OMVIC OMVIC Dealer Operations and Business Practices 5

Question 1

An OMVIC-registered dealer sells a vehicle 'as-is.' Under Ontario consumer protection law, which statement is correct?

Accepted Answer

The dealer is still liable for known defects not disclosed to the buyer

Answer

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:

Accepted Answer

As a separately itemized figure in the bill of sale

Answer

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:

Accepted Answer

A violation — all mandatory fees must be included in the advertised price

Answer

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:

Accepted Answer

Fines up to $50,000 and/or imprisonment under the MVDA

Answer

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:

Accepted Answer

Obtain permission from OMVIC and ensure the location meets approval requirements

Answer

OMVIC requires dealers to obtain prior approval before conducting sales at locations other than their registered business address.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test