OMVIC Certification Practice Test 2

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1. For a used vehicle sale to a non-dealer, when does General regulation section 40(4) require the prescribed CAMVAP contract statement?

   1. Only when the buyer is a business rather than a consumer
   2. Only when the original manufacturer's warranty has fully expired
   3. Always, for every used vehicle a registered dealer sells to a consumer
   4. When it is a current or four prior model years and under 160,000 km
   Show answer and explanation

   Correct answer: When it is a current or four prior model years and under 160,000 km

   The contract-statement trigger is the current model year or one of the four preceding model years, with less than 160,000 km. This is the dealer’s statutory statement requirement. It does not establish that the buyer’s particular vehicle and dispute satisfy CAMVAP’s separate current eligibility conditions.

   Based on: O. Reg. 333/08, s. 40(4); s. 39(2), para. 26; checked 2026-10-24

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2. 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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3. Who may issue a search warrant under MVDA section 19 when its legal conditions are met?

   1. The dealership’s trade association on a member’s request
   2. The investigator’s manager by sending an internal email
   3. A justice of the peace on an investigator’s application
   4. Any salesperson whose customer asks for an investigation
   Show answer and explanation

   Correct answer: A justice of the peace on an investigator’s application

   A justice of the peace decides an investigator’s warrant application on sworn information and the statutory reasonable-ground test. The warrant defines authorized searches and conditions; entering a dwelling needs express authorization. Routine inspection powers and warrant-based investigation powers are different.

   Based on: Motor Vehicle Dealers Act, 2002, ss. 18–19, especially s. 19(1)–(4); checked 2026-10-24

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4. 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

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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. What is the usual renewal cycle for an OMVIC dealer registration?

   1. Three years
   2. Two years
   3. One year
   4. Six months
   Show answer and explanation

   Correct answer: One year

   The official manual describes the normal dealer renewal cycle as one year, compared with two years for a salesperson. The certificate’s actual expiry date and any earlier cancellation still govern a particular registration.

   Based on: ACC Student Manual, English 2026 edition, Ch. 2.02; O. Reg. 333/08 s. 17; checked 2026-10-24

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7. Which detail must an extended warranty contract include?

   1. The salesperson's commission on the warranty
   2. The warranty company's annual profit figures for the last three years
   3. Any limits on an individual claim and on total liability
   4. The names of other customers who bought it
   Show answer and explanation

   Correct answer: Any limits on an individual claim and on total liability

   Section 47(4) requires any individual-claim and total-liability limits, covered components, start/end conditions, price, deductibles, obligations, transfer terms and insurance status. How it extends a manufacturer’s warranty is required if the warranty relates to one; a limit is not invented when none exists.

   Based on: O. Reg. 333/08, s. 47(4), paras. 4–5; checked 2026-10-24

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8. 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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9. 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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10. 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

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11. A vehicle already has a permit. Within how many days after becoming its owner must a buyer apply for a new permit?

    1. Two days
    2. Six days
    3. Thirty days
    4. Fifteen days
    Show answer and explanation

    Correct answer: Six days

    Highway Traffic Act section 11(2) starts the six-day period when the person becomes the owner. Code section 7(2) requires a selling dealer to facilitate the buyer’s compliance unless instructed otherwise. That dealer-assistance exception does not eliminate the new owner’s statutory obligation.

    Based on: Highway Traffic Act, s. 11(2); O. Reg. 332/08 s. 7(2); checked 2026-10-24

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12. 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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13. A dealer adds a mandatory $399 etching fee to every car. How should its ads treat this fee?

    1. Leave it out because etching is a product
    2. Mention it only when the customer comes in
    3. List it below the price in smaller type
    4. Include it in any advertised price
    Show answer and explanation

    Correct answer: Include it in any advertised price

    A charge the customer cannot refuse, or one for something pre-installed, is part of the all-in price. Listing it separately or revealing it later breaks the all-in pricing rule.

    Based on: OMVIC — All-in Price Advertising, Pre-installed products or services; O. Reg. 333/08 s. 36(7); checked 2026-10-24

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14. 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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15. 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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16. What does the Ontario brand irreparable mean?

    1. The vehicle was stolen and has not yet been recovered by the police
    2. It is for parts or scrap only and can never be driven in Ontario again
    3. The vehicle can be repaired and driven after passing a structural inspection
    4. The vehicle had minor damage under $3,000 that has been fixed
    Show answer and explanation

    Correct answer: It is for parts or scrap only and can never be driven in Ontario again

    An irreparable vehicle was written off as a total loss and may be used only for parts or scrap; it can never be driven on Ontario roads. A salvage vehicle can be repaired, inspected and rebranded rebuilt.

