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OMVIC 2025 EXAM QUESTIONS WITH
100% COMPLETE SOLUTIONS
What is the primary legislation governing Ontario's retail automotive sector? - CORRECT ANSWER- ✔✔✅MVDA Which body or agency enforces MVDA? - CORRECT ANSWER-✔✔✅OMVIC How many people compose OMVIC's board of directors? - CORRECT ANSWER-✔✔✅12 in total, 9 dealers and 3 consumer reps What is the "transaction fee program"? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅True What is OMVIC required to make available to the public? - CORRECT ANSWER-✔✔✅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? - CORRECT ANSWER-✔✔✅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? - CORRECT ANSWER-✔✔✅up to 2 years What is the minimum age requirement to become a dealer? - CORRECT ANSWER-✔✔✅ 18
If a person has been refused registration, what are 2 conditions that have to be met before the person can reapply? - CORRECT ANSWER-✔✔✅2 years have passed; new evidence to demonstrate circumstances If OMVIC issues a proposal to refuse registration, to whom can the applicant appeal? - CORRECT ANSWER-✔✔✅LAT (license appeal tribunal ), Independent judicial body called LAT, within 15 days of receiving the proposal List the 4 classes of dealers - CORRECT ANSWER-✔✔✅General dealer, Broker, Exporter, Wholesaler, Lease finance dealer List 3 examples of individuals or businesses that are exempt from registration - CORRECT ANSWER- ✔✔✅Wholesale auction, wrecker, lawyer Where is the certificate of the dealer registration kept? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅False T or F: the MVDA specifies the records a dealer must maintain- these records must be held for at least 6 years. - CORRECT ANSWER-✔✔✅True Which records of employees must be maintained? - CORRECT ANSWER-✔✔✅Employee names, proof of payments, and employee salaries If a dealer's records are destroyed or stolen, the dealer must notify? - CORRECT ANSWER-✔✔✅OMVIC, in writing, within 5 days In order for a remote storage location to be approved by OMVIC, which condition must be met? - CORRECT ANSWER-✔✔✅The location is always accessible to OMVIC staff during normal business hours
List the "previous uses of a vehicle" a dealer must disclose - CORRECT ANSWER-✔✔✅taxi, limo, police vehicle, emergency services, daily rental (unless subsequently owned by someone other than a dealer) List the types of incident damage that must be disclosed - CORRECT ANSWER-✔✔✅collision (greater than $3000 in damage), fire, floor, and structural damage or alterations In regards to replacement, what must be disclosed? - CORRECT ANSWER-✔✔✅The replacement of 2 or more adjacent body panels (excluding bumper covers) Dealers must disclose known damage repairs in excess of? - CORRECT ANSWER-✔✔✅$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 - CORRECT ANSWER- ✔✔✅False List some conditions that must be disclosed about a vehicle - CORRECT ANSWER-✔✔✅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: - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅True Recession is automatically granted for failing to disclose? - CORRECT ANSWER-✔✔✅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? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER- ✔✔✅False Under the MVDA, a customer entitled to recession has how long to request cancellation? - CORRECT ANSWER-✔✔✅90 days T or F: the consumer may also have up to one year to request rescission under the Consumer Protection Act - CORRECT ANSWER-✔✔✅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? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅False When selling to another dealer: - CORRECT ANSWER-✔✔✅Selling dealers must disclose previous use as a taxi, police vehicle, etc.. ; selling dealers must disclose damage repairs in excess of $3 000; selling dealers must disclose if the vehicle has 2 or more adjacent panels (that are not bumper panels) that have been replaced A contract for sale or lease of a vehicle between dealers: - CORRECT ANSWER-✔✔✅Must disclose specific information to comply with the Code of Ethics Regulations If a dealer's advertisement contains a price for a vehicle, that price must include? - CORRECT ANSWER- ✔✔✅Administration fees, taxes, freight and PDI, "other: mandatory fees such as documentation fees, window etching fees etc. T or F: if an advertisement is for a vehicle that was used as a police vehicle, that information must be prominently displayed in the ad - CORRECT ANSWER-✔✔✅True If OMVIC believes a dealer's advertisement to be false, misleading or deceptive, it can: - CORRECT ANSWER-✔✔✅order the dealer to issue a retraction or correction
Is the compensation fund available to all customers or only customers who are consumers? - CORRECT ANSWER-✔✔✅consumers only How much does each salesperson pay into the fund? - CORRECT ANSWER-✔✔✅Nothing How much does each dealer pay into the fund? - CORRECT ANSWER-✔✔✅$ T or F: the max individual claim from the fund is $15 000 - CORRECT ANSWER-✔✔✅False 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 - CORRECT ANSWER-✔✔✅False T or F: Protections under the CPA would apply to a carpenter buying a van for his or her small company - CORRECT ANSWER-✔✔✅False T or F: CPA protects "consumers" only - CORRECT ANSWER-✔✔✅True T or F: The CPA covers sales but not leases, and not services such as repairs - CORRECT ANSWER- ✔✔✅False T or F: the consumer can waive their right under the CPA, but they must be in writing - CORRECT ANSWER-✔✔✅False What is the maximum penalty for an individual convicted of an offence under the CPA? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅True
What are the 2 types of unfair practices? - CORRECT ANSWER-✔✔✅Unconscionable representations, and false, misleading or deceptive representations What is the essential element of an "unconscionable representation"? - CORRECT ANSWER- ✔✔✅demonstrating a lack of conscience, taking advantage of a consumer who cannot adequately protect his or her own interests What is a "material fact"? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅False Motor vehicle repairs are governed by which Ontario legislation? - CORRECT ANSWER-✔✔✅Consumer Protection Act T or F: dealers/repairers must provide estimates for repairs - CORRECT ANSWER-✔✔✅True T or F: Final repair costs may not exceed the estimate by more than 10% - CORRECT ANSWER-✔✔✅True If a repair involves the installation of new or reconditioned parts: - CORRECT ANSWER-✔✔✅the minimum warranty on repairs is 90 days or 5000 km (whichever comes first) When a dealer replaces a part: - CORRECT ANSWER-✔✔✅the dealer must offer the old part to the consumer Dealers must post a sign stating: - CORRECT ANSWER-✔✔✅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? - CORRECT ANSWER- ✔✔✅to protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien
T or F: The Code of Ethics Regulations are guidelines or "best practices" but do not have any legal authority - CORRECT ANSWER-✔✔✅False Dealers and salespeople are required to conduct business in accordance with the law and with? - CORRECT ANSWER-✔✔✅Integrity, fairness and honesty Failure to abide by the Code of Ethics Regulations can result in: - CORRECT ANSWER-✔✔✅Revocation of registration, a disciplinary hearing, refusal to grant or renew registration T or F: an "order" of the OMVIC discipline committee is final and cannot be appealed - CORRECT ANSWER-✔✔✅False What is the Canadian Motor Vehicle Arbitration Plan? - CORRECT ANSWER-✔✔✅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" - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅false T or F: all new car manufacturers participate in CAMVAP - CORRECT ANSWER-✔✔✅false T or F: CAMVAP decisions cannot be appealed - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅true Dealer plates are issued by: - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅False Who administers Ontario's Drive Clean program? - CORRECT ANSWER-✔✔✅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 - CORRECT ANSWER-✔✔✅False A Safety Standards Certificate is required when - CORRECT ANSWER-✔✔✅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? - CORRECT ANSWER-✔✔✅36 days Used vehicle information packages are required in - CORRECT ANSWER-✔✔✅private sales
