OMVIC Certification: Dealer premises, records, privacy and trust accounts

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

1. The course guidance for a retail dealer site specifies which insurance?

   1. Garage and auto insurance with at least $1,000,000 third-party coverage
   2. Product warranty insurance on every vehicle in the dealer's inventory
   3. Home insurance with a business rider of at least $500,000 in liability
   4. Commercial property insurance covering the building only, with no liability
   Show answer and explanation

   Correct answer: Garage and auto insurance with at least $1,000,000 third-party coverage

   The official course manual’s premises guidance lists a valid OAP4 garage and auto policy with at least $1,000,000 third-party coverage. The alternatives do not meet that specified garage/auto policy requirement.

   Based on: ACC Student Manual, English 2026 edition, Ch. 3.03 — premises guidance; checked 2026-10-24

   Official reference ↗

2. 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
   Show answer and explanation

   Correct answer: Registrar approval for that alternative place, with the access conditions met

   Section 56 permits a non-dwelling alternative location approved by the registrar. The person in charge must agree in writing to the specified inspection access. This location rule should not be simplified into a claim about every cloud backup.

   Based on: O. Reg. 333/08, s. 56(2)(b), 56(3); checked 2026-10-24

   Official reference ↗

3. 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
   Show answer and explanation

   Correct answer: Tell the registrar in writing within five days what was lost

   If required records become unavailable because of force majeure such as fire, flood or theft, the dealer must advise the registrar in writing within five days and describe the event. Waiting for an inspection or telling another ministry does not meet the rule.

   Based on: O. Reg. 333/08, s. 55; checked 2026-10-24

   Official reference ↗

4. 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
   Show answer and explanation

   Correct answer: Six months

   The course’s premises guidance specifies at least six months, permission to display and sell vehicles, and unrestricted dealer access. This is the stated dealer-site requirement, not a universal minimum term for every Ontario commercial lease.

   Based on: ACC Student Manual, English 2026 edition, Ch. 3.03 — premises guidance; checked 2026-10-24

   Official reference ↗

5. 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
   Show answer and explanation

   Correct answer: In the trust account, despite the amount being below $10,000

   For a qualifying personal-use consignor, sections 45(4) and 58(5) trigger trust protection for the buyer’s payments until completion. This is separate from the more-than-$10,000 deposit rule. The $6,000 amount does not remove the consignment duty.

   Based on: O. Reg. 333/08, ss. 45(4), 58(5); checked 2026-10-24

   Official reference ↗

6. For how long must a dealer keep the records required under the MVDA?

   1. At least six years
   2. At least two years
   3. At least ten years
   4. At least three years
   Show answer and explanation

   Correct answer: At least six years

   Section 56 requires at least six years. Vehicle and trade records run from the relevant consignment-contract or trade date; business records run from creation. The approved storage-location rules are separate and can allow an authorized alternative site.

   Based on: O. Reg. 333/08, s. 56(1)–(3); checked 2026-10-24

   Official reference ↗

7. 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
   Show answer and explanation

   Correct answer: $10,200

   Section 58(4) requires the entire purchase deposit in trust until completion when it is greater than $10,000. For $10,200, that is all $10,200, rather than only the $200 above the threshold.

   Based on: O. Reg. 333/08, s. 58(4); checked 2026-10-24

   Official reference ↗

8. What is the record of every vehicle a dealer buys or sells, required by the Highway Traffic Act, called?

   1. The used vehicle file
   2. The garage register
   3. The trust book
   4. The vehicle ledger
   Show answer and explanation

   Correct answer: The garage register

   The garage register is the vehicle-transaction record associated with Highway Traffic Act requirements. It is distinct from the trust-account ledger or a customer’s finance file. The General regulation also imposes retention duties for the relevant Highway Traffic Act records.

   Based on: OMVIC — Garage Register, Garage Register; O. Reg. 333/08 ss. 52(2)(g), 57; checked 2026-10-24

   Official reference ↗

9. 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
   Show answer and explanation

   Correct answer: Leave them with the dealer unless a lawful, authorized transfer is arranged

   Access for work does not automatically authorize copying customer information for a new employer or a new purpose. Personal-information use and disclosure must respect applicable consent and lawful exceptions. Calling the information someone’s property does not remove the customer’s privacy rights.

   Based on: Office of the Privacy Commissioner of Canada — meaningful consent, Consent: purposes, recipients and new uses; checked 2026-10-24

   Official reference ↗

10. Which statement about a dealer's trust account is correct?

    1. It needs reconciling only once a year at renewal
    2. Its money can never be used as collateral for a loan
    3. It may be held in the dealer owner's personal name
    4. It can be mixed with general funds at month end
    Show answer and explanation

    Correct answer: Its money can never be used as collateral for a loan

    Section 58(12) prohibits pledging the trust account as collateral. Trust money stays separate. The monthly reconciliation exception requires a zero balance at both the beginning and end of the month AND no activity during that month; inactivity alone is insufficient.

    Based on: O. Reg. 333/08, ss. 58(8), 58(12); MVDA s. 25; checked 2026-10-24

    Official reference ↗

11. A used-car general dealer wants to sell from the driveway of the owner's house. Is this allowed?

    1. Yes, if the neighbours sign a written consent form
    2. Yes, if the driveway can hold at least three vehicles for display at once
    3. Yes, for up to six months while a lot is found
    4. No, a general dealer's premises must be separate from a dwelling
    Show answer and explanation

    Correct answer: No, a general dealer's premises must be separate from a dwelling

    General dealers and exporters need premises separate from a dwelling, and a home, driveway or curb cannot serve as a lot. Space, neighbour consent or a temporary period does not change this.

    Based on: O. Reg. 333/08, s. 28(6)–(9); checked 2026-10-24

    Official reference ↗

12. A dealer replaces a vehicle's odometer. What must its records show?

    1. The readings before and after, and who did the work
    2. Only the cost of the part and the supplier invoice
    3. Nothing, if the new odometer starts at zero
    4. Only the date the new odometer was installed
    Show answer and explanation

    Correct answer: The readings before and after, and who did the work

    Vehicle records must show the readings before and after any odometer repair or replacement and the name of the person who did it. The odometer change must also be disclosed to buyers.

    Based on: O. Reg. 333/08, s. 52(2)(e); checked 2026-10-24

    Official reference ↗

13. Two general dealers share one lot. What must each dealer have?

    1. Its own enclosed, lockable office with room for six years of records
    2. A written agreement registered with the municipality every year
    3. Its own separate entrance from the street and a separate parking lot
    4. A shared office, provided both dealers use one filing cabinet
    Show answer and explanation

    Correct answer: Its own enclosed, lockable office with room for six years of records

    Each dealer at a shared site needs a separate, permanent, fully enclosed and lockable office with space to store six years of records, plus clearly marked display areas or vehicle signs. A shared office does not meet the rule.

    Based on: ACC Student Manual, English 2026 edition, Ch. 3.03 — shared general-dealer premises; checked 2026-10-24

    Official reference ↗