OMVIC Advertising and Disclosure Rules 3

Question 1

Under OMVIC regulations, a dealer must proactively disclose to a buyer if a used vehicle was previously used as:

Accepted Answer

A taxi, police cruiser, or daily rental unit

Answer

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?

Accepted Answer

When the damage or repair materially affects the vehicle's value or safety

Answer

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:

Accepted Answer

Disclose the lien to the buyer before completing the sale

Answer

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?

Accepted Answer

A Used Vehicle Information Package (UVIP)

Answer

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?

Accepted Answer

No, dealers must still disclose known material defects even in as-is sales

Answer

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.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC Advertising and Disclosure Rules 3