OMVIC Legal Requirements 5 — Questions and Answers
Question 1: Under OMVIC rules, which of the following is a salesperson required to disclose when selling a vehicle previously used as a rental?
- The rental company's name only
- That the vehicle was previously used as a rental (Correct answer)
- The number of rental drivers
- Only if the buyer specifically asks
Correct answer: That the vehicle was previously used as a rental
Previous rental use is a material fact that dealers must proactively disclose to consumers under OMVIC's disclosure requirements.
Question 2: Under the MVDA, who is responsible for ensuring that all salespeople working at a dealership are properly registered with OMVIC?
- Each individual salesperson only
- The registered dealer (owner/operator) (Correct answer)
- OMVIC itself
- The Ontario Ministry of Transportation
Correct answer: The registered dealer (owner/operator)
The registered dealer bears responsibility for ensuring all salespeople on their roster are properly registered with OMVIC.
Question 3: A dealer's registration is suspended by OMVIC. During the suspension period, the dealer may:
- Continue selling but not buying vehicles
- Operate normally while appealing the decision
- Not buy, sell, or trade in motor vehicles (Correct answer)
- Only complete sales already in progress
Correct answer: Not buy, sell, or trade in motor vehicles
A suspended dealer is prohibited from all buying, selling, and trading of motor vehicles during the suspension period.
Question 4: Which of the following is NOT a ground for OMVIC to refuse or revoke a dealer's registration?
- Prior fraud convictions
- Insufficient business experience (Correct answer)
- Misrepresentation on the registration application
- Failure to maintain required trust accounts
Correct answer: Insufficient business experience
OMVIC cannot refuse registration solely based on insufficient business experience; the grounds relate to honesty, financial fitness, and compliance history.
Question 5: Under OMVIC regulations, a contract of purchase and sale for a motor vehicle must be provided to the buyer:
- Within 48 hours of signing
- At the time of signing (Correct answer)
- Before the vehicle is delivered only
- Within 7 business days
Correct answer: At the time of signing
The dealer must provide the buyer with a copy of the signed contract at the time of signing, not after the fact.
Question 6: OMVIC's Compensation Fund provides financial protection to consumers who suffer losses due to:
- Their own negligence in a vehicle purchase
- Fraudulent acts by a registered dealer (Correct answer)
- Vehicle defects discovered after purchase
- Disputes over vehicle pricing
Correct answer: Fraudulent acts by a registered dealer
The OMVIC Compensation Fund compensates consumers for financial losses caused by fraudulent acts or misrepresentations by registered dealers.
Question 7: When a vehicle dealer takes a trade-in, OMVIC regulations require that the value of the trade-in must be:
- Set at wholesale book value
- Clearly stated in the purchase contract (Correct answer)
- Approved by OMVIC before finalizing
- Disclosed only upon buyer request
Correct answer: Clearly stated in the purchase contract
The agreed trade-in value must be clearly disclosed and documented in the written purchase contract.
OMVIC Legal Requirements 5
Under OMVIC rules, which of the following is a salesperson required to disclose when selling a vehicle previously used as a rental?