OMVIC Certification Mock Exam 1

Every question and its answer choices. The correct answers and explanations appear when you take the test above.

1. Which pair contains the MVDA’s General regulation and Code of Ethics regulation?

   1. O. Reg. 333/08 General and O. Reg. 332/08 Code of Ethics
   2. O. Reg. 332/08 Advertising and O. Reg. 17/05 Registration
   3. O. Reg. 333/08 Repairs and O. Reg. 332/08 Leasing
   4. O. Reg. 17/05 General and O. Reg. 26/05 Code of Ethics

2. Excluding separately eligible court-awarded costs and interest, what is the Fund’s total compensation cap for one claim?

   1. $25,000
   2. $45,000
   3. $100,000
   4. $50,000

3. Which of these counts as an advertisement under the dealer advertising rules?

   1. An internal staff-scheduling text with no vehicle offer
   2. A price sign taped inside a car's window
   3. An internal inventory spreadsheet for managers
   4. A repair-only invoice with no vehicle offer or promotion

4. When must a new salesperson be registered with OMVIC?

   1. Before their first annual performance review
   2. Before trading or negotiating on behalf of that dealer
   3. Only before signing their first sales contract
   4. Within 30 days of starting work at the dealership

5. Does a routine MVDA inspection of a dealership’s business premises require advance notice?

   1. Seven days' written notice
   2. 24 hours' notice
   3. No notice is required
   4. 48 hours' notice

6. A salesperson tells a buyer out loud that the car was once a taxi. Is that enough disclosure?

   1. Yes, if the buyer nods to show they understood
   2. Yes, if a witness heard the conversation
   3. No, it must be written on the contract
   4. Yes, as long as it is said before the test drive

7. What is a curbsider?

   1. A wholesale buyer who attends auctions on behalf of a dealer
   2. A registered dealer that sells its vehicles from a lot beside a main road
   3. An unregistered seller in the car business who poses as a private seller
   4. A salesperson who works for two dealers with written permission

8. Where must the Sales Final statement appear on a vehicle sale contract?

   1. Anywhere in the contract, as long as it is in capitals
   2. On the same page as the buyer's signature, next to it
   3. On the back of the last page, in the fine print section
   4. On a separate sheet the buyer takes home after delivery

9. An insurer declared a car a total loss, but it was never branded salvage. Must this be disclosed?

   1. No, not if the car now has a current Safety Standards Certificate
   2. No, only the Highway Traffic Act brand matters
   3. Yes, a total loss declaration must be disclosed regardless of brand
   4. Yes, but only if the buyer asks about accidents

10. How must a dealer identify a consigned vehicle when offering it for sale?

    1. Hide the consignment status until after the buyer pays
    2. Describe it as dealer-owned merely because it is parked on the lot
    3. Clearly indicate, in a likely-to-be-noticed manner, that it is on consignment
    4. Disclose consignment only if a buyer first asks in writing

11. On a three-member discipline panel hearing a salesperson’s case, which composition meets Code section 14(4)?

    1. Three trade-association officers with no salesperson on the panel
    2. Two qualifying industry members, including a salesperson, and one qualifying independent member
    3. Two salespeople plus a former registered dealer as the independent member
    4. Three inspectors who conducted the original dealership inspection

12. A dealer replaces a vehicle's odometer. What must its records show?

    1. The readings before and after, and who did the work
    2. Only the cost of the part and the supplier invoice
    3. Nothing, if the new odometer starts at zero
    4. Only the date the new odometer was installed

13. Three dealers place a joint ad showing a price. What must the ad also state?

    1. That prices vary daily without notice
    2. That the price is guaranteed at every dealer
    3. That OMVIC has approved the advertised price
    4. That the dealer may sell for less

14. No officer or director will manage a new corporate dealership. Without an exemption, whose course completion does General regulation section 11(3) require?

    1. Every shareholder, but neither the officers nor the daily manager
    2. At least one officer or director and the daily operations manager
    3. Only the manager, with no officer or director completing a course
    4. Only the accountant, if officers receive monthly financial reports

15. A dealer can confirm a car showed 90,000 km two years ago but not its true current mileage. What must the contract say?

