OMVIC Chapter 1-18 DUE 25 MARCH 2024

OMVIC Chapter 1-18 DUE 25 MARCH 2024 What is the primary legislation governing Ontario's retail automotive sector? - CORRECT ANSWER-Moter Vehicle Dealers Act, 2002 Which body or agency enforces MVDA? - CORRECT ANSWER-OMVIC List Three Functions carried out by OMVIC - CORRECT ANSWER-1) Administers and enforces the MVDA 2) Inspects dealers 3)Maintains a complaint line for consumers 4) Conducts investigations 5) Conducts disciplinary hearings 6) Conducts prosecutions 7) Administers the Compensation Fund How many people compose OMVICS board of directors? How many dealers ? How many consumers? - CORRECT ANSWER-12 total 9 dealer 3 consumer Briefly explain the "Transactional Fee Program" - CORRECT ANSWER-Under the transaction fee program , dealer are required to remit $10 for each vehicle sold or leased (included fleet and "as is" transactions ) to OMVIC. These funds are remitted annually with the dealers registration renewal fee. True or False: The transaction fee can be passed along to the customer? - CORRECT ANSWER-True True or False: Under the Transaction Fee Program, dealers are required to remit $10 (to OMVIC) for each retail vehicle sold or leased? - CORRECT ANSWER-True What information is OMVIC required to make available to the public? - CORRECT ANSWER-1) A dealer's business name, address and phone number 2) A salespersons name 3) 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 does OMVIC have to stop or correct it? - CORRECT ANSWER-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's pre-approval for future advertising? - CORRECT ANSWER-Up to 2 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. - CORRECT ANSWER-This action might be taken if: 1) If there has been an investigation 2) If the dealership is about to fail 3) If OMVIC is proposing to revoke a registration 4) If a freeze order is about to be made What is the minimum age requirement to become a dealer? - CORRECT ANSWER-18 years old List the three requirements that must be met when applying to become a salesperson? - CORRECT ANSWER-1) Complete/Pass certification course 2) Pay Fee 3) 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. - CORRECT ANSWER-True Which of the following must be registered with OMVIC? - CORRECT ANSWER-1) Dealers 2) Salesperson 3) Business managers 4) Finance Managers NOT 1) Service Managers List two reasons why OMVIC might refuse the registration of a dealer or salesperson? - CORRECT ANSWER-1) Past conduct 2) False statement on application 3) Failed to comply with terms 4) Cannot be expected to be financially responsible 5) The Compensation Fund has paid out a claim and has not been reimbursed If a person has been refused registration, what is one condition that has to be met before the person can reapply? - CORRECT ANSWER-One of the following: 1) Two years have passed 2) New evidence to demonstrate circumstances have changed Should OMVIC issue a proposal to refuse (or revoke) registration , to whom can the applicant appeal? - CORRECT ANSWER-License Appeal Tribunal (LAT) List the four "classes" of dealers - CORRECT ANSWER-1) General Dealer 2) Broker 3) Wholesaler 4) Exporter 5) Outside Ontario Dealer 6) Lease finance dealer 7)Fleet Lessor List three examples of individuals or businesses that are exempt from registration. - CORRECT ANSWER-1) Wholesale auction 2) Wrecker 3) Person selling a vehicle used for family or for a sole proprietorship business Name one "change of information" that a dealer must notify OMVIC about. - CORRECT ANSWER-1) Change of dealers address 2) Changes of officers or directors (if dealer is a corporation or partnership0 3) The date of commencement of employment of every salesperson 4) The termination of employment of a salesperson and the date and reason for termination In a large dealership, if the dealers principle delegates responsibility for ensuring that salespersons are registered, this should be delegated to who ? - CORRECT ANSWER-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" ? - CORRECT ANSWER-1) Has or may have a beneficial interest in the business 2) Exercises or may exercise control either directly or indirectly over the dealer / salesperson 3) Has provided or may have provided financing either directly or indirectly to the business Where is the certificate of the dealer registration kept? - CORRECT ANSWER-Posted so the public is likely to see it True of False: A salesperson must produce his or her registration certificate for inspection if a customer asks to see it? - CORRECT ANSWER-True True or False: Dealers may sell vehicles from any location, so long as they have registered a head office with OMVIC - CORRECT ANSWER-False List the three requirements for a dealers premises - CORRECT ANSWER-1) Have a business office (large enough to store records securely) 2) Have a clearly visible sign identifying registered name 3) Be approved for use as a dealership by municipality How long does the MVDA specify how long a dealer must maintain their records? - CORRECT ANSWER-They must keep the records for a minimum of 6 years List four examples of the information (related to vehicles sold or leased ) that must be maintained in a dealer's records. - CORRECT ANSWER-1) Employee records, including the names of employees, positions held , dates of employment , how much each employee is paid and proof of payment 2) A list of "persons associated with the dealer" and the nature of their association 3) Records of all dealership bank accounts and any financing of the business , including loan agreements , credit arrangements or any security interest granted by the dealer Which of the following records related to employees must be maintained: 1) Employee names 2) Employee Salaries 3) Proof of Payments - CORRECT ANSWER-All of the Above If a dealers records are destroyed or stolen the dealer must notify who? - CORRECT ANSWER-OMVIC in writing, within 5 days