OMVIC OMVIC Consumer Protection and Dispute Resolution 5 — Questions and Answers
Question 1: Under OMVIC regulations, which party is responsible for ensuring a vehicle's safety standards certificate is obtained before delivery to the consumer?
- The consumer at their own expense
- The previous owner of the vehicle
- The registered dealer selling the vehicle (Correct answer)
- The Ministry of Transportation directly
Correct answer: The registered dealer selling the vehicle
A registered dealer is responsible for obtaining a valid safety standards certificate before delivering a used vehicle to a consumer.
Question 2: A salesperson registered with OMVIC leaves their employer dealership. What must happen to their registration?
- It automatically transfers to any new dealer they join
- It becomes inactive and must be updated to reflect the new employer (Correct answer)
- It is automatically cancelled and they must reapply
- It remains valid independently of employment status
Correct answer: It becomes inactive and must be updated to reflect the new employer
A salesperson's OMVIC registration is tied to their sponsoring dealer and must be updated when they change employers.
Question 3: What is the primary purpose of the mandatory written disclosure statement dealers must provide about a vehicle's history?
- To limit the dealer's liability for future mechanical problems
- To ensure consumers have material information needed to make an informed purchase decision (Correct answer)
- To satisfy insurance company underwriting requirements
- To document the vehicle's service history for warranty purposes
Correct answer: To ensure consumers have material information needed to make an informed purchase decision
The disclosure statement is designed to give consumers all material facts about a vehicle's history so they can make an informed buying decision.
Question 4: A dealer advertises a vehicle at a specific price online, but when a consumer arrives, the dealer claims the price was a 'mistake' and charges more. Under OMVIC rules, this conduct is:
- Permissible if the dealer notifies the consumer before signing
- A prohibited practice known as bait-and-switch advertising (Correct answer)
- Acceptable if the price difference is less than 10%
- Only prohibited if the consumer has already made a deposit
Correct answer: A prohibited practice known as bait-and-switch advertising
Advertising a vehicle at one price and then charging a higher price is a prohibited bait-and-switch practice under the MVDA.
Question 5: If OMVIC revokes a dealer's registration, what immediate effect does this have on the dealer's salespersons?
- Their personal registrations remain valid and they may work elsewhere immediately
- Their registrations are automatically suspended until they find a new sponsoring dealer (Correct answer)
- They must rewrite the OMVIC registration exam before working elsewhere
- They lose their registrations permanently
Correct answer: Their registrations are automatically suspended until they find a new sponsoring dealer
When a dealer loses its registration, the salespersons' registrations become inactive and they cannot sell vehicles until registered with a new sponsoring dealer.
Question 6: A consumer paid a deposit on a vehicle that the dealer later sold to someone else. The consumer's best first course of action under OMVIC's dispute process is to:
- Immediately file a lawsuit in Small Claims Court
- File a complaint with OMVIC to trigger its mediation process (Correct answer)
- Contact the Better Business Bureau
- Dispute the charge with their credit card company without notifying OMVIC
Correct answer: File a complaint with OMVIC to trigger its mediation process
Filing a complaint with OMVIC initiates the regulatory complaint and mediation process, which is the appropriate first step before litigation.
Question 7: Under the MVDA, how long does a consumer generally have to make a claim to the OMVIC Compensation Fund after suffering a qualifying loss?
- 90 days from the date of loss
- One year from the date the loss was discovered or ought to have been discovered (Correct answer)
- Two years from the date of the vehicle purchase
- Six months from the date the dealer's registration was revoked
Correct answer: One year from the date the loss was discovered or ought to have been discovered
Claims to the Compensation Fund must generally be made within one year of when the consumer discovered or ought to have discovered the loss.
OMVIC OMVIC Consumer Protection and Dispute Resolution 5
Under OMVIC regulations, which party is responsible for ensuring a vehicle's safety standards certificate is obtained before delivery to the consumer?