OMVIC Certification Practice Test 4

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1. For a consignment contract with an exempt personal-use owner under section 45(4), which pricing information is required?

   1. Only the original manufacturer’s wholesale cost
   2. Only the dealer’s last monthly profit figure
   3. An estimated selling price and a minimum selling price
   4. A promise that any price chosen later needs no disclosure
   Show answer and explanation

   Correct answer: An estimated selling price and a minimum selling price

   Section 45(4), paragraph 11 requires both an estimated and minimum selling price. The same subsection separately requires itemized dealer charges and contract term information. This is a prescribed contract-content rule, not an invented permission to change agreed terms unilaterally.

   Based on: O. Reg. 333/08, s. 45(4), paras. 10–12; checked 2026-10-24

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2. The Fund pays a consumer's claim against a dealer. What can happen to the dealer?

   1. It is barred from selling used vehicles for one year
   2. It may have to repay the Fund or risk losing its registration
   3. It pays a fixed penalty of $300 and the matter ends
   4. Nothing, because the Fund exists to absorb dealer losses
   Show answer and explanation

   Correct answer: It may have to repay the Fund or risk losing its registration

   MVDA section 42 allows prescribed reimbursement duties for a dealer or former dealer. Default without accepted repayment arrangements, or non-compliance with those arrangements, can support refusal to renew subject to the statutory process. Payment of a claim does not automatically revoke registration or erase the dealer’s debt.

   Based on: Motor Vehicle Dealers Act, 2002, s. 42(6), (8)–(9); checked 2026-10-24

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3. A buyer signs a contract for a used car and wants to back out two days later. Under the MVDA, what cooling-off period applies?

   1. A 10-day cooling-off period for any reason
   2. A 30-day cooling-off period
   3. A 48-hour cooling-off period after signing
   4. No general cooling-off period merely for changing their mind
   Show answer and explanation

   Correct answer: No general cooling-off period merely for changing their mind

   A change of mind does not create a general cooling-off right for an ordinary dealer vehicle contract. Separate cancellation rights may arise from non-disclosure, unfair practices or the contract’s own terms. Those are different from an automatic two-day cancellation window.

   Based on: O. Reg. 333/08, s. 39(3); s. 50; checked 2026-10-24

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4. What does the required Safety Standards Certificate statement tell the buyer?

   1. The car is guaranteed free of defects for 36 days
   2. The car has passed an emissions and structural test
   3. The car met basic safety standards on the inspection date
   4. The dealer warrants all safety parts for one year
   Show answer and explanation

   Correct answer: The car met basic safety standards on the inspection date

   The contract statement says an SSC only indicates that the vehicle met certain basic safety standards on the day it was inspected. It is not a warranty or a guarantee of general condition.

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

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5. 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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6. 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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7. 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

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8. A salesperson stays employed and has no early cancellation. What is the usual OMVIC registration renewal interval?

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

   Correct answer: Two years

   The current official manual describes a normal two-year salesperson cycle. The expiry on the registration certificate still matters, and section 17 also provides for early expiry when no registered dealer continues to employ the salesperson.

   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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9. Which statement is a false, misleading or deceptive representation?

   1. "Buy today, because the price goes up Monday," when it will not
   2. "This model has a five-star rating," when it truly does
   3. "Financing is subject to lender approval," which is true
   4. "This car comes with two keys," when it does come with two
   Show answer and explanation

   Correct answer: "Buy today, because the price goes up Monday," when it will not

   Claiming a price advantage that does not exist is a false, misleading or deceptive representation. True statements about ratings, financing conditions or equipment are not.

   Based on: Consumer Protection Act, 2002, s. 14(1), (2) para. 11; checked 2026-10-24

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10. 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

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11. 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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12. 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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13. A car's true distance is 60,000 km. Which disclosed reading is deemed accurate?

    1. 59,200 km
    2. 57,900 km
    3. 63,500 km
    4. 58,500 km
    Show answer and explanation

    Correct answer: 59,200 km

    A distance is deemed accurate if within the lesser of 5 per cent or 1,000 km. For 60,000 km, 5 per cent is 3,000 km, so the 1,000 km limit applies: only readings from 59,000 to 61,000 km count, so 59,200 km is the one that qualifies.

    Based on: O. Reg. 333/08, s. 50(4); checked 2026-10-24

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14. What kind of dispute does CAMVAP resolve?

    1. Disputes between two dealers about a wholesale transaction
    2. Disputes between a dealer and a buyer over the price paid for a used car
    3. Defect or new-vehicle warranty disputes with a participating manufacturer
    4. Disputes about repair bills charged by an independent garage
    Show answer and explanation

    Correct answer: Defect or new-vehicle warranty disputes with a participating manufacturer

    CAMVAP covers eligible disputes with participating manufacturers about current assembly/material defects or application/administration of the manufacturer’s new-vehicle warranty. Its agreement sets additional vehicle, claim and procedural limits. A dispute solely with a dealer over price or a separate garage bill is not automatically within the program.

    Based on: CAMVAP — Agreement for Arbitration, ss. 4.2–4.4; checked 2026-10-24

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15. Under the ordinary CPA section 18 notice rule, when must a consumer give notice to rescind for an unfair practice?

