OMVIC Legal Requirements 4 — Questions and Answers
Question 1: Under OMVIC regulations, what is the maximum period a dealer can hold a deposit before returning it if a vehicle sale does not proceed?
- 7 days
- 15 days
- 30 days
- As soon as reasonably possible (Correct answer)
Correct answer: As soon as reasonably possible
OMVIC requires dealers to return deposits as soon as reasonably possible when a sale does not proceed, with no set fixed maximum period.
Question 2: Which document must an OMVIC-registered dealer provide to a consumer before finalizing a used vehicle sale that discloses known defects?
- Mechanical Fitness Assessment (MFA) (Correct answer)
- Bill of Lading
- Certificate of Origin
- Carfax Report
Correct answer: Mechanical Fitness Assessment (MFA)
Dealers must offer consumers a Mechanical Fitness Assessment (MFA) for used vehicles to disclose the vehicle's mechanical condition.
Question 3: Under the Motor Vehicle Dealers Act (MVDA), what happens if a dealer fails to register with OMVIC and sells vehicles?
- They receive a warning letter only
- They may face fines and criminal prosecution (Correct answer)
- They must register within 30 days retroactively
- They are only liable for consumer complaints
Correct answer: They may face fines and criminal prosecution
Operating as an unregistered dealer is illegal under the MVDA and can result in significant fines and criminal prosecution.
Question 4: When a dealer advertises a vehicle price, OMVIC rules require that the advertised price must:
- Exclude all taxes
- Include all fees except government taxes (Correct answer)
- Include dealer profit margin disclosure
- Be negotiable by law
Correct answer: Include all fees except government taxes
OMVIC's Truth in Advertising rules require that advertised prices include all fees and charges except government taxes.
Question 5: A consumer purchases a vehicle and later discovers the odometer was rolled back. Under OMVIC regulations, this constitutes:
- A minor disclosure oversight
- A material misrepresentation and fraud (Correct answer)
- An acceptable trade practice if undisclosed
- Only a civil matter between buyer and seller
Correct answer: A material misrepresentation and fraud
Odometer rollback is a serious offense constituting material misrepresentation and fraud under OMVIC and provincial law.
Question 6: Under OMVIC's registration requirements, how often must a dealer renew their registration?
- Every 6 months
- Every year (Correct answer)
- Every 2 years
- Every 5 years
Correct answer: Every year
OMVIC dealer registrations must be renewed annually to remain in good standing.
Question 7: If an OMVIC dealer sells a vehicle 'as-is,' what legal obligation does the dealer still have?
- No obligations whatsoever
- Must disclose all known material defects (Correct answer)
- Must provide a 30-day warranty regardless
- Must perform all repairs before sale
Correct answer: Must disclose all known material defects
Even when selling 'as-is,' dealers must still disclose all known material defects — 'as-is' does not permit concealment of known problems.
OMVIC Legal Requirements 4
Under OMVIC regulations, what is the maximum period a dealer can hold a deposit before returning it if a vehicle sale does not proceed?