Latest OMVIC Exam Prep 2026: 300
Correct Questions, Answers &
Rationales \Graded A+\
1. What is the primary legislation governing Ontario's retail
automotive sector?
Correct Answer: Motor Vehicle Dealers Act (MVDA), 2002.
Rationale: The MVDA is the foundational law that
establishes the regulatory framework for motor vehicle
dealers and salespersons in Ontario.
2. Which body or agency enforces the Motor Vehicle Dealers
Act?
Correct Answer: Ontario Motor Vehicle Industry Council
(OMVIC).
Rationale: OMVIC is the regulatory authority delegated by
the Ontario government to administer and enforce the
MVDA.
3. How many individuals compose OMVIC's Board of
Directors, and what is the split?
Correct Answer: 12 total; 9 dealer representatives and 3
consumer representatives.
, Rationale: The board composition ensures industry and
consumer interests are both represented in OMVIC's
governance.
4. Briefly explain the "Transaction Fee Program."
Correct Answer: Dealers are required to remit $10 to
OMVIC for each vehicle sold or leased (including fleet and
"as is" transactions). These funds are remitted annually with
the dealer's registration renewal fee.
Rationale: This fee is a primary funding mechanism for
OMVIC and can be passed on to the consumer as a cost of
the sale.
5. What is the minimum age requirement to become a dealer?
Correct Answer: 18 years old.
Rationale: Under the MVDA, an applicant for dealer
registration must be at least 18 years of age.
6. List two reasons why OMVIC might refuse the registration
of a dealer or salesperson.
Correct Answer: Any two of the following:
o Past conduct
o False statement on application
o Failed to comply with terms
o Cannot be expected to be financially responsible
o The Compensation Fund has paid out a claim and has
not been reimbursed.
, Rationale: These reasons are outlined in the MVDA. OMVIC
must ensure only trustworthy and qualified individuals are
registered.
7. What is one condition that must be met before a person
who has been refused registration can reapply?
Correct Answer: Either two years have passed, or new
evidence exists to demonstrate circumstances have changed.
Rationale: The two-year waiting period and requirement for
new evidence ensure the applicant can demonstrate they
meet the necessary standards for registration.
8. Should OMVIC issue a proposal to refuse (or revoke)
registration, to whom can the applicant appeal?
Correct Answer: Licence Appeal Tribunal (LAT).
Rationale: The LAT is the independent adjudicative tribunal
that hears appeals from decisions made by the Registrar of
OMVIC.
9. Where is the certificate of the dealer registration kept?
Correct Answer: Posted so the public is likely to see it.
Rationale: This ensures transparency and allows consumers
to verify a dealer's registration status.
10. 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.
Rationale: This is a standard requirement of the application
process to screen for relevant criminal histories.
11. Which of the following must be registered with OMVIC?
(Select all that apply)
Options: a) Dealers, b) Salespersons, c) Business Managers,
d) Finance Managers, e) Service Managers
Correct Answer: a), b), c), and d).
Rationale: OMVIC requires registration for all individuals
and businesses engaged in selling, leasing, or trading motor
vehicles, including business and finance managers involved
in these transactions.
12. In a large dealership, if the dealer principal delegates
responsibility for ensuring salespersons are registered, to
whom should this be delegated?
Options: a) Bookkeeper, b) Salesperson, c) Sales Manager, d)
Payroll Supervisor
Correct Answer: c) Sales Manager.
Rationale: The sales manager is in a supervisory role with
direct oversight of salesperson activities and is best
positioned to verify registration.
13. A salesperson must produce his or her registration
certificate for inspection if a customer asks to see it. (True or
False)
Correct Questions, Answers &
Rationales \Graded A+\
1. What is the primary legislation governing Ontario's retail
automotive sector?
Correct Answer: Motor Vehicle Dealers Act (MVDA), 2002.
Rationale: The MVDA is the foundational law that
establishes the regulatory framework for motor vehicle
dealers and salespersons in Ontario.
2. Which body or agency enforces the Motor Vehicle Dealers
Act?
Correct Answer: Ontario Motor Vehicle Industry Council
(OMVIC).
Rationale: OMVIC is the regulatory authority delegated by
the Ontario government to administer and enforce the
MVDA.
3. How many individuals compose OMVIC's Board of
Directors, and what is the split?
Correct Answer: 12 total; 9 dealer representatives and 3
consumer representatives.
, Rationale: The board composition ensures industry and
consumer interests are both represented in OMVIC's
governance.
4. Briefly explain the "Transaction Fee Program."
Correct Answer: Dealers are required to remit $10 to
OMVIC for each vehicle sold or leased (including fleet and
"as is" transactions). These funds are remitted annually with
the dealer's registration renewal fee.
Rationale: This fee is a primary funding mechanism for
OMVIC and can be passed on to the consumer as a cost of
the sale.
5. What is the minimum age requirement to become a dealer?
Correct Answer: 18 years old.
Rationale: Under the MVDA, an applicant for dealer
registration must be at least 18 years of age.
6. List two reasons why OMVIC might refuse the registration
of a dealer or salesperson.
Correct Answer: Any two of the following:
o Past conduct
o False statement on application
o Failed to comply with terms
o Cannot be expected to be financially responsible
o The Compensation Fund has paid out a claim and has
not been reimbursed.
, Rationale: These reasons are outlined in the MVDA. OMVIC
must ensure only trustworthy and qualified individuals are
registered.
7. What is one condition that must be met before a person
who has been refused registration can reapply?
Correct Answer: Either two years have passed, or new
evidence exists to demonstrate circumstances have changed.
Rationale: The two-year waiting period and requirement for
new evidence ensure the applicant can demonstrate they
meet the necessary standards for registration.
8. Should OMVIC issue a proposal to refuse (or revoke)
registration, to whom can the applicant appeal?
Correct Answer: Licence Appeal Tribunal (LAT).
Rationale: The LAT is the independent adjudicative tribunal
that hears appeals from decisions made by the Registrar of
OMVIC.
9. Where is the certificate of the dealer registration kept?
Correct Answer: Posted so the public is likely to see it.
Rationale: This ensures transparency and allows consumers
to verify a dealer's registration status.
10. 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.
Rationale: This is a standard requirement of the application
process to screen for relevant criminal histories.
11. Which of the following must be registered with OMVIC?
(Select all that apply)
Options: a) Dealers, b) Salespersons, c) Business Managers,
d) Finance Managers, e) Service Managers
Correct Answer: a), b), c), and d).
Rationale: OMVIC requires registration for all individuals
and businesses engaged in selling, leasing, or trading motor
vehicles, including business and finance managers involved
in these transactions.
12. In a large dealership, if the dealer principal delegates
responsibility for ensuring salespersons are registered, to
whom should this be delegated?
Options: a) Bookkeeper, b) Salesperson, c) Sales Manager, d)
Payroll Supervisor
Correct Answer: c) Sales Manager.
Rationale: The sales manager is in a supervisory role with
direct oversight of salesperson activities and is best
positioned to verify registration.
13. A salesperson must produce his or her registration
certificate for inspection if a customer asks to see it. (True or
False)
