OMVIC Certification: Required disclosures and the right to cancel

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

1. 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
   Show answer and explanation

   Correct answer: Yes, a total loss declaration must be disclosed regardless of brand

   The regulation requires disclosure if an insurer declared the vehicle a total loss, whether or not it was classified as irreparable or salvage. A later safety certificate does not remove the requirement.

   Based on: O. Reg. 333/08, s. 42, para. 21; checked 2026-10-24

   Official reference ↗

2. 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
   Show answer and explanation

   Correct answer: The seven-consecutive-Ontario-permit-years exception applies

   Paragraph 22 provides the exception when Ontario permits cover at least the previous seven consecutive years. Eight such years meet that specific test. Other required history or material-fact disclosures are not cancelled by this exception.

   Based on: O. Reg. 333/08, s. 42, paras. 22, 25; checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: No, it must be written on the contract

   Verbal disclosure does not meet the MVDA. Required disclosures must be in writing on the contract, clear, comprehensible and prominent, and given before the customer signs.

   Based on: O. Reg. 333/08, s. 39(2), para. 22; ss. 40(2), 42, para. 7; checked 2026-10-24

   Official reference ↗

4. 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
   Show answer and explanation

   Correct answer: The car was previously used as a limousine

   Prior limousine use is among the information linked to section 50(1). The right requires the applicable eligibility, timing and notice conditions. Air-conditioning defects, cancelled warranty or a failed airbag can still require disclosure and create other remedies, but are not listed section-50 grounds on that basis alone.

   Based on: O. Reg. 333/08, s. 50(1); s. 42, para. 7(iii); checked 2026-10-24

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5. How long does a buyer have to cancel a contract under the MVDA for a qualifying disclosure failure?

   1. One year after the sale date
   2. 30 days after the first payment
   3. 90 days after actually receiving the vehicle
   4. 10 business days after signing the contract
   Show answer and explanation

   Correct answer: 90 days after actually receiving the vehicle

   Section 50(5) uses 90 days after actual receipt of the vehicle for this qualifying cancellation right. Section 50(6) requires written notice. Other rights can have different conditions and deadlines; this question does not establish eligibility for every customer dispute.

   Based on: O. Reg. 333/08, ss. 50(5)–(6); checked 2026-10-24

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6. 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
   Show answer and explanation

   Correct answer: Yes, the right applies even if the dealer acted in good faith

   Section 50(2) preserves this qualifying right despite the dealer’s lack of knowledge, honest belief or verification efforts. The buyer must still satisfy the other section-50 requirements, including the time and written-notice rules.

   Based on: O. Reg. 333/08, s. 50(2); checked 2026-10-24

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7. A $2,200 repair altered the car’s structure. What disclosure is required?

   1. It must be disclosed only on vehicles under three years old
   2. Disclose the structural repair even though the cost is below $3,000
   3. It never needs to be mentioned because it is under the limit
   4. It must be disclosed only if the buyer pays cash
   Show answer and explanation

   Correct answer: Disclose the structural repair even though the cost is below $3,000

   Structural damage, repairs, replacements or alterations have a separate disclosure trigger in paragraph 10. The over-$3,000 incident-repair threshold in paragraph 19 does not remove that duty. This does not label every inexpensive cosmetic repair as automatically identical.

   Based on: O. Reg. 333/08, s. 42, paras. 10, 19, 25; checked 2026-10-24

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8. 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
   Show answer and explanation

   Correct answer: That specific rule no longer automatically applies

   Section 42, paragraph 7(i) contains the later-non-dealer-ownership exception. It does not erase other disclosure duties, including material facts under paragraph 25. This is not permission to conceal relevant history whenever a private owner appears in the chain.

   Based on: O. Reg. 333/08, s. 42, paras. 7(i), 25; checked 2026-10-24

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9. 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
   Show answer and explanation

   Correct answer: The contract between the dealers must disclose the taxi use

   When selling or leasing to another registered dealer, the Code of Ethics regulation requires the contract to disclose prior use, history, condition and other material facts. This lets the next dealer disclose correctly to its retail customer.

   Based on: O. Reg. 332/08, s. 5, para. 5(iii); checked 2026-10-24

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10. What does it mean for a disclosure to be clear, comprehensible and prominent?

    1. Read aloud to the customer and recorded on video
    2. Written in legal language a lawyer would approve
    3. Printed on the back page so it does not crowd the deal
    4. Easy to understand and noticeable, not buried in fine print
    Show answer and explanation

    Correct answer: Easy to understand and noticeable, not buried in fine print

    The contract information must be understandable and readily noticeable to the customer. Hiding a required statement in obscure wording or hard-to-find fine print does not meet the clear, comprehensible and prominent requirement. A video explanation alone does not replace written contract disclosure.

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

    Official reference ↗

11. Which listed prior use must a retail used-vehicle contract disclose?

    1. Use by a family for a long road trip
    2. Use by a dealer's employee as a personal car
    3. Use as a commuter car by a single owner
    4. Use as a police cruiser or emergency vehicle
    Show answer and explanation

    Correct answer: Use as a police cruiser or emergency vehicle

    Section 42, paragraph 7 lists police/emergency use and taxi/limousine use. Daily rental has its own later-non-dealer-ownership exception. Other facts can still require disclosure under the general material-fact rule; the list does not make all other use irrelevant.

    Based on: O. Reg. 333/08, s. 42, paras. 7, 25; checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: $3,000

    If the total cost of repairing damage from one incident exceeds $3,000, the contract must say so and state the total if the dealer knows it. Smaller repairs can still be material facts.

    Based on: O. Reg. 333/08, s. 42, paras. 19, 25; checked 2026-10-24

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13. 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
    Show answer and explanation

    Correct answer: When liquid reached at least the interior floorboards

    Damage caused by immersion in liquid that reached at least the level of the interior floorboards must be disclosed. Engine replacement or an insurance write-off is not needed to trigger the rule.

    Based on: O. Reg. 333/08, s. 42, para. 9; checked 2026-10-24

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14. 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
    Show answer and explanation

    Correct answer: The 90,000 km reading, its date, and belief that the total is higher

    Paragraph 4 requires the determinable past distance and date, together with the statement that the total distance is believed higher. Simply writing true kilometres unknown does not supply that required combination when the dealer can establish the earlier record.

    Based on: O. Reg. 333/08, s. 42, para. 4; checked 2026-10-24

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15. A car's true distance is 60,000 km. Which disclosed reading is deemed accurate?

    1. 59,200 km
    2. 57,900 km
    3. 63,500 km
    4. 58,500 km
    Show answer and explanation

    Correct answer: 59,200 km

    A distance is deemed accurate if within the lesser of 5 per cent or 1,000 km. For 60,000 km, 5 per cent is 3,000 km, so the 1,000 km limit applies: only readings from 59,000 to 61,000 km count, so 59,200 km is the one that qualifies.

    Based on: O. Reg. 333/08, s. 50(4); checked 2026-10-24

    Official reference ↗

16. Which body work must be disclosed?

    1. Both front and rear bumpers replaced after a parking lot bump
    2. Two non-adjacent panels polished and waxed
    3. Any single panel repainted after a scratch
    4. Two or more adjacent panels replaced, other than bumpers
    Show answer and explanation

    Correct answer: Two or more adjacent panels replaced, other than bumpers

    The regulation requires disclosure if two or more adjacent panels that are not bumper panels have been replaced. A single repaint, bumpers alone or cosmetic polishing are not on the list, though material facts must still be disclosed.

    Based on: O. Reg. 333/08, s. 42, paras. 15, 25; checked 2026-10-24

    Official reference ↗