OMVIC OMVIC Dealer Operations and Business Practices 5 — Questions and Answers
Question 1: An OMVIC-registered dealer sells a vehicle 'as-is.' Under Ontario consumer protection law, which statement is correct?
- All implied warranties are fully waived
- The dealer is still liable for known defects not disclosed to the buyer (Correct answer)
- The buyer has no recourse under any circumstances
- 'As-is' sales are prohibited for OMVIC-registered dealers
Correct answer: The dealer is still liable for known defects not disclosed to the buyer
Even in an 'as-is' sale, a registered dealer must disclose known material defects; concealment can constitute misrepresentation.
Question 2: When a dealer takes a vehicle in on trade, the dealer must provide the trade-in value to the customer:
- Only if the customer specifically requests it in writing
- As a separately itemized figure in the bill of sale (Correct answer)
- Only after the final sale price is agreed upon
- Within 48 hours of delivery
Correct answer: As a separately itemized figure in the bill of sale
OMVIC regulations require the trade-in value to be separately disclosed in the purchase agreement so buyers can see the actual credit applied.
Question 3: A dealer charges a buyer an 'administrative fee' not mentioned in the advertised price. Under OMVIC's all-in pricing rules, this is:
- Permitted if disclosed verbally before signing
- Permitted if under $100
- A violation — all mandatory fees must be included in the advertised price (Correct answer)
- Allowed only for new vehicle sales
Correct answer: A violation — all mandatory fees must be included in the advertised price
OMVIC's all-in price advertising rules require that all mandatory fees be included in the advertised price, not added at the point of sale.
Question 4: Under OMVIC registration conditions, a dealer operating a curbsider operation (unlicensed dealer posing as private seller) could face:
- Only a civil lawsuit from buyers
- Fines up to $50,000 and/or imprisonment under the MVDA (Correct answer)
- A warning letter for a first offence with no financial penalty
- Mandatory retraining but no financial penalty
Correct answer: Fines up to $50,000 and/or imprisonment under the MVDA
Operating as an unregistered dealer is a serious offence under the Motor Vehicle Dealers Act, carrying fines up to $50,000 and possible imprisonment.
Question 5: A dealer wants to sell vehicles at a temporary off-site location such as a fairground. Under OMVIC rules, the dealer must:
- Obtain permission from OMVIC and ensure the location meets approval requirements (Correct answer)
- Simply post their dealer registration number at the temporary location
- Notify the municipality only; no OMVIC approval needed
- Cease all sales and bring customers to the registered premises
Correct answer: Obtain permission from OMVIC and ensure the location meets approval requirements
OMVIC requires dealers to obtain prior approval before conducting sales at locations other than their registered business address.
Question 6: Which of the following is a dealer's obligation regarding the Trillium Gift of Life Network (organ donation) under Ontario vehicle sales law?
- Collect organ donation pledges from customers
- Provide organ donation information pamphlets with every vehicle sale
- There is no obligation related to organ donation in vehicle sales (Correct answer)
- Display organ donation signage in the showroom
Correct answer: There is no obligation related to organ donation in vehicle sales
Ontario motor vehicle dealers have no statutory obligation relating to organ donation under vehicle sales or OMVIC legislation.
Question 7: When a dealer arranges third-party financing for a customer, OMVIC requires the dealer to:
- Disclose all material terms of the financing arrangement to the buyer (Correct answer)
- Ensure the interest rate is below the Bank of Canada prime rate
- Obtain OMVIC's written approval for each financing arrangement
- Only offer financing from OMVIC-approved lenders
Correct answer: Disclose all material terms of the financing arrangement to the buyer
Dealers must disclose all material financing terms — including interest rate, total cost of borrowing, and payment schedule — so buyers can make informed decisions.
OMVIC OMVIC Dealer Operations and Business Practices 5
An OMVIC-registered dealer sells a vehicle 'as-is.' Under Ontario consumer protection law, which statement is correct?