OMVIC OMVIC Contracts and Consumer Rights 2

Question 1

Under Ontario's Motor Vehicle Dealers Act, which of the following must be included in a written contract for the purchase of a used vehicle from a registered dealer?

Accepted Answer

The vehicle's year, make, model, VIN, odometer reading, agreed purchase price, and all fees and charges

Answer

The MVDA and OMVIC regulations require that all vehicle purchase contracts include complete vehicle identification, the agreed price, and a full breakdown of all fees and charges so consumers know exactly what they are paying.

Question 2

A consumer purchases a vehicle from a registered OMVIC dealer and then discovers that the odometer was rolled back. Under the MVDA, what recourse is available?

Accepted Answer

The consumer can file a complaint with OMVIC and may seek compensation through OMVIC's Motor Vehicle Dealers Compensation Fund

Answer

Odometer fraud is a serious violation. Consumers can file complaints with OMVIC, which can investigate and discipline the dealer. The Motor Vehicle Dealers Compensation Fund provides a last-resort avenue for financial restitution when consumers suffer financial loss due to a dealer's misconduct.

Question 3

Under the Consumer Protection Act (Ontario), when does a consumer have a right to cancel a contract for the purchase of a motor vehicle from a dealer?

Accepted Answer

Within 10 days if the contract does not contain all required disclosures mandated by the Act

Answer

Under the Consumer Protection Act, a consumer may cancel certain consumer agreements, including vehicle purchase contracts, within 10 days if the contract does not include all required disclosures. There is no general unconditional cooling-off period for vehicle purchases.

Question 4

A consumer trades in their vehicle and the dealer promises in conversation (but not in writing) to pay off the consumer's outstanding car loan. The dealer fails to pay off the loan and the consumer incurs additional charges. What does this situation illustrate about vehicle contracts?

Accepted Answer

All material terms, including trade-in loan payoff obligations, must be in writing in the contract to be enforceable

Answer

OMVIC and the MVDA require that all agreed terms be recorded in the written contract. Verbal promises made during a sale that do not appear in the contract are difficult to enforce and leave consumers vulnerable. Dealers are obligated to put all material terms in writing.

Question 5

What is the primary purpose of the Motor Vehicle Dealers Compensation Fund (MVDCF) administered under the MVDA?

Accepted Answer

To compensate consumers who suffer financial losses due to the fraudulent or dishonest conduct of a registered motor vehicle dealer

Answer

The Motor Vehicle Dealers Compensation Fund is a consumer protection fund that compensates buyers who have suffered financial losses as a result of a registered dealer's fraudulent or dishonest conduct, subject to eligibility criteria and limits.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Contracts and Consumer Rights 2