OMVIC Certification: Researching vehicles and the Sale of Goods Act

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

1. A non-dealer customer paid a $500 deposit but has not entered any purchase or lease contract, written or otherwise. They ask for it back. What must the dealer do?

   1. Keep it to cover advertising costs
   2. Return it less a $100 admin fee
   3. Return it after 30 days
   4. Return the deposit immediately
   Show answer and explanation

   Correct answer: Return the deposit immediately

   Section 38 requires immediate return on request before entering the purchase or lease contract. The trigger is absence of a contract, not merely absence of a signature; an oral or other agreement must not be ignored. A dispute after an actual contract was formed is a different question.

   Based on: O. Reg. 333/08, s. 38; checked 2026-10-24

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2. A seller transfers a stolen vehicle it had no right to sell. Which implied Sale of Goods Act condition is directly in issue?

   1. The seller’s right to sell the goods
   2. A guaranteed free fuel supply for the buyer’s first year
   3. A rule allowing any good-faith seller to keep stolen property
   4. A promise that a safety certificate replaces ownership rights
   Show answer and explanation

   Correct answer: The seller’s right to sell the goods

   Section 13(a) implies the seller’s right to sell, subject to the section’s contract context. Quiet possession and undisclosed third-party encumbrances are separate paragraphs. Good faith alone does not establish title; the question identifies the condition rather than promising a particular court award on incomplete facts.

   Based on: Sale of Goods Act, s. 13(a)–(c); checked 2026-10-24

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3. At wrongful non-acceptance, contract price is $20,000 and the available market price is $19,200. With no contrary evidence or other loss, what is section 48(3)’s price-difference measure?

   1. $0 because a buyer can always cancel without consequences
   2. $800
   3. $4,000 as an automatic 20% penalty
   4. $20,000 regardless of the vehicle’s retained value
   Show answer and explanation

   Correct answer: $800

   The stated contract/market difference is $20,000 − $19,200 = $800. Section 48(3) applies that starting measure where an available market exists, absent contrary evidence. Actual remedies depend on the facts; this example does not authorize a dealer to deduct any claimed cost from a deposit without justification.

   Based on: Sale of Goods Act, s. 48(2)–(3); checked 2026-10-24

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4. A seller says the bank loan on their car was paid off last week. What should the dealer do before buying it?

   1. Get written confirmation from the lien holder and run a lien check
   2. Ask the seller to sign a statement and skip the lien search
   3. Wait 90 days for the lien to disappear on its own
   4. Accept the seller's word and complete the purchase that day
   Show answer and explanation

   Correct answer: Get written confirmation from the lien holder and run a lien check

   A seller’s assurance is not independent evidence that an encumbrance has been discharged. Verify the creditor’s written confirmation and search for relevant outstanding interests. Code section 9(3) requires best efforts to prevent error and misrepresentation; a search result is still subject to its scope and date.

   Based on: O. Reg. 332/08 — Code of Ethics, s. 9(3); checked 2026-10-24

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5. What does due diligence mean when a dealer researches a vehicle?

   1. Taking every step a reasonable person would take to check it
   2. Running a single history report and nothing more
   3. Relying on whatever the previous owner says about the car's history
   4. Asking the buyer to research the car themselves
   Show answer and explanation

   Correct answer: Taking every step a reasonable person would take to check it

   Research should be sufficient to support the dealer’s actual disclosure duties. Code section 9(3) requires best efforts to prevent error, misrepresentation and unethical practices; section 4 requires accurate material-fact disclosure. Neither a single report nor a previous seller’s assurance guarantees that every relevant fact has been found.

   Based on: O. Reg. 332/08 — Code of Ethics, ss. 4, 9(3); checked 2026-10-24

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6. A UVIP lists Ontario registration history. Why should a dealer still investigate a vehicle that was previously registered elsewhere?

   1. A UVIP replaces every required contract disclosure about past use
   2. Ontario history alone does not establish the complete out-of-province history
   3. A UVIP is a manufacturer’s promise of a lifetime warranty
   4. A UVIP legally guarantees that no accident has ever occurred
   Show answer and explanation

   Correct answer: Ontario history alone does not establish the complete out-of-province history

   ServiceOntario describes the UVIP as including Ontario registration history, lien and other specified information. Do not treat that as a complete history for every jurisdiction or every accident. The dealer must still research and provide the applicable required disclosures.

   Based on: ServiceOntario — Used vehicle information package, Package contents; Ontario vehicle registration history; checked 2026-10-24

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7. For a permitted as-is sale of a used car to a non-dealer, does merely writing “as-is” replace the prescribed contract statement?

   1. Yes; two handwritten words replace every statutory disclosure
   2. Yes; red ink removes all consumer-protection obligations
   3. No; the prescribed prominent statement and buyer initials are required
   4. Yes; vehicles over ten years old need no contract statements
   Show answer and explanation

   Correct answer: No; the prescribed prominent statement and buyer initials are required

   Section 40(2), paragraph 5 prescribes the statement, type size and buyer initials; section 40(3) bars an as-is sale where a current safety certificate has been issued. CPA section 9(3) separately voids terms purporting to negate or vary its covered implied protections. An as-is statement is not a blanket waiver of all consumer rights.

