OMVIC Contracts and Consumer Rights 2 — Questions and Answers
Question 1: Under OMVIC regulations, which of the following must appear on a vehicle Bill of Sale?
- Only the sale price and vehicle make/model
- The VIN, purchase price, buyer/seller information, and delivery date (Correct answer)
- Just the buyer's name and total cost including taxes
- The vehicle colour, price, and salesperson's name only
Correct answer: The VIN, purchase price, buyer/seller information, and delivery date
A Bill of Sale must include identifying information for both parties, full vehicle details including VIN, purchase price, trade-in allowance if applicable, and the agreed delivery date.
Question 2: When must a registered dealer provide a copy of the signed purchase contract to the buyer?
- Within 5 business days of the sale
- At the time the contract is signed (Correct answer)
- Before the vehicle is delivered to the buyer
- After financing is approved by the lender
Correct answer: At the time the contract is signed
Under the MVDA 2002, dealers must provide a copy of the signed contract to the buyer at the time of signing, not after the fact.
Question 3: OMVIC's all-in pricing rule requires that advertised vehicle prices include:
- All charges including HST and licensing fees
- All dealer charges and fees, but excluding government fees such as HST and licensing (Correct answer)
- Only the base MSRP of the vehicle
- The price plus a standard dealer administration fee only
Correct answer: All dealer charges and fees, but excluding government fees such as HST and licensing
OMVIC's all-in pricing rule requires that advertised prices include all dealer-imposed charges, but government fees such as HST and licensing are excluded.
Question 4: A dealer advertises a vehicle at $25,000 but adds a $500 'documentation fee' at the point of sale. Under OMVIC rules, this is:
- Permitted if the fee is disclosed before signing the contract
- Permitted because documentation fees are a standard industry practice
- Prohibited because all dealer fees must be included in the advertised price (Correct answer)
- Permitted if the total fee is under $1,000
Correct answer: Prohibited because all dealer fees must be included in the advertised price
OMVIC's all-in pricing rules prohibit dealers from adding undisclosed fees on top of the advertised price; all dealer charges must be reflected in the advertised amount.
Question 5: A dealer is selling a vehicle previously used as a long-term rental. Under OMVIC disclosure rules, the dealer must:
- Disclose this only if the consumer specifically asks about prior use
- Not disclose this as rental history is not a material fact
- Disclose that the vehicle was previously used as a rental vehicle (Correct answer)
- Only disclose the total kilometres driven during the rental period
Correct answer: Disclose that the vehicle was previously used as a rental vehicle
Previous rental use is a material fact that dealers are required to proactively disclose to consumers under OMVIC's disclosure obligations.
Question 6: Under the MVDA 2002, a contract for the purchase of a motor vehicle becomes legally binding when:
- The buyer pays the deposit to the dealer
- Both the buyer and an authorized dealer representative sign the contract (Correct answer)
- The vehicle is delivered to the buyer's possession
- Financing is approved by the lending institution
Correct answer: Both the buyer and an authorized dealer representative sign the contract
A motor vehicle purchase contract becomes legally binding once it is signed by both the buyer and an authorized representative of the dealership.
Question 7: If a dealer fails to disclose that a vehicle was previously used as a police or emergency vehicle, this is considered:
- Acceptable if the vehicle passes a safety standards certificate
- A minor regulatory infraction subject to a small administrative fine
- A misrepresentation or failure to disclose a material fact (Correct answer)
- Only a concern if the buyer discovers this and formally objects within 30 days
Correct answer: A misrepresentation or failure to disclose a material fact
Prior emergency or police use is a material fact that can affect vehicle value and reliability, and failure to disclose it constitutes misrepresentation under OMVIC rules.
OMVIC Contracts and Consumer Rights 2
Under OMVIC regulations, which of the following must appear on a vehicle Bill of Sale?