    Based on: Ontario — Mandatory Vehicle Branding Program, Irreparable brand; checked 2026-10-24

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17. A dealer advertises a current-model-year car that is actually used. What must the ad make clear?

    1. The date the car was first registered in Ontario
    2. The car's original window sticker price
    3. The name of the previous owner
    4. That the vehicle is used
    Show answer and explanation

    Correct answer: That the vehicle is used

    Under section 36(6), a specific used vehicle advertised with the current or immediately previous model year must be clearly identified as used. A recent model year is not proof that the vehicle meets the legal definition of new.

    Based on: O. Reg. 333/08, s. 36(6); s. 1; checked 2026-10-24

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18. 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

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19. 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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20. A dealer provides a consumer’s purchase-financing application for a used car. When must it ensure the required initial disclosure information has been provided?

    1. Before signing the purchase contract
    2. Within 30 days after delivery
    3. Only if the APR is over 10 per cent
    4. With the first monthly statement
    Show answer and explanation

    Correct answer: Before signing the purchase contract

    General regulation section 40(1) requires the selling dealer to ensure the financing provider has supplied the required initial disclosure information before the vehicle sale contract is entered, when its consumer and dealer-financing/application conditions apply. CPA section 79 separately governs the lender’s credit-agreement disclosure.

    Based on: O. Reg. 333/08, s. 40(1); CPA s. 79; checked 2026-10-24

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21. 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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22. 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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23. 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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24. A dealer sells an extended warranty to a consumer. How must the warranty be backed?

    1. Guaranteed by the dealer owner's personal bank account and line of credit
    2. Approved in writing by the manufacturer of the vehicle
    3. Registered with the Ministry of Transportation before sale
    4. Licensed-insurer protection or the prescribed irrevocable letter of credit
    Show answer and explanation

    Correct answer: Licensed-insurer protection or the prescribed irrevocable letter of credit

    Section 47(1) requires performance insurance from an insurer licensed under the Insurance Act or the prescribed irrevocable letter of credit to the Fund’s trustee. If the warranty seller goes out of business, a facilitating dealer can be liable for a covered claim amount not paid from that security under section 47(3). This is not a promise that every warranty claim is payable by the Fund.

    Based on: O. Reg. 333/08, s. 47(1)–(3); checked 2026-10-24

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25. Which item must a service plan contract state?

    1. The make of oil filter used at each service visit
    2. Where the vehicle can be serviced under the plan
    3. The service manager's licence number and hourly wage
    4. The dealer's profit on the plan, initialled by the buyer
    Show answer and explanation

    Correct answer: Where the vehicle can be serviced under the plan

    A service plan contract lists the goods and services, term, deductible, price and fees, beneficiary obligations, where servicing can be done, transferability and whether it is insured.

    Based on: O. Reg. 333/08, s. 48(2), para. 14; checked 2026-10-24

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26. In an unfair-practice action, can a court admit a salesperson’s oral tire promise even though the written agreement omits it?

    1. Yes, but only if OMVIC witnessed the promise
    2. No, unless the promise was recorded on video
    3. Yes, a court can consider oral statements made during the deal
    4. No, only the written contract can ever be considered by a court
    Show answer and explanation

    Correct answer: Yes, a court can consider oral statements made during the deal

    CPA section 18(10) allows oral evidence about an unfair practice despite a written agreement and despite whether the representation appears in it. Admissibility is not an automatic finding that every alleged promise was made or breached. Section 11 separately resolves qualifying ambiguity to the consumer’s benefit.

    Based on: Consumer Protection Act, 2002, s. 18(10); s. 11; checked 2026-10-24

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27. Which relationship can make someone an interested person in a dealer’s application?

    1. Has filed a consumer complaint against the dealer
    2. Has financed the business or may benefit from it
    3. Has bought a vehicle from the dealer in the past year
    4. Lives within a kilometre of the dealer's premises
    Show answer and explanation

    Correct answer: Has financed the business or may benefit from it

    An interested person is someone who benefits or may benefit from the business, controls it directly or indirectly, or has financed it. Their finances or past conduct can be grounds to refuse, suspend or revoke. Customers, neighbours and complainants are not interested persons.

    Based on: Motor Vehicle Dealers Act, 2002, s. 6(4); checked 2026-10-24

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