Which Act and its regulations set the registration and conduct requirements for Ontario car dealers?

The Motor Vehicle Dealers Act and its regulations

The Consumer Protection Act and its regulation

The Highway Traffic Act and one dealer regulation

The Motor Vehicle Dealers Act alone, no regulations

Which body does Ontario designate to administer the Motor Vehicle Dealers Act?

The Ontario Motor Vehicle Industry Council

The Ministry of Public and Business Service Delivery

When a dealer sells the dealership, can the registration pass to the buyer?

No, a registration is not transferable

Yes, between immediate family members only

Yes, as part of the sale of the business

Who is bound by the ban on false or misleading statements about vehicles, and in what material?

Any dealer or salesperson, in anything published

Any dealer or salesperson who knew it was untrue

Dealerships only, in paid advertising

Any dealer or salesperson a buyer relied on

Who owes OMVIC's transaction fee, and how is it counted?

The dealer, one fee for each car sold or leased

The dealer, one fee for each place of business

The dealer, on retail sales only, not fleet deals

The salesperson, one fee for each car sold

What does the transaction fee a dealer gives OMVIC for each vehicle sold or leased pay for?

OMVIC's own cost of regulating the industry

Payments into the Motor Vehicle Dealers Compensation Fund

Provincial sales tax on the vehicle sold

The salesperson's registration fee with OMVIC

OMVIC and the MVDA: practice quiz

OMVIC and the MVDA

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

OMVIC and the MVDA · 8 questions Free set

Question 1 of 8 OMVIC and the MVDA

Which Act and its regulations set the registration and conduct requirements for Ontario car dealers?
- The Consumer Protection Act and its regulation
- The Highway Traffic Act and one dealer regulation
- The Motor Vehicle Dealers Act and its regulations
- The Motor Vehicle Dealers Act alone, no regulations
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(1) The Minister may make regulations,
(a) establishing a code of ethics for the purposes of subsection 17 (1);
(b) governing the jurisdiction and procedures of any committee established under this Act;
(c) respecting any matter that is delegated by the Lieutenant Governor in Council to the Minister under paragraph 40 of subsection 44 (1). 2002, c. 30, Sched. B, s. 43 (1); 2004, c. 19, s. 16 (24).

Read section 43 in full

Dealers and salespeople register under the MVDA, and the working rules are made by regulation under it, with O. Reg. 333/08 (General) prescribing the requirements for registration and O. Reg. 332/08 carrying the code of ethics. The Act supplies both powers, s. 43(1)(a) for the code of ethics and s. 44 for the Lieutenant Governor in Council's general regulations. Chapter 1 covers the law and the regulator.
Question 2 of 8 OMVIC and the MVDA

Which body does Ontario designate to administer the Motor Vehicle Dealers Act?
- The Ministry of Public and Business Service Delivery
- The Ontario Provincial Police
- The Ontario Motor Vehicle Industry Council
- The Ministry of Transportation
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:

Read section 39 in full

Subsection 1(1) of the MVDA defines the administrative authority as the body designated under section 3 of the Safety and Consumer Statutes Administration Act, 1996 to administer the Act, and the statement prescribed by subsection 39(4) of O. Reg. 333/08 names the Ontario Motor Vehicle Industry Council as the administrative authority designated for administering the Act. Day-to-day administration and enforcement therefore belong to that authority rather than to a ministry, and the police have no part in dealer registration. Chapter 1 covers the law and the regulator.
Question 3 of 8 OMVIC and the MVDA

When a dealer sells the dealership, can the registration pass to the buyer?
- Yes, between immediate family members only
- No, a registration is not transferable
- Yes, as part of the sale of the business
- Yes, with OMVIC's approval
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(3) A registration is not transferable. 2002, c. 30, Sched. B, s. 6 (3).

Read section 6 in full

Section 6(3) of the MVDA states plainly that a registration is not transferable. A new owner or business must apply for its own registration. Chapter 2 covers registration of dealers and salespeople.
Question 4 of 8 OMVIC and the MVDA

A dealer may recover the OMVIC transaction fee by building it into the price of the car.
- True
- False
The dealer is the one who owes OMVIC the fee, so recovering it from the buyer is the dealer's own choice and is permitted. Telling the buyer that OMVIC sets the charge, or dressing it up as a government levy the buyer must pay, is a separate problem because it misstates who the charge belongs to. Chapter 1 covers the transaction fee program.
Question 5 of 8 OMVIC and the MVDA

Who is bound by the ban on false or misleading statements about vehicles, and in what material?
- Any dealer or salesperson who knew it was untrue
- Dealerships only, in paid advertising
- Any dealer or salesperson, in anything published
- Any dealer or salesperson a buyer relied on
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

No registrant shall make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to trading in motor vehicles. 2002, c. 30, Sched. B, s. 28.

Read section 28 in full

Section 28 puts the duty on a registrant, and the Act defines a registrant as a registered motor vehicle dealer or salesperson, so a salesperson is bound as much as the dealership. The section reaches material published by any means, so the breach turns on what the published statement says rather than on the channel it went out on, the registrant's state of mind or whether any buyer acted on it.
Question 6 of 8 OMVIC and the MVDA

Who owes OMVIC's transaction fee, and how is it counted?
- The dealer, one fee for each place of business
- The dealer, on retail sales only, not fleet deals
- The dealer, one fee for each car sold or leased
- The salesperson, one fee for each car sold
The fee is the dealer's to pay and is counted one per vehicle sold or leased, so a fleet deal and an as-is deal each carry one. Only two trades sit outside the program, a sale or lease made with another registered dealer and the sale of a leased vehicle to its own lessee, since that vehicle was charged when the lease began. Chapter 1 covers the transaction fee program.
Question 7 of 8 OMVIC and the MVDA

A dealer must be told before OMVIC freezes the dealership's assets or trust funds.
- True
- False
False. The director's written freeze order turns on protecting customers once a search warrant has issued or proceedings have started, and section 22 of the Motor Vehicle Dealers Act, 2002 sets no step for warning the dealer first, so the accounts can be held before the dealer hears anything. 1.06 covers the freeze order, which is a separate power from the receiver and manager a court appoints.
Question 8 of 8 OMVIC and the MVDA

What does the transaction fee a dealer gives OMVIC for each vehicle sold or leased pay for?
- Payments into the Motor Vehicle Dealers Compensation Fund
- Provincial sales tax on the vehicle sold
- OMVIC's own cost of regulating the industry
- The salesperson's registration fee with OMVIC
The fee pays for OMVIC's own work because running the regulator costs money, and the transaction fee program is what covers registering dealers and salespeople, inspecting dealerships and investigating complaints. 1.04 covers collecting transaction fees.

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