OMVIC OMVIC Warranties and Vehicle Condition Representations 4 — Questions and Answers
Question 1: Under OMVIC regulations, if a dealer sells a vehicle 'as-is', what obligation still remains?
- The dealer is fully exempt from all warranty claims
- The dealer must still disclose known material defects (Correct answer)
- The dealer must provide a 30-day powertrain warranty
- The buyer automatically waives all legal rights
Correct answer: The dealer must still disclose known material defects
Even with an 'as-is' sale, OMVIC requires dealers to disclose known material defects that could affect safety or value.
Question 2: A dealer represents a used vehicle as having 'no accident history' but fails to check CarFax. The vehicle had a prior collision. This is best described as:
- A permissible opinion statement
- An innocent misrepresentation with no liability
- A fraudulent or negligent misrepresentation (Correct answer)
- A valid disclaimer if signed by the buyer
Correct answer: A fraudulent or negligent misrepresentation
Claiming no accident history without verifying it constitutes negligent or fraudulent misrepresentation under OMVIC's Code of Ethics.
Question 3: Which of the following is NOT a required disclosure under OMVIC's Used Vehicle Information Package (UVIP)?
- Previous ownership history
- Lien information
- The dealer's profit margin on the vehicle (Correct answer)
- Vehicle registration history in Ontario
Correct answer: The dealer's profit margin on the vehicle
The UVIP requires ownership history, liens, and registration data, but dealer profit margins are not a mandated disclosure.
Question 4: A buyer purchases a vehicle and later discovers the odometer was rolled back by 50,000 km. Under OMVIC, this is:
- Acceptable if disclosed verbally at point of sale
- A criminal offence and OMVIC Code of Ethics violation (Correct answer)
- Only actionable if discovered within 30 days
- Permitted if the vehicle is sold 'as-is'
Correct answer: A criminal offence and OMVIC Code of Ethics violation
Odometer tampering is a criminal offence in Canada and a serious violation of OMVIC's Code of Ethics.
Question 5: Under OMVIC's Compensation Fund, what is the primary purpose of the fund?
- To pay dealer operating costs during audits
- To compensate consumers who suffer financial loss due to dealer misconduct (Correct answer)
- To fund OMVIC's advertising campaigns
- To reimburse dealers for warranty repair costs
Correct answer: To compensate consumers who suffer financial loss due to dealer misconduct
The OMVIC Compensation Fund exists specifically to compensate consumers who suffer financial losses caused by registered dealer misconduct.
Question 6: A dealer sells a certified pre-owned vehicle with a written warranty. Three weeks later the transmission fails—a condition that existed before sale. The buyer's best course of action is:
- Accept the repair cost as owner responsibility after sale
- Request warranty repair and file an OMVIC complaint if denied (Correct answer)
- Return the vehicle immediately without notice
- Sue the previous private owner
Correct answer: Request warranty repair and file an OMVIC complaint if denied
A written warranty is a binding contract; if the dealer refuses to honor it for a pre-existing condition, the buyer should file an OMVIC complaint.
Question 7: When must a dealer provide a consumer with a written copy of the contract of sale under OMVIC regulations?
- Only if the consumer requests it within 10 days
- At the time of signing (Correct answer)
- Within 5 business days after signing
- Only for vehicles over $15,000
Correct answer: At the time of signing
OMVIC requires dealers to provide the buyer with a written copy of the contract at the time of signing.
OMVIC OMVIC Warranties and Vehicle Condition Representations 4
Under OMVIC regulations, if a dealer sells a vehicle 'as-is', what obligation still remains?