OMVIC OMVIC MVDA and Legislation 3 — Questions and Answers
Question 1: Under the MVDA, what is the maximum period a dealer may hold a deposit before either applying it to the purchase or returning it to the buyer?
- 10 days
- 30 days
- Until the contract is rescinded or completed (Correct answer)
- 60 days
Correct answer: Until the contract is rescinded or completed
A deposit must be held in trust and either applied to the purchase or returned when the deal is completed or lawfully cancelled — there is no fixed calendar deadline independent of the deal outcome.
Question 2: Which of the following transactions requires a dealer to provide the buyer with a completed Bill of Sale under the MVDA regulations?
- Every retail sale of a motor vehicle (Correct answer)
- Only sales of used vehicles over $10,000
- Only dealer-to-dealer trades
- Only lease transactions exceeding 12 months
Correct answer: Every retail sale of a motor vehicle
A dealer must provide a completed Bill of Sale for every retail sale of a motor vehicle, regardless of price or vehicle age.
Question 3: Under OMVIC regulations, which statement best describes a 'curbsider'?
- A registered dealer who sells only at auto shows
- An unregistered person who repeatedly sells vehicles privately to avoid dealer regulations (Correct answer)
- A licensed auctioneer selling repossessed vehicles
- A wholesale dealer who sells exclusively to other dealers
Correct answer: An unregistered person who repeatedly sells vehicles privately to avoid dealer regulations
A curbsider is someone who sells vehicles privately on a repeated basis without being registered as a dealer, illegally circumventing consumer protections.
Question 4: The MVDA requires that a contract for the sale of a used vehicle include disclosure of which of the following?
- The dealer's profit margin on the vehicle
- Whether the vehicle has been used as a police, taxi, or rental vehicle (Correct answer)
- The names of all previous owners
- The vehicle's complete service history
Correct answer: Whether the vehicle has been used as a police, taxi, or rental vehicle
Dealers must disclose if a used vehicle was previously used as a police car, taxi, limousine, rental, or emergency vehicle as material information under the MVDA.
Question 5: Under the MVDA, what is the role of the Motor Vehicle Dealers Compensation Fund?
- To reimburse dealers for inventory losses due to theft
- To compensate consumers who suffer financial loss due to a dealer's misconduct (Correct answer)
- To fund OMVIC's administrative operations
- To provide low-interest loans to registered dealers
Correct answer: To compensate consumers who suffer financial loss due to a dealer's misconduct
The Compensation Fund provides financial restitution to consumers who suffer losses due to the fraudulent or dishonest conduct of a registered dealer.
Question 6: A dealer who knowingly makes a false statement in an application for registration under the MVDA may face which consequence?
- A written warning only
- Mandatory retraining
- Refusal, revocation, or suspension of registration (Correct answer)
- A fine not exceeding $500
Correct answer: Refusal, revocation, or suspension of registration
Providing false information on a registration application is grounds for OMVIC to refuse, revoke, or suspend the dealer's registration.
Question 7: Under the MVDA, within how many days must a dealer notify OMVIC of a change of address for their registered location?
- 5 business days
- 10 days (Correct answer)
- 30 days
- 60 days
Correct answer: 10 days
Dealers must notify OMVIC within 10 days of any change to their registered address or other registration details.
OMVIC OMVIC MVDA and Legislation 3
Under the MVDA, what is the maximum period a dealer may hold a deposit before either applying it to the purchase or returning it to the buyer?