OMVIC OMVIC MVDA and Legislation 3

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?

Accepted Answer

Until the contract is rescinded or completed

Answer

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?

Accepted Answer

Every retail sale of a motor vehicle

Answer

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'?

Accepted Answer

An unregistered person who repeatedly sells vehicles privately to avoid dealer regulations

Answer

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?

Accepted Answer

Whether the vehicle has been used as a police, taxi, or rental vehicle

Answer

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?

Accepted Answer

To compensate consumers who suffer financial loss due to a dealer's misconduct

Answer

The Compensation Fund provides financial restitution to consumers who suffer losses due to the fraudulent or dishonest conduct of a registered dealer.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC MVDA and Legislation 3