    1. "True kilometres unknown," initialled by the buyer
    2. The 90,000 km reading, its date, and belief that the total is higher
    3. Nothing about distance, because the dealer cannot confirm the current figure
    4. That the current odometer reading is accurate

16. When must the buyer receive a copy of the signed sale contract?

    1. When the vehicle is delivered, whenever that is
    2. Immediately after signing it
    3. Only if the buyer asks for a copy in writing
    4. Within five days, by mail or email

17. A contract says the buyer gives up all rights under the Consumer Protection Act. What is the effect?

    1. The waiver is invalid and the consumer keeps their CPA rights
    2. The waiver is valid if the price was discounted
    3. The waiver is valid if the consumer initials it beside the clause
    4. The waiver is valid only for used vehicles

18. Who must give a buyer a Used Vehicle Information Package?

    1. A private seller, in most private sales
    2. Only a dealer selling a branded vehicle
    3. Every dealer, on every used vehicle sale
    4. The buyer's insurance company

19. When do dealers send their collected transaction fees to OMVIC?

    1. Only when an OMVIC inspector asks for them during an audit
    2. Within five days after each sale or lease
    3. Once a year, when they renew their registration
    4. At the end of every calendar month

20. Which statement about the MVDA Code of Ethics is correct?

    1. It is a voluntary industry pledge with no legal force behind it
    2. It applies only to dealers, not to their salespeople
    3. It is a regulation, so breaking it is a breach of the law
    4. It applies only to sales of new vehicles to consumers

21. Which source can help a dealer confirm a used vehicle's past odometer readings?

    1. The vehicle's original paint code on the door
    2. Manufacturer warranty records from past repairs
    3. The tire size printed on the sidewall
    4. The colour of the interior upholstery

22. After being served a proposal to revoke their registration, how long does a salesperson have to request a Licence Appeal Tribunal hearing?

    1. 90 days
    2. 15 days
    3. 30 days
    4. 5 days

23. When must flood damage be disclosed?

    1. Only when an insurer declared a total loss
    2. Only when the engine had to be replaced afterward
    3. When water touched the tires during a storm
    4. When liquid reached at least the interior floorboards

24. What does the required Safety Standards Certificate statement tell the buyer?

    1. The car is guaranteed free of defects for 36 days
    2. The car has passed an emissions and structural test
    3. The car met basic safety standards on the inspection date
    4. The dealer warrants all safety parts for one year

25. How do the prescribed initial Fund contributions apply to general dealers and brokers with several authorized locations?

    1. One contribution covers every present and future location
    2. A contribution is required for each authorized trading location
    3. Only the salesperson at the head office must contribute
    4. Each consumer must make the initial registration contribution

26. Under the ordinary CPA section 18 notice rule, when must a consumer give notice to rescind for an unfair practice?

    1. 30 days after the first payment is due
    2. Two years after the dealer's registration expires
    3. 90 days after taking delivery of the vehicle
    4. One year after entering into the agreement

27. Which statement about a dealer's trust account is correct?

    1. It needs reconciling only once a year at renewal
    2. Its money can never be used as collateral for a loan
    3. It may be held in the dealer owner's personal name
    4. It can be mixed with general funds at month end

28. A dealer adds a mandatory $399 etching fee to every car. How should its ads treat this fee?

    1. Leave it out because etching is a product
    2. Mention it only when the customer comes in
    3. List it below the price in smaller type
    4. Include it in any advertised price

29. For the auction exemption in General regulation section 2(3), which purchasers may buy the vehicles?

    1. Registered dealers, or equivalent registrants located in another jurisdiction at sale
    2. Any member of the public who pays a higher auction entry fee
    3. Any business that merely promises to register as a dealer next year
    4. Any customer escorted by a dealer, even if the customer is unregistered

30. OMVIC may share information it has collected with which of the following?

    1. Any member of the public who calls OMVIC
    2. A lender checking a customer's credit history
    3. A competing dealer who asks for it in writing
    4. A police force or other law enforcement agency

31. An otherwise eligible buyer receives a car with a mileage disclosure that meets an MVDA cancellation ground. Does the dealer’s honest lack of knowledge alone defeat the right?

