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1 / 3 OMVIC and the MVDA
Motor vehicle
A vehicle driven by other than muscle power, motorcycles included. Snow vehicles, farm tractors and machinery mainly for farming or construction are excluded. (1.10)
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OMVIC exam flashcards
47 free cards across 17 topics, each cited to the Act or the regulation behind it, reproduced on this site. Reveal the back on any card. A free account keeps your place and brings back the cards you missed on a schedule.
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Create a free account Open your flashcardsOMVIC exam flashcards · 47 cards Free deck
OMVIC and the MVDA · 3 cards Free set
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2 / 3 OMVIC and the MVDA
Which law governs Ontario's retail auto industry?
The Motor Vehicle Dealers Act (MVDA). It sets the rules dealers and salespeople follow. (1.02)
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3 / 3 OMVIC and the MVDA
True or false: A dealer owes OMVIC a fee on each vehicle it sells or leases.
True. A sale and a lease each carry the fee. (1.04)
Registration and dealer classes · 4 cards Free set
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1 / 4 Registration and dealer classes
How soon must a dealer tell OMVIC about a new address or new officers?
Within five days, in writing. (2.15)
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2 / 4 Registration and dealer classes
True or false: A person selling their own family car must register with OMVIC.
False. An individual selling their own or a family member's personal-use vehicle is exempt. (2.17)
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3 / 4 Registration and dealer classes
What is the youngest an individual can be to register as a dealer?
18 years old. (2.03)
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4 / 4 Registration and dealer classes
List the three things a salesperson needs to register or renew.
Pay the fee, finish the Automotive Certification Course, and work for a registered dealer. (2.05)
Code of Ethics and professional conduct · 3 cards Free set
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1 / 3 Code of Ethics and professional conduct
True or false: Dealers can treat the Code of Ethics as guidance with no legal force.
False. It is law, and every dealer and salesperson must comply with it. (17.02)
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2 / 3 Code of Ethics and professional conduct
True or false: A salesperson must avoid anything that would make the dealer break the Code of Ethics.
True. An omission counts as much as an act. (17.04)
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3 / 3 Code of Ethics and professional conduct
List the three values a dealer or salesperson must act with in business.
Honesty, integrity and fairness. (17.02)
Premises, records, and trust accounts · 3 cards Free set
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1 / 3 Premises, records, and trust accounts
True or false: A dealer whose records are destroyed in a fire can wait for the next inspection to tell OMVIC.
False. OMVIC must be told in writing, with the cause, within five days. (3.04)
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2 / 3 Premises, records, and trust accounts
How long must a dealer keep its vehicle, trade and business records?
At least six years. (3.04)
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3 / 3 Premises, records, and trust accounts
True or false: Only the part of a deposit above $10,000 has to go into trust.
False. The whole deposit goes into trust once it is over $10,000. (3.06)
Sale, lease, and consignment contracts · 3 cards Free set
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1 / 3 Sale, lease, and consignment contracts
A customer asks for their deposit back before signing any contract. What must the dealer do?
Return it immediately. The same goes for a trade-in. (4.11)
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2 / 3 Sale, lease, and consignment contracts
What statement must sit beside the buyer's signature on a new-vehicle contract?
The Sales Final statement, in bold type. (4.03)
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3 / 3 Sale, lease, and consignment contracts
True or false: A used car with a current safety certificate can still be sold to a customer as-is.
False. A current certificate rules out an as-is sale to a customer. (4.04)
Material facts and retail disclosures · 3 cards Free set
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1 / 3 Material facts and retail disclosures
True or false: A car once used as a police cruiser must be disclosed on the contract.
True. Past emergency, taxi and limousine use must be disclosed too. (5.04)
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2 / 3 Material facts and retail disclosures
Must a dealer disclose that a vehicle's structure was altered, even with no damage?
Yes. Structural damage and any structural repairs, replacements or alterations must be disclosed. (5.04)
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3 / 3 Material facts and retail disclosures
True or false: A contract must disclose damage from one incident only once its repairs pass $5,000.
False. The figure is $3,000, with the total cost if the dealer knew it. (5.04)
Wholesale (dealer-to-dealer) disclosure · 2 cards Free set
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1 / 2 Wholesale (dealer-to-dealer) disclosure
Must a dealer who sells or leases to another dealer put disclosures in the contract?
Yes. The contract must disclose a set list of information about the vehicle. (7.03)
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2 / 2 Wholesale (dealer-to-dealer) disclosure
Above what repair bill must one incident's damage be disclosed to a buying dealer?
$3,000, with the total cost if the seller knew it. (7.03)
Rescission and contract cancellation · 3 cards Free set
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1 / 3 Rescission and contract cancellation
True or false: A buyer who is a registered dealer can cancel under the disclosure rules.
False. Only a buyer or lessee who is not a registered dealer may cancel. (6.04)
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2 / 3 Rescission and contract cancellation
How many days does a customer get to cancel when the contract misstates the distance driven?
90 days from taking delivery of the vehicle. (6.04)
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3 / 3 Rescission and contract cancellation
What margin of error is allowed on a disclosed distance driven?
