ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
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PART 1: MOTOR VEHICLE DEALERS ACT (MVDA) & OMVIC OVERVIEW
(QUESTIONS 1 – 50)
1. What is the primary legislation governing Ontario's retail automotive sector?
a) Consumer Protection Act
b) Motor Vehicle Dealers Act, 2002
c) Ontario Vehicle Sales Act
d) Automotive Industry Regulation Act
Answer: b)
Rationale: The Motor Vehicle Dealers Act, 2002 (MVDA) is the primary
legislation that governs the licensing and conduct of motor vehicle dealers
and salespersons in Ontario.
2. Which body or agency enforces the MVDA in Ontario?
a) Ministry of Government and Consumer Services
b) TADA (Toronto Automobile Dealers Association)
c) OMVIC (Ontario Motor Vehicle Industry Council)
d) Automotive Business School of Canada
Answer: c)
Rationale: OMVIC is the delegated administrative authority responsible for
administering and enforcing the MVDA on behalf of the Ministry of Public and
Business Service Delivery and Procurement.
3. How many people compose OMVIC's Board of Directors?
a) 9 total, 6 dealers and 3 consumer reps
b) 12 total, 9 dealers and 3 consumer reps
c) 15 total, 10 dealers and 5 consumer reps
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, d) 18 total, 12 dealers and 6 consumer reps
Answer: b)
Rationale: OMVIC's Board of Directors is composed of twelve individuals:
nine representing the industry (dealers) and three representing
consumers.
4. Under the Transaction Fee Program, how much are dealers required to remit
to
OMVIC for each vehicle sold or leased?
a) $5
b) $10
c) $15
d) $20
Answer: b)
Rationale: Dealers are required to remit $10 for each vehicle sold or leased
(including fleet and "as is" transactions) to OMVIC under the Transaction
Fee Program.
5. True or False: Under the Transaction Fee Program, dealers are required to
remit $10 for each retail vehicle sold or leased.
a) True
b) False
Answer: a)
Rationale: The statement is true. The Transaction Fee Program requires
dealers to remit $10 to OMVIC for each retail vehicle sold or
leased.
6. True or False: The transaction fee can be passed along to the customer.
a) True
b) False
Answer: a)
Rationale: The transaction fee can be passed along to the customer as part
of the vehicle price.
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,7. What 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 to renew, suspend or revoke registration
d) All of the above
Answer: d)
Rationale: OMVIC is required to make the following information available to
the public: a dealer's business name, address and phone number; a
salesperson's name; any proposal to refuse to renew, suspend or revoke a
registration.
8. Within how many days of receiving a consumer complaint must a dealer
respond?
a) 7 calendar days
b) 14 calendar days
c) 15 business days
d) 20 business days
Answer: c)
Rationale: Dealers must respond to consumer complaints within 15 business
days of receipt. The response must be in writing and address the
allegations.
9. Which of the following is NOT a recognized class of registration under the
MVDA?
a) Dealer
b) Salesperson
c) Broker
d) Appraiser
Answer: d)
Rationale: The MVDA recognizes dealers, salespersons, and brokers as
registration classes. Appraisers are not a recognized class.
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, 10. A salesperson must be registered with OMVIC before:
a) Completing their training
b) Discussing vehicle pricing with customers
c) Engaging in any sales activities
d) Taking a vehicle for a test drive
Answer: c)
Rationale: A salesperson must be registered with OMVIC before engaging in
any sales activities. This includes negotiating sales, showing vehicles,
and discussing pricing with customers.
11. What is the maximum fine for a first offence under the MVDA for an
individual?
a) $5,000
b) $10,000
c) $25,000
d) $50,000
Answer: c)
Rationale: The maximum fine for a first offence under the MVDA for an
individual is $25,000. For subsequent offences, the maximum is $50,000.
12. What is the maximum fine for a first offence under the MVDA for a
corporation?
a) $50,000
b) $75,000
c) $100,000
d) $250,000
Answer: c)
Rationale: The maximum fine for a first offence under the MVDA for a
corporation is $100,000. For subsequent offences, the maximum is
$200,000.
13. True or False: A dealer cannot charge a documentation fee.
a) True
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