OMVIC Certification: Consumer Protection Act and repairs

Every original question, with optional answers, explanations and official references. Open an answer to study, or take the test above for instant feedback.

1. 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
   Show answer and explanation

   Correct answer: One year after entering into the agreement

   Section 18(3) requires notice within one year after entering the agreement. Section 18(15) gives a court an interest-of-justice discretion concerning notice requirements. This differs from the MVDA’s specific 90-day cancellation grounds; it does not promise an unlimited right to sue after a missed deadline.

   Based on: Consumer Protection Act, 2002, s. 18(3), (15); checked 2026-10-24

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2. 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
   Show answer and explanation

   Correct answer: $250,000

   A corporation can be fined up to $250,000. An individual can be fined up to $50,000 and/or jailed for up to two years less a day.

   Based on: Consumer Protection Act, 2002, s. 116(5); checked 2026-10-24

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3. What makes a fact about a vehicle material?

   1. It could change a reasonable buyer's decision or the price they pay
   2. The buyer asked about it in writing before the test drive
   3. The manufacturer has listed it in the owner's manual
   4. It relates only to the vehicle's paint colour or interior trim
   Show answer and explanation

   Correct answer: It could change a reasonable buyer's decision or the price they pay

   Code section 4 requires clear, truthful descriptions and material-fact disclosure. A material fact may reasonably influence the purchase decision or value. A customer need not ask in writing for a fact to matter; separate prescribed vehicle-history disclosures also apply.

   Based on: O. Reg. 332/08 — Code of Ethics, s. 4(1), (3); checked 2026-10-24

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4. 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
   Show answer and explanation

   Correct answer: Yes, a court can consider oral statements made during the deal

   CPA section 18(10) allows oral evidence about an unfair practice despite a written agreement and despite whether the representation appears in it. Admissibility is not an automatic finding that every alleged promise was made or breached. Section 11 separately resolves qualifying ambiguity to the consumer’s benefit.

   Based on: Consumer Protection Act, 2002, s. 18(10); s. 11; checked 2026-10-24

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5. 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
   Show answer and explanation

   Correct answer: An unconscionable representation

   Under section 15, knowledge that a consumer cannot reasonably protect their interests because of illiteracy or inability to understand the agreement is a factor in assessing an unconscionable representation. The scenario states exploitation; it does not classify every customer needing reading assistance as incapable of contracting.

   Based on: Consumer Protection Act, 2002, s. 15(1), (2)(a), (e)–(f); checked 2026-10-24

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6. A consumer authorizes the work covered by an $800 estimate. With no separately authorized additional work, what is the statutory ceiling for that work?

   1. $960
   2. $880
   3. $1,000
   4. $800
   Show answer and explanation

   Correct answer: $880

   Section 58(2) prohibits charging more than 10% above the estimate for the estimated work: $800 × 1.10 = $880. Work must still be authorized; this ceiling is not an automatic entitlement to charge extra. The declined-estimate/authorized-maximum route has separate conditions in section 56(2).

   Based on: Consumer Protection Act, 2002, ss. 56(2), 58(1)–(2); checked 2026-10-24

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7. 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
   Show answer and explanation

   Correct answer: "Buy today, because the price goes up Monday," when it will not

   Claiming a price advantage that does not exist is a false, misleading or deceptive representation. True statements about ratings, financing conditions or equipment are not.

   Based on: Consumer Protection Act, 2002, s. 14(1), (2) para. 11; checked 2026-10-24

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8. With no applicable excess-wear or damage adjustment, which amount is NOT compared in the residual-lease realizable-value formula?

   1. The price the lessor actually sells the vehicle for
   2. 80 per cent of the estimated residual value
   3. The residual value minus three average monthly payments
   4. The dealer's original purchase price of the vehicle
   Show answer and explanation

   Correct answer: The dealer's original purchase price of the vehicle

   Section 76(2) compares the pre-tax disposal price, 80% of estimated residual value, and estimated residual value less three average monthly payments. Sections 76(3)–(4) can adjust for qualifying excess wear/use or damage. The dealer’s historical purchase cost is not one of those three inputs.

