OMVIC Automative Test Questions and
Answers
Question 1
On a purchase contract, what must be printed in 14pt. bold font next to the
buyers signature? (C4)
Correct Answer
The mandatory "Sales Final" statement
Question 2
True or False: An OMVIC inspector has the right to access dealer records, but not
the vehicles on the dealer's lot. (C10)
Correct Answer
False
Question 3
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? (C7)
Correct Answer
Code of Ethics
Page 1 of 37
,Question 4
Curbsiders: (C11)
a) Ignore tax laws
b) Avoid overhead
c) Have an unfair advantage over registered dealers
d) All of the above
Correct Answer
d) All of the above
Question 5
True or False: If the dealer "inflated" the selling amount of a vehicle and the
dollar amount of a trade-in, and the contract ends up being rescinded, the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. (C6)
Correct Answer
True
Question 6
List three functions carried out by OMVIC (C1).
Correct Answer
- Administers and enforces the MVDA
- Inspects dealers
- Maintains a complaint line for consumers
- Conducts investigations
- Conducts disciplinary hearings
- Conducts prosecutions
- Administers the compensation fund
Page 2 of 37
,Question 7
True or False: The inspector cannot remove anything from the dealer without
the dealer's permission or a warrant. (C10)
Correct Answer
False
Question 8
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)
Correct Answer
True
Question 9
List two requirements for a dealers premises. (C3)
Correct Answer
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
Question 10
The MVDA specifies the records a dealer must maintain. (C3)
True or False: These records must be kept for at least six year.
Correct Answer
True
Page 3 of 37
, Question 11
True or False: The CPA protects "consumers" only. (C13)
Correct Answer
True
Question 12
True or False: The remedy of rescission is available to a customer who is also a
dealer. (C6)
Correct Answer
False
Question 13
True or False: The maximum individual claim from the Fund is $15,000. (C12)
Correct Answer
False
Question 14
Provide three pieces of information related to the coverage offered by the
warranty that must be included in the warranty contract. (C9)
Correct Answer
1. A dealer who forwards an application for an extended warranty by a purchaser or
lessee of a motor vehicle to the seller of the warranty is deemed to facilitate the sale
of the warranty for the purposes of subsection (1).
2. If the dealer is not the seller of the extended warranty, the dealer is liable for the
amount that cannot be settled because the seller of the warranty is no longer in
business.
3. A dealer shall not sell an extended warranty to a vehicle purchaser or lessee or
facilitate the sale of an extended warranty to that purchaser or lesse.
Page 4 of 37
Answers
Question 1
On a purchase contract, what must be printed in 14pt. bold font next to the
buyers signature? (C4)
Correct Answer
The mandatory "Sales Final" statement
Question 2
True or False: An OMVIC inspector has the right to access dealer records, but not
the vehicles on the dealer's lot. (C10)
Correct Answer
False
Question 3
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? (C7)
Correct Answer
Code of Ethics
Page 1 of 37
,Question 4
Curbsiders: (C11)
a) Ignore tax laws
b) Avoid overhead
c) Have an unfair advantage over registered dealers
d) All of the above
Correct Answer
d) All of the above
Question 5
True or False: If the dealer "inflated" the selling amount of a vehicle and the
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. (C6)
Correct Answer
True
Question 6
List three functions carried out by OMVIC (C1).
Correct Answer
- Administers and enforces the MVDA
- Inspects dealers
- Maintains a complaint line for consumers
- Conducts investigations
- Conducts disciplinary hearings
- Conducts prosecutions
- Administers the compensation fund
Page 2 of 37
,Question 7
True or False: The inspector cannot remove anything from the dealer without
the dealer's permission or a warrant. (C10)
Correct Answer
False
Question 8
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)
Correct Answer
True
Question 9
List two requirements for a dealers premises. (C3)
Correct Answer
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
Question 10
The MVDA specifies the records a dealer must maintain. (C3)
True or False: These records must be kept for at least six year.
Correct Answer
True
Page 3 of 37
, Question 11
True or False: The CPA protects "consumers" only. (C13)
Correct Answer
True
Question 12
True or False: The remedy of rescission is available to a customer who is also a
dealer. (C6)
Correct Answer
False
Question 13
True or False: The maximum individual claim from the Fund is $15,000. (C12)
Correct Answer
False
Question 14
Provide three pieces of information related to the coverage offered by the
warranty that must be included in the warranty contract. (C9)
Correct Answer
1. A dealer who forwards an application for an extended warranty by a purchaser or
lessee of a motor vehicle to the seller of the warranty is deemed to facilitate the sale
of the warranty for the purposes of subsection (1).
2. If the dealer is not the seller of the extended warranty, the dealer is liable for the
amount that cannot be settled because the seller of the warranty is no longer in
business.
3. A dealer shall not sell an extended warranty to a vehicle purchaser or lessee or
facilitate the sale of an extended warranty to that purchaser or lesse.
Page 4 of 37