A discipline committee finds a dealer broke the Code of Ethics. What may it order?

A fine up to $25,000, or educational courses

A prosecution referred to the courts by the committee

Compensation paid to the customer who complained

Revocation of the dealer's registration by the committee

Who hears and decides whether a dealer has broken the Code of Ethics?

A discipline committee, set up by the board

The Ontario Court of Justice, on a charge

The Licence Appeal Tribunal, at first instance

What kind of rule is the Code of Ethics for dealers and salespeople?

A regulation that forms part of the MVDA

A standard a dealership chooses to sign up to

A code the dealer associations agreed among themselves

A policy OMVIC publishes for the industry

What can OMVIC do to the registration of a dealer who breaks the Code of Ethics?

Put conditions on the registration

What does the word ethics mean in the Code of Ethics?

The principles of right and wrong that guide conduct

The laws a dealer has to follow when selling vehicles

The written rules a dealership sets for its staff

The standards a trade association sets for its members

Code of Ethics: OMVIC practice quiz

Code of Ethics

8 questions. Pick an answer and the explanation reveals below it. Your score updates as you go.

Code of Ethics · 8 questions Free set

Question 1 of 8 Code of Ethics

Besides being honest and fair, what must a dealer be in carrying on business?
- Financially responsible
- Creditworthy with a bank
- Insured against loss
- Profitable each fiscal year
O. Reg. 332/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(1) A registrant shall be financially responsible in carrying on business. O. Reg. 332/08, s. 3 (1).

Read section 3 in full

Section 3(1) of O. Reg. 332/08 requires a registrant to be financially responsible in carrying on business. The duty is about responsible conduct with money, not profit, credit ratings, or insurance. Chapter 17 covers the Code of Ethics Regulations.
Question 2 of 8 Code of Ethics

What must a salesperson be when describing a car's features, benefits and price?
- Persuasive and confident
- Professional and polished
- Clear and truthful
- Brief and neutral
O. Reg. 332/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(1) A registrant shall be clear and truthful in describing the features, benefits and prices connected with the motor vehicles in which the registrant trades and in explaining the products, services, programs and prices connected with those vehicles. O. Reg. 332/08, s. 4 (1).

Read section 4 in full

Section 4(1) of O. Reg. 332/08 requires that a registrant be clear and truthful in describing the features, benefits, and prices of vehicles, and in explaining the products, services, programs, and prices connected with them. Chapter 17 covers the Code of Ethics Regulations.
Question 3 of 8 Code of Ethics

A discipline committee finds a dealer broke the Code of Ethics. What may it order?
- A fine up to $25,000, or educational courses
- A prosecution referred to the courts by the committee
- Compensation paid to the customer who complained
- Revocation of the dealer's registration by the committee
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(4) If the discipline committee makes a determination under subsection (1) that a registrant has failed to comply with the code of ethics, it may order any of the following, as appropriate:
1. Require the registrant to take further educational courses.
2. In accordance with the terms that may be specified by the committee, require the motor vehicle dealer to fund educational courses for salespersons employed by the dealer or to arrange and fund such educational courses.
3. Despite subsection 12 (1) of the Safety and Consumer Statutes Administration Act, 1996, impose such fine as the committee considers appropriate, to a maximum of $25,000, or such lesser amount as may be prescribed, to be paid by the registrant to the administrative authority or to the Minister of Finance if there is no designated administrative authority.
4. Suspend or postpone the taking of further educational courses, the funding or the funding and arranging of educational courses or the imposition of the fine for such period and upon such terms as the committee designates.
5. Fix and impose costs to be paid by the registrant to the administrative authority or to the Minister of Finance if there is no designated administrative authority. 2002, c. 30, Sched. B, s. 17 (4).

Read section 17 in full

Subsection 17(4) of the MVDA lets the discipline committee require further educational courses, require a dealer to fund or arrange courses for its salespersons, impose a fine of up to $25,000 payable to the administrative authority, or suspend any of those. Revoking a registration is the registrar's power under section 8 and not the committee's, the subsection provides no compensation order, and clause 32(1)(c) puts a code of ethics outside the offence provision. Chapter 17 covers disciplinary action.
Question 4 of 8 Code of Ethics

Who hears and decides whether a dealer has broken the Code of Ethics?
- OMVIC, deciding the file alone
- A discipline committee, set up by the board
- The Ontario Court of Justice, on a charge
- The Licence Appeal Tribunal, at first instance
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(1) The board of the administrative authority or, if there is no designated administrative authority, the Minister may establish a discipline committee to hear and determine, in accordance with the prescribed procedures, issues concerning whether registrants have failed to comply with the code of ethics established by the Minister. 2002, c. 30, Sched. B, s. 17 (1).

Read section 17 in full

Section 17(1) of the Motor Vehicle Dealers Act, 2002 lets the board of the administrative authority, or the Minister where no administrative authority is designated, establish a discipline committee, and that committee is what hears and determines whether registrants have broken the code of ethics. A code complaint therefore lands with the committee rather than with the registrar, a tribunal or a court. Chapter 17 covers the Code of Ethics Regulations.
Question 5 of 8 Code of Ethics

Dealers and salespeople may treat the Code of Ethics under the MVDA as advice rather than law.
- True
- False
The Code of Ethics is a regulation made under the Motor Vehicle Dealers Act, 2002, so it carries the force of law and a dealer or salesperson has to follow it rather than choose to. 17.04 sets out the Code of Ethics requirements.
Question 6 of 8 Code of Ethics

What kind of rule is the Code of Ethics for dealers and salespeople?
- A standard a dealership chooses to sign up to
- A code the dealer associations agreed among themselves
- A policy OMVIC publishes for the industry
- A regulation that forms part of the MVDA
The Code of Ethics sits in a regulation made under the MVDA, so a dealer or salesperson follows it as law and not as a standard the dealership chose to adopt. 17.06 sums up the chapter.
Question 7 of 8 Code of Ethics

What can OMVIC do to the registration of a dealer who breaks the Code of Ethics?
- Suspend the registration
- Revoke the registration
- Put conditions on the registration
- All of the above
A breach of the code exposes the registration itself: it can be refused, suspended or revoked, and conditions can be attached to it instead, so all three steps are open to OMVIC. 17.05 covers disciplinary action.
Question 8 of 8 Code of Ethics

What does the word ethics mean in the Code of Ethics?
- The laws a dealer has to follow when selling vehicles
- The written rules a dealership sets for its staff
- The principles of right and wrong that guide conduct
- The standards a trade association sets for its members
Ethics means the principles of right and wrong that guide how a person behaves, and the Code of Ethics holds a dealer and a salesperson to that standard, not to a trade association's rules or one dealership's own policy. 17.05 covers the definition.

End of the free set

8 questions here. 17 topics in all.

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