OMVIC OMVIC Contracts and Consumer Rights 4 — Questions and Answers
Question 1: Under Ontario's Consumer Protection Act as it applies to vehicle sales, a consumer who purchased online or off-premises may have a right to cancel within how many days?
- 3 days
- 7 days (Correct answer)
- 10 days
- 14 days
Correct answer: 7 days
Ontario's Consumer Protection Act provides a 7-day cooling-off period for contracts entered into online or away from the dealer's premises.
Question 2: A dealer advertises a vehicle for $19,995 but when the consumer arrives, the dealer says the car was sold and offers a higher-priced alternative. OMVIC considers this to be:
- Acceptable if the substitute vehicle is similar
- Bait and switch advertising, which is prohibited (Correct answer)
- Permitted if the consumer is offered a discount on the substitute
- A standard sales technique not regulated by OMVIC
Correct answer: Bait and switch advertising, which is prohibited
Advertising a vehicle the dealer cannot or will not sell in order to lure consumers to buy something else constitutes prohibited bait-and-switch advertising.
Question 3: Which of the following must appear on every Ontario vehicle purchase contract by law?
- The dealer's OMVIC registration number (Correct answer)
- The salesperson's personal home address
- The vehicle's future resale value estimate
- The cost of the nearest competing dealer's price
Correct answer: The dealer's OMVIC registration number
Every Ontario vehicle purchase contract must display the dealer's OMVIC registration number, allowing consumers to verify the dealer is legally registered.
Question 4: A consumer notices after taking delivery that the vehicle has frame damage that was not disclosed. Under OMVIC's rules, the consumer's strongest remedy is:
- Accept the vehicle and request a partial refund
- File a complaint with OMVIC and potentially rescind the contract (Correct answer)
- Sue only in Small Claims Court for repair costs
- Return the vehicle only if done within 24 hours of delivery
Correct answer: File a complaint with OMVIC and potentially rescind the contract
Non-disclosure of material defects like frame damage is a serious OMVIC violation, and consumers may file a complaint and seek contract rescission.
Question 5: Under OMVIC regulations, a vehicle contract is considered complete and binding only when:
- The consumer pays a deposit of at least 10%
- Both the consumer and the dealer's authorized representative have signed it (Correct answer)
- The vehicle has been delivered to the consumer
- OMVIC has registered the sale in its database
Correct answer: Both the consumer and the dealer's authorized representative have signed it
A binding vehicle contract requires signatures from both the consumer and an authorized representative of the dealership.
Question 6: A dealer charges a consumer a $200 'documentation fee' not mentioned during negotiations. According to OMVIC's all-in pricing requirements, this fee is:
- Allowed because administrative fees are exempt from all-in pricing
- A violation if not included in the advertised price (Correct answer)
- Permitted only if the consumer is given 48 hours to object
- Legal as long as it is itemized on the contract
Correct answer: A violation if not included in the advertised price
Ontario's all-in pricing rule requires all fees (except HST and licensing) to be included in the advertised price; surprise documentation fees violate this rule.
Question 7: A consumer wants to trade in a vehicle but discovers the dealer undervalued it after signing. Under OMVIC rules, can the dealer change the trade-in value after the contract is signed?
- Yes, if the appraisal was conducted more than 7 days prior
- Yes, if new damage is discovered during the dealer's inspection
- No, the agreed trade-in value in the signed contract is binding (Correct answer)
- No, unless approved by OMVIC in writing
Correct answer: No, the agreed trade-in value in the signed contract is binding
Once a trade-in value is agreed upon and included in a signed contract, the dealer cannot unilaterally reduce it without the consumer's agreement.
OMVIC OMVIC Contracts and Consumer Rights 4
Under Ontario's Consumer Protection Act as it applies to vehicle sales, a consumer who purchased online or off-premises may have a right to cancel within how many days?