OMVIC Certification: OMVIC, the MVDA and its regulations

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1. 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
   Show answer and explanation

   Correct answer: The Ontario Motor Vehicle Industry Council (OMVIC)

   OMVIC administers and enforces the MVDA under delegated provincial authority. Industry associations do not register dealers or enforce this Act. The Licence Appeal Tribunal decides matters within its tribunal jurisdiction; it is not the industry regulator.

   Based on: OMVIC — About, Mandate; Registration; Enforcement; checked 2026-10-24

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2. For how long can the registrar require a dealer to have all its ads approved before they run?

   1. Up to five years
   2. Up to one year
   3. Up to two years
   4. Up to six months
   Show answer and explanation

   Correct answer: Up to two years

   Section 37 prescribes up to two years of advertising pre-approval under MVDA section 29. The period follows the applicable unappealed or Tribunal-upheld order process; it is not an automatic two-year restriction on every advertiser.

   Based on: O. Reg. 333/08, s. 37; MVDA s. 29(4)–(5); checked 2026-10-24

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3. 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
   Show answer and explanation

   Correct answer: Sale of the leased vehicle to its existing lessee

   The fee was already paid when the vehicle was leased, so a sale to the lessee during or at the end of the lease is exempt, as is a sale to another registered dealer. As-is, fleet and demonstrator deals all attract the fee.

   Based on: OMVIC — Transaction Fees, Exempt transactions; checked 2026-10-24

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4. A dealer appeals an advertising order but has no Tribunal stay. When must it comply?

   1. Within 15 days unless a hearing has been requested
   2. Immediately; an appeal alone does not suspend the order
   3. Within 30 days of the next scheduled inspection
   4. Only after the Licence Appeal Tribunal decides the appeal
   Show answer and explanation

   Correct answer: Immediately; an appeal alone does not suspend the order

   Section 29(3) makes the advertising order effective immediately. The Tribunal may grant a stay, but filing an appeal by itself does not do so. The question expressly states that no stay has been granted.

   Based on: Motor Vehicle Dealers Act, 2002, s. 29(3); checked 2026-10-24

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5. How is OMVIC's nine-member board made up?

   1. Three each: industry, public and ministerial appointees
   2. Five dealers and four members appointed by the Licence Appeal Tribunal
   3. Nine dealers elected by registered dealers and salespeople
   4. Six public members and three salespeople chosen by the registrar
   Show answer and explanation

   Correct answer: Three each: industry, public and ministerial appointees

   The board has three members elected from the dealer industry, three from the general public and three appointed by the Minister. It is not an all-dealer board, and neither the tribunal nor the registrar chooses members.

   Based on: OMVIC — Board of Directors, Board composition; checked 2026-10-24

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6. 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
   Show answer and explanation

   Correct answer: The Superior Court of Justice, on the director’s application

   MVDA section 21 permits the director to apply in the listed circumstances. The Superior Court decides whether the appointment is in the public interest. Merely planning to close a business is not, by itself, the complete statutory test.

   Based on: Motor Vehicle Dealers Act, 2002, s. 21(1)–(2); checked 2026-10-24

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7. 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
   Show answer and explanation

   Correct answer: A police force or other law enforcement agency

   MVDA section 36 permits specified communications, including disclosure to law enforcement. Simply asking as a competitor, lender or public caller does not create access to confidential files. Other statutory exceptions, including consent of the person concerned, can also apply.

   Based on: Motor Vehicle Dealers Act, 2002, s. 36(1); checked 2026-10-24

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8. 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
   Show answer and explanation

   Correct answer: Once a year, when they renew their registration

   Transaction fees are remitted once a year with the dealer's registration renewal. There is no per-deal five-day or monthly remittance, and payment does not depend on an inspection.

   Based on: OMVIC — Transaction Fees, Who remits; renewal application; checked 2026-10-24

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9. Which information about registrants must OMVIC make available to the public?

   1. The commission rates dealers pay their staff
   2. Each dealer's annual sales volume and profits
   3. Each salesperson's home address, date of birth and employment history
   4. Suspensions, revocations and refusals to renew registration
   Show answer and explanation

   Correct answer: Suspensions, revocations and refusals to renew registration

   Section 27 requires public access to specified registration and enforcement information, including suspensions, revocations and refusals to renew. This does not make every applicant’s private file, staff home address or dealer profit figure public.

   Based on: O. Reg. 333/08, s. 27(1); checked 2026-10-24

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10. 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
    Show answer and explanation

    Correct answer: The Motor Vehicle Dealers Act, 2002

    The Motor Vehicle Dealers Act, 2002 (MVDA) sets the rules dealers and salespeople must follow. The Highway Traffic Act deals with roads and vehicle permits, the Sale of Goods Act with implied conditions of sale, and the insurance act with mandatory coverage.

    Based on: Motor Vehicle Dealers Act, 2002, ss. 1, 4; checked 2026-10-24

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11. 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
    Show answer and explanation

    Correct answer: For customer protection when a listed warrant or proceedings condition exists

    Section 22(2) combines a customer-protection requirement with a listed trigger: a search warrant or specified business-related proceedings. It does not create an unrestricted power to freeze funds for any business disagreement.

    Based on: Motor Vehicle Dealers Act, 2002, s. 22(1)–(2); checked 2026-10-24

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12. 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
    Show answer and explanation

    Correct answer: O. Reg. 333/08 General and O. Reg. 332/08 Code of Ethics

    The detailed rules sit in the General regulation (O. Reg. 333/08) and the Code of Ethics and Operation of Committees regulation (O. Reg. 332/08). O. Reg. 17/05 is a Consumer Protection Act regulation, and there are no separate repair or leasing regulations under the MVDA.

    Based on: O. Reg. 333/08, General regulation; O. Reg. 332/08 title; checked 2026-10-24

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13. 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
    Show answer and explanation

    Correct answer: Inspecting dealer premises and checking required business records

    OMVIC’s enforcement role includes dealer inspections and checking the records required by law. Vehicle plates, CAMVAP arbitration and vehicle safety certification have different responsible bodies; they are not interchangeable with dealer regulation.

    Based on: OMVIC — About, Enforcement; MVDA s. 15; checked 2026-10-24

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14. Who pays OMVIC the transaction fee on each vehicle sold or leased?

    1. The customer, directly to OMVIC within six days
    2. The finance company, whenever a loan is arranged
    3. The salesperson who wrote the deal, out of their commission on the sale
    4. The dealer, who may choose to charge it to the customer
    Show answer and explanation

    Correct answer: The dealer, who may choose to charge it to the customer

    Dealers remit a transaction fee for each sale or lease and may pass it on to the customer. Salespeople pay no fee, customers do not remit it to OMVIC, and lenders are not responsible for it.

    Based on: OMVIC — Transaction Fees, Who remits; renewal application; checked 2026-10-24

    Official reference ↗