OMVIC Certification Practice Test 3

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1. A salesperson tells a customer that OMVIC approved the dealer's documentation fee. Why is this a problem?

   1. Only managers are allowed to talk about dealer fees
   2. A dealer cannot portray its documentation charge as OMVIC-approved
   3. Dealer fees must first be approved by the Licence Appeal Tribunal
   4. OMVIC approves fees, but only for new vehicles
   Show answer and explanation

   Correct answer: A dealer cannot portray its documentation charge as OMVIC-approved

   Code section 3(2) prohibits representing that a trade-related payment, commission or remuneration has been fixed or approved by the listed authorities or organizations. Calling the dealer’s own documentation charge “OMVIC-approved” misrepresents its authority. This example is not a statement that official regulatory fees do not exist.

   Based on: O. Reg. 332/08 — Code of Ethics, s. 3(2); checked 2026-10-24

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2. A third-party company, not the selling dealer, offers an uninsured warranty. What letter of credit is required?

   1. $500,000
   2. $100,000
   3. $45,000
   4. $1,000,000
   Show answer and explanation

   Correct answer: $500,000

   The prescribed irrevocable letter of credit is $500,000 when the warranty seller is not the dealer that sold or leased the vehicle. The $100,000 amount applies to that selling or leasing dealer. These security amounts differ from the ordinary Fund compensation cap and its court-cost/interest rules.

   Based on: O. Reg. 333/08, s. 47(1)(b), subpara. ii; s. 83(5)–(6); checked 2026-10-24

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3. 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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4. Under the listed prior-use advertising rules, which fact must a specific used-car ad disclose?

   1. It was previously a daily rental, if no private owner has had it since
   2. It was previously owned by someone living outside the city
   3. It was previously serviced at a dealership other than the one advertising it
   4. It was previously listed for sale at a higher price
   Show answer and explanation

   Correct answer: It was previously a daily rental, if no private owner has had it since

   Ads for a specific vehicle must disclose prior daily rental use (unless later owned by a non-dealer), police or emergency use and taxi or limousine use. Service location, owner address and past prices are not required.

   Based on: O. Reg. 333/08, s. 36(5)(a); checked 2026-10-24

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5. 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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6. Which statement about dealer plates is correct?

   1. They may be lent to customers and friends for long weekends
   2. They may never be used for any personal driving by the dealer
   3. They are issued by OMVIC with each registration
   4. They may be used only on vehicles in the dealer's sale inventory
   Show answer and explanation

   Correct answer: They may be used only on vehicles in the dealer's sale inventory

   Ontario’s dealer-plate guidance limits the plate to a vehicle owned by the dealer as inventory offered for sale. Permitted use is subject to the applicable plate rules, including eligible private use in Ontario and sale-related use. The plate is not an unrestricted loan to another person for their own vehicle.

   Based on: Ontario — Manufacturer, dealer and service plates, Dealer plate; R.R.O. 1990, Reg. 628 s. 13; checked 2026-10-24

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7. 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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8. 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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9. 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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10. After a consignment sale, what does section 45(8) require concerning the sales contract copy?

    1. Give it to the consignor only if a lawsuit has already started
    2. Destroy it once the buyer has paid the purchase price
    3. Use best efforts for both consignor and purchaser to receive it promptly
    4. Give a copy only to the dealer’s accountant at annual renewal
    Show answer and explanation

    Correct answer: Use best efforts for both consignor and purchaser to receive it promptly

    Section 45(8) requires the dealer’s best efforts to ensure both parties promptly receive a copy of the sales contract. It does not state a universal 30-day consignor payment deadline. Trust money and payment obligations must be assessed under their own applicable rules and agreement.

    Based on: O. Reg. 333/08, s. 45(8); checked 2026-10-24

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11. 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

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12. A customer trades in a car toward a new purchase. Which trade-in detail must the contract include?

    1. The recorded odometer reading and the credit given
    2. The trade-in's original purchase price when it was new
    3. The price the dealer expects to resell the trade-in for
    4. The name of every previous owner of the trade-in
    Show answer and explanation

    Correct answer: The recorded odometer reading and the credit given

    Trade-in details include the owner, VIN, make, model, year, trim, colour, body type, recorded odometer reading, the credit allowed, a statement from the customer on the s. 42 disclosure items and any agreement to pay off a loan. Resale plans and original price are not required.

