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Material facts and retail disclosures · 12 questions Free set
Question 1 of 12 Material facts and retail disclosures
Paragraph 3 of s. 42 requires the contract to state the total distance that the used vehicle has been driven if the dealer can determine that distance. Chapter 5 covers retail disclosure requirements.
Question 2 of 12 Material facts and retail disclosures
Paragraph 20 of s. 42 requires disclosure whenever the manufacturer's warranty was cancelled. Selling an extended warranty does not displace that disclosure obligation. Chapter 5 covers retail disclosure requirements.
Question 3 of 12 Material facts and retail disclosures
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
(1) Motor vehicle dealers shall disclose in writing to customers and to motor vehicle dealers such information as may be prescribed and shall make the disclosure at such time as may be prescribed. 2002, c. 30, Sched. B, s. 30 (1).
Section 30(1) of the MVDA says the prescribed information shall be disclosed in writing. Saying it out loud leaves that duty unmet, so the statement is false. Chapter 5 covers retail disclosure requirements.
Question 4 of 12 Material facts and retail disclosures
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
(10) For each contract mentioned in subsection (2) into which the registered motor vehicle dealer enters, the dealer shall ensure that,
(a) the contract is signed by the parties;
(b) if a registered salesperson is acting on behalf of the dealer respecting the sale, the contract is signed by the salesperson; and
(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 39 (10).
Subsection 39(10) clause (c) requires the purchaser to receive a copy of the contract immediately after signing it. Chapter 4 covers contract requirements.
Question 5 of 12 Material facts and retail disclosures
Paragraph 24 of subsection 39(2) requires the subsection 39(3) warning to appear on the same page of the contract as the purchaser's signature and next to it, in 12-point bold font with a 14-point bold heading. Position and font are both part of the requirement, so a cover page, regular font elsewhere in the document, or burial among the attached statements all fall short. Chapter 4 covers contract requirements.
Question 6 of 12 Material facts and retail disclosures
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
(1) If a supplier is required to disclose information under this Act, the disclosure must be clear, comprehensible and prominent. 2002, c. 30, Sched. A, s. 5 (1).
Section 5(1) of the Consumer Protection Act, 2002 sets one standard over every disclosure that Act requires, which is that the disclosure be clear, comprehensible and prominent. A term buried in fine print therefore counts as undisclosed even though the words sit somewhere in the agreement. Chapter 13 covers the Consumer Protection Act.
Question 7 of 12 Material facts and retail disclosures
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
(4) The statement mentioned in paragraph 25 of subsection (2) is as follows:
The statement prescribed by subsection 39(4) of O. Reg. 333/08 sends the purchaser to the dealer first and to OMVIC as the administrative authority only if the concern persists. That order is part of the prescribed wording, so the regulator is the second step rather than the first. Chapter 4 covers contract requirements.
Question 8 of 12 Material facts and retail disclosures
Selling a vehicle as-is or unfit speaks to its condition on delivery and says nothing about its past, so every required disclosure, material facts included, still belongs on the contract. 4.04 covers the as-is contract.
Question 9 of 12 Material facts and retail disclosures
The retail disclosure rules are built around three headings: what the vehicle was used for before, what has happened to it, and what state its quality or condition is in now. 5.02 sets out the three.
Question 10 of 12 Material facts and retail disclosures
A repair below that trigger counts as a material fact in its own right, so the buyer must still be told about it. The trigger decides only whether the separate damage statement goes on the contract. 5.05 covers the damage discussion.
Question 11 of 12 Material facts and retail disclosures
The contract must state that the vehicle has two or more adjacent panels that are not bumper panels and that have been replaced, so a single panel, a repaint or a bumper on its own does not reach the requirement. O. Reg. 333/08, s. 42 para. 15; 5.04.
Question 12 of 12 Material facts and retail disclosures
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
(1) Motor vehicle dealers shall disclose in writing to customers and to motor vehicle dealers such information as may be prescribed and shall make the disclosure at such time as may be prescribed. 2002, c. 30, Sched. B, s. 30 (1).
The MVDA requires dealers to disclose in writing, so telling a customer about a previous use or past damage out loud leaves the dealer short of the requirement. MVDA, s. 30(1); 5.02.
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