OMVIC OMVIC Warranties and Vehicle Condition Representations 1

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

Ontario has no mandatory statutory warranty for used vehicles sold by registered dealers, meaning warranty terms are negotiated voluntarily between the parties.

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

Knowingly making a false statement of fact to induce a buyer to enter a contract constitutes fraudulent misrepresentation, exposing the dealer to serious civil and regulatory liability.

Question 3

In vehicle sales, 'puffery' refers to:

Accepted Answer

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

Answer

Puffery consists of exaggerated, non-specific sales talk such as 'this is the best car you'll ever drive' that no reasonable person would rely on as a factual guarantee, and it does not create legal liability.

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

Regardless of an 'as-is' designation, dealers must disclose all known material defects; failing to do so may constitute fraudulent misrepresentation.

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

The Consumer Protection Act, 2002 contains core protections against unconscionable representations and unfair practices that cannot be contracted away, regardless of what documents the buyer signs.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Warranties and Vehicle Condition Representations 1