    1. Yes; no mileage cancellation right can exist for a car over five years old
    2. Yes; an auction purchase automatically exempts the retail sale
    3. No; lack of knowledge alone does not remove the qualifying cancellation right
    4. Yes; cancellation always requires proof the dealer altered the odometer

32. Which amount may be left out of an advertised all-in price?

    1. HST, if the ad clearly says it is not included
    2. The administration fee, if it is under $500
    3. Freight, if the vehicle is a current model year
    4. The PDI charge, if it is listed on the window sticker

33. Which of these does not need to register with OMVIC?

    1. A company exporting used vehicles out of Ontario
    2. A person who buys cars to resell from their driveway
    3. A qualifying dealer-only auction with no property interest in vehicles
    4. A business that brokers retail car deals for consumers

34. A dealer sells a used car as-is to a consumer. What must happen with the as-is statement?

    1. It is printed on the bill of sale but never initialled
    2. It appears in bold on the contract and the buyer initials it
    3. It is posted on the lot, so no contract wording is required
    4. The salesperson reads it aloud, and no written copy is needed

35. In an unfair-practice action, can a court admit a salesperson’s oral tire promise even though the written agreement omits it?

    1. Yes, but only if OMVIC witnessed the promise
    2. No, unless the promise was recorded on video
    3. Yes, a court can consider oral statements made during the deal
    4. No, only the written contract can ever be considered by a court

36. What does the Ontario brand irreparable mean?

    1. The vehicle was stolen and has not yet been recovered by the police
    2. It is for parts or scrap only and can never be driven in Ontario again
    3. The vehicle can be repaired and driven after passing a structural inspection
    4. The vehicle had minor damage under $3,000 that has been fixed

37. A salesperson changes employers. What should happen to confidential customer records from the former dealer?

    1. Give them to the new dealer automatically as part of the employment change
    2. Copy them to a personal device because past access permits any new use
    3. Leave them with the dealer unless a lawful, authorized transfer is arranged
    4. Send them to all lenders so no further customer authorization is needed

38. Under Sale of Goods Act section 15(2), what quality condition generally applies to goods bought by description from a seller dealing in those goods?

    1. A requirement to include a free manufacturer’s extended warranty
    2. An implied condition of merchantable quality
    3. An unconditional lifetime guarantee against every possible defect
    4. A requirement that the goods be brand-new regardless of their description

39. A dealer hires a salesperson who is already registered elsewhere. How soon must OMVIC be told in writing?

    1. No notice is needed if the person is already registered
    2. Within five days, with the start date
    3. Within 15 days, by the salesperson only
    4. Within 30 days, at the dealer's next renewal

40. A buyer orders a new car that the dealer must still locate. What odometer disclosure does the contract need?

    1. The maximum delivery distance, or a buyer-initialled statement that none is set
    2. Nothing about distance, since new vehicles are not driven
    3. The exact odometer reading of the car, filled in by the dealer after delivery
    4. A guarantee that the odometer will read zero when it arrives

41. A dealer’s creditor lawfully seizes a consumer’s purchased car and says it will not be returned. Can this support a Fund claim?

    1. No, the Fund only ever pays when a dealer is convicted of fraud
    2. No, lien problems are always the buyer's responsibility
    3. Yes, a lawful seizure by the dealer's creditor can support a claim
    4. Yes, but only if the buyer is a corporation

42. Under a future performance agreement, a consumer has paid 70% of the fixed payment obligation and defaults. What is needed to enforce its repossession clause?

    1. Give 10 days' notice by registered mail
    2. Get permission from a court
    3. Offer the consumer a new payment schedule
    4. Get written approval from OMVIC

43. A buyer relies on a truck dealer’s skill to select a truck for a disclosed weekly towing load, rather than insisting on a specified trade-name article. What condition is relevant?