   Based on: O. Reg. 333/08, s. 40(2), para. 5; s. 40(3); CPA s. 9(3); checked 2026-10-24

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8. An otherwise eligible buyer receives a car with a mileage disclosure that meets an MVDA cancellation ground. Does the dealer’s honest lack of knowledge alone defeat the right?

   1. Yes; no mileage cancellation right can exist for a car over five years old
   2. Yes; an auction purchase automatically exempts the retail sale
   3. No; lack of knowledge alone does not remove the qualifying cancellation right
   4. Yes; cancellation always requires proof the dealer altered the odometer
   Show answer and explanation

   Correct answer: No; lack of knowledge alone does not remove the qualifying cancellation right

   Section 50 specifies its cancellation grounds, timing and procedure; the dealer’s honest ignorance is not a stand-alone defence to an otherwise qualifying ground. Not every mileage difference qualifies: the prescribed tolerance and disclosure conditions must be checked. This is not a blanket conclusion about every form of civil liability.

   Based on: O. Reg. 333/08, s. 50(1)–(5); checked 2026-10-24

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9. A buyer relies on a truck dealer’s skill to select a truck for a disclosed weekly towing load, rather than insisting on a specified trade-name article. What condition is relevant?

   1. The buyer accepts all risk once they sign
   2. The truck must be fit for that stated purpose
   3. The dealer must install a trailer hitch for free
   4. The truck must be sold with an extended warranty
   Show answer and explanation

   Correct answer: The truck must be fit for that stated purpose

   Section 15(1) concerns a disclosed particular purpose, reliance on the seller’s skill/judgment and goods of a kind the seller supplies. In that stated scenario, reasonable fitness for that purpose is implied. Merely mentioning a use without those conditions is not enough to establish the same conclusion in every sale.

   Based on: Sale of Goods Act, s. 15, para. 1; checked 2026-10-24

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10. Under Sale of Goods Act section 15(2), what quality condition generally applies to goods bought by description from a seller dealing in those goods?

    1. A requirement to include a free manufacturer’s extended warranty
    2. An implied condition of merchantable quality
    3. An unconditional lifetime guarantee against every possible defect
    4. A requirement that the goods be brand-new regardless of their description
    Show answer and explanation

    Correct answer: An implied condition of merchantable quality

    Section 15(2) provides the merchantable-quality condition for the specified sale by description. Where the buyer examined the goods, that provision excludes defects the examination ought to have revealed. Age, price, description and facts matter; the rule is not a guarantee of a fixed defect-free period.

    Based on: Sale of Goods Act, s. 15, para. 2; checked 2026-10-24

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11. Which source can help a dealer confirm a used vehicle's past odometer readings?

    1. The vehicle's original paint code on the door
    2. Manufacturer warranty records from past repairs
    3. The tire size printed on the sidewall
    4. The colour of the interior upholstery
    Show answer and explanation

    Correct answer: Manufacturer warranty records from past repairs

    Dated service or warranty records can help compare past odometer readings with the present reading. Check that records actually match the vehicle and evaluate gaps or inconsistent readings. Such records support research; they do not replace the distance disclosures required by section 42.

    Based on: O. Reg. 333/08, s. 42, paras. 3–6; checked 2026-10-24

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12. A buyer wrongfully refuses to accept and pay for goods. What does Sale of Goods Act section 48 allow the seller to claim?

    1. Every future commission the salesperson hoped to earn
    2. An automatic penalty of 20% regardless of any proved loss
    3. Damages for the loss directly and naturally resulting from non-acceptance
    4. An automatic permanent ban on the buyer purchasing another vehicle
    Show answer and explanation

    Correct answer: Damages for the loss directly and naturally resulting from non-acceptance

    Section 48 allows an action for damages for wrongful non-acceptance and defines the ordinary loss measure. With an available market, section 48(3) provides a contract-price/market-price starting point absent contrary evidence. It does not automatically let the seller keep any deposit or impose any chosen penalty.

    Based on: Sale of Goods Act, s. 48(1)–(3); checked 2026-10-24

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13. A dealer agrees to pay the outstanding loan on a consumer’s trade-in. What does Code section 9(5) require?

    1. The dealer may replace the loan payoff with an undisclosed fee
    2. Only the consumer must pay, regardless of the dealer’s agreement
    3. The promise disappears automatically when the vehicle is resold
    4. The dealer must fulfil that loan-payoff agreement
    Show answer and explanation

    Correct answer: The dealer must fulfil that loan-payoff agreement

    Section 9(5) requires the dealer receiving the trade-in to fulfil its agreement to pay the outstanding loan or covered repair/storage bill. Verify payoff and release rather than treating resale as cancellation of the promise. This provision does not itself state a universal number of days or automatic revocation for every breach.

    Based on: O. Reg. 332/08 — Code of Ethics, s. 9(5); checked 2026-10-24

    Official reference ↗