OMVIC OMVIC Vehicle Sales Process and Documentation 1 — Questions and Answers
Question 1: Under the MVDA 2002, which document must a registered motor vehicle dealer provide to a buyer before finalizing a vehicle sale?
- A warranty card from the manufacturer
- A written contract or bill of sale (Correct answer)
- A vehicle inspection sticker
- A CARFAX report
Correct answer: A written contract or bill of sale
The MVDA 2002 requires dealers to provide a written contract (bill of sale) to purchasers before the sale is completed.
Question 2: A dealer discovers a used vehicle was previously used as a taxi. Under OMVIC regulations, when must this be disclosed to the buyer?
- Only if the buyer specifically asks
- Within 10 days after sale completion
- Before the sale is completed (Correct answer)
- Only on vehicles under 5 years old
Correct answer: Before the sale is completed
Dealers must disclose prior use as a taxi, police vehicle, or daily rental before the sale is finalized, not after.
Question 3: What is the OMVIC-prescribed threshold for accident damage that triggers a mandatory disclosure requirement on a used vehicle?
- $1,000 or more
- $2,000 or more
- $3,000 or more (Correct answer)
- $5,000 or more
Correct answer: $3,000 or more
Dealers must disclose prior accident or damage repairs exceeding $3,000 to prospective buyers before the sale.
Question 4: Under the MVDA, if a buyer pays a deposit on a vehicle and the dealer cannot deliver it as agreed, what is the dealer generally required to do?
- Offer a store credit for future purchase
- Refund the deposit in full (Correct answer)
- Apply the deposit to a different vehicle
- Keep the deposit as a processing fee
Correct answer: Refund the deposit in full
If a dealer cannot fulfill the sales agreement, the buyer is entitled to a full refund of any deposit paid.
Question 5: Which of the following must appear on every motor vehicle bill of sale in Ontario under OMVIC standards?
- The salesperson's commission amount
- The vehicle's odometer reading at time of sale (Correct answer)
- The buyer's insurance policy number
- The vehicle's service history from the last 5 years
Correct answer: The vehicle's odometer reading at time of sale
The odometer reading at time of sale is a required disclosure on the bill of sale under the MVDA to prevent odometer fraud.
Question 6: A vehicle has been branded as 'Irreparable' by a previous insurer. What must an OMVIC-registered dealer do before selling this vehicle?
- Obtain a clean title from the Ministry
- Disclose the brand status to the buyer before the sale (Correct answer)
- Only sell the vehicle at auction
- Remove the brand notation with Ministry approval
Correct answer: Disclose the brand status to the buyer before the sale
Brand or title designations such as 'Irreparable,' 'Salvage,' or 'Rebuilt' must be disclosed to the buyer prior to completing any sale.
Question 7: Under the MVDA 2002, which of the following is a true statement about a buyer's right to cancel a contract for a new motor vehicle?
- There is no cooling-off cancellation right for new vehicles signed at a dealership (Correct answer)
- The buyer has 10 days to cancel without penalty
- The buyer has 48 hours to cancel if signed at an auto show
- The buyer can cancel any time before delivery with no penalty
Correct answer: There is no cooling-off cancellation right for new vehicles signed at a dealership
Unlike door-to-door sales, there is no statutory cooling-off period for new vehicle purchases completed at a dealership under Ontario law.
OMVIC OMVIC Vehicle Sales Process and Documentation 1
Under the MVDA 2002, which document must a registered motor vehicle dealer provide to a buyer before finalizing a vehicle sale?