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OMVIC CERTIFICATION EXAM 2 CURRENTLY
TESTING VERSIONS | ACCURATE AND EXPERT
VERIFIED WITH STUDY GUIDE FOR
GUARANTEED PASS | LATEST UPDATE | ALL
CHAPTERS INCLUDED
Should OMVIC determine a dealer's advertising to be false or misleading what powers does OMVIC have to sotp or correct it? A) OMVIC can issue an order requiring the dealer to cease publication and/or issue a retraction or correction B) OMVIC does not have powers to stop the publication C) OMVIC can only issue fines for false or misleading advertising A) OMVIC can issue an order requiring the dealer to cease publication and/or issue a retraction or correction If a dealer violates the advertising regulations, for how long may a dealer be required to seek OMVIC'S pre-approval for future advertising? A) Up to a year B) Up to 2 years C) Up to 5 years D) Up to 6 months B) Up to 2 years Select all possible situations which could result in OMVIC applying to court to appoint a receiver and manager to assume temporary control of a dealership. A) If there has been an investigation B) If the dealership is about to fail C) If a freeze order is about to be made D) If the dealer has been convicted E) If OMVIC is proposing to revoke a registration A) If there has been an investigation B) If the dealership is about to fail C) If a freeze order is about to be made E) If OMVIC is proposing to revoke a registration What is the minimum age requirement to become a dealer?
A) 21
B) 18
C) 19
D) 25
B) 18
Which of the following is NOT a requirement that must be met when applying to become a salesperson? A) Complete and pass the Certification Course B) Pay appropriate fee C) Possess two year's work experience D) be employed or retained by a registered dealer to act as a salesperson C) Possess two year's work experience All dealer and salesperson applicants undergo a Canada-wide criminal record search as part of the application screening process. A) True B) False A) True Which of the following must be registered with OMVIC (select all that apply) A) Dealers B) Salespersons C) Business managers D) Finance managers E) Service A) Dealers B) Salespersons C) Business managers D) Finance managers Select the two reasons why OMVIC might refuse the registration or renewal of registration of a dealer or salesperson. A) Past conduct affords grounds for the belief the applicant won't conduct business with honesty and integrity B) The applicant has not yet attained the age of 25 C) Lack of work experience
Which of the following is NOT a "change of information" that a dealer must notify OMVIC about? A) Change of dealership address B) Change of dealership logo C) The date of commencement of Employment of every salesperson B) Change of dealership logo In a large dealer dealership, if the dealer principal delegates responsibikity for ensuring that salespersons are registered, this should be delegated to (Choose the most correct answer) 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"? A) Someone who has a financial interest in the business B) A competing dealer C) Someone with political influence D) Someone who has purchased cars from the dealer A) Someone who has a financial interest in the business Where is the certificate of the dealer registration kept? A) Hidden in a safe B) Posted openly where the public is likely to see it C) Framed in the dealer's office B) Posted openly where the public is likely to see it A salesperson must produce his or her registration certificate for inspection if a customer asks to see it? A) True B) False
A) True Dealers may sell vehicles from any location, so long as they have registered a head office with OMVIC. A) True B) False B) False Which of the following is not a requirement for a general dealer's premises? A) Have a business office B) Have a security system C) Have a clearly visible sign identifying the dealer's registered name B) Have a security system The MVDA specifies which records a dealer must maintain. These records must be kept for at least six years. A) True B) False A) True Which of the following is NOT an example of the information (related to vehicles sold or leased) that must be maintained in a dealer's records? A) Vehicle Identification Number (VIN) B) Copy of a Safety Standards Certificate C) Vehicle license plate number D) Record of repairs C) Vehicle license plate number Which of the following records related to employees must be maintained? A) Employee Names B) Employee Salaries C) Proof of payments D) All of the above D) All of the above If a dealer's records are destroyed or stolen, the dealer must notify: A) The OMVIC inspector when he or she arrives for the next scheduled inspection
Before issuing a freeze order (freezing the dealer's assets or trust funds), OMVIC must first notify the dealer. A) True B) False B) False On a purchase contract, what must be printed in 14pt. bold font next to the buyer's signature? A) The date B) "sales final" statement C) The dealership's name D) The vehicle identification number B) "sales final" statement What items must be in a contract for the sale of a new vehicle? (Select all that apply) A) Buyer's name and address B) Vehicle's colour and body type C) OMVIC's contact information D) Dealer's registered name A) Buyer's name and address B) Vehicle's colour and body type D) Dealer's registered name If a dealer does not have a specific new vehicle in stock, but will locate the vehicle and bring it in, what must be disclosed to the purchaser regarding the mileage? A) A maximum distance that will be shown on the odometer at delivery or a statement that there is no maximum B) Nothing needs to be disclosed as it is a new vehicle C) An estimate of the odometer reading at delivery A) A maximum distance that will be shown on the odometer at delivery or a statement that there is no maximum what items must be included in contracts for the sale of a used vehicle? (Select all that apply) A) Salesperson's name and registration number B) The total distance the vehicle has been driven C) Amount of down payment D) Previous owner's name
