OMVIC OMVIC Dealer Operations and Business Practices 4 — Questions and Answers
Question 1: Under OMVIC regulations, how long must a registered dealer retain all vehicle transaction records?
- 1 year
- 3 years
- 6 years (Correct answer)
- 10 years
Correct answer: 6 years
Ontario's Motor Vehicle Dealers Act requires dealers to retain transaction records for a minimum of six years.
Question 2: A dealer discovers a vehicle they sold has an outstanding lien that was not disclosed at sale. What is the dealer's primary obligation?
- Notify the buyer and arrange for lien discharge (Correct answer)
- Report only to OMVIC within 30 days
- Ask the buyer to handle the lien independently
- Void the contract without compensation
Correct answer: Notify the buyer and arrange for lien discharge
The dealer must promptly notify the buyer and take steps to discharge the undisclosed lien to ensure clear title transfer.
Question 3: Which document must a OMVIC-registered dealer provide to every buyer before a vehicle sale is finalized?
- A vehicle history report
- A completed Ontario Used Vehicle Information Package (UVIP) (Correct answer)
- A dealer certification letter
- A manufacturer warranty transfer form
Correct answer: A completed Ontario Used Vehicle Information Package (UVIP)
Ontario law requires dealers to provide a Used Vehicle Information Package to buyers of used vehicles before finalizing the sale.
Question 4: When a dealer advertises a vehicle's fuel economy, OMVIC expects the figures to be sourced from:
- The dealer's own road test estimates
- Natural Resources Canada official ratings (Correct answer)
- The previous owner's fuel log
- Manufacturer marketing materials only
Correct answer: Natural Resources Canada official ratings
OMVIC's advertising guidelines require fuel economy claims to be based on Natural Resources Canada's official published ratings.
Question 5: A salesperson working at a registered dealership wants to buy a vehicle from a customer for personal use. Under OMVIC rules, this transaction:
- Is completely unrestricted as it is personal
- Must be disclosed and the customer must be treated as in any dealer purchase (Correct answer)
- Is prohibited unless the salesperson is also a registered dealer
- Requires written approval from OMVIC before proceeding
Correct answer: Must be disclosed and the customer must be treated as in any dealer purchase
Salespersons who purchase vehicles from consumers must follow the same disclosure and fairness obligations that apply to dealer purchases.
Question 6: Under the Motor Vehicle Dealers Act, what is the maximum number of vehicles a person can sell in a calendar year without being required to register as a dealer?
- 2
- 3
- 5
- There is no set maximum; it depends on intent (Correct answer)
Correct answer: There is no set maximum; it depends on intent
OMVIC does not set a fixed vehicle-per-year threshold; registration is required based on whether the activity constitutes 'carrying on business' as a dealer.
Question 7: A dealer's registration is suspended by OMVIC. During the suspension period, the dealer may:
- Continue selling but not advertising vehicles
- Complete sales contracts already signed before suspension
- Operate normally if they appeal within 15 days
- Not carry on any activities as a motor vehicle dealer (Correct answer)
Correct answer: Not carry on any activities as a motor vehicle dealer
A suspended registration means the dealer cannot carry on any activities regulated under the Motor Vehicle Dealers Act until the suspension is lifted.
OMVIC OMVIC Dealer Operations and Business Practices 4
Under OMVIC regulations, how long must a registered dealer retain all vehicle transaction records?