OMVIC Wholesale Transactions and Dealer-to-Dealer Disclosures 5

Question 1

Which registration class lets a business act as an agent arranging vehicle sales between parties without owning the inventory?

Accepted Answer

Broker

Answer

A broker acts on behalf of others to arrange trades, which is different from a wholesaler who buys and sells to dealers.

Question 2

A vehicle bought wholesale shows signs of flood damage. What should the retail dealer do?

Accepted Answer

Disclose the flood damage to the consumer in writing

Answer

Fire or water damage is a material fact that must be disclosed to the consumer.

Question 3

A dealer agrees with another dealer to sell a vehicle 'as-is' between them. Can the retail dealer then sell it to a consumer as-is without the required disclosures?

Accepted Answer

No, consumer disclosure obligations still apply to the retail sale

Answer

Wholesale terms between dealers cannot override the dealer's legal disclosure duties to a consumer.

Question 4

Which document should a dealer always get when buying a vehicle from another registrant?

Accepted Answer

A bill of sale or invoice showing the vehicle's VIN and transaction details

Answer

A written bill of sale or invoice with the VIN records ownership transfer and supports later disclosures and record-keeping.

Question 5

An Ontario dealer wants to sell vehicles wholesale to an out-of-province dealer. Which is true?

Accepted Answer

The Ontario dealer must be registered with OMVIC to trade from Ontario

Answer

Anyone trading motor vehicles in Ontario, including wholesale, must hold the right OMVIC registration.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC Wholesale Transactions and Dealer-to-Dealer Disclosures 5