OMVIC OMVIC Contracts and Consumer Rights 5 — Questions and Answers
Question 1: Under OMVIC's regulations, which of the following add-on products must a dealer obtain explicit written consent from a consumer before including in the contract?
- Extended warranties and protection packages (Correct answer)
- Mandatory government licensing fees
- HST on the vehicle purchase
- The cost of the safety standards certificate
Correct answer: Extended warranties and protection packages
Optional add-ons like extended warranties and protection packages require explicit written consumer consent and cannot be added without agreement.
Question 2: A consumer discovers that the VIN on the vehicle they purchased was altered. Under OMVIC regulations, selling a vehicle with an altered VIN is classified as:
- A minor administrative infraction subject to a small fine
- Fraudulent misrepresentation and a serious criminal and OMVIC violation (Correct answer)
- Permissible if the consumer signs a VIN acknowledgment form
- Only an issue if the consumer paid above market value
Correct answer: Fraudulent misrepresentation and a serious criminal and OMVIC violation
Selling a vehicle with an altered VIN constitutes fraud and a serious violation of both the Motor Vehicle Dealers Act and the Criminal Code.
Question 3: When a consumer requests a copy of the signed purchase contract, under OMVIC regulations the dealer must provide it:
- Within 10 business days upon written request
- Immediately at the time of signing (Correct answer)
- Only after the vehicle has been delivered
- Within 30 days for used vehicles and 60 days for new vehicles
Correct answer: Immediately at the time of signing
Dealers are required to provide the consumer with a copy of the signed contract immediately at the time of signing.
Question 4: A dealer's salesperson verbally promises free oil changes for life but does not include this in the written contract. Under Ontario contract law and OMVIC rules, this promise is:
- Fully enforceable because verbal contracts are valid in Ontario
- Generally unenforceable unless documented in the written contract (Correct answer)
- Binding if witnessed by another dealer employee
- Enforceable for 12 months after delivery under the MVDA
Correct answer: Generally unenforceable unless documented in the written contract
Written contracts supersede verbal promises; any agreed-upon term must appear in the written contract to be reliably enforceable.
Question 5: Under OMVIC's code of ethics, a salesperson who knows a vehicle has been in a major accident must:
- Disclose this only if the consumer specifically asks about accidents
- Disclose this proactively to the consumer before the sale (Correct answer)
- Leave disclosure to the used vehicle information package (UVIP)
- Disclose only if the damage exceeded $3,000 in repairs
Correct answer: Disclose this proactively to the consumer before the sale
OMVIC's code of ethics requires dealers and salespersons to proactively disclose material facts, including accident history, without waiting to be asked.
Question 6: A consumer signs a vehicle contract containing a clause that waives all consumer rights under Ontario consumer protection legislation. This clause is:
- Valid and enforceable if the consumer signed knowingly
- Void and unenforceable because statutory rights cannot be contractually waived (Correct answer)
- Enforceable for private sales but not dealer sales
- Valid only if approved by a notary public
Correct answer: Void and unenforceable because statutory rights cannot be contractually waived
Statutory consumer protection rights under Ontario law cannot be waived by contract; any such clause is automatically void and unenforceable.
Question 7: Under OMVIC regulations, if a dealer cannot deliver a vehicle by the agreed-upon date in the contract, the consumer is entitled to:
- Wait indefinitely as delivery dates are non-binding estimates
- Cancel the contract and receive a full deposit refund (Correct answer)
- Accept a comparable substitute vehicle only
- Renegotiate the price but not cancel the contract
Correct answer: Cancel the contract and receive a full deposit refund
If a dealer fails to deliver by the contracted delivery date, the consumer has the right to cancel the contract and receive a full refund of any deposit paid.
OMVIC OMVIC Contracts and Consumer Rights 5
Under OMVIC's regulations, which of the following add-on products must a dealer obtain explicit written consent from a consumer before including in the contract?