If a person sells cars for profit without registering, when do they become a curbsider?

The moment they act as a dealer without registering

After OMVIC orders them to stop and they continue

After a charge is laid and a court date set

After selling more than five cars in a year

A buyer answers a private ad placed by a curbsider. What kind of car is it often?

A write-off resold without disclosing the accident repairs

A brand-new car undercutting authorized dealer pricing

An off-lease car returned in good condition

A government fleet car sold at public auction

A curbsider prices the same vehicle below a registered dealer's price. What makes that possible?

They ignore tax laws and carry no dealership overhead

They pay OMVIC dealer fees but skip the course

They sell only to other curbsiders

They must charge a higher sales tax rate

What separates a curbsider from someone selling their own car privately?

They are in business but pose as private sellers

They are dealers whose registration with OMVIC has lapsed

They are wholesalers who sell only to other dealers

They sell vehicles from home instead of from a lot

What legal protection does a consumer who buys from a curbsider have?

None of the protections a dealer's customer has

The right to cancel for a missed disclosure

A claim on the Motor Vehicle Dealers Compensation Fund

The protections the Code of Ethics gives buyers

Curbsiders: OMVIC practice quiz

Curbsiders

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

Curbsiders · 7 questions Free set

Question 1 of 7 Curbsiders

If a person sells cars for profit without registering, when do they become a curbsider?
- After OMVIC orders them to stop and they continue
- After a charge is laid and a court date set
- The moment they act as a dealer without registering
- After selling more than five cars in a year
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(1) No person shall,
(a) act as a motor vehicle dealer unless the person is registered as a motor vehicle dealer under this Act; or
(b) act as a salesperson unless he or she is registered as a salesperson. 2002, c. 30, Sched. B, s. 4 (1).

Read section 4 in full

Section 4(1) of the MVDA prohibits a person from acting as a motor vehicle dealer unless registered as one, so the conduct itself is what makes the person a curbsider. A cease-and-desist order, a charge, and a court date are consequences that may follow, not the point at which the person crosses the line. The Act sets no yearly allowance of vehicles before registration is required. Chapter 11 covers avoiding curbsiders.
Question 2 of 7 Curbsiders

What is the smallest fine for a curbsider convicted of selling cars unregistered?
- $5,000
- $10,000
- No minimum
- $500
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(4) The minimum fine upon conviction for an offence under subsection 4 (1) is $5,000. 2002, c. 30, Sched. B, s. 32 (4); 2023, c. 20, Sched. 10, s. 1.

Read section 32 in full

Section 32(4) of the MVDA sets a $5,000 statutory minimum fine on conviction for an offence under section 4(1). A court cannot go below that floor. Chapter 1 covers the penalties under the Act.
Question 3 of 7 Curbsiders

A buyer answers a private ad placed by a curbsider. What kind of car is it often?
- A brand-new car undercutting authorized dealer pricing
- An off-lease car returned in good condition
- A government fleet car sold at public auction
- A write-off resold without disclosing the accident repairs
OMVIC says many of the vehicles curbsiders sell are previous write-offs with undisclosed accident repairs. The buyer learns nothing about the damage, which is why OMVIC treats the practice as a safety problem and not only a money one. Chapter 11 covers avoiding curbsiders.
Question 4 of 7 Curbsiders

A curbsider prices the same vehicle below a registered dealer's price. What makes that possible?
- They pay OMVIC dealer fees but skip the course
- They sell only to other curbsiders
- They ignore tax laws and carry no dealership overhead
- They must charge a higher sales tax rate
A curbsider ignores the tax rules and avoids the business expenses a registered dealership carries, so the same vehicle can be priced lower. That cost gap is the unfair advantage OMVIC means when it says illegal, unregistered sellers compete unfairly.
Question 5 of 7 Curbsiders

What separates a curbsider from someone selling their own car privately?
- They are dealers whose registration with OMVIC has lapsed
- They are wholesalers who sell only to other dealers
- They sell vehicles from home instead of from a lot
- They are in business but pose as private sellers
A curbsider sells vehicles as a business but dresses each sale up as a private sale, which means the giveaway is the hidden business and not the seller's address or a lapsed registration. 11.04 summarises the chapter.
Question 6 of 7 Curbsiders

Studies have found what share of ads that claim to be from private sellers actually come from curbsiders?
- 10%
- 25%
- 40%
- 60%
The course material states that studies put about a quarter of the ads placed as private-seller ads with curbsiders, which means an ad reading as private is no assurance the seller is out of the business. The chapter 11 fast facts carry the 25 per cent figure.
Question 7 of 7 Curbsiders

What legal protection does a consumer who buys from a curbsider have?
- The right to cancel for a missed disclosure
- None of the protections a dealer's customer has
- A claim on the Motor Vehicle Dealers Compensation Fund
- The protections the Code of Ethics gives buyers
Ontario's dealer law gives a buyer its remedies only against a seller who is registered, so a curbsider sale carries no cancellation right, no fund claim and no conduct code behind it. 11.02 covers the loss of protection.

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