OMVIC OMVIC MVDA and Legislation 2

Question 1

Under the Motor Vehicle Dealers Act (MVDA), 2002, which classes of persons are required to be registered with OMVIC?

Accepted Answer

Motor vehicle dealers, motor vehicle salespersons, and motor vehicle brokers who trade in Ontario

Answer

Only dealership owners and general managers

Answer

Only salespersons employed at franchised new-car dealerships

Answer

Any person who sells more than one vehicle per year in Ontario

Question 2

What is the role of OMVIC's Discipline Committee under the MVDA?

Accepted Answer

To hear and decide cases where OMVIC's Registrar has proposed to revoke, suspend, or impose conditions on a registrant's registration

Answer

To set the fees for vehicle dealer registration

Answer

To approve all vehicle purchase contracts before they are signed

Answer

To adjudicate disputes between consumers and insurance companies

Question 3

Under the MVDA and OMVIC regulations, what must a dealer do when they take a vehicle in on consignment for sale?

Accepted Answer

Enter into a written consignment agreement with the owner specifying the terms, and disclose to buyers that the vehicle is being sold on consignment

Answer

Register the vehicle in the dealer's own name before offering it for sale

Answer

Obtain the owner's verbal consent only — no written agreement is required

Answer

Treat it identically to any other used vehicle with no additional disclosure

Question 4

The MVDA grants OMVIC inspectors the authority to:

Accepted Answer

Enter registered dealer premises, examine records, and inspect vehicles to ensure compliance with the MVDA

Answer

Arrest and detain individuals suspected of vehicle fraud

Answer

Issue criminal charges against dealers found to have violated the Act

Answer

Set vehicle prices on behalf of consumers during disputes

Question 5

Under the MVDA, which of the following is a ground for refusing to grant or renew a dealer's registration?

Accepted Answer

The applicant has been convicted of a relevant criminal offence or has a history of conduct that demonstrates they are not suitable to act as a dealer

Answer

The applicant has not been in business for at least 5 years

Answer

The applicant operates from a location more than 50 kilometres from an OMVIC regional office

Answer

The applicant's dealership is not affiliated with a major vehicle manufacturer

Question 6

Which regulation made under the MVDA establishes the specific requirements for what must be included in a vehicle purchase contract?

Accepted Answer

Ontario Regulation 333/08 (General) under the MVDA

Answer

The Highway Traffic Act, R.S.O. 1990

Answer

The Sale of Goods Act (Ontario)

Answer

The federal Motor Vehicle Safety Act