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OMVIC Exam Questions & Answers | 100% Correct Answers | Verified
| Latest 2024 Version
What is the primary legislation governing Ontario's retail automotive sector? - ✔✔MVDA Which body or agency enforces MVDA? - ✔✔OMVIC How many people compose OMVIC's board of directors? - ✔✔12 in total, 9 dealers and 3 consumer reps What is the "transaction fee program"? - ✔✔under the transaction fee program, dealers are required to remit $10 for each vehicle sold or leased to OMVIC. These funds are remitted annually with the dealers registration renewal fee. T or F: the fee can be passed on to the consumer - ✔✔True What is OMVIC required to make available to the public? - ✔✔A dealers name, address and phone number; a salespersons name; any proposal to refuse to renew, suspend or revoke the registration of a dealer or salesperson Should OMVIC determine a dealers advertising to be false or misleading what powers do they have to stop or correct it? - ✔✔Order to the dealer to cease publication and or issue a retraction or correction If an order is used to stop or correct false advertising, for how long may the dealer need to seek OMVIC pre approval for future advertising? - ✔✔up to 2 years What is the minimum age requirement to become a dealer? - ✔✔ 18 If a person has been refused registration, what are 2 conditions that have to be met before the person can reapply? - ✔✔2 years have passed; new evidence to demonstrate circumstances
If OMVIC issues a proposal to refuse registration, to whom can the applicant appeal? - ✔✔LAT (license appeal tribunal ), Independent judicial body called LAT, within 15 days of receiving the proposal List the 4 classes of dealers - ✔✔General dealer, Broker, Exporter, Wholesaler, Lease finance dealer List 3 examples of individuals or businesses that are exempt from registration - ✔✔Wholesale auction, wrecker, lawyer Where is the certificate of the dealer registration kept? - ✔✔Where the public can see it T or F: Dealers may sell vehicles from any location so long as they have registered a head office with OMVIC - ✔✔False T or F: the MVDA specifies the records a dealer must maintain- these records must be held for at least 6 years. - ✔✔True Which records of employees must be maintained? - ✔✔Employee names, proof of payments, and employee salaries If a dealer's records are destroyed or stolen, the dealer must notify? - ✔✔OMVIC, in writing, within 5 days In order for a remote storage location to be approved by OMVIC, which condition must be met? - ✔✔The location is always accessible to OMVIC staff during normal business hours T or F: Under the MVDA, all dealers are required to maintain a trust account - ✔✔False Deposits over what amount must be kept in a trust account? - ✔✔$10 000 (ten thousand) T or F: Before issuing a freeze order (freezing the dealer's assets or trust funds), OMVIC must first notify the dealer - ✔✔False
Dealers must disclose known damage repairs in excess of? - ✔✔$3 000 T or F: A dealer does not have to inform a purchaser that a vehicle's manufacturer's warranty has been cancelled, so long as the dealer offers or sells the purchaser an extended warranty - ✔✔False List some conditions that must be disclosed about a vehicle - ✔✔A vehicle was previously registered in another province, state or country; a vehicle's anti-lock braking system is not functioning; a vehicle's airbags are missing; a vehicle's air conditioning system requires repair Discloser must be provided in a timely manner, in writing, and be presented in a way that is: - ✔✔clear, comprehensible, and prominent T or F: the MVDA remedy of recession (cancellation of a sales contract) is available only to a customer who is a consumer - ✔✔True Recession is automatically granted for failing to disclose? - ✔✔The make, model and model year of the vehicle; the vehicle was previously a taxi or limo; the vehicle has been branded There are other disclosure requirements that, if not met, trigger a customer's rights. What are they? - ✔✔Previous use as police emergency services vehicle; previous use as a daily rental; mileage/distance travelled T or F: the remedy of remission is available to a customer who is also a dealer - ✔✔False Under the MVDA, a customer entitled to recession has how long to request cancellation? - ✔✔90 days T or F: the consumer may also have up to one year to request rescission under the Consumer Protection Act - ✔✔True
What is the margin of error allowed to a dealer who provides the distance driven (odometer reading) or who cannot determine the total distance driven, but can determine the distance driven as of some past date? - ✔✔Within the lesser of 5% or 1 000 km of the correct distance is required to be disclosed T or F: customers cannot rescind a contact if the dealer was unaware of a vehicle's true history, or honestly believed the disclosure given to be accurate - ✔✔False When selling to another dealer: - ✔✔Selling dealers must disclose previous use as a taxi, police vehicle, etc.. ; selling dealers must disclose damage repairs in excess of $3 000; selling dealers must disclose if the vehicle has 2 or more adjacent panels (that are not bumper panels) that have been replaced A contract for sale or lease of a vehicle between dealers: - ✔✔Must disclose specific information to comply with the Code of Ethics Regulations If a dealer's advertisement contains a price for a vehicle, that price must include? - ✔✔Administration fees, taxes, freight and PDI, "other: mandatory fees such as documentation fees, window etching