OMVIC - Ontario Motor Vehicle Industry Council Contracts and Consumer Rights Questions and Answers

Question 1

Under Ontario's Motor Vehicle Dealers Act (MVDA), which of the following gives a consumer the right to cancel a vehicle purchase contract within 90 days of delivery?

Accepted Answer

The contract failed to disclose that the vehicle was previously used as a police cruiser.

Answer

The MVDA provides a 90-day cancellation right if a dealer fails to disclose specific information in the contract, such as the vehicle's previous use as a taxi, limo, police, or emergency service vehicle. The other options are not legally protected reasons for contract cancellation after signing.

Question 2

A dealership advertises a used car for $15,000. According to OMVIC's 'All-In Price Advertising' regulations, what is the only additional amount that can be charged on top of this advertised price?

Accepted Answer

Harmonized Sales Tax (HST) and the actual cost of licensing.

Answer

OMVIC's all-in pricing law requires the advertised price to include all fees and charges a dealer intends to collect, such as freight, PDI, and administration fees. The only exceptions that can be added to the advertised price are HST and the actual cost of licensing, provided the ad clearly states they are extra.

Question 3

A customer signs a contract to purchase a new vehicle. Two days later, they experience 'buyer's remorse' and want to cancel the deal. What is the general rule in Ontario regarding this situation?

Accepted Answer

There is no general 'cooling-off period' for vehicle contracts in Ontario, and the sale is considered final once signed.

Answer

Ontario law does not provide for a 'cooling-off period' for motor vehicle purchase agreements. Once a contract is signed, it is legally binding on both the consumer and the dealer, except in specific circumstances like non-disclosure of key information.

Question 4

A salesperson tells a customer that a used vehicle has never been in an accident. The customer later discovers the vehicle had $4,000 in collision repairs. Under the Consumer Protection Act (CPA), this could be considered an example of what?

Accepted Answer

An unfair practice (a false or misleading representation).

Answer

The Consumer Protection Act (CPA) defines unfair practices as making false, misleading, or deceptive representations. Misrepresenting the accident history of a vehicle is a prime example of this. The CPA provides remedies for consumers who are victims of such practices, potentially including contract cancellation.

Question 5

A bill of sale for a used vehicle shows the odometer reading as 80,000 km. Upon delivery, the customer notices the actual odometer reading is 81,500 km. What are the customer's rights in this situation according to the MVDA?

Accepted Answer

The customer can demand immediate cancellation of the contract and a full refund.

Answer

A consumer has the right to cancel a contract within 90 days if the vehicle's odometer reading is inaccurate by more than the lesser of 5% or 1,000 km. In this case, the discrepancy is 1,500 km, which is over the 1,000 km limit, triggering the buyer's right to rescission.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC - Ontario Motor Vehicle Industry Council Contracts and Consumer Rights Questions and Answers