5 per cent or 1,000 kilometres, whichever is less. (6.04)
Advertising rules and all-in pricing · 3 cards Free set
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1 / 3 Advertising rules and all-in pricing
True or false: An advertised price may leave out freight and pre-delivery inspection charges.
False. Freight and pre-delivery inspection charges belong in the advertised price. (8.05)
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2 / 3 Advertising rules and all-in pricing
True or false: An ad for a used car from this model year or last year's must say the car is used.
True, where the ad gives the model year. The year alone would let a buyer take it for new. (8.04)
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3 / 3 Advertising rules and all-in pricing
True or false: OMVIC can require a dealer's ads to be pre-approved for up to two years.
True. Two years is the longest period OMVIC can set. (8.02)
Extended warranties and service plans · 3 cards Free set
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1 / 3 Extended warranties and service plans
If an extended warranty is backed through the Compensation Fund, what security is needed?
An irrevocable letter of credit for $100,000 or $500,000. It is $100,000 when the warranty seller also sold or leased the vehicle. (9.03)
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2 / 3 Extended warranties and service plans
A dealer arranges an extended warranty for a warranty company. Within how many days must it pass on the contract and payments?
30 days after the contract is made. (9.03)
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3 / 3 Extended warranties and service plans
List the two forms of financial backing for an extended warranty.
Insurance from a licensed insurer, or an irrevocable letter of credit lodged with the Compensation Fund. (9.03)
Inspections, investigations, and discipline · 2 cards Free set
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1 / 2 Inspections, investigations, and discipline
True or false: An inspector can examine a dealer's records, but has no right to the cars on the lot.
False. Inspectors get free access to records, vehicles and parts relevant to the inspection. (10.03)
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2 / 2 Inspections, investigations, and discipline
Does an OMVIC inspector have to warn a dealer before arriving to inspect?
No. An inspector may enter the business premises at any reasonable time. (10.03)
Curbsiders · 3 cards Free set
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1 / 3 Curbsiders
Curbsider
An illegal, unregistered seller who sells vehicles as a business, often posing as a private seller. They often mislead buyers about who they are and what they sell. (11.02)
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2 / 3 Curbsiders
What share of private-seller ads have studies found are really from curbsiders?
25 per cent. (11.02)
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3 / 3 Curbsiders
What is the minimum fine for acting as a dealer or salesperson without registration?
$5,000. (2.05)
Motor Vehicle Dealers Compensation Fund · 3 cards Free set
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1 / 3 Motor Vehicle Dealers Compensation Fund
What does a salesperson pay into the Compensation Fund?
Nothing. A salesperson makes no payment to the Fund. (12.03)
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2 / 3 Motor Vehicle Dealers Compensation Fund
True or false: Any customer of a dealer can claim from the Compensation Fund.
False. Only a customer who acted as a consumer in the deal can claim. (12.02)
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3 / 3 Motor Vehicle Dealers Compensation Fund
True or false: The most a customer can recover from the Compensation Fund on one claim is $15,000.
False. The cap is $45,000, interim payments included. (12.04)
Consumer Protection Act for dealers · 3 cards Free set
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1 / 3 Consumer Protection Act for dealers
True or false: A plumber who buys a van for work is a consumer under the Consumer Protection Act.
False. A consumer buys for personal, family or household use, not for business. (13.02)
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2 / 3 Consumer Protection Act for dealers
True or false: A repair bill may run up to 10 per cent over the estimate.
True. Anything more than 10 per cent above the estimate cannot be charged. (14.03)
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3 / 3 Consumer Protection Act for dealers
How long does the law warrant new parts and labour on a vehicle repair?
At least 90 days or 5,000 kilometres, whichever comes first. (14.03)
Sale of Goods Act and implied warranties · 2 cards Free set
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1 / 2 Sale of Goods Act and implied warranties
True or false: A signed as-is acknowledgement takes away a consumer's implied conditions of sale.
False. Any such acknowledgement is void, in the contract or outside it. (16.03)
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2 / 2 Sale of Goods Act and implied warranties
How long is the cooling-off period after a customer signs a contract with a dealer?
There is none. Once both sign, both must complete the deal. (16.06)
Vehicle documents, UVIP, and permits · 2 cards Free set
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1 / 2 Vehicle documents, UVIP, and permits
How long is a safety standards certificate good for when a used vehicle changes hands?
36 days from the inspection. (18.09)
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2 / 2 Vehicle documents, UVIP, and permits
True or false: A registered dealer must give a buyer a Used Vehicle Information Package.
False. Registered dealers are exempt. (18.10)
Liens on trade-ins and repaired vehicles · 2 cards Free set
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1 / 2 Liens on trade-ins and repaired vehicles
Can one vehicle carry more than one lien at the same time?
Yes. A bank and a garage can both hold liens on it. (15.05)
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2 / 2 Liens on trade-ins and repaired vehicles
When must a dealer pay off a lien it has agreed to clear on a trade-in?
Immediately. The customer also gets the creditor's release letter, if one is given. (15.05)
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