OMVIC MVDA and Legislation 2

Question 1

Which organization is responsible for administering the Motor Vehicle Dealers Act, 2002 in Ontario?

Accepted Answer

Ontario Motor Vehicle Industry Council (OMVIC)

Answer

Ministry of Transportation

Answer

Financial Services Regulatory Authority of Ontario

Answer

Automobile Protection Association of Canada

Question 2

For which type of vehicle transaction is a Condition Disclosure Statement (CDS) required under the MVDA?

Accepted Answer

Used vehicles only

Answer

New vehicles only

Answer

All vehicle sales regardless of age

Answer

Vehicles more than five years old or with over 100,000 km

Question 3

Under OMVIC advertising standards, which costs must be included in a dealer's advertised vehicle price?

Accepted Answer

All dealer-controlled fees and charges, excluding government taxes and licensing

Answer

Only the base price before additional charges

Answer

Every charge including applicable taxes and licensing fees

Answer

Only mandatory government-imposed fees

Question 4

Does the MVDA provide consumers in Ontario with a mandatory cooling-off period to cancel a motor vehicle purchase contract?

Accepted Answer

No, there is no mandatory cooling-off period for motor vehicle purchases

Answer

Yes, 10 business days from the date of signing

Answer

Yes, 2 business days for used vehicle purchases

Answer

Yes, 7 days for any purchase exceeding $25,000

Question 5

When a dealer sells a used vehicle on an 'as-is' basis under the MVDA, what obligation remains?

Accepted Answer

The dealer must still disclose all known material defects to the buyer

Answer

All warranty and disclosure obligations are eliminated by the as-is designation

Answer

As-is sales are only permitted for vehicles more than ten years old

Answer

As-is sales are prohibited for OMVIC-registered dealers

Question 6

Under the MVDA, how is a 'broker' class registration best described?

Accepted Answer

A registrant who, for compensation, facilitates vehicle transactions without taking title to the vehicle

Answer

A dealer licensed exclusively to sell new vehicles from a manufacturer

Answer

A wholesaler who sells motor vehicles only to other registered dealers

Answer

A salesperson authorized to operate independently without a registered dealer

Question 7

What is the purpose of a dealer's trust account under the MVDA?

Accepted Answer

To hold customer deposits separately from the dealer's general operating funds

Answer

To accumulate funds for annual OMVIC registration renewal fees

Answer

To manage warranty reserve funds required by manufacturers

Answer

To hold funds earmarked for future vehicle inventory purchases