A dealer honestly believed the disclosure was accurate and checked it. Can the customer still cancel?

Yes, the right does not turn on the dealer's care

No, honest belief and reasonable checks are a defence

Yes, if the customer proves the dealer was careless

Yes, if the customer proves bad faith

Who may cancel a contract because the dealer missed a required disclosure?

Any buyer or lessee who is not a dealer

Any buyer or lessee, another dealer included

Only a buyer from a franchised new-car dealer

Only a buyer who paid cash rather than credit

Rescission: OMVIC practice quiz

Rescission and contract cancellation

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

Rescission and contract cancellation · 4 questions Free set

Question 1 of 4 Rescission and contract cancellation

A dealer honestly believed the disclosure was accurate and checked it. Can the customer still cancel?
- No, honest belief and reasonable checks are a defence
- Yes, if the customer proves the dealer was careless
- Yes, the right does not turn on the dealer's care
- Yes, if the customer proves bad faith
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(2) A person may cancel a contract under subsection (1) even if the registered motor vehicle dealer did not know the information that the dealer was required to disclose under that subsection or honestly believed it to be accurate, regardless of the steps taken by the dealer to ascertain or verify the information. O. Reg. 333/08, s. 50 (2).

Read section 50 in full

Section 50(2) lets the person cancel even if the dealer did not know the information it had to disclose or honestly believed it was accurate, regardless of the steps the dealer took to ascertain or verify it. That makes the right strict: due diligence is not a defence, and the customer has no negligence or bad-faith element to prove. Chapter 6 covers cancelling a contract for non-disclosure.
Question 2 of 4 Rescission and contract cancellation

How long after getting the car may a customer cancel for a missed disclosure?
- 30 days
- 60 days
- One year
- 90 days
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(5) A person may not cancel a contract under subsection (1) more than 90 days after actually receiving the motor vehicle. O. Reg. 333/08, s. 50 (5).

Read section 50 in full

Subsection 50(5) of O. Reg. 333/08 caps the cancellation window at 90 days after the consumer actually receives the motor vehicle. The clock runs from receipt of the vehicle, not from contract signing or delivery date promises. Chapter 6 covers cancelling a contract for non-disclosure.
Question 3 of 4 Rescission and contract cancellation

Who may cancel a contract because the dealer missed a required disclosure?
- Any buyer or lessee, another dealer included
- Only a buyer from a franchised new-car dealer
- Only a buyer who paid cash rather than credit
- Any buyer or lessee who is not a dealer
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(1) For the purposes of section 30 (2) of the Act, if a registered motor vehicle dealer entered into a contract under which another person, who was not a registered motor vehicle dealer, purchased or leased a motor vehicle from the dealer, the person may cancel the contract if,
(a) the dealer has not accurately disclosed, in the contract, the information required under any of paragraphs 3, 7, 17 and 23 of section 42;
(b) the dealer, in the contract, made the statements described in paragraph 4 of section 42 but could have made the statement described in paragraph 3 of that section;
(c) the dealer, in the contract, made the statements described in paragraph 4 of section 42 but the statement of the distance that the vehicle has been driven as of some past date is inaccurate; or
(d) the dealer, in the contract, made the statement described in paragraph 5 of section 42 but could have made the statements described in paragraph 3 or 4 of that section. O. Reg. 333/08, s. 50 (1).

Read section 50 in full

Subsection 50(1) limits the cancellation right to the other party in the contract who was not a registered motor vehicle dealer. Wholesale dealer-to-dealer transactions are outside the section 50 regime. Chapter 6 covers cancelling a contract for non-disclosure.
Question 4 of 4 Rescission and contract cancellation

Any disclosure the dealer left out of the contract lets the customer cancel and get their money back.
- True
- False
The right to cancel runs off a short list of disclosure failures, being previous use, make, model and model year, branding and the distance driven, so a missed disclosure outside that list does not by itself give the customer a way out of the contract. 6.02 covers which failures carry the cancellation right.

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Rescission and contract cancellation

A dealer honestly believed the disclosure was accurate and checked it. Can the customer still cancel?

How long after getting the car may a customer cancel for a missed disclosure?

Who may cancel a contract because the dealer missed a required disclosure?

Any disclosure the dealer left out of the contract lets the customer cancel and get their money back.

4 questions here. 17 topics in all.