OMVIC OMVIC Consumer Protection and Dispute Resolution 4 — Questions and Answers
Question 1: Under the Motor Vehicle Dealers Act, what is the maximum administrative penalty OMVIC can impose on a registered dealer for a single violation?
- $10,000
- $25,000 (Correct answer)
- $50,000
- $100,000
Correct answer: $25,000
OMVIC can impose administrative penalties of up to $25,000 per violation on registered dealers under the MVDA.
Question 2: A consumer discovers after purchase that the odometer on their used vehicle was rolled back. Which OMVIC-governed concept most directly protects them?
- Right of rescission for latent defects
- The odometer disclosure requirement under the MVDA (Correct answer)
- The cooling-off period provision
- The manufacturer warranty transfer rule
Correct answer: The odometer disclosure requirement under the MVDA
The MVDA requires dealers to disclose accurate odometer readings; odometer tampering is a specific prohibited practice.
Question 3: When a consumer files a complaint with OMVIC against a dealer, what is the typical first step OMVIC takes?
- Immediately suspend the dealer's registration
- Attempt mediation or contact the dealer to resolve the complaint (Correct answer)
- Refer the matter to the courts
- Issue a public warning about the dealer
Correct answer: Attempt mediation or contact the dealer to resolve the complaint
OMVIC typically first attempts to mediate between the consumer and the dealer to reach a resolution before escalating.
Question 4: What does OMVIC's 'Making It Right' program primarily aim to do?
- Provide free legal representation to consumers in court
- Facilitate informal resolution of complaints between consumers and dealers (Correct answer)
- Compensate consumers directly from OMVIC funds
- Audit all dealer sales contracts annually
Correct answer: Facilitate informal resolution of complaints between consumers and dealers
'Making It Right' is OMVIC's complaint resolution program designed to help consumers and dealers resolve disputes informally.
Question 5: A registered dealer fails to provide a consumer with a signed copy of the bill of sale at the time of purchase. Under the MVDA, this is:
- Acceptable if the consumer agrees verbally
- A prohibited practice regardless of consumer consent (Correct answer)
- Only required for new vehicles, not used ones
- Required within 7 business days, not at time of purchase
Correct answer: A prohibited practice regardless of consumer consent
Dealers must provide consumers with a signed copy of the purchase contract at the time of sale; this cannot be waived by the consumer.
Question 6: Which statement about the OMVIC Compensation Fund is accurate?
- It covers losses from mechanical failures on used vehicles
- It is funded by annual levies on registered dealers and salespersons (Correct answer)
- It compensates consumers for losses caused by unregistered sellers
- It only applies to new vehicle purchases
Correct answer: It is funded by annual levies on registered dealers and salespersons
The Compensation Fund is maintained through levies paid by OMVIC registrants — dealers and salespersons — not from general tax revenue.
Question 7: A consumer wants to trade in their vehicle as part of a deal. Under OMVIC rules, the dealer must disclose:
- Only the cash value of the trade-in
- The trade-in allowance separately from the purchase price on the contract (Correct answer)
- The trade-in value only if it exceeds $5,000
- The trade-in amount only after the deal is finalized
Correct answer: The trade-in allowance separately from the purchase price on the contract
OMVIC regulations require that trade-in allowances be clearly and separately itemized on the purchase contract to ensure transparency.
OMVIC OMVIC Consumer Protection and Dispute Resolution 4
Under the Motor Vehicle Dealers Act, what is the maximum administrative penalty OMVIC can impose on a registered dealer for a single violation?