OMVIC FINAL EXAM PRACTICE
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES 2026
(VERIFIED ANSWERS)
SECTION 1: The Motor Vehicle Dealers Act (MVDA) and
OMVIC's Role
Q1: What is the primary legislation governing Ontario's retail
automotive sector?
• A) Consumer Protection Act
• B) Motor Vehicle Dealers Act (MVDA)
• C) Sale of Goods Act
• D) Highway Traffic Act
CORRECT ,,,ANSWER,,,: B
Rationale: The MVDA is the primary legislation regulating motor
vehicle dealers in Ontario. OMVIC administers and enforces this Act .
Q2: Which body or agency enforces the MVDA?
• A) Ministry of Transportation
• B) Ministry of Government and Consumer Services
• C) OMVIC
• D) Canadian Motor Vehicle Arbitration Plan
,CORRECT ,,,ANSWER,,,: C
Rationale: OMVIC (Ontario Motor Vehicle Industry Council) is the
delegated administrative authority responsible for enforcing the MVDA,
including inspecting dealers, investigating complaints, and prosecuting
violations .
Q3: How many people compose OMVIC's Board of Directors, and how
many are dealers versus consumer representatives?
• A) 12 total: 8 dealers and 4 consumer reps
• B) 12 total: 9 dealers and 3 consumer reps
• C) 15 total: 10 dealers and 5 consumer reps
• D) 10 total: 7 dealers and 3 consumer reps
CORRECT ,,,ANSWER,,,: B
Rationale: OMVIC's Board consists of 12 members: 9 representing the
industry (dealers) and 3 representing consumers .
Q4: Under the Transaction Fee Program, how much must dealers remit
to OMVIC for each vehicle sold or leased?
• A) $5
• B) $10
• C) $15
• D) $20
CORRECT ,,,ANSWER,,,: B
Rationale: Dealers are required to remit $10 for each vehicle sold or
leased (including fleet and "as is" transactions). These funds are remitted
annually with the dealer's registration renewal .
Q5: True or False: The transaction fee can be passed along to the
consumer.
, • A) True
• B) False
CORRECT ,,,ANSWER,,,: A
Rationale: Dealers may choose to pass the $10 transaction fee on to the
customer as part of the vehicle sale or lease transaction .
Q6: Which of the following information is OMVIC required to make
available to the public?
• A) A dealer's business name, address, and phone number
• B) A salesperson's name
• C) Any proposal to refuse, renew, suspend, or revoke a registration
• D) All of the above
CORRECT ,,,ANSWER,,,: D
Rationale: OMVIC must disclose dealer information, salesperson
names, and any registration proposals or disciplinary actions to the
public to promote transparency .
Q7: If OMVIC determines a dealer's advertising to be false or
misleading, what powers does OMVIC have to stop or correct it?
• A) Issue a fine only
• B) Order the dealer to cease publication and/or issue a retraction or
correction
• C) Revoke the dealer's license immediately
• D) Refer the matter to local police
CORRECT ,,,ANSWER,,,: B
Rationale: OMVIC may issue an advertising order requiring the dealer
to stop the misleading advertisement and publish a retraction or
correction to protect consumers .
, Q8: If a dealer receives an order for false advertising, for how long may
OMVIC require the dealer to seek pre-approval for future advertising?
• A) 6 months
• B) 1 year
• C) Up to 2 years
• D) 5 years
CORRECT ,,,ANSWER,,,: C
Rationale: Following an advertising order, OMVIC may require the
dealer to obtain pre-approval for all future advertisements for a period of
up to two years .
Q9: Which two situations could result in OMVIC applying to a court to
appoint a receiver and manager to assume temporary control of a
dealership? (Select two.)
• A) The dealership has been operating for less than 6 months
• B) The dealership is about to fail
• C) A freeze order is about to be made
• D) The dealer changes locations without notice
CORRECT ,,,ANSWER,,,: B and C
Rationale: OMVIC may seek a receiver if a dealership is about to fail
financially, if there has been an investigation with concerning findings,
or if OMVIC is proposing to revoke registration or issue a freeze order .
Q10: List three functions carried out by OMVIC. (Select three.)
