OMVIC OMVIC Contracts and Consumer Rights 3 — Questions and Answers
Question 1: Under OMVIC regulations, what is the maximum number of days a consumer has to cancel a contract if the dealer failed to provide the required written statement of buyer's rights?
- 7 days
- 10 days
- 90 days (Correct answer)
- 30 days
Correct answer: 90 days
If a dealer fails to provide the required buyer's rights statement, the consumer has 90 days to cancel the contract.
Question 2: A dealer adds a $300 'dealer prep fee' to the final contract that was not disclosed in the original price advertisement. Under OMVIC rules, this practice is:
- Permitted if disclosed before signing
- A violation of the all-in price advertising requirement (Correct answer)
- Standard industry practice allowed by OMVIC
- Only prohibited for new vehicles
Correct answer: A violation of the all-in price advertising requirement
OMVIC requires all-in price advertising, meaning all fees must be included in the advertised price, not added later.
Question 3: When a consumer purchases a used vehicle 'as-is' from a registered dealer, which of the following statements is TRUE?
- The dealer has no obligations whatsoever
- The consumer waives all statutory rights under the MVDA
- The dealer must still disclose known material defects (Correct answer)
- As-is sales are prohibited by OMVIC for registered dealers
Correct answer: The dealer must still disclose known material defects
Even in as-is sales, dealers must disclose known material defects; the as-is clause does not eliminate this statutory duty.
Question 4: Under the Motor Vehicle Dealers Act, a purchase contract must include the vehicle's odometer reading. What is the purpose of this requirement?
- To help OMVIC calculate licensing fees
- To establish a record for potential odometer fraud claims (Correct answer)
- To determine applicable sales tax rates
- To set the warranty period for used vehicles
Correct answer: To establish a record for potential odometer fraud claims
Recording the odometer reading at sale creates a documented baseline to identify and prosecute odometer fraud.
Question 5: A consumer signs a purchase agreement but the dealer later demands an additional $1,500 because 'costs increased.' Under OMVIC rules, the consumer's correct response is:
- Pay the difference or lose the deposit
- Accept the increase if it is under 10% of the sale price
- Refuse and hold the dealer to the original contract price (Correct answer)
- Renegotiate with OMVIC as mediator
Correct answer: Refuse and hold the dealer to the original contract price
A signed purchase agreement is binding on the dealer; unilateral price increases after signing violate OMVIC regulations.
Question 6: Which of the following is a mandatory disclosure on a used vehicle contract under Ontario's Motor Vehicle Dealers Act?
- Previous owner's name and address
- Whether the vehicle was previously used as a daily rental (Correct answer)
- The dealer's profit margin on the sale
- The vehicle's full service history
Correct answer: Whether the vehicle was previously used as a daily rental
Dealers must disclose if a used vehicle was previously used as a daily rental, taxi, police vehicle, or emergency vehicle.
Question 7: If a consumer is financing a vehicle through a dealer and the dealer is receiving compensation from the lender, OMVIC requires the dealer to:
- Disclose this compensation to the consumer in writing (Correct answer)
- Offer the consumer the same interest rate as the lender's prime rate
- Obtain written consent from OMVIC before arranging financing
- Provide financing from at least three competing lenders
Correct answer: Disclose this compensation to the consumer in writing
Dealers must disclose any compensation received from lenders when arranging consumer financing, as this represents a potential conflict of interest.
OMVIC OMVIC Contracts and Consumer Rights 3
Under OMVIC regulations, what is the maximum number of days a consumer has to cancel a contract if the dealer failed to provide the required written statement of buyer's rights?