SPANNING REGISTRATION, ADVERTISING, DISCLOSURE,
PROHIBITED PRACTICES, AND CODE OF ETHICS
1. What is the primary legislation governing Ontario's retail
automotive sector?
A) Consumer Protection Act
B) Personal Property Security Act
C) Motor Vehicle Dealers Act (MVDA)
D) Business Corporations Act
Correct Answer: C
Rationale: The Motor Vehicle Dealers Act (MVDA) is the cornerstone
legislation that establishes the regulatory framework for motor vehicle
dealers in Ontario, setting out rules for registration, conduct, and
consumer protection.
2. Which body or agency enforces the MVDA in Ontario?
A) Ministry of Transportation
B) Ontario Provincial Police
C) Canadian Vehicle Commission
D) OMVIC
Correct Answer: D
Rationale: The Ontario Motor Vehicle Industry Council (OMVIC) is the
regulatory authority responsible for administering and enforcing the
MVDA, overseeing dealer registration, investigating complaints, and
ensuring compliance.
,3. How many people compose OMVIC's Board of Directors?
A) 10 total, 7 dealers and 3 consumer reps
B) 15 total, 10 dealers and 5 consumer reps
C) 8 total, 5 dealers and 3 consumer reps
D) 12 total, 9 dealers and 3 consumer reps
Correct Answer: D
Rationale: OMVIC's Board of Directors consists of 12 members in total,
with 9 representing the industry (dealers) and 3 representing consumer
interests.
4. What is the main purpose of OMVIC?
A) To provide financing to motor vehicle dealers
B) To represent consumers in court
C) To sell vehicles to consumers
D) To administer and enforce the Motor Vehicle Dealers Act (MVDA)
Correct Answer: D
Rationale: OMVIC's primary role is to administer and enforce the MVDA
to protect consumers and ensure fair and informed vehicle sales.
5. Which of the following is required to legally sell motor vehicles in
Ontario?
A) College Diploma
B) Driver's License
C) Real Estate License
D) OMVIC Salesperson Certificate
Correct Answer: D
Rationale: Individuals must be registered with OMVIC and hold a valid
Salesperson Certificate to sell motor vehicles legally in Ontario.
,6. What is "curbsiding"?
A) Selling vehicles at reduced prices
B) Selling vehicles with a warranty
C) Selling vehicles from a dealership only
D) Selling vehicles without registration or outside of regulation
Correct Answer: D
Rationale: Curbsiding is the illegal practice of selling vehicles without
being registered, often misrepresenting the seller's identity or the
vehicle's condition.
7. When must a contract be provided to a customer?
A) After the vehicle is registered
B) Before the customer test drives
C) Only when the customer requests it
D) Before the agreement is finalized and signed
Correct Answer: D
Rationale: OMVIC requires that customers be provided with a written
contract before any agreement is finalized to ensure transparency.
8. What must a dealer disclose when selling a used vehicle?
A) Fuel economy rating
B) Color options available
C) Manufacturer's suggested retail price
D) All material facts, including prior accidents and use
Correct Answer: D
Rationale: Dealers are required by law to disclose all material facts that
could influence a buyer's decision, such as accident history or previous
use as a rental.
, 9. Who enforces the Motor Vehicle Dealers Act (MVDA)?
A) The Ministry of Transportation
B) Ontario Provincial Police
C) The Canadian Vehicle Commission
D) OMVIC
Correct Answer: D
Rationale: OMVIC is the regulatory body responsible for enforcing the
MVDA in Ontario.
10. What is the Cooling-Off Period in vehicle purchases in Ontario?
A) 30 days
B) 10 days
C) 24 hours
D) There is no cooling-off period
Correct Answer: D
Rationale: In Ontario, there is no cooling-off period for vehicle
purchases, making it vital for consumers to understand contracts before
signing.
11. A salesperson must renew their registration with OMVIC:
A) Every 6 months
B) Every 3 years
C) Only once
D) Every year
Correct Answer: D
Rationale: Salespeople must renew their OMVIC registration annually to
continue selling vehicles legally.
12. Which of the following is considered a material fact that must be
disclosed?