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OMVIC AUTOMOTIVE EXAM 2026-
VERIFIED QUESTIONS AND ANSWERS GRADED
A+
What is the primary legislation governing Ontario's retail automotive sector? (C1) MVDA Which body or agency enforces MVDA? (C1) a) Ministry of Government and Consumer Services b) TADA c) OMVIC d) Automotive Business School of Canada c) OMVIC List three functions carried out by OMVIC (C1).
- Administers and enforces the MVDA
- Inspects dealers
- Maintains a complaint line for consumers
- Conducts investigations
- Conducts disciplinary hearings
- Conducts prosecutions
- Administers the compensation fund How many people compose OMVIC's board of directors? Of these, how many represent the industry and how many represent consumers? (C1) 12 in total, 9 dealers and 3 consumer reps Briefly explain the "Transaction Fee Program" (C1). Under the transaction fee program, dealers are required to remit $10 for each vehicle sold or leased (including fleet and "as is" transactions) to OMVIC. These funds are remitted annually with the dealers registration renewal fee. True or False: Under the Transaction Fee Program, the dealers are required to remit $10 (to OMVIC) for each retail vehicle sold or leased. (C1)
OMVIC may issue an order requiring the dealer to cease publication and/or issue a retraction or correction. If an order is used to stop or correct false advertising, for how long may the dealer need to seek OMVIC pre approval for future advertising? (C1) Up to two years List two possible situations which could result in OMVIC applying to a court to appoint a receiver and manager to assume temporary control of a dealership. (C1) This action might be taken:
- If there has been an investigation
- If the dealership is about to fall
- If OMVIC is proposing to revoke a registration
- If a freeze order is about to be made What is the minimum age requirement to become a dealer? (C2) 18
List three requirements that must be met when applying to become a salesperson. (C2)
- Complete/pass certification course
- Pay fee
- Be employed or retained by a registered dealer to act as a salesperson. True or False: All dealer and salesperson applicants undergo a Canada-wide criminal record search as part of the application screening process. (C2) True Which of the following must be registered with OMVIC?(C2) a) Dealers b) Salespersons c) Business managers d) Finance managers e) Service Managers
License Appeal Tribunal (LAT) List the 4 classes of dealers(C2)
- General dealer
- Broker, Exporter
- Wholesaler
- Lease finance dealer List 3 examples of individuals or businesses that are exempt from registration(C2)
- Wholesale auction
- Wrecker
- Lawyer Name one "Change of Information" that a dealer must notify OMVIC about(C2) Any of the following:
- Change of dealer address
- Changes of officers or directors (if dealer is a corporation or partnership)
- The date of commencement of employment of every salesperson
- The termination of employment of a salesperson and the date and reason for termination Please choose the most correct answer:(C2) In a large dealership, if the dealer principal delegates responsibility for ensuring that salespersons are registered, this should be delegated to: a) The Bookkeeper b) The Salesperson c) The Sales Manager d) The Payroll Supervisor c) The Sales Manager OMVIC can refuse, revoke or suspend registration to a dealer, salesperson or corporation if the financial responsibility or past conduct of an "interested person in respect of the applicant/registrant" gives reasonable grounds for it. Who might OMVIC consider an "Interested Person"?(C2) An interested person:
member, the dealer will need to provide a copy of the sales and service agreement in order to be assigned to this class. General Dealer (used): A business that trades only in used vehicles. This class will generally apply to any dealer who is not a new car dealer and who does not fit into any of the other classes. Broker: A business that facilitates (including advertising) the trade of a vehicle on behalf of a non-dealer, where the broker does not own thee vehicle, take possession of the vehicles, or accept or handle the funds used to pay for the vehicle. Wholesaler: Buys, sells, or trades exclusively with other registered dealers. Wholesalers can do business with dealers who have an equivalent registration or license in a jurisdiction outside of Ontario. Exporter: Acts (or advertises) only to buy vehicles for export outside Ontario. True or False: Dealers may sell vehicles from any location, so long as they have registered a head office with OMVIC. (C3) False List two requirements for a dealers premises. (C3)
Any two of:
- Have a business office (large enough to store records securely).