fees etc. T or F: if an advertisement is for a vehicle that was used as a police vehicle, that information must be prominently displayed in the ad - ✔✔True If OMVIC believes a dealer's advertisement to be false, misleading or deceptive, it can: - ✔✔order the dealer to issue a retraction or correction Extended warranties must be backed or guaranteed financially to ensure their variability. List 2 methods by which baking can be provided. - ✔✔1) an insurance company licensed under the Insurance Act; 2) an irrevocable letter of credit to the compensation fund If a dealer wishes to offer their own uninsured extended warranty, they must provide to the compensation fund an irrevocable letter of credit in the amount of? - ✔✔$100 000 Dealers must send all payments and documents detailing the contract to the warranty company within: - ✔✔7 days
T or F: The fund is similar to an insurance policy, so a dealer does not have to reimburse the Fund should the Fund pay out a claim on behalf of a dealer - ✔✔False T or F: Protections under the CPA would apply to a carpenter buying a van for his or her small company - ✔✔False T or F: CPA protects "consumers" only - ✔✔True T or F: The CPA covers sales but not leases, and not services such as repairs - ✔✔False T or F: the consumer can waive their right under the CPA, but they must be in writing - ✔✔False What is the maximum penalty for an individual convicted of an offence under the CPA? - ✔✔A max of 2 years less a day in jail and or a fine of up to $50 000 T or F: in matter related to the CPA, courts will only consider the evidence that is written into the contract - ✔✔False T or F: if the consumer defaults on a loan/payment schedule but has paid off more than two-thirds if the total purchase price, the dealer must get permission from the court to repossess the vehicle - ✔✔True What are the 2 types of unfair practices? - ✔✔Unconscionable representations, and false, misleading or deceptive representations What is the essential element of an "unconscionable representation"? - ✔✔demonstrating a lack of conscience, taking advantage of a consumer who cannot adequately protect his or her own interests What is a "material fact"? - ✔✔information that might affect a customer's decision to purchase or lease the vehicle if he or she knew about it, or the price the customer would be willing to pay
T or F: If a dealer acted in good faith and unknowingly breached the CPA, the consumer is no longer protected by the CPA - ✔✔False Motor vehicle repairs are governed by which Ontario legislation? - ✔✔Consumer Protection Act T or F: dealers/repairers must provide estimates for repairs - ✔✔True T or F: Final repair costs may not exceed the estimate by more than 10% - ✔✔True If a repair involves the installation of new or reconditioned parts: - ✔✔the minimum warranty on repairs is 90 days or 5000 km (whichever comes first) When a dealer replaces a part: - ✔✔the dealer must offer the old part to the consumer Dealers must post a sign stating: - ✔✔labour charges and how they are computed; the dealer's obligation to provide estimates; that each part is removed and available to the consumer Why should a dealer do a lien check on a vehicle that is being taken in on trade? - ✔✔to protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien what is a lien? - ✔✔a right to keep possession of a property belonging to another person until debt owed to that person is discharged Is it possible for more than one party to hold a lien on the same vehicle? - ✔✔yes If a dealer agrees to pay out a lien on a customer's trade-in, the lien must be paid out: - ✔✔immediately T or F: if a dealer pays out a lien on a customer's trade-in, he or she must give the customer a copy of the release letter from the financial institution - ✔✔true
What is the Canadian Motor Vehicle Arbitration Plan? - ✔✔CAMVAP is a program where disputes between consumers and vehicle manufacturers about alleged manufacturing defects or implementation of a manufacturer's new vehicle warranty can be put before an arbitrator for resolution Briefly explain a "consignment transaction" - ✔✔a vehicle owner (cosigner) gives a vehicle to a dealer (consignee) to sell on the owner's behalf T or F: the total amount the dealer will charge the cosigner on the sale of the vehicle (whether as a fixed amount or a commission share) can be negotiated after the sale and does not have to be included in the contract - ✔✔false T or F: all new car manufacturers participate in CAMVAP - ✔✔false T or F: CAMVAP decisions cannot be appealed - ✔✔True T or F: only monies over $10 000 that are received from a consignment sale must be deposited in the dealer's trust account - ✔✔true Dealer plates are issued by: - ✔✔Ministry of Transportation T or F: at a wholesale auction, dealers may be accompanied by a customer so long as the customer bids only through the dealer - ✔✔False Who administers Ontario's Drive Clean program? - ✔✔Ministry of Environment T or F: Vehicles branded as irreparable can be rebranded as rebuilt only after the vehicle receives a Structural Repair Certificate from a licensed repair facility - ✔✔False A Safety Standards Certificate is required when - ✔✔transferring a used motor vehicle to a new owner as fit; registering a motor vehicle in Ontario that was previously registered in another province or country; changing the status of a vehicle from unfit to fit; registering a rebuilt motor vehicle
How long is a Safety Standards Certificate valid? - ✔✔36 days Used vehicle information packages are required in - ✔✔private sales