A) Salesperson's name and registration number B) The total distance the vehicle has been driven C) Amount of down payment If a Safety Standards Certificate is issued for a vehicle, it means: 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 mandatory 36 - day warranty B) the vehicle met certain basic standards of safety on the date of inspection What does the term "as is" mean? A) A safety Standards Certificate is not included but is available from the dealer for an additional fee B) The vehicle may not be fit for use as a means of transportation and may require substantial repairs C) A warranty is not included with the vehicle B) The vehicle may not be fit for use as a means of transportation and may require substantial repairs Choose the most correct answer. An "as is" sale... A) Is not legal to a consumer B) Does not require the buyer to initial the words "as is" C) Must have the buyer write an explanation of "as is" D) Must include a specific definition of "as is" in the contract D) Must include a specific definition of "as is" in the contract A dealer selling a vehicle "as is" may also provide a safety standards certificate for the vehicle. A) True B) False B) False
B) Non-functioning air conditioning C) Missing airbags D) Structural Damage or alterations A) Collision repairs B) Non-functioning air conditioning C) Missing airbags D) Structural Damage or alterations 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. Two years later, the consumer trades that car into Dealer B. Dealer B does a history check 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. A) True B) False A) True 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. A) True B) False B) False Which of the following must be disclosed? 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 bumper covers) Dealers must disclose known damage repairs in excess of: A) $2, B) $3, C) $5, D) $10,
B) $3,
A dealer does not have to inform a purchaser that a vehicle's manufacturer's warranty has been cancelled, so long as the dealer offers or sells the purchaser an extended warranty. A) True B) False B) False Which of the following must be disclosed? ( Select all that apply): A) A vehicle was previously registered, in another province, state or country B) A vehicle's anti-lock braking system is not functioning C) A vehicle's airbags are missing D) A vehicle's air conditioning system requires repair E) All of the above E) All of the above Disclosure must be provided in a timely manner, in writing, and be presented in a way that is: A) Easy, precise and fair B) Clear, comprehensible and prominent C) Apparent, logical and friendly B) Clear, comprehensible and prominent What are steps dealers can take to ensure they know the history of the vehicles they buy or accept in trade? (Select all that apply): A) Ask the previous owner B) Use a vehicle history report C) Thoroughly examine vehicles B) Use a vehicle history report C) Thoroughly examine vehicles The MVDA remedy of rescission (cancellation of a sales contract) is available only to a customer who is a "consumer" A) True B) False
A) True B) False A) True What is the margin of error allowed to a dealer who provides distance driven? A) The lesser of two per cent or 200km of B) The lesser of five per cent or 1,000km C) The greater of five per cent or 1,000km D) The lesser of ten per cent or 2,000km B) The lesser of five per cent or 1,000km If the dealer "inflated" the selling amount of a vehicle and dollar amount of a trade-in, and the contract ends up being rescinded, the dealer would have to return the inflated trade-in dollar amount. A) True B) False A) True Customers cannot rescind a contract if the dealer was unaware of a vehicle's true history, or honestly believed the disclosure given to be accurate. A) True B) False B) False When selling to another dealer: (select any statement that is correct- there may be more than one correct statement. A) Selling dealers must disclose previous use as a taxi, police vehicle, etc. B) Selling dealers must disclose damage repairs in excess of $3, C) Selling dealers must disclose if the vehicle has two or more adjacent panels (that are not bumper panels) that have been replaced D) Selling dealers are not required to make disclosures in wholesale transactions A) Selling dealers must disclose previous use as a taxi, police vehicle, etc. B) Selling dealers must disclose damage repairs in excess of $3,
C) Selling dealers must disclose if the vehicle has two or more adjacent panels (that are not bumper panels) that have been replaced Are the requirements for the sale or lease of a vehicle to another dealer in the MVDA the General Regulations or the Code of Ethics Regulations? A) MVDA the General Regulations B) Code of Ethics Regulations B) Code of Ethics Regulations Which of the following must be disclosed in dealer-to-dealer sales and leases? A) The vehicle has had the hood repainted B) The vehicle is a formal daily rental that hasn't been subsequently owned by someone other than a dealer C) The vehicles ABS is not working D) The air conditioning does not work B) The vehicle is a formal daily rental that hasn't been subsequently owned by someone other than a dealer C) The vehicles ABS is not working In dealer-to-dealer transactions, the following disclosure is not required as it is for retail transaction only: any fact about the vehicle that affects the structural or mechanical quality or performance of the vehicle that, if disclosed, could reasonably be expected to influence the decision of a reasonable buyer or lessee to buy or lease the vehicle. A) True B) False B) False When selling to another dealer, what must the selling dealer do if he/she cannot determine the distance the vehicle has been driven? (Choose best answer) A) If possible provide an odometer reading from a past date accompanied by a statement that "the total distance a vehicle has been driven is believed to be higher" B) Write on the bill of sale - "True mileage unknown" C) This is not a required disclosure in wholesale transactions
If OMVIC believes a dealer's advertisement to be false, misleading or deceptive, it can: A) Take the dealer to LAT B) Sue the dealer for misrepresentation C) Order the dealer to issue a retraction or correction C) Order the dealer to issue a retraction or correction Dealer found in breach of the advertising regulations may be required to have their ads pre- approved by OMVIC for a period of up to: A) Six months B) One year C) 18 months D) Two years D) Two years Extended warranties must be backed or guaranteed financially to ensure their viability. Which of the following is NOT a method by which is banking can be provided. A) By a licensed insurance company B) By bonding the warranty company C) By and irrevocable letter of credit to the Compensation Fund B) By bonding the warranty company If a dealer wishes to offer their own uninsured extended warranty, they must provide to the Compensation Fund an irrevocable letter of credit in the amount of: A) $100, B) $250, C) $500, D) $1,000, A) $100, Which of the following does not need to be included in the warranty contract? A) Whether the warranty is transferrable, and if so, the fees to transfer B) The amount of the deductible, if any C) Penalties for violating the warranty
D) The sale price of the warranty C) Penalties for violating the warranty Dealer must send all payments and documents detailing the contract to the warranty company within: A) Two days B) Seven days C) Two weeks D) 30 days B) Seven days Service plans must be backed by an insurance company. A) True B) False B) False Contracts for service plans must disclose in a dealer, comprehensible and prominent manner: A) The goods and services provided under the plan and a specific description for each item listed B) All restrictions, limitations and conditions C) The locations at which the vehicle can be serviced D) Information stating whether or not the service plan is transferable to another owner or lessee E) All of the above E) All of the above OMVIC inspectors must give how much notice before visiting/inspecting a dealer? A) 24 hours' notice B) 48 hours' notice C) Seven days' notice D) None D) None AN OMVIC Inspector has the right to access dealer records, but not the vehicles on the dealer's lot.
transactions) B) A monthly $10 fee paid by registered salespeople to OMVIC C) A $7 fee paid by dealers to OMVIC for each vehicle sold or leased (not including wholesale transactions) D) A $10 fee paid by dealers to OMVIC for each vehicle sold or leased (not including wholesale transactions) A $10 fee paid by dealers to OMVIC for each vehicle sold or leased (not including wholesale transactions) Under the Transaction Fee Program, dealers are required to remit $10 (to OMVIC) for each retail vehicle sold or leased. A) True B) False A) True The transaction fee can be passed along to the customer? A) True B) False A) True What information is OMVIC required to make available to the public? A) A dealer's business name, address and phone number B) A saleperson's name C) Any proposal to refuse to renew, suspend or revoke the registration of a dealer or salesperson D) Any OMVIC related charge, conviction or discipline decision E) All of the above E) All of the above If an OMVIC inspector asks for assistance from the dealer, there is no legal obligation for the dealer to help.
A) True B) False B) False The inspector cannot remove anything from the dealer without the dealer's permission or a warrant. A) True B) False B) False Which of the following statements is most correct? A) Inspectors conduct routine inspections of dealer records and premises; investigators also conduct routine inspection but are empowered to lay charges if they find non-compliance B) Inspectors inspect dealer records, premises and vehicles; investigators investigate allegations of illegal sales (curb-siding) and non-compliance by dealers and can lay charges when warranted C) There is no real difference - the two jobs are essentially the same B) Inspectors inspect dealer records, premises and vehicles; investigators investigate allegations of illegal sales (curb-siding) and non-compliance by dealers and can lay charges when warranted The OMVIC inspector: (Choose the most correct answer) A) Can remove a document or a disk only if the inspector has a search warrant B) May copy a document only if the dealer agrees C) May use the dealer's own computer system to produce required information D) Cannot demand assistance from the dealer if the inspector wants to make use of the dealer's computer system C) May use the dealer's own computer system to produce required information What sources of information might trigger an investigation? A) OMVIC inspection finding B) Consumer complaints C) Police D) Government ministries/agencies E) Other dealers