    Based on: O. Reg. 333/08, s. 43(4); checked 2026-10-24

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13. A consumer approves extra repairs by phone. What must the repairer record?

    1. The consumer's driver's licence number and date of birth
    2. The person's name and phone number, and the date and time of the call
    3. Only the dollar amount approved, initialled later by the service writer
    4. A recording of the call kept on file for six years
    Show answer and explanation

    Correct answer: The person's name and phone number, and the date and time of the call

    Regulation section 49 requires the authorizing person’s name, authorization date/time, and telephone number for telephone authorization. For another non-written method, contact information for that method is required. CPA section 59 makes compliant recording necessary for non-written authorization to be effective.

    Based on: O. Reg. 17/05, s. 49; CPA s. 59; checked 2026-10-24

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14. Residual value is $10,000, pre-tax disposal price $7,500 and average monthly payment $500. No wear/damage adjustment applies. What is realizable value?

    1. $7,500
    2. $10,000
    3. $8,500
    4. $8,000
    Show answer and explanation

    Correct answer: $8,500

    Compare $7,500, 80% × $10,000 = $8,000, and $10,000 − (3 × $500) = $8,500. The greatest is $8,500. The maximum-liability formula is P + (V − R), with P defined by the lease; this calculation alone does not establish every amount a lessee owes.

    Based on: O. Reg. 17/05, s. 76(1)–(4); checked 2026-10-24

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15. An inspector takes a box of deal files to copy. What must the inspector do?

    1. Ask the dealer's lawyer to approve each document
    2. Give a receipt and return the files as soon as possible
    3. Get a court warrant before touching any record
    4. Keep the originals for six years in OMVIC's archive
    Show answer and explanation

    Correct answer: Give a receipt and return the files as soon as possible

    Under section 15(2)(c), an inspector may temporarily remove relevant items to copy or examine them, must give a receipt, and must return them as promptly as possible. The routine inspection is still subject to section 15’s limits, including reasonable time, no dwelling entry and no force.

    Based on: Motor Vehicle Dealers Act, 2002, s. 15(2)(c), (5); checked 2026-10-24

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16. What is the highest fine a Discipline Panel can order for a Code of Ethics breach?

    1. $250,000
    2. $25,000
    3. $45,000
    4. $5,000
    Show answer and explanation

    Correct answer: $25,000

    MVDA section 17(4) authorizes discipline orders including specified education, a fine up to $25,000 and costs. This is separate from section 32 offence penalties and the Fund’s compensation rules; the figures should not be interchanged.

    Based on: Motor Vehicle Dealers Act, 2002, s. 17(4); checked 2026-10-24

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17. Which of these does not need to register with OMVIC?

    1. A company exporting used vehicles out of Ontario
    2. A person who buys cars to resell from their driveway
    3. A qualifying dealer-only auction with no property interest in vehicles
    4. A business that brokers retail car deals for consumers
    Show answer and explanation

    Correct answer: A qualifying dealer-only auction with no property interest in vehicles

    The auction exemption requires the conditions in section 2(3), including no auctioneer property interest and eligible dealer buyers, with access and record requirements. It is not a blanket exemption for every business called an auction, broker or exporter.

    Based on: O. Reg. 333/08, s. 2(1), para. 1; s. 2(3); checked 2026-10-24

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18. In a joint ad, the participating dealers charge different administration fees. How can the ad handle this?

    1. Omit the fee entirely, because joint ads have no fee rules
    2. Use the lowest fee charged by any dealer and ignore the others
    3. Average the fees across the dealers and build that into the price
    4. Leave the fee out of the price but say it may apply and what it is for
    Show answer and explanation

    Correct answer: Leave the fee out of the price but say it may apply and what it is for

    Section 36(9) allows this treatment for a charge whose amount varies among two or more joint-advertising dealers. The ad must clearly and prominently state that the amount may be additional and identify its purpose. This is not a general permission for a single dealer to hide mandatory fees.

