OMVIC Licensing Requirements 4 — Questions and Answers
Question 1: Under OMVIC regulations, what must a registered salesperson do if they leave their current employer to work for a different dealership?
- Continue working under their existing registration until it expires
- Notify OMVIC and transfer their registration to the new dealer (Correct answer)
- Apply for a completely new salesperson registration
- Wait 30 days before starting work at the new dealership
Correct answer: Notify OMVIC and transfer their registration to the new dealer
A salesperson's registration is tied to their sponsoring dealer, so they must transfer their registration to the new dealer through OMVIC when changing employers.
Question 2: Which of the following individuals is EXEMPT from requiring an OMVIC registration to sell motor vehicles?
- A private individual selling their own personal vehicle (Correct answer)
- A finance manager at a franchised dealership
- An internet sales coordinator employed by a dealer
- A leasing consultant working at an independent lot
Correct answer: A private individual selling their own personal vehicle
Private individuals selling their own personal vehicles are exempt from OMVIC registration requirements since they are not in the business of trading in motor vehicles.
Question 3: What is the maximum number of vehicles a business can sell in Ontario per year before being required to register as a motor vehicle dealer with OMVIC?
- 2
- 4 (Correct answer)
- 6
- 10
Correct answer: 4
Selling more than 4 vehicles per year triggers the requirement to register as a motor vehicle dealer under the MVDA.
Question 4: An applicant for an OMVIC dealer registration has a prior criminal conviction. How does OMVIC handle this situation?
- Automatically deny the application regardless of the offence
- Review the nature, severity, and relevance of the offence before deciding (Correct answer)
- Grant the registration if more than 5 years have passed since the conviction
- Require a court order to consider the application
Correct answer: Review the nature, severity, and relevance of the offence before deciding
OMVIC conducts a case-by-case review considering the type of offence, its relevance to the motor vehicle trade, and rehabilitation evidence rather than applying an automatic ban.
Question 5: Under the MVDA, which class of dealer registration allows a business to sell ONLY motorcycles and not other motor vehicles?
- General dealer
- Broker
- Motorcycle dealer (Correct answer)
- Wholesale dealer
Correct answer: Motorcycle dealer
The motorcycle dealer registration class is specifically designed for businesses whose inventory is limited to motorcycles and related vehicles.
Question 6: A salesperson's OMVIC registration is currently under suspension. What is the legal consequence if they continue to sell vehicles during the suspension period?
- They must pay a reinstatement fee only
- They may face fines and/or prosecution under the MVDA (Correct answer)
- Their employer dealer assumes full liability with no consequences for the salesperson
- They can appeal to avoid any penalty if sales were necessary
Correct answer: They may face fines and/or prosecution under the MVDA
Selling vehicles while under suspension is a violation of the MVDA and can result in significant fines and potential criminal prosecution.
Question 7: How long does a new OMVIC salesperson registration remain valid before renewal is required?
- 1 year (Correct answer)
- 2 years
- 3 years
- 5 years
Correct answer: 1 year
OMVIC salesperson registrations are valid for one year and must be renewed annually along with the associated renewal fee.
OMVIC Licensing Requirements 4
Under OMVIC regulations, what must a registered salesperson do if they leave their current employer to work for a different dealership?