OMVIC Ethics and Professionalism 4 — Questions and Answers
Question 1: A dealership salesperson discovers that a used vehicle on the lot has an undisclosed accident history. What is the ethical obligation under OMVIC standards?
- Disclose the accident history to potential buyers (Correct answer)
- Only disclose if the buyer asks directly
- Leave disclosure to the used car manager
- Disclose only if the repair cost exceeded $3,000
Correct answer: Disclose the accident history to potential buyers
OMVIC's Code of Ethics requires registrants to proactively disclose all known material facts about a vehicle, including accident history, regardless of whether the buyer asks.
Question 2: Under OMVIC's ethical standards, what does the principle of 'transparency' require when advertising a vehicle's price?
- The advertised price must be the all-inclusive price the consumer will pay, excluding only HST and licensing (Correct answer)
- Dealers may add any fees at point of sale as long as they are itemized
- Transparency only applies to online advertisements, not in-store pricing
- The base price can be shown as long as additional fees are listed in footnotes
Correct answer: The advertised price must be the all-inclusive price the consumer will pay, excluding only HST and licensing
OMVIC requires that advertised prices be all-inclusive of all fees and charges except HST and licensing, so consumers know the true cost upfront.
Question 3: A customer with limited English proficiency is negotiating a vehicle purchase. What ethical approach should a registrant take?
- Ensure the customer fully understands all terms, offering translation assistance if needed (Correct answer)
- Proceed normally since signing the contract is the customer's responsibility
- Use simplified language but do not slow down the sales process
- Refer the customer to a different salesperson who speaks their language
Correct answer: Ensure the customer fully understands all terms, offering translation assistance if needed
OMVIC's consumer protection mandate requires registrants to ensure informed consent, which means taking reasonable steps so all customers understand what they are agreeing to.
Question 4: Which scenario best illustrates a conflict of interest that a registrant must disclose under OMVIC's Code of Ethics?
- A salesperson selling a vehicle they personally own to a dealership customer (Correct answer)
- A salesperson recommending an extended warranty the dealership sells
- A salesperson taking a lunch break during a busy sales day
- A salesperson discussing competitor pricing with a customer
Correct answer: A salesperson selling a vehicle they personally own to a dealership customer
Selling a personally owned vehicle through the dealership creates a direct conflict of interest that must be disclosed to both the employer and the buyer.
Question 5: A registrant suspects a colleague is engaging in fraudulent financing practices. What is the ethical course of action?
- Report the suspected misconduct to management or OMVIC (Correct answer)
- Confront the colleague directly and give them a chance to self-report
- Stay uninvolved since it is not the registrant's responsibility
- Document the behavior but wait to see if it continues before acting
Correct answer: Report the suspected misconduct to management or OMVIC
OMVIC registrants have a professional duty to report suspected misconduct to management or OMVIC to protect consumers and the integrity of the industry.
Question 6: A consumer asks a salesperson about the fuel efficiency of a vehicle. The salesperson is unsure of the exact figures. What is the ethical response?
- Acknowledge uncertainty and direct the customer to the official EnerGuide rating or manufacturer specifications (Correct answer)
- Provide a rough estimate to keep the conversation moving
- State the best-case fuel efficiency scenario to maintain customer interest
- Suggest the customer research it themselves after purchase
Correct answer: Acknowledge uncertainty and direct the customer to the official EnerGuide rating or manufacturer specifications
Providing inaccurate information, even unintentionally, can mislead consumers; a registrant must direct buyers to verified sources when uncertain.
Question 7: Under OMVIC's ethical framework, how should a registrant handle a customer who is clearly making a purchasing decision based on a misunderstanding about the vehicle's warranty coverage?
- Correct the misunderstanding immediately and clearly before proceeding with the sale (Correct answer)
- Allow the sale to proceed since the contract terms will clarify everything
- Only correct the misunderstanding if the customer specifically asks about warranty terms
- Note the misunderstanding in the file but proceed to avoid losing the sale
Correct answer: Correct the misunderstanding immediately and clearly before proceeding with the sale
Allowing a consumer to proceed with a purchase based on a known misunderstanding violates OMVIC's duty of honesty and fair dealing.
OMVIC Ethics and Professionalism 4
A dealership salesperson discovers that a used vehicle on the lot has an undisclosed accident history.
What is the ethical obligation under OMVIC standards?