    1. The buyer accepts all risk once they sign
    2. The truck must be fit for that stated purpose
    3. The dealer must install a trailer hitch for free
    4. The truck must be sold with an extended warranty

44. Two general dealers share one lot. What must each dealer have?

    1. Its own enclosed, lockable office with room for six years of records
    2. A written agreement registered with the municipality every year
    3. Its own separate entrance from the street and a separate parking lot
    4. A shared office, provided both dealers use one filing cabinet

45. After a consignment sale, what does section 45(8) require concerning the sales contract copy?

    1. Give it to the consignor only if a lawsuit has already started
    2. Destroy it once the buyer has paid the purchase price
    3. Use best efforts for both consignor and purchaser to receive it promptly
    4. Give a copy only to the dealer’s accountant at annual renewal

46. Under the MVDA, who may appoint a receiver and manager for a registrant’s business?

    1. The registrar alone, whenever a customer requests a refund
    2. The dealer’s trade association, after a member’s complaint
    3. The Superior Court of Justice, on the director’s application
    4. The salesperson’s employer, by changing its payroll records

47. What is the current minimum fine on conviction for trading in vehicles without registration?

    1. $25,000
    2. $500
    3. $5,000
    4. $2,500

48. A seller transfers a stolen vehicle it had no right to sell. Which implied Sale of Goods Act condition is directly in issue?

    1. The seller’s right to sell the goods
    2. A guaranteed free fuel supply for the buyer’s first year
    3. A rule allowing any good-faith seller to keep stolen property
    4. A promise that a safety certificate replaces ownership rights

49. After later non-dealer ownership, what happens to the specific daily-rental-use disclosure rule?

    1. Yes, but only if the car is less than five years old
    2. No, rental use never has to be disclosed in Ontario
    3. Yes, rental history must be disclosed for the life of the car
    4. That specific rule no longer automatically applies

50. A current Safety Standards Certificate has been issued for a used car. Can the dealer sell it as-is to a consumer?

    1. Yes, if the as-is price is at least 10 per cent lower
    2. No, a certified vehicle cannot be sold as-is to a non-dealer
    3. Yes, if the buyer signs a waiver of the certificate requirement
    4. Yes, as long as the buyer initials the as-is statement

51. What happens if the Fund is expected to fall below $3,000,000?

    1. OMVIC stops accepting consumer claims until next year
    2. Salespeople pay an emergency levy with their renewals
    3. The board can declare a shortfall that dealers must cover
    4. The Ministry automatically tops it up from tax revenue

52. Residual value is $10,000, pre-tax disposal price $7,500 and average monthly payment $500. No wear/damage adjustment applies. What is realizable value?

    1. $7,500
    2. $10,000
    3. $8,500
    4. $8,000

53. A private owner’s personal-use car sells on consignment for $6,000. Where must the general dealer hold the buyer’s payment until completion?

    1. In the trust account, despite the amount being below $10,000
    2. With the salesperson personally until the commission is calculated
    3. With OMVIC directly, pending the buyer’s vehicle registration
    4. In the operating account because only larger deposits require trust

54. A third-party company, not the selling dealer, offers an uninsured warranty. What letter of credit is required?

    1. $500,000
    2. $100,000
    3. $45,000
    4. $1,000,000

55. When may the director make a freeze order under MVDA section 22?

    1. Whenever a supplier invoices the dealer, even if no statutory condition exists
    2. Whenever a competing dealer asks to delay a registrant’s next vehicle sale
    3. For customer protection when a listed warrant or proceedings condition exists
    4. Only after a salesperson chooses to leave the dealership for another employer

56. A fixed-credit vehicle ad features a monthly payment. How prominently must it show the APR?

    1. Only on request from the customer
    2. At least as prominently as the payment amount
    3. Only if the interest rate is higher than 5 per cent
    4. In a footnote anywhere on the page

57. Which relationship can make someone an interested person in a dealer’s application?

    1. Has filed a consumer complaint against the dealer
    2. Has financed the business or may benefit from it
    3. Has bought a vehicle from the dealer in the past year
    4. Lives within a kilometre of the dealer's premises

58. A purchaser meets section 50’s eligibility and timing rules. Which omitted fact is a listed cancellation ground?

    1. The car was previously used as a limousine
    2. The car's warranty was cancelled
    3. The air conditioning system needs a repair
    4. One airbag is not working

59. Which item must a service plan contract state?

    1. The make of oil filter used at each service visit
    2. Where the vehicle can be serviced under the plan
    3. The service manager's licence number and hourly wage
    4. The dealer's profit on the plan, initialled by the buyer

60. A dealer knowingly exploits a consumer’s inability to read the agreement to obtain a very one-sided deal. Which unfair-practice category is relevant?

    1. A material fact
    2. An unconscionable representation
    3. An implied condition of sale
    4. A conditional sale agreement