration certificate
- A Ministry of Transportation safety standards certificate
Correct answer: A Used Vehicle Information Package (UVIP)
The Used Vehicle Information Package (UVIP) is a mandatory disclosure document that dealers must provide to buyers before completing a used vehicle sale in Ontario.
Question 5: A dealer sells a used vehicle 'as-is.' Under OMVIC standards, does an 'as-is' designation eliminate the dealer's obligation to disclose known material defects?
- Yes, 'as-is' means the buyer accepts all risks without recourse
- No, dealers must still disclose known material defects even in as-is sales (Correct answer)
- Yes, but only for vehicles over 10 years old
- Only if the buyer signs a specific OMVIC waiver
Correct answer: No, dealers must still disclose known material defects even in as-is sales
An 'as-is' clause does not relieve dealers of their obligation to disclose known material defects; concealing known problems remains a violation of OMVIC's Code of Ethics.
Question 6: A dealer suspects a used vehicle's odometer has been tampered with before it arrived on their lot. Under OMVIC obligations, the dealer should:
- Sell the vehicle at market value for the displayed mileage without comment
- Report the suspicion only to OMVIC, not the buyer
- Disclose the suspected odometer irregularity to the buyer (Correct answer)
- Wait for laboratory confirmation before saying anything
Correct answer: Disclose the suspected odometer irregularity to the buyer
Suspected odometer tampering is a material fact; OMVIC requires dealers to disclose known or suspected issues that could affect the buyer's decision.
Question 7: Under OMVIC's Code of Ethics, a dealer's responsibility to disclose material facts about a vehicle applies:
- Only after the buyer asks direct questions
- Only for vehicles under a manufacturer's warranty
- Both proactively and in response to direct buyer questions (Correct answer)
- Only when the defect affects safety certification
Correct answer: Both proactively and in response to direct buyer questions
Dealers must proactively disclose material facts they are aware of and must also answer buyer questions honestly; disclosure is not limited to reactive responses.
OMVIC Advertising and Disclosure Rules 3
Under OMVIC regulations, a dealer must proactively disclose to a buyer if a used vehicle was previously used as: