OMVIC OMVIC MVDA and Legislation 4 — Questions and Answers
Question 1: Which of the following best describes the concept of 'material facts' under the MVDA?
- Only defects visible during a standard inspection
- Information that would reasonably affect a buyer's decision to purchase or the price they would pay (Correct answer)
- All information recorded in a vehicle's service history
- Only mechanical defects costing more than $1,000 to repair
Correct answer: Information that would reasonably affect a buyer's decision to purchase or the price they would pay
Material facts are any facts that a reasonable person would consider important in deciding whether to buy a vehicle or what price to pay, and dealers must disclose them.
Question 2: Under the MVDA, a salesperson who leaves one dealership to work at another must do which of the following?
- Surrender their salesperson registration permanently
- Transfer their registration to the new employer through OMVIC before beginning work (Correct answer)
- Simply notify their former employer in writing
- Rewrite the full OMVIC certification exam
Correct answer: Transfer their registration to the new employer through OMVIC before beginning work
A salesperson's registration is tied to a specific employer, so they must transfer their registration to the new dealership through OMVIC before they can legally sell there.
Question 3: When advertising a vehicle's price, OMVIC regulations require that the advertised price must:
- Exclude HST but include all mandatory fees
- Be the total all-in price including all fees except government taxes (Correct answer)
- Be negotiable and noted as 'starting from'
- Include the dealer's profit margin disclosed separately
Correct answer: Be the total all-in price including all fees except government taxes
Ontario's all-in pricing rule requires dealers to advertise the total price including all fees the dealer charges, with only government taxes (HST/licensing) excluded.
Question 4: Which body is responsible for hearing appeals of OMVIC registration decisions under the MVDA?
- The Ontario Court of Justice
- The Licence Appeal Tribunal (LAT) (Correct answer)
- The Ontario Human Rights Tribunal
- The Superior Court of Ontario
Correct answer: The Licence Appeal Tribunal (LAT)
Appeals of OMVIC decisions regarding registration refusal, revocation, or suspension are heard by the Licence Appeal Tribunal (LAT).
Question 5: A dealer discovers after a sale is completed that a vehicle they sold had an undisclosed lien. Under the MVDA, the dealer's obligation is to:
- Advise the buyer and offer a partial refund
- Ensure the lien is discharged so the buyer receives clear title (Correct answer)
- File a report with local police
- Refer the buyer to the previous owner
Correct answer: Ensure the lien is discharged so the buyer receives clear title
Dealers must ensure buyers receive clear title; if an undisclosed lien exists, the dealer is responsible for discharging it.
Question 6: Under the MVDA, which class of registrant is NOT permitted to sell vehicles directly to the retail public?
- General dealers
- Wholesale dealers (Correct answer)
- Fleet lessors
- Motor vehicle recyclers
Correct answer: Wholesale dealers
Wholesale dealers are registered only to trade with other dealers and industry members, not to sell directly to retail consumers.
Question 7: The MVDA's definition of a 'motor vehicle' primarily excludes which of the following?
- Motorcycles
- Off-road vehicles not intended for highway use (Correct answer)
- Pick-up trucks
- Minivans
Correct answer: Off-road vehicles not intended for highway use
The MVDA focuses on vehicles designed for highway use; off-road vehicles not intended for highway use (such as ATVs) are generally outside its scope.
OMVIC OMVIC MVDA and Legislation 4
Which of the following best describes the concept of 'material facts' under the MVDA?