   Based on: O. Reg. 17/05, s. 76(2)–(4); checked 2026-10-24

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9. 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
   Show answer and explanation

   Correct answer: $8,500

   Compare $7,500, 80% × $10,000 = $8,000, and $10,000 − (3 × $500) = $8,500. The greatest is $8,500. The maximum-liability formula is P + (V − R), with P defined by the lease; this calculation alone does not establish every amount a lessee owes.

   Based on: O. Reg. 17/05, s. 76(1)–(4); checked 2026-10-24

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10. 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
    Show answer and explanation

    Correct answer: Before signing the purchase contract

    General regulation section 40(1) requires the selling dealer to ensure the financing provider has supplied the required initial disclosure information before the vehicle sale contract is entered, when its consumer and dealer-financing/application conditions apply. CPA section 79 separately governs the lender’s credit-agreement disclosure.

    Based on: O. Reg. 333/08, s. 40(1); CPA s. 79; checked 2026-10-24

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11. 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
    Show answer and explanation

    Correct answer: The waiver is invalid and the consumer keeps their CPA rights

    Consumer rights under the CPA cannot be taken away by a contract term. A clause claiming to waive them has no effect, whatever the consumer signed or the price paid.

    Based on: Consumer Protection Act, 2002, s. 7(1); checked 2026-10-24

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12. What minimum warranty applies to new or reconditioned parts installed in a consumer's vehicle repair?

    1. One year or 20,000 km, whichever comes first
    2. 30 days or 1,000 km, whichever comes later
    3. 90 days or 5,000 km, whichever comes first
    4. The manufacturer's warranty only, with no labour
    Show answer and explanation

    Correct answer: 90 days or 5,000 km, whichever comes first

    Section 63 covers new or reconditioned installed parts and installation labour for at least 90 days or 5,000 km, whichever occurs first. Misuse/abuse concerns the affected part, and a repairer needs reasonable grounds before refusing reimbursement on that basis. It does not automatically void every unrelated repair warranty.

    Based on: Consumer Protection Act, 2002, s. 63(1), (5)–(6); checked 2026-10-24

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13. 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
    Show answer and explanation

    Correct answer: The person's name and phone number, and the date and time of the call

    Regulation section 49 requires the authorizing person’s name, authorization date/time, and telephone number for telephone authorization. For another non-written method, contact information for that method is required. CPA section 59 makes compliant recording necessary for non-written authorization to be effective.

    Based on: O. Reg. 17/05, s. 49; CPA s. 59; checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: Get permission from a court

    Section 25 concerns a future performance agreement and its incidental security agreement. Once at least two-thirds of the fixed payment obligation is paid, the supplier needs leave of the Superior Court of Justice to enforce the covered repossession/resale provision. The question does not generalize this rule to every lender and financing arrangement.

    Based on: Consumer Protection Act, 2002, s. 25(1)–(2); checked 2026-10-24

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15. An ad says “one private driver since new.” The dealer knows a leasing company rotated the car among many drivers. What is wrong?

    1. A used car can never be advertised with a verified use history
    2. A company-owned vehicle is legally a new vehicle at every resale
    3. The use-history claim misleads the buyer
    4. Leasing companies are legally forbidden from reselling vehicles
    Show answer and explanation

    Correct answer: The use-history claim misleads the buyer

    A single legal owner does not prove a single driver. Here the ad expressly claims one private driver despite known contrary history. CPA section 14 prohibits misleading representations about use and misleading ambiguity; the conclusion does not depend on assuming that every “one-owner” statement is false.

    Based on: Consumer Protection Act, 2002, s. 14(1), (2) paras. 5, 14; checked 2026-10-24

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16. Under the Consumer Protection Act, who is a consumer?

    1. An individual acting for personal, family or household purposes
    2. Anyone who buys a vehicle worth less than $50,000
    3. Only a person who pays cash rather than financing
    4. Any customer, including corporations buying fleet vehicles
    Show answer and explanation

    Correct answer: An individual acting for personal, family or household purposes

    The statutory definition concerns an individual acting for personal, family or household purposes and excludes business purposes. It is not determined by cash payment or a price threshold. A transaction outside this definition may still be governed by other laws; it does not become unregulated.

    Based on: Consumer Protection Act, 2002, s. 1, definition of consumer; checked 2026-10-24

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