OMVIC UPDATED QUESTIONS AND ANSWERS GRADED
A+
✔✔What is the essential element of an "unconscionable representation"? -
✔✔demonstrating a lack of conscience, taking advantage of a consumer who cannot
adequately protect his or her own interests
✔✔What is a "material fact"? - ✔✔information that might affect a customer's decision to
purchase or lease the vehicle if he or she knew about it, or the price the customer would
be willing to pay
✔✔T or F: If a dealer acted in good faith and unknowingly breached the CPA, the
consumer is no longer protected by the CPA - ✔✔False
✔✔Motor vehicle repairs are governed by which Ontario legislation? - ✔✔Consumer
Protection Act
✔✔T or F: dealers/repairers must provide estimates for repairs - ✔✔True
✔✔T or F: Final repair costs may not exceed the estimate by more than 10% - ✔✔True
✔✔If a repair involves the installation of new or reconditioned parts: - ✔✔the minimum
warranty on repairs is 90 days or 5000 km (whichever comes first)
✔✔When a dealer replaces a part: - ✔✔the dealer must offer the old part to the
consumer
✔✔Dealers must post a sign stating: - ✔✔labour charges and how they are computed;
the dealer's obligation to provide estimates; that each part is removed and available to
the consumer
✔✔Why should a dealer do a lien check on a vehicle that is being taken in on trade? -
✔✔to protect the dealer and to ensure the dealer does not subsequently sell a vehicle
with a lien
✔✔what is a lien? - ✔✔a right to keep possession of a property belonging to another
person until debt owed to that person is discharged
✔✔Is it possible for more than one party to hold a lien on the same vehicle? - ✔✔yes
✔✔If a dealer agrees to pay out a lien on a customer's trade-in, the lien must be paid
out: - ✔✔immediately
, ✔✔T or F: if a dealer pays out a lien on a customer's trade-in, he or she must give the
customer a copy of the release letter from the financial institution - ✔✔true
✔✔T or F: a customer should do a lien check on a vehicle being purchased from a
dealer - ✔✔False
✔✔Explain the "merchantable quality" as it relates to a used vehicle - ✔✔A used vehicle
of merchantable quality has no hidden defects and will provide reasonable
transportation for a reasonable period of time
✔✔T or F: the Sale of Goods Act covers repairs - ✔✔false
✔✔Purchasers are entitled to "quiet procession" of their vehicles. If a dealer innocently
sold a consumer a vehicle that subsequently turned out to be stolen and was seized by
the police, what should the dealer do? - ✔✔return the purchaser's money and contact
the seller of the vehicle to seek a refund of the money paid by the dealer. The dealer
may also contact OMVIC for assistance
✔✔Under the Sale of Goods Act, vehicles sold must: - ✔✔provide reasonable
transportation for a reasonable period of time; be fit for the purpose for which they are
intended
✔✔T or F: the Sale of Goods Act does not apply to vehicles sold "as is" - ✔✔False
✔✔T or F: If the customer enters into the contract but refuses to complete the sale, the
dealer can keep 100% of any deposit, regardless of the sale - ✔✔False
✔✔T or F: The Code of Ethics Regulations are guidelines or "best practices" but do not
have any legal authority - ✔✔False
✔✔Dealers and salespeople are required to conduct business in accordance with the
law and with? - ✔✔Integrity, fairness and honesty
✔✔Failure to abide by the Code of Ethics Regulations can result in: - ✔✔Revocation of
registration, a disciplinary hearing, refusal to grant or renew registration
✔✔T or F: an "order" of the OMVIC discipline committee is final and cannot be appealed
- ✔✔False
✔✔What is the Canadian Motor Vehicle Arbitration Plan? - ✔✔CAMVAP is a program
where disputes between consumers and vehicle manufacturers about alleged
manufacturing defects or implementation of a manufacturer's new vehicle warranty can
be put before an arbitrator for resolution
A+
✔✔What is the essential element of an "unconscionable representation"? -
✔✔demonstrating a lack of conscience, taking advantage of a consumer who cannot
adequately protect his or her own interests
✔✔What is a "material fact"? - ✔✔information that might affect a customer's decision to
purchase or lease the vehicle if he or she knew about it, or the price the customer would
be willing to pay
✔✔T or F: If a dealer acted in good faith and unknowingly breached the CPA, the
consumer is no longer protected by the CPA - ✔✔False
✔✔Motor vehicle repairs are governed by which Ontario legislation? - ✔✔Consumer
Protection Act
✔✔T or F: dealers/repairers must provide estimates for repairs - ✔✔True
✔✔T or F: Final repair costs may not exceed the estimate by more than 10% - ✔✔True
✔✔If a repair involves the installation of new or reconditioned parts: - ✔✔the minimum
warranty on repairs is 90 days or 5000 km (whichever comes first)
✔✔When a dealer replaces a part: - ✔✔the dealer must offer the old part to the
consumer
✔✔Dealers must post a sign stating: - ✔✔labour charges and how they are computed;
the dealer's obligation to provide estimates; that each part is removed and available to
the consumer
✔✔Why should a dealer do a lien check on a vehicle that is being taken in on trade? -
✔✔to protect the dealer and to ensure the dealer does not subsequently sell a vehicle
with a lien
✔✔what is a lien? - ✔✔a right to keep possession of a property belonging to another
person until debt owed to that person is discharged
✔✔Is it possible for more than one party to hold a lien on the same vehicle? - ✔✔yes
✔✔If a dealer agrees to pay out a lien on a customer's trade-in, the lien must be paid
out: - ✔✔immediately
, ✔✔T or F: if a dealer pays out a lien on a customer's trade-in, he or she must give the
customer a copy of the release letter from the financial institution - ✔✔true
✔✔T or F: a customer should do a lien check on a vehicle being purchased from a
dealer - ✔✔False
✔✔Explain the "merchantable quality" as it relates to a used vehicle - ✔✔A used vehicle
of merchantable quality has no hidden defects and will provide reasonable
transportation for a reasonable period of time
✔✔T or F: the Sale of Goods Act covers repairs - ✔✔false
✔✔Purchasers are entitled to "quiet procession" of their vehicles. If a dealer innocently
sold a consumer a vehicle that subsequently turned out to be stolen and was seized by
the police, what should the dealer do? - ✔✔return the purchaser's money and contact
the seller of the vehicle to seek a refund of the money paid by the dealer. The dealer
may also contact OMVIC for assistance
✔✔Under the Sale of Goods Act, vehicles sold must: - ✔✔provide reasonable
transportation for a reasonable period of time; be fit for the purpose for which they are
intended
✔✔T or F: the Sale of Goods Act does not apply to vehicles sold "as is" - ✔✔False
✔✔T or F: If the customer enters into the contract but refuses to complete the sale, the
dealer can keep 100% of any deposit, regardless of the sale - ✔✔False
✔✔T or F: The Code of Ethics Regulations are guidelines or "best practices" but do not
have any legal authority - ✔✔False
✔✔Dealers and salespeople are required to conduct business in accordance with the
law and with? - ✔✔Integrity, fairness and honesty
✔✔Failure to abide by the Code of Ethics Regulations can result in: - ✔✔Revocation of
registration, a disciplinary hearing, refusal to grant or renew registration
✔✔T or F: an "order" of the OMVIC discipline committee is final and cannot be appealed
- ✔✔False
✔✔What is the Canadian Motor Vehicle Arbitration Plan? - ✔✔CAMVAP is a program
where disputes between consumers and vehicle manufacturers about alleged
manufacturing defects or implementation of a manufacturer's new vehicle warranty can
be put before an arbitrator for resolution