- Have a clearly visible sign identifying registered name
- Be approved for use as a dealership by municipality The MVDA specifies the records a dealer must maintain. (C3) True or False: These records must be kept for at least six year. True List four example of the information (related to vehicles sold or leased) that must be maintained in a dealers records.(C3) The dealer must maintain record of:
- Vehicle Identification Number (VIN)
- Copy of any Safety Standards Certification
- Result of any inspection under the Highway Traffic Act
- Particulars of any repair or reconditioning work done or authorized by the dealer, including the source of any parts, the cost of the work and the name of the repairer. Which of the following records related to employees must be maintained(C3)
What must a dealer do if they wish to store records somewhere other than the location from which they trade?(C3) Apply for and receive written authorization from OMVIC's registrar In order for a remote storage location to be approved by OMVIC, which condition must be met(C3) a) The location has a security system b) The location is always accessible to OMVIC staff during normal business hours c) The location is in the same municipality as the dealers registered address d) all of the above b) The location I always accessible to OMVIC staff during normal business hours True or False: Under the MVDA, all dealers are required to maintain a trust account.(C3) False
Deposits over what amount must be kept in a trust account?(C3) a) $1, b) $5, c) $10, d) No amount of deposit needs to be placed in a trust account c)$10, True or False: Before issuing a freeze order (freezing the dealers assets or trust funds), OMVIC must first notify the dealer.(C3) False On a purchase contract, what must be printed in 14pt. bold font next to the buyers signature? (C4) The mandatory "Sales Final" statement
- If the dealer has agreed to provide items or inducements at no extra charge, an itemized list with "fair and accurate" descriptions and ratio value of each (e.g. DVD players, warranties, service plans)
- Down payment or deposit paid by the buyer and the balance to be paid. If a safety standards certificate is issued for a vehicle, it means: (C4) a) The vehicle is safe and guaranteed free of mechanical defects b) The vehicle met certain basic standards of safety on the date of inspection c) The vehicle is safe and has a 36-day warranty b) The vehicle met certain basic standards of safety on the date of inspection What does the term "as is" mean? (C4) "As is": The vehicle is not represented as being in road worth condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the buyers expense. It may not be possible to register the vehicle to be driven in its current condition. Choose the most correct answer. An "as is" sale: (C4)
a) Is not legal to a "consumer" b) Does not require the buyer to initial the towards "as is" c) Must have the buyer write ion of an explanation of "as is" d) Must include a specific definition of "as is" in the contract d) Must include4 a specific definition of "as is" in the contract True or False: A dealer selling a vehicle "as is" may also provide a Safety Standards Certificate for the Vehicle. (C4) False Other than the information that identifies the consignor, dealer and vehicle, list three details that must be included in consignment contracts. (C4)
- Consignors name and address
- Dealers registration number and registered name (and legal name if different from registered name) 3 .The male, model, trim level, model year, colour, VIN and body type of the vehicle
- Emergency services vehicle
- Daily rental (unless subsequently owned by someone other than a dealer) List three types of incident damages that must be disclosed. (C5) Any three of:
- Collision (greater than $3,000 damage)
- Fire
- Flood
- Structural damage or alterations True or False: Dealer A buys from a daily rental company a car previously used in the rental fleet. Dealer A then sells the car (giving full disclosure of the car's history as a daily rental) to a consumer who buys it for personal use. A year later, the consumer trades that car in to Dealer B. Dealer B does a history search and sees the car was once a daily rental. Under Regulation 42 of the MVDA, when Dealer B sells this car to another customer they are not required to inform the customer of the car's previous use as a daily rental. (C5) True True or False: If a vehicle was declared a total loss in a collision, but has since been repaired and received a structural safety certificate and a Safety Standards
Certificate (SSC) from an authorized repair centre, the dealer does not need to notify a purchaser of the previous damage. (C5) False Which of the following must be disclosed? (C5) a) The replacement of any single body panel (excluding bumper covers) b) The replacement of two or more adjacent body panels (excluding bumper covers) c) The repainting of two or more adjacent body panels (excluding bumper covers) b) The replacement of two or more adjacent body panels (excluding number covers). Dealers must disclose known damage repairs in excess of: (C5) a) $2, b) $3, c) $5,
