OMVIC OMVIC Contracts and Consumer Rights 2

Question 1

Under Ontario's Motor Vehicle Dealers Act, which of the following must be included in a written contract for the purchase of a used vehicle from a registered dealer?

Accepted Answer

The vehicle's year, make, model, VIN, odometer reading, agreed purchase price, and all fees and charges

Answer

Only the purchase price and the buyer's signature

Answer

The vehicle price and a general terms-and-conditions statement

Answer

A warranty document only if the vehicle is under 3 years old

Question 2

A consumer purchases a vehicle from a registered OMVIC dealer and then discovers that the odometer was rolled back. Under the MVDA, what recourse is available?

Accepted Answer

The consumer can file a complaint with OMVIC and may seek compensation through OMVIC's Motor Vehicle Dealers Compensation Fund

Answer

The consumer has no recourse if they signed the contract

Answer

The consumer can only seek civil damages through small claims court with no OMVIC involvement

Answer

The consumer must return the vehicle within 48 hours to qualify for any remedy

Question 3

Under the Consumer Protection Act (Ontario), when does a consumer have a right to cancel a contract for the purchase of a motor vehicle from a dealer?

Accepted Answer

Within 10 days if the contract does not contain all required disclosures mandated by the Act

Answer

Within 30 days for any reason, without penalty

Answer

Never — all signed vehicle contracts are final and binding

Answer

Within 24 hours of signing only if the consumer requests it in writing

Question 4

A consumer trades in their vehicle and the dealer promises in conversation (but not in writing) to pay off the consumer's outstanding car loan. The dealer fails to pay off the loan and the consumer incurs additional charges. What does this situation illustrate about vehicle contracts?

Accepted Answer

All material terms, including trade-in loan payoff obligations, must be in writing in the contract to be enforceable

Answer

Verbal promises are equally binding as written contracts in Ontario

Answer

The dealer has no obligation since the promise was verbal

Answer

The consumer should have asked for a receipt to validate the verbal promise

Question 5

What is the primary purpose of the Motor Vehicle Dealers Compensation Fund (MVDCF) administered under the MVDA?

Accepted Answer

To compensate consumers who suffer financial losses due to the fraudulent or dishonest conduct of a registered motor vehicle dealer

Answer

To reimburse dealers for warranty repair costs on vehicles they sell

Answer

To fund OMVIC's regulatory and licensing operations

Answer

To provide grants to first-time vehicle buyers in Ontario

Question 6

When a registered OMVIC dealer offers a warranty on a used vehicle, what is the dealer's obligation regarding the warranty terms?

Accepted Answer

The warranty terms must be written in plain language and provided to the consumer in writing before the contract is signed

Answer

Warranties can be offered verbally and do not need to be in writing

Answer

Dealers are not required to offer any warranty on used vehicles

Answer

The dealer only needs to provide warranty documents after the sale is completed