OMVIC Certification Mock Exam 2

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

1. What kind of dispute does CAMVAP resolve?

   1. Disputes between two dealers about a wholesale transaction
   2. Disputes between a dealer and a buyer over the price paid for a used car
   3. Defect or new-vehicle warranty disputes with a participating manufacturer
   4. Disputes about repair bills charged by an independent garage

2. Which Ontario statute specifically regulates motor-vehicle dealers and their salespeople?

   1. The Compulsory Automobile Insurance Act
   2. The Highway Traffic Act
   3. The Motor Vehicle Dealers Act, 2002
   4. The Sale of Goods Act

3. What does due diligence mean when a dealer researches a vehicle?

   1. Taking every step a reasonable person would take to check it
   2. Running a single history report and nothing more
   3. Relying on whatever the previous owner says about the car's history
   4. Asking the buyer to research the car themselves

4. Above what repair cost must damage from a single collision or incident be disclosed?

   1. $10,000
   2. $5,000
   3. $3,000
   4. $1,000

5. A buyer signs a contract for a used car and wants to back out two days later. Under the MVDA, what cooling-off period applies?

   1. A 10-day cooling-off period for any reason
   2. A 30-day cooling-off period
   3. A 48-hour cooling-off period after signing
   4. No general cooling-off period merely for changing their mind

6. One retail dealer advertises a vehicle price. What must that advertised price include?

   1. Only the vehicle price, with fees listed in the fine print
   2. Whatever charges the salesperson expects most buyers to pay
   3. The vehicle price and freight, but not dealer administration fees
   4. Freight, PDI, administration fees and all other required charges

7. 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

8. Which body administers and enforces the MVDA?

   1. The Licence Appeal Tribunal
   2. The Ontario Motor Vehicle Industry Council (OMVIC)
   3. The Motor Vehicle Retailers of Ontario (MVRO), a dealer association
   4. The Used Car Dealers Association of Ontario

9. What is the usual renewal cycle for an OMVIC dealer registration?

   1. Three years
   2. Two years
   3. One year
   4. Six months

10. 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

11. 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

12. 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

13. Where must a general dealer keep the registration copy for a salesperson trading from its showroom?

    1. In the salesperson's home, available on request
    2. At the business location where that salesperson works
    3. At OMVIC's head office, on file with the registrar
    4. Only in a closed file held by the salesperson’s former employer

14. Which detail must an extended warranty contract include?

    1. The salesperson's commission on the warranty
    2. The warranty company's annual profit figures for the last three years
    3. Any limits on an individual claim and on total liability
    4. The names of other customers who bought it

15. For a permitted as-is sale of a used car to a non-dealer, does merely writing “as-is” replace the prescribed contract statement?

    1. Yes; two handwritten words replace every statutory disclosure
    2. Yes; red ink removes all consumer-protection obligations
    3. No; the prescribed prominent statement and buyer initials are required
    4. Yes; vehicles over ten years old need no contract statements

16. Which statement is a false, misleading or deceptive representation?

    1. "Buy today, because the price goes up Monday," when it will not
    2. "This model has a five-star rating," when it truly does
    3. "Financing is subject to lender approval," which is true
    4. "This car comes with two keys," when it does come with two

17. 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

18. Which is a ground on which the registrar may refuse an application?

    1. The applicant plans to sell only used vehicles
    2. The applicant was born outside Canada
    3. Past conduct suggests the applicant will not act honestly
    4. The applicant has never sold vehicles before

19. Which activity is part of OMVIC’s regulatory role?

    1. Issuing Safety Standards Certificates for used vehicles sold by dealers
    2. Inspecting dealer premises and checking required business records
    3. Issuing dealer plates and service plates
    4. Running CAMVAP arbitration hearings for manufacturers

20. The Fund pays a consumer's claim against a dealer. What can happen to the dealer?

    1. It is barred from selling used vehicles for one year
    2. It may have to repay the Fund or risk losing its registration
    3. It pays a fixed penalty of $300 and the matter ends
    4. Nothing, because the Fund exists to absorb dealer losses

21. An individual applying to register as an Ontario motor vehicle dealer must be at least what age?

    1. 18
    2. 16
    3. 21
    4. 19

22. A non-dealer customer paid a $500 deposit but has not entered any purchase or lease contract, written or otherwise. They ask for it back. What must the dealer do?

    1. Keep it to cover advertising costs
    2. Return it less a $100 admin fee
    3. Return it after 30 days
    4. Return the deposit immediately

23. 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

24. 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

25. A general dealer wants its required records kept only at another business address. What does section 56 require?

    1. A copy of each record mailed to OMVIC every month
    2. Nothing, because electronic records are now mandatory
    3. A letter from the dealer's bank approving the service
    4. Registrar approval for that alternative place, with the access conditions met

26. An ad offers a model at a special price, but only two vehicles are available. What must the ad say?

    1. That supplies are limited, without a number
    2. That the offer ends when OMVIC says so
    3. Nothing, as long as at least one is in stock
    4. The number of vehicles available at that price

27. 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

28. Which agreement meets the General regulation’s definition of a service plan?

    1. One covering only component repair costs under an extended warranty
    2. One sold before delivery to provide goods or services to alter or maintain the vehicle
    3. One covering only loan payments if the borrower becomes unemployed
    4. One replacing the vehicle after a theft under an auto insurance policy

29. At wrongful non-acceptance, contract price is $20,000 and the available market price is $19,200. With no contrary evidence or other loss, what is section 48(3)’s price-difference measure?

