OMVIC OMVIC Warranties and Vehicle Condition Representations

Question 1

In Ontario, what is the general rule regarding mandatory warranties for used vehicles sold by registered dealers?

Accepted Answer

Ontario does not impose a mandatory statutory warranty on used vehicles sold by dealers

Answer

All used vehicles must carry a minimum 30-day warranty

Answer

Dealers must provide at least a 60-day powertrain warranty

Answer

Ontario law requires a warranty equal to one month per year of vehicle age

Question 2

When a dealer knowingly makes a false statement about a vehicle's accident history to induce a sale, this constitutes:

Accepted Answer

Fraudulent misrepresentation

Answer

Acceptable puffery

Answer

A minor technical omission

Answer

Innocent misrepresentation

Question 3

In vehicle sales, 'puffery' refers to:

Accepted Answer

General promotional statements that reasonable buyers would not treat as factual guarantees

Answer

Providing inflated cost-of-repair estimates to justify a higher price

Answer

Failing to disclose a previous accident on a vehicle history report

Answer

Advertising a vehicle at a price that excludes mandatory fees

Question 4

Even in an 'as-is' vehicle sale, a registered dealer is still obligated to:

Accepted Answer

Disclose all known material defects to the buyer

Answer

Provide a minimum 30-day warranty on the drivetrain

Answer

Conduct a safety inspection at the dealer's expense

Answer

Submit the sale to OMVIC for prior approval

Question 5

Under the Consumer Protection Act, 2002, which statement about buyer protections in a vehicle sale is TRUE?

Accepted Answer

Certain CPA protections, such as those against unconscionable representations, cannot be waived

Answer

Buyers can waive all CPA protections by signing a written waiver

Answer

The CPA does not apply to motor vehicle sales regulated by OMVIC

Answer

Only buyers who paid over $50,000 can rely on CPA protections

Question 6

A dealer sells a vehicle representing it as a 'one-owner' car when it actually had four previous owners. The buyer's most likely legal remedy is:

Accepted Answer

Rescission of the contract and potentially damages for misrepresentation

Answer

A complaint to the Ministry of Transportation only

Answer

A maximum OMVIC fine of $500 imposed on the dealer

Answer

A replacement vehicle of similar value from the dealer

Question 7

Which organization is responsible for handling consumer complaints against registered motor vehicle dealers in Ontario?

Accepted Answer

The Ontario Motor Vehicle Industry Council (OMVIC)

Answer

The Ministry of Transportation (MTO)

Answer

The Financial Services Regulatory Authority (FSRA)

Answer

The Ontario Motor Vehicle Arbitration Plan (OMVAP)