• A) Administers and enforces the MVDA
• B) Inspects dealers and investigates complaints
• C) Sets vehicle prices for used cars
• D) Administers the Motor Vehicle Dealers Compensation Fund
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES 2026
(VERIFIED ANSWERS)
SECTION 1: The Motor Vehicle Dealers Act (MVDA) and
OMVIC's Role
Q1: What is the primary legislation governing Ontario's retail
automotive sector?
• A) Consumer Protection Act
• B) Motor Vehicle Dealers Act (MVDA)
• C) Sale of Goods Act
• D) Highway Traffic Act
CORRECT ,,,ANSWER,,,: B
Rationale: The MVDA is the primary legislation regulating motor
vehicle dealers in Ontario. OMVIC administers and enforces this Act .
Q2: Which body or agency enforces the MVDA?
• A) Ministry of Transportation
• B) Ministry of Government and Consumer Services
• C) OMVIC
• D) Canadian Motor Vehicle Arbitration Plan
,CORRECT ,,,ANSWER,,,: C
Rationale: OMVIC (Ontario Motor Vehicle Industry Council) is the
delegated administrative authority responsible for enforcing the MVDA,
including inspecting dealers, investigating complaints, and prosecuting
violations .
Q3: How many people compose OMVIC's Board of Directors, and how
many are dealers versus consumer representatives?
• A) 12 total: 8 dealers and 4 consumer reps
• B) 12 total: 9 dealers and 3 consumer reps
• C) 15 total: 10 dealers and 5 consumer reps
• D) 10 total: 7 dealers and 3 consumer reps
CORRECT ,,,ANSWER,,,: B
Rationale: OMVIC's Board consists of 12 members: 9 representing the
industry (dealers) and 3 representing consumers .
Q4: Under the Transaction Fee Program, how much must dealers remit
to OMVIC for each vehicle sold or leased?
• A) $5
• B) $10
• C) $15
• D) $20
CORRECT ,,,ANSWER,,,: B
Rationale: Dealers are required to remit $10 for each vehicle sold or
leased (including fleet and "as is" transactions). These funds are remitted
annually with the dealer's registration renewal .
Q5: True or False: The transaction fee can be passed along to the
consumer.
, • A) True
• B) False
CORRECT ,,,ANSWER,,,: A
Rationale: Dealers may choose to pass the $10 transaction fee on to the
customer as part of the vehicle sale or lease transaction .
Q6: Which of the following information is OMVIC required to make
available to the public?
• A) A dealer's business name, address, and phone number
• B) A salesperson's name
• C) Any proposal to refuse, renew, suspend, or revoke a registration
• D) All of the above
CORRECT ,,,ANSWER,,,: D
Rationale: OMVIC must disclose dealer information, salesperson
names, and any registration proposals or disciplinary actions to the
public to promote transparency .
Q7: If OMVIC determines a dealer's advertising to be false or
misleading, what powers does OMVIC have to stop or correct it?
• A) Issue a fine only
• B) Order the dealer to cease publication and/or issue a retraction or
correction
• C) Revoke the dealer's license immediately
• D) Refer the matter to local police
CORRECT ,,,ANSWER,,,: B
Rationale: OMVIC may issue an advertising order requiring the dealer
to stop the misleading advertisement and publish a retraction or
correction to protect consumers .
, Q8: If a dealer receives an order for false advertising, for how long may
OMVIC require the dealer to seek pre-approval for future advertising?
• A) 6 months
• B) 1 year
• C) Up to 2 years
• D) 5 years
CORRECT ,,,ANSWER,,,: C
Rationale: Following an advertising order, OMVIC may require the
dealer to obtain pre-approval for all future advertisements for a period of
up to two years .
Q9: Which two situations could result in OMVIC applying to a court to
appoint a receiver and manager to assume temporary control of a
dealership? (Select two.)
• A) The dealership has been operating for less than 6 months
• B) The dealership is about to fail
• C) A freeze order is about to be made
• D) The dealer changes locations without notice
CORRECT ,,,ANSWER,,,: B and C
Rationale: OMVIC may seek a receiver if a dealership is about to fail
financially, if there has been an investigation with concerning findings,
or if OMVIC is proposing to revoke registration or issue a freeze order .
Q10: List three functions carried out by OMVIC. (Select three.)
• A) Administers and enforces the MVDA
• B) Inspects dealers and investigates complaints
• C) Sets vehicle prices for used cars
• D) Administers the Motor Vehicle Dealers Compensation Fund
