OMVIC OMVIC Warranties and Vehicle Condition Representations 5 — Questions and Answers
Question 1: A dealer advertises a vehicle as 'mechanically sound' without inspection. The vehicle breaks down on the buyer's drive home. This representation is:
- Protected as a general sales opinion (puffery)
- A material misrepresentation that may void the contract (Correct answer)
- Only actionable if in writing
- Acceptable since no warranty was issued
Correct answer: A material misrepresentation that may void the contract
Claiming a vehicle is 'mechanically sound' without inspection is a material misrepresentation that could allow the buyer to rescind the contract.
Question 2: Under Ontario's Consumer Protection Act as it applies to vehicle sales, what is the cooling-off period for a vehicle purchased from a dealer using a direct agreement?
- No cooling-off period exists for vehicle sales (Correct answer)
- 10 days from signing
- 24 hours from delivery
- 7 days from signing
Correct answer: No cooling-off period exists for vehicle sales
Standard motor vehicle purchases from dealerships in Ontario do not have a statutory cooling-off period; consumers must negotiate carefully before signing.
Question 3: A dealer sells a rebuilt vehicle without disclosing its rebuilt status on the bill of sale. Under OMVIC, this is:
- Acceptable if the price reflects the condition
- A violation requiring mandatory disclosure (Correct answer)
- Only problematic if the buyer directly asks
- Permitted for vehicles older than 10 years
Correct answer: A violation requiring mandatory disclosure
Rebuilt status is a mandatory disclosure; failing to include it violates OMVIC's Code of Ethics and the Motor Vehicle Dealers Act.
Question 4: Which document must Ontario dealers provide to used vehicle buyers before a sale is finalized?
- A Carfax report at dealer expense
- The Used Vehicle Information Package (UVIP) (Correct answer)
- A mandatory 90-day warranty certificate
- An emissions test certificate for all vehicles
Correct answer: The Used Vehicle Information Package (UVIP)
Ontario law requires dealers to provide the UVIP to used vehicle buyers before the sale is completed.
Question 5: A dealer's warranty states 'engine and transmission covered for 30 days.' A water pump fails on day 20. Is this covered?
- Yes, because the water pump is a mechanical component
- No, because the warranty specifically lists only engine and transmission (Correct answer)
- Yes, because all powertrain parts are implied
- No, because the vehicle was used at time of sale
Correct answer: No, because the warranty specifically lists only engine and transmission
Written warranties are interpreted strictly; if the water pump is not listed, it falls outside the specific coverage stated.
Question 6: Under OMVIC rules, if a dealer makes a verbal promise about a vehicle's condition that is not in the contract, that promise is:
- Fully enforceable as part of the sale agreement
- Generally unenforceable unless it can be proven in writing (Correct answer)
- Always enforceable under consumer protection law
- Automatically added to the contract by OMVIC
Correct answer: Generally unenforceable unless it can be proven in writing
Verbal promises not included in the written contract are very difficult to enforce, which is why OMVIC urges buyers to get all representations in writing.
Question 7: A dealer fails to disclose that a vehicle was previously used as a taxi with 300,000 km of commercial use. Under OMVIC, this omission is:
- Acceptable because commercial use is not a regulated disclosure category
- A material omission that violates the duty of full disclosure (Correct answer)
- Only relevant if the current odometer reading is accurate
- Permissible if the vehicle passes a safety standards certificate
Correct answer: A material omission that violates the duty of full disclosure
Prior commercial use is a material fact that substantially affects value and must be disclosed under OMVIC's full-disclosure obligation.
OMVIC OMVIC Warranties and Vehicle Condition Representations 5
A dealer advertises a vehicle as 'mechanically sound' without inspection.
The vehicle breaks down on the buyer's drive home.
This representation is: