OMVIC CERTIFICATION EXAM 2024 GUARANTEED PASS, Study Guides, Projects, Research of Business Administration

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OMVIC CERTIFICATION EXAM 2024

What is the primary legislation governing Ontario's retail automotive sector? MVDA Which body or agency enforces MVDA? OMVIC How many people compose OMVIC's board of directors? 12 in total, 9 dealers and 3 consumer reps What is the "transaction fee program"? under the transaction fee program, dealers are required to remit $10 for each vehicle sold or leased to OMVIC. These funds are remitted annually with the dealers registration renewal fee. T or F: the fee can be passed on to the consumer True What is OMVIC required to make available to the public? A dealers name, address and phone number; a salespersons name; any proposal to refuse to renew, suspend or revoke the registration of a dealer or salesperson Should OMVIC determine a dealers advertising to be false or misleading what powers do they have to stop or correct it? Order to 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? up to 2 years What is the minimum age requirement to become a dealer?

If a person has been refused registration, what are 2 conditions that have to be met before the person can reapply? 2 years have passed; new evidence to demonstrate circumstances If OMVIC issues a proposal to refuse registration, to whom can the applicant appeal? LAT (license appeal tribunal ), Independent judicial body called LAT, within 15 days of receiving the proposal List the 4 classes of dealers General dealer, Broker, Exporter, Wholesaler, Lease finance dealer List 3 examples of individuals or businesses that are exempt from registration Wholesale auction, wrecker, lawyer Where is the certificate of the dealer registration kept? Where the public can see it T or F: Dealers may sell vehicles from any location so long as they have registered a head office with OMVIC False T or F: the MVDA specifies the records a dealer must maintain- these records must be held for at least 6 years. True Which records of employees must be maintained? Employee names, proof of payments, and employee salaries If a dealer's records are destroyed or stolen, the dealer must notify? OMVIC, in writing, within 5 days

In order for a remote storage location to be approved by OMVIC, which condition must be met? The location is always accessible to OMVIC staff during normal business hours T or F: Under the MVDA, all dealers are required to maintain a trust account False Deposits over what amount must be kept in a trust account? $10 000 (ten thousand) T or F: Before issuing a freeze order (freezing the dealer's assets or trust funds), OMVIC must first notify the dealer False On a purchase contact, what must be printed in 14 pt. bold font next to the buyer's signature? This "sales final" statement on the same page as the buyer's signature and adjacent to the signature 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 maximum distance that will be shown on the odometer at the same time of delivery or a statement that there is no maximum If a statement Standards Certificate is issues for a vehicle, it means? The vehicle met certain basic standards of safety on the date of inspection An "as is" sale? Must include a specific definition of "as is" in the contract

T or F: a dealer selling a vehicle "as is" may also provide a Safety Standards Certificate for the vehicle False Contracts must have advisory or educational statements designed to inform purchasers/lessees about their rights and responsibilities and to ensure they know about the existence of certain agencies or organizations. Name them. OMVIC, Motor Vehicle Dealer Compensation Fund, CAMVAP If a customer gives a deposit but don't sign a contract, what rights do they have? If there is no signed contract and a deposit or trade in is given to the dealer, the purchaser can cancel the contract at any time and demand his or her deposit or trade in back. List the "previous uses of a vehicle" a dealer must disclose taxi, limo, police vehicle, emergency services, daily rental (unless subsequently owned by someone other than a dealer) List the types of incident damage that must be disclosed collision (greater than $3000 in damage), fire, floor, and structural damage or alterations In regards to replacement, what must be disclosed? The replacement of 2 or more adjacent body panels (excluding bumper covers) Dealers must disclose known damage repairs in excess of? $3 000 T or F: 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

False List some conditions that must be disclosed about a vehicle A vehicle was previously registered in another province, state or country; a vehicle's anti-lock braking system is not functioning; a vehicle's airbags are missing; a vehicle's air conditioning system requires repair Discloser must be provided in a timely manner, in writing, and be presented in a way that is: clear, comprehensible, and prominent T or F: the MVDA remedy of recession (cancellation of a sales contract) is available only to a customer who is a consumer True Recession is automatically granted for failing to disclose? The make, model and model year of the vehicle; the vehicle was previously a taxi or limo; the vehicle has been branded There are other disclosure requirements that, if not met, trigger a customer's rights. What are they? Previous use as police emergency services vehicle; previous use as a daily rental; mileage/distance travelled T or F: the remedy of remission is available to a customer who is also a dealer False Under the MVDA, a customer entitled to recession has how long to request cancellation? 90 days

T or F: the consumer may also have up to one year to request rescission under the Consumer Protection Act True What is the margin of error allowed to a dealer who provides the distance driven (odometer reading) or who cannot determine the total distance driven, but can determine the distance driven as of some past date? Within the lesser of 5% or 1 000 km of the correct distance is required to be disclosed T or F: customers cannot rescind a contact if the dealer was unaware of a vehicle's true history, or honestly believed the disclosure given to be accurate False When selling to another dealer: Selling dealers must disclose previous use as a taxi, police vehicle, etc.. ; selling dealers must disclose damage repairs in excess of $3 000; selling dealers must disclose if the vehicle has 2 or more adjacent panels (that are not bumper panels) that have been replaced A contract for sale or lease of a vehicle between dealers: Must disclose specific information to comply with the Code of Ethics Regulations If a dealer's advertisement contains a price for a vehicle, that price must include? Administration fees, taxes, freight and PDI, "other: mandatory fees such as documentation fees, window etching fees etc. T or F: if an advertisement is for a vehicle that was used as a police vehicle, that information must be prominently displayed in the ad True

If OMVIC believes a dealer's advertisement to be false, misleading or deceptive, it can: order the dealer to issue a retraction or correction Extended warranties must be backed or guaranteed financially to ensure their variability. List 2 methods by which baking can be provided.

1. an insurance company licensed under the Insurance Act; 2) an irrevocable letter of credit to the compensation fund 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? $100 000 Dealers must send all payments and documents detailing the contract to the warranty company within: 7 days T or F: Service plans must be backed by an insurance company False OMVIC inspectors must give how much notice before visiting none T or F: an OMVIC inspector has the right to access dealer records, but not the vehicles on the dealer's lot False The OMVIC inspector: May use the dealer's own computer system to produce required information What is a curbsider? They are unlicensed dealers posing as private sellers

What are the common problems with the vehicles that curbsiders sell? Often misinterpreted, accident-damaged, odometer-tampered, stolen or have liens Studies have shown the percentage of "private" vehicle ads are actually placed by curbsiders is 25% Curbsiders : ignore tax law, avoid overhead, have an unfair advantage over registered dealers Is the compensation fund available to all customers or only customers who are consumers? consumers only How much does each salesperson pay into the fund? Nothing How much does each dealer pay into the fund? $ T or F: the max individual claim from the fund is $15 000 False T or F: The fund is similar to an insurance policy, so a dealer does not have to reimburse the Fund should the Fund pay out a claim on behalf of a dealer False T or F: Protections under the CPA would apply to a carpenter buying a van for his or her small company False T or F: CPA protects "consumers" only

True T or F: The CPA covers sales but not leases, and not services such as repairs False T or F: the consumer can waive their right under the CPA, but they must be in writing False What is the maximum penalty for an individual convicted of an offence under the CPA? A max of 2 years less a day in jail and or a fine of up to $50 000 T or F: in matter related to the CPA, courts will only consider the evidence that is written into the contract False T or F: if the consumer defaults on a loan/payment schedule but has paid off more than two-thirds if the total purchase price, the dealer must get permission from the court to repossess the vehicle True What are the 2 types of unfair practices? Unconscionable representations, and false, misleading or deceptive representations What is the essential element of an "unconscionable representation"? demonstrating a lack of conscience, taking advantage of a consumer who cannot adequately protect his or her own interests What is a "material fact"? information that might affect a customer's decision to purchase or lease the vehicle if he or she knew about it, or the price the customer would be willing to pay