    1. $0 because a buyer can always cancel without consequences
    2. $800
    3. $4,000 as an automatic 20% penalty
    4. $20,000 regardless of the vehicle’s retained value

30. 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

31. The dealer will receive a fee from a lender for placing the customer's financing. What must the contract include?

    1. A statement saying so, initialled by the buyer
    2. The lender's full fee schedule for all of its products
    3. A copy of the dealer's agreement with the lender
    4. Nothing, because lender fees are private business matters

32. A dealer provides a consumer’s purchase-financing application for a used car. When must it ensure the required initial disclosure information has been provided?

    1. Before signing the purchase contract
    2. Within 30 days after delivery
    3. Only if the APR is over 10 per cent
    4. With the first monthly statement

33. According to the course’s premises guidance, what minimum lease term is expected for a rented retail dealer site?

    1. Six months
    2. One month
    3. Twelve months
    4. Three years

34. 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

35. 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

36. A dealer includes winter tires and a service plan at no extra charge. What must the contract show?

    1. The dealer's cost of each item, initialled by the buyer
    2. Only a note saying the bonus items were included
    3. A fair description and the retail value of each item
    4. Nothing, because free items are not part of the sale

37. A full-length online vehicle-lease ad allows 16,000 km yearly. Which extra detail must it disclose?

    1. The charge for kilometres over the allowance
    2. The lessee's credit score needed to qualify
    3. The dealer's markup over the money factor
    4. The residual value the dealer expects at auction

38. A car was registered in Alberta, then in Ontario for the past eight years. Must the out-of-province history be disclosed?

    1. Yes, but only the province's name, not the years the car was there
    2. The seven-consecutive-Ontario-permit-years exception applies
    3. Yes, out-of-province history must always be disclosed
    4. No, Canadian provinces never need to be disclosed

39. 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

40. Which body hears the statutory appeal of a final discipline committee order under MVDA section 17?

    1. The Licence Appeal Tribunal as the first disciplinary appeal
    2. The registrar alone, as a routine registration renewal
    3. The original inspector by reopening the dealership visit
    4. The appeals committee established under section 17

41. 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

42. 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

43. What is the maximum fine for a corporation convicted under the Consumer Protection Act?

    1. $50,000
    2. $250,000
    3. $25,000
    4. $100,000

44. 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

45. A flood destroys a dealer's paper records. What must the dealer do?

    1. Tell the next OMVIC inspector at the routine visit
    2. Rebuild the records within 90 days and keep quiet
    3. Notify the Ministry of Transportation in writing within 30 days
    4. Tell the registrar in writing within five days what was lost

46. For a consignment contract with an exempt personal-use owner under section 45(4), which pricing information is required?

    1. Only the original manufacturer’s wholesale cost
    2. Only the dealer’s last monthly profit figure
    3. An estimated selling price and a minimum selling price
    4. A promise that any price chosen later needs no disclosure

47. In which deal is no OMVIC transaction fee payable?

    1. Selling a used vehicle to a consumer on an as-is basis
    2. Selling a demonstrator to a retail buyer
    3. Leasing an ordinary passenger car to a company’s sales team
    4. Sale of the leased vehicle to its existing lessee

48. 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

49. A dealer sells a former taxi to another registered dealer. What does the Code of Ethics regulation require?

    1. Disclosure only on the retail contract, not the wholesale one
    2. No disclosure, since dealers are expected to inspect cars
    3. The contract between the dealers must disclose the taxi use
    4. Disclosure only if the buying dealer asks in writing

50. A consumer approves extra repairs by phone. What must the repairer record?

    1. The consumer's driver's licence number and date of birth
    2. The person's name and phone number, and the date and time of the call
    3. Only the dollar amount approved, initialled later by the service writer
    4. A recording of the call kept on file for six years

51. For a used vehicle sale to a non-dealer, when does General regulation section 40(4) require the prescribed CAMVAP contract statement?

    1. Only when the buyer is a business rather than a consumer
    2. Only when the original manufacturer's warranty has fully expired
    3. Always, for every used vehicle a registered dealer sells to a consumer
    4. When it is a current or four prior model years and under 160,000 km

52. 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

53. A dealer advertises a vehicle as unfit, with optional certification available. What must the price ad make clear?

    1. Safety inspection pending, ready to drive away today
    2. Certification is mandatory at a fixed charge added to the price
    3. Not driveable, not certified, and the price of certification if offered
    4. Sold as seen, with certification included at no extra cost

54. 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

55. A UVIP lists Ontario registration history. Why should a dealer still investigate a vehicle that was previously registered elsewhere?

    1. A UVIP replaces every required contract disclosure about past use
    2. Ontario history alone does not establish the complete out-of-province history
    3. A UVIP is a manufacturer’s promise of a lifetime warranty
    4. A UVIP legally guarantees that no accident has ever occurred

56. An otherwise eligible buyer was not told of a rebuilt brand. Can they still cancel if the dealer honestly did not know?

    1. Yes, but only if the buyer is not a consumer
    2. No, cancellation needs proof the dealer knew
    3. No, but the dealer must pay for an independent inspection
    4. Yes, the right applies even if the dealer acted in good faith

57. 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

58. What is the highest fine a Discipline Panel can order for a Code of Ethics breach?

    1. $250,000
    2. $25,000
    3. $45,000
    4. $5,000

59. Before completion, a general dealer receives a $10,200 purchase deposit. How much must it hold in trust?

    1. $200
    2. $10,000
    3. $0
    4. $10,200

60. 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