    Based on: O. Reg. 333/08, s. 36(9); checked 2026-10-24

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19. When must a new salesperson be registered with OMVIC?

    1. Before their first annual performance review
    2. Before trading or negotiating on behalf of that dealer
    3. Only before signing their first sales contract
    4. Within 30 days of starting work at the dealership
    Show answer and explanation

    Correct answer: Before trading or negotiating on behalf of that dealer

    MVDA section 4 requires registration before acting as a salesperson, and registration must relate to the dealer represented. Employment alone, or having another person sign the contract later, does not authorize unregistered trading.

    Based on: Motor Vehicle Dealers Act, 2002, ss. 1, 4(1), 4(3), 4(5); checked 2026-10-24

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20. After the parties enter an extended warranty contract, what is the dealer’s deadline to forward the required documents and customer payments?

    1. Thirty days
    2. Seven days
    3. Ninety days
    4. Two days
    Show answer and explanation

    Correct answer: Thirty days

    Section 47(7)(c) currently allows 30 days after the parties enter the extended warranty contract to provide the warranty seller with all contract documents, all customer payments received, and any condition/distance statement the dealer holds. The separate service-plan deadline under section 48(6)(c) remains seven days.

    Based on: O. Reg. 333/08, s. 47(7)(c); s. 48(6)(c); checked 2026-10-24

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21. A salesperson's registration was revoked. When can they reapply?

    1. After six months, once the revocation fee is paid
    2. After 90 days, if a dealer agrees to sponsor them
    3. Never, because revocation is permanent under the MVDA
    4. When the two-year wait and evidence-or-change conditions are met
    Show answer and explanation

    Correct answer: When the two-year wait and evidence-or-change conditions are met

    MVDA section 12 requires the prescribed waiting time plus new or other evidence, or a clear material change in circumstances. General regulation section 15 sets two years. Meeting these threshold conditions does not itself guarantee registration.

    Based on: Motor Vehicle Dealers Act, 2002, s. 12; O. Reg. 333/08 s. 15; checked 2026-10-24

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22. 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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23. 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

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24. 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

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25. Where must the Sales Final statement appear on a vehicle sale contract?

    1. Anywhere in the contract, as long as it is in capitals
    2. On the same page as the buyer's signature, next to it
    3. On the back of the last page, in the fine print section
    4. On a separate sheet the buyer takes home after delivery
    Show answer and explanation

    Correct answer: On the same page as the buyer's signature, next to it

    The required Sales Final statement is next to the purchaser’s signature on the same page. Section 39(2), paragraph 24 specifies a 12-point bold body and 14-point bold heading. The statement itself preserves rights arising when a dealer fails certain legal obligations.

    Based on: O. Reg. 333/08, s. 39(2), para. 24; s. 39(3); checked 2026-10-24

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26. An ad says an extended warranty is included. What else must it state?

    1. The warranty’s term and any maximum individual claim limit
    2. The dealer's commission earned on selling the warranty
    3. The cost of buying the warranty separately
    4. The name of the warranty company's head office
    Show answer and explanation

    Correct answer: The warranty’s term and any maximum individual claim limit

    If an ad says an extended warranty is included, it must show the term and any maximum individual claim limits, clearly and prominently. Head office details and commissions are not required.

    Based on: O. Reg. 333/08, s. 36(14); checked 2026-10-24

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27. How must a dealer identify a consigned vehicle when offering it for sale?

    1. Hide the consignment status until after the buyer pays
    2. Describe it as dealer-owned merely because it is parked on the lot
    3. Clearly indicate, in a likely-to-be-noticed manner, that it is on consignment
    4. Disclose consignment only if a buyer first asks in writing
    Show answer and explanation

    Correct answer: Clearly indicate, in a likely-to-be-noticed manner, that it is on consignment

    Section 45(7) requires a clear, likely-to-be-noticed consignment indication when the vehicle is offered for sale. Physical possession on the dealer’s lot does not itself make the dealer the owner or remove the disclosure duty.

    Based on: O. Reg. 333/08, s. 45(7); checked 2026-10-24

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