T or F: If a dealer acted in good faith and unknowingly breached the CPA, the consumer is no longer protected by the CPA False Motor vehicle repairs are governed by which Ontario legislation? Consumer Protection Act T or F: dealers/repairers must provide estimates for repairs True T or F: Final repair costs may not exceed the estimate by more than 10% True If a repair involves the installation of new or reconditioned parts: the minimum warranty on repairs is 90 days or 5000 km (whichever comes first) When a dealer replaces a part: the dealer must offer the old part to the consumer Dealers must post a sign stating: labour charges and how they are computed; the dealer's obligation to provide estimates; that each part is removed and available to the consumer Why should a dealer do a lien check on a vehicle that is being taken in on trade? to protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien what is a lien? a right to keep possession of a property belonging to another person until debt owed to that person is discharged Is it possible for more than one party to hold a lien on the same vehicle?

yes If a dealer agrees to pay out a lien on a customer's trade-in, the lien must be paid out: immediately T or F: if a dealer pays out a lien on a customer's trade-in, he or she must give the customer a copy of the release letter from the financial institution true T or F: a customer should do a lien check on a vehicle being purchased from a dealer False Explain the "merchantable quality" as it relates to a used vehicle A used vehicle of merchantable quality has no hidden defects and will provide reasonable transportation for a reasonable period of time T or F: the Sale of Goods Act covers repairs false Purchasers are entitled to "quiet procession" of their vehicles. If a dealer innocently sold a consumer a vehicle that subsequently turned out to be stolen and was seized by the police, what should the dealer do? return the purchaser's money and contact the seller of the vehicle to seek a refund of the money paid by the dealer. The dealer may also contact OMVIC for assistance Under the Sale of Goods Act, vehicles sold must: provide reasonable transportation for a reasonable period of time; be fit for the purpose for which they are intended T or F: the Sale of Goods Act does not apply to vehicles sold "as is" False

T or F: If the customer enters into the contract but refuses to complete the sale, the dealer can keep 100% of any deposit, regardless of the sale False T or F: The Code of Ethics Regulations are guidelines or "best practices" but do not have any legal authority False Dealers and salespeople are required to conduct business in accordance with the law and with? Integrity, fairness and honesty Failure to abide by the Code of Ethics Regulations can result in: Revocation of registration, a disciplinary hearing, refusal to grant or renew registration T or F: an "order" of the OMVIC discipline committee is final and cannot be appealed False What is the Canadian Motor Vehicle Arbitration Plan? CAMVAP is a program where disputes between consumers and vehicle manufacturers about alleged manufacturing defects or implementation of a manufacturer's new vehicle warranty can be put before an arbitrator for resolution Briefly explain a "consignment transaction" a vehicle owner (cosigner) gives a vehicle to a dealer (consignee) to sell on the owner's behalf T or F: the total amount the dealer will charge the cosigner on the sale of the vehicle (whether as a fixed amount or a commission share) can be negotiated after the sale and does not have to be included in the contract

false T or F: all new car manufacturers participate in CAMVAP false T or F: CAMVAP decisions cannot be appealed True T or F: only monies over $10 000 that are received from a consignment sale must be deposited in the dealer's trust account true Dealer plates are issued by: Ministry of Transportation T or F: at a wholesale auction, dealers may be accompanied by a customer so long as the customer bids only through the dealer False Who administers Ontario's Drive Clean program? Ministry of Environment T or F: Vehicles branded as irreparable can be rebranded as rebuilt only after the vehicle receives a Structural Repair Certificate from a licensed repair facility False A Safety Standards Certificate is required when transferring a used motor vehicle to a new owner as fit; registering a motor vehicle in Ontario that was previously registered in another province or country; changing the status of a vehicle from unfit to fit; registering a rebuilt motor vehicle How long is a Safety Standards Certificate valid?

36 days Used vehicle information packages are required in private sales