OMVIC Certification: Contract requirements

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1. A vehicle was used in a manner requiring a Highway Traffic Act permit. Can a new-vehicle contract change that status?

   1. Yes, if the dealer discounts the vehicle by the delivery-charge amount
   2. No; permit-required prior use excludes it from the new-vehicle definition
   3. Yes, because only a change of registered owner can make a vehicle used
   4. Yes, provided the template describes all factory-installed equipment
   Show answer and explanation

   Correct answer: No; permit-required prior use excludes it from the new-vehicle definition

   The definition in section 1 excludes a vehicle used in a way requiring a Highway Traffic Act permit, even if a permit was not actually issued. A software template does not override the legal definition or the vehicle’s real use.

   Based on: O. Reg. 333/08, s. 1 — new/used motor vehicle; checked 2026-10-24

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2. 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
   Show answer and explanation

   Correct answer: No, a certified vehicle cannot be sold as-is to a non-dealer

   A dealer may not sell a used vehicle as-is to anyone other than a registered dealer if a current SSC has been issued for it. A vehicle is sold either certified or as-is, not both.

   Based on: O. Reg. 333/08, s. 40(3); checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: It appears in bold on the contract and the buyer initials it

   The regulation's full as-is statement must be in the contract in bold type and initialled by the buyer. A verbal warning or a lot sign does not meet the requirement.

   Based on: O. Reg. 333/08, s. 40(2), para. 5; s. 40(6); checked 2026-10-24

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4. 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
   Show answer and explanation

   Correct answer: On the same page as the buyer's signature, next to it

   The required Sales Final statement is next to the purchaser’s signature on the same page. Section 39(2), paragraph 24 specifies a 12-point bold body and 14-point bold heading. The statement itself preserves rights arising when a dealer fails certain legal obligations.

   Based on: O. Reg. 333/08, s. 39(2), para. 24; s. 39(3); checked 2026-10-24

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5. 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
   Show answer and explanation

   Correct answer: A statement saying so, initialled by the buyer

   If the dealer or its salespeople get a commission or incentive from anyone other than the dealer for providing the financing application (such as a dealer reserve), the contract must say so and the buyer initials it.

   Based on: O. Reg. 333/08, s. 39(2), para. 21; s. 40(2), para. 1; checked 2026-10-24

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6. A customer trades in a car toward a new purchase. Which trade-in detail must the contract include?

   1. The recorded odometer reading and the credit given
   2. The trade-in's original purchase price when it was new
   3. The price the dealer expects to resell the trade-in for
   4. The name of every previous owner of the trade-in
   Show answer and explanation

   Correct answer: The recorded odometer reading and the credit given

   Trade-in details include the owner, VIN, make, model, year, trim, colour, body type, recorded odometer reading, the credit allowed, a statement from the customer on the s. 42 disclosure items and any agreement to pay off a loan. Resale plans and original price are not required.

   Based on: O. Reg. 333/08, s. 43(4); checked 2026-10-24

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7. A dealer plans to share a customer’s credit information with additional lenders. What should it do first?

   1. Explain that sharing and obtain valid consent where required
   2. Send it, then tell the customer if one approves
   3. Nothing, since lenders protect credit data
   4. Only inform the lender with the best rate
   Show answer and explanation

   Correct answer: Explain that sharing and obtain valid consent where required

   Meaningful consent requires understandable information about the personal data, purposes and recipients. A new lender or purpose may require renewed consent. This question concerns authorization to share information, not a promise that the dealer must always obtain one particular interest rate.

   Based on: Office of the Privacy Commissioner of Canada — meaningful consent, Meaningful consent: recipients, purposes and changed practices; checked 2026-10-24

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8. 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
   Show answer and explanation

   Correct answer: A fair description and the retail value of each item

   Items or inducements included at no additional charge must be itemized with a fair description and their retail value, if any. Section 39(2), paragraph 15 covers these agreed extras; calling something free does not justify leaving it out of the contract.

   Based on: O. Reg. 333/08, s. 39(2), para. 15; checked 2026-10-24

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9. What must a broker's contract tell the customer about payment for the vehicle?

