OMVIC Ethics and Professionalism 5 — Questions and Answers
Question 1: A customer returns a vehicle two days after purchase claiming the salesperson misrepresented the vehicle's history. Under OMVIC's ethical standards, what is the registrant's responsibility?
- Investigate the complaint fairly and attempt to resolve it in good faith (Correct answer)
- Refer the customer to OMVIC's complaint process without engaging further
- Deny any wrongdoing since the contract was signed by the customer
- Offer a small discount on a future purchase to resolve the matter informally
Correct answer: Investigate the complaint fairly and attempt to resolve it in good faith
OMVIC's Code of Ethics requires registrants to address consumer complaints honestly and in good faith, treating post-sale issues with the same professional standards as the sale itself.
Question 2: Which of the following practices would be considered a breach of OMVIC's professional ethics regarding vehicle condition disclosure?
- Selling a vehicle 'as-is' without disclosing known structural damage (Correct answer)
- Performing a safety inspection before putting a vehicle on the lot
- Recommending an independent inspection to a used vehicle buyer
- Providing a Carfax report to a prospective buyer
Correct answer: Selling a vehicle 'as-is' without disclosing known structural damage
Selling a vehicle 'as-is' does not relieve a registrant of the duty to disclose known material defects; concealing structural damage violates OMVIC's disclosure requirements.
Question 3: What ethical principle underlies OMVIC's requirement that registrants use plain language in contracts and communications with consumers?
- Informed consent — consumers must understand what they are agreeing to (Correct answer)
- Efficiency — plain language speeds up the transaction process
- Liability protection — clear language reduces the dealer's legal risk
- Standardization — all dealers must use the same terminology
Correct answer: Informed consent — consumers must understand what they are agreeing to
Plain language requirements exist to ensure consumers can give genuinely informed consent, which is a cornerstone of OMVIC's consumer protection mandate.
Question 4: A dealership sales manager instructs a registrant to describe a rebuilt vehicle as 'like new' in advertising. What should the registrant do?
- Refuse the instruction and explain that accurate status disclosure is legally required under OMVIC rules (Correct answer)
- Follow the instruction since the manager bears responsibility for advertising decisions
- Use the phrase but add a footnote disclosing the rebuilt status
- Report the instruction to OMVIC anonymously while complying temporarily
Correct answer: Refuse the instruction and explain that accurate status disclosure is legally required under OMVIC rules
Individual registrants are personally responsible for compliance with OMVIC rules and cannot use employer instructions as justification for misrepresentation.
Question 5: Under OMVIC's standards, which behavior demonstrates a commitment to ongoing professional development?
- Completing OMVIC-required training and staying current on changes to the Motor Vehicle Dealers Act (Correct answer)
- Attending optional manufacturer product knowledge sessions only
- Relying on experience from previous years rather than seeking updated information
- Completing training only when OMVIC sends a formal reminder
Correct answer: Completing OMVIC-required training and staying current on changes to the Motor Vehicle Dealers Act
Professional development under OMVIC includes actively maintaining current knowledge of legislation, regulations, and industry standards that affect consumer protection.
Question 6: A registrant is approached by a customer wanting to register a vehicle that is actually owned by someone else. The customer offers the registrant a cash incentive to process the paperwork. What must the registrant do?
- Refuse and report the suspicious transaction as a potential fraud (Correct answer)
- Refuse but take no further action since it is not the registrant's duty to investigate
- Request additional documentation and proceed if it appears in order
- Accept the incentive since the customer bears full responsibility for the transaction
Correct answer: Refuse and report the suspicious transaction as a potential fraud
Facilitating or ignoring potential title fraud violates OMVIC's ethical standards and may constitute a criminal offence; reporting is the required course of action.
Question 7: Which of the following best describes the concept of 'fair dealing' as it applies to OMVIC-registered salespersons?
- Treating all customers honestly and equitably without taking advantage of their lack of knowledge (Correct answer)
- Offering all customers the same price without negotiation
- Providing equal amounts of time and attention to every customer
- Ensuring that all deals generate equal profit for the dealership
Correct answer: Treating all customers honestly and equitably without taking advantage of their lack of knowledge
Fair dealing under OMVIC means conducting all transactions with honesty and not exploiting information asymmetry between the registrant and the consumer.
OMVIC Ethics and Professionalism 5
A customer returns a vehicle two days after purchase claiming the salesperson misrepresented the vehicle's history.
Under OMVIC's ethical standards, what is the registrant's responsibility?