OMVIC OMVIC Warranties and Vehicle Condition Representations 2

Question 1

Under OMVIC regulations, dealers MUST disclose that a vehicle was previously used as which of the following?

Accepted Answer

A former police, taxi, or emergency vehicle

Answer

OMVIC requires dealers to disclose prior use as a police, taxi, emergency, or other specialized service vehicle, as buyers would consider this information material to their purchasing decision.

Question 2

When a buyer tells a dealer they specifically need a vehicle for towing a 5,000 lb trailer and relies on the dealer's recommendation, which implied condition may arise under the Sale of Goods Act?

Accepted Answer

Implied condition of fitness for a particular purpose

Answer

Under the Sale of Goods Act, an implied condition of fitness for a particular purpose arises when the buyer makes their specific purpose known and relies on the dealer's skill and judgment in selecting a suitable vehicle.

Question 3

A vehicle is sold 'as-is' with a signed buyer acknowledgment. Two weeks later, the buyer discovers the engine has a defect the dealer knew about but never disclosed. What is most likely TRUE?

Accepted Answer

The dealer may still be liable for failing to disclose a known material defect

Answer

An as-is clause does not shield a dealer from liability when they knew about a material defect and failed to disclose it — concealment of known defects can constitute fraudulent misrepresentation.

Question 4

What is the primary distinction between 'innocent misrepresentation' and 'fraudulent misrepresentation'?

Accepted Answer

With innocent misrepresentation the speaker believed the statement was true; with fraudulent, they knew it was false

Answer

The critical distinction is the speaker's state of mind: innocent misrepresentation occurs when the speaker genuinely believed the false statement was true, while fraudulent misrepresentation involves knowingly making a false statement to deceive.

Question 5

A dealer states that a high-mileage vehicle 'has at least another 100,000 km in it.' This statement is best characterized as:

Accepted Answer

Puffery or a non-binding opinion that is unlikely to create legal liability

Answer

A dealer's general opinion about a vehicle's remaining useful life is typically characterized as puffery or opinion rather than a factual statement or warranty, and is unlikely to create enforceable legal obligations.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Warranties and Vehicle Condition Representations 2