   1. Pay into the broker's trust account until delivery
   2. Pay the broker, who forwards the money to the seller within seven days
   3. Pay OMVIC, which releases the money to the seller
   4. Pay the seller directly; the broker may not handle those funds
   Show answer and explanation

   Correct answer: Pay the seller directly; the broker may not handle those funds

   Section 49 requires the vehicle-payment statement in 12-point bold text. It directs payment to the seller or lessor and states the broker may not handle it. If that statement is not on the first contract page, the customer must initial it.

   Based on: O. Reg. 333/08, s. 49(1), para. 11; ss. 49(2), 49(5)(c); checked 2026-10-24

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10. 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
    Show answer and explanation

    Correct answer: No general cooling-off period merely for changing their mind

    A change of mind does not create a general cooling-off right for an ordinary dealer vehicle contract. Separate cancellation rights may arise from non-disclosure, unfair practices or the contract’s own terms. Those are different from an automatic two-day cancellation window.

    Based on: O. Reg. 333/08, s. 39(3); s. 50; checked 2026-10-24

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11. A customer owes $16,000 on a trade-in worth $7,000. How may the dealer show the $9,000 shortfall?

    1. Leave it off if the customer and lender both agree
    2. Add it to the price of the new vehicle without comment
    3. Show it truthfully as negative equity on the contract
    4. Hide it inside the price of an extended warranty
    Show answer and explanation

    Correct answer: Show it truthfully as negative equity on the contract

    The shortfall is $16,000 minus $7,000, or $9,000. Contract and trade-in information must be accurate. Hiding it by inventing a higher vehicle price or warranty charge misrepresents the deal; truthful disclosure does not by itself guarantee lender approval.

    Based on: O. Reg. 333/08, ss. 39(2), 43(4); O. Reg. 332/08 s. 4; checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: Immediately after signing it

    The purchaser must receive a copy immediately after signing. The parties sign, and a registered salesperson also signs if acting for the dealer in the sale. The regulation does not allow a five-day delay or make the copy conditional on a written request.

    Based on: O. Reg. 333/08, ss. 39(10), 40(9); checked 2026-10-24

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13. 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
    Show answer and explanation

    Correct answer: The maximum delivery distance, or a buyer-initialled statement that none is set

    If the contract does not identify a specific new vehicle, it must state the maximum distance on the odometer at delivery or include a statement, initialled by the buyer, that no maximum is specified. A specific in-stock vehicle needs the maximum distance.

    Based on: O. Reg. 333/08, s. 42, paras. 1–2; checked 2026-10-24

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14. A retail customer buys a new vehicle. Which manufacturer-price information must the contract include?

    1. The dealer's invoice cost from the manufacturer for the vehicle
    2. The commission the salesperson will earn on the deal
    3. The trade-in value the dealer expects at the end of the loan
    4. MSRP, with an itemized list of extra equipment and options
    Show answer and explanation

    Correct answer: MSRP, with an itemized list of extra equipment and options

    Section 39(2), paragraphs 11–13 require the vehicle’s MSRP, itemized manufacturer prices for extra equipment/options and total MSRP. Dealer acquisition cost, staff commission and a predicted resale value are different information.

    Based on: O. Reg. 333/08, s. 39(2), paras. 11–13; checked 2026-10-24

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15. 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
    Show answer and explanation

    Correct answer: The car met basic safety standards on the inspection date

    The contract statement says an SSC only indicates that the vehicle met certain basic safety standards on the day it was inspected. It is not a warranty or a guarantee of general condition.

    Based on: O. Reg. 333/08, s. 40(5); checked 2026-10-24

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16. A private owner consigns their personal-use car to a dealer. Which price information must the written consignment contract include?

    1. The price the dealer would pay to buy the car outright
    2. A guarantee that the car will be sold within 30 days
    3. An estimated selling price and a minimum selling price
    4. The names of buyers who have already shown interest
    Show answer and explanation

    Correct answer: An estimated selling price and a minimum selling price

    A consignment contract with an exempt consignor lists the dealer's charges, an estimated selling price and a minimum selling price, the term and any extension, early cancellation terms and all restrictions on the consignor.

    Based on: O. Reg. 333/08, s. 45(4), paras. 10–13; checked 2026-10-24

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