    1. 30 days after the first payment is due
    2. Two years after the dealer's registration expires
    3. 90 days after taking delivery of the vehicle
    4. One year after entering into the agreement
    Show answer and explanation

    Correct answer: One year after entering into the agreement

    Section 18(3) requires notice within one year after entering the agreement. Section 18(15) gives a court an interest-of-justice discretion concerning notice requirements. This differs from the MVDA’s specific 90-day cancellation grounds; it does not promise an unlimited right to sue after a missed deadline.

    Based on: Consumer Protection Act, 2002, s. 18(3), (15); checked 2026-10-24

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16. A dealer advertises a vehicle as unfit, with optional certification available. What must the price ad make clear?

    1. Safety inspection pending, ready to drive away today
    2. Certification is mandatory at a fixed charge added to the price
    3. Not driveable, not certified, and the price of certification if offered
    4. Sold as seen, with certification included at no extra cost
    Show answer and explanation

    Correct answer: Not driveable, not certified, and the price of certification if offered

    OMVIC’s unfit-vehicle guidance calls for a clear not-driveable/not-certified disclosure and the certification price if offered. That certification charge cannot be mandatory. Other intended mandatory fees remain in the advertised price.

    Based on: OMVIC — All-in Price Advertising, Unfit vehicle; checked 2026-10-24

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17. With no applicable excess-wear or damage adjustment, which amount is NOT compared in the residual-lease realizable-value formula?

    1. The price the lessor actually sells the vehicle for
    2. 80 per cent of the estimated residual value
    3. The residual value minus three average monthly payments
    4. The dealer's original purchase price of the vehicle
    Show answer and explanation

    Correct answer: The dealer's original purchase price of the vehicle

    Section 76(2) compares the pre-tax disposal price, 80% of estimated residual value, and estimated residual value less three average monthly payments. Sections 76(3)–(4) can adjust for qualifying excess wear/use or damage. The dealer’s historical purchase cost is not one of those three inputs.

    Based on: O. Reg. 17/05, s. 76(2)–(4); checked 2026-10-24

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18. Which of these counts as an advertisement under the dealer advertising rules?

    1. An internal staff-scheduling text with no vehicle offer
    2. A price sign taped inside a car's window
    3. An internal inventory spreadsheet for managers
    4. A repair-only invoice with no vehicle offer or promotion
    Show answer and explanation

    Correct answer: A price sign taped inside a car's window

    A promotional sign in a vehicle window can be an advertisement. The key is whether the communication promotes a vehicle sale or lease. The other examples expressly contain only non-promotional internal or repair information.

    Based on: OMVIC — All-in Price Advertising, What is a motor vehicle ad?; checked 2026-10-24

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19. 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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20. What may an OMVIC inspector do during an inspection?

    1. Order the dealer to close for a week without a hearing
    2. Use the dealer's own computer system to access records
    3. Seize vehicles from the lot and sell them at auction
    4. Cancel a customer’s bank loan by changing the lender’s contract
    Show answer and explanation

    Correct answer: Use the dealer's own computer system to access records

    Section 15(2)(b) permits use of the business’s data systems to produce relevant information. Inspection powers include examination and specified temporary removal for copying; they do not authorize auctioning stock, cancelling loans or imposing an unrelated closure order.

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

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21. How do the prescribed initial Fund contributions apply to general dealers and brokers with several authorized locations?

    1. One contribution covers every present and future location
    2. A contribution is required for each authorized trading location
    3. Only the salesperson at the head office must contribute
    4. Each consumer must make the initial registration contribution
    Show answer and explanation

    Correct answer: A contribution is required for each authorized trading location

    Sections 75(2)–(3) require general dealers and brokers to contribute for each authorized place, including an added place. Lease finance dealers also have an initial contribution, without that per-location wording. This question concerns initial contributions, not later shortfall assessments.

    Based on: O. Reg. 333/08, s. 75(2)–(3); checked 2026-10-24

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22. Which agreement meets the General regulation’s definition of a service plan?

    1. One covering only component repair costs under an extended warranty
    2. One sold before delivery to provide goods or services to alter or maintain the vehicle
    3. One covering only loan payments if the borrower becomes unemployed
    4. One replacing the vehicle after a theft under an auto insurance policy
    Show answer and explanation

    Correct answer: One sold before delivery to provide goods or services to alter or maintain the vehicle

    A statutory service plan is sold before the vehicle is delivered and supplies goods or services to alter or maintain it. The work may occur before or after delivery. An ordinary maintenance agreement bought only after delivery does not meet this particular definition simply because it covers maintenance.

    Based on: O. Reg. 333/08, s. 1, definition of service plan; checked 2026-10-24

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23. Where must a general dealer keep the registration copy for a salesperson trading from its showroom?

    1. In the salesperson's home, available on request
    2. At the business location where that salesperson works
    3. At OMVIC's head office, on file with the registrar
    4. Only in a closed file held by the salesperson’s former employer
    Show answer and explanation

    Correct answer: At the business location where that salesperson works

    Section 29(4) requires the general dealer to keep the copy at the authorized place where that salesperson trades and produce it on request. Other dealer classes have specified storage rules. The rule does not turn solely on whether a copy is paper or electronic.

    Based on: O. Reg. 333/08, s. 29(4)–(6); checked 2026-10-24

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24. An otherwise eligible buyer was not told of a rebuilt brand. Can they still cancel if the dealer honestly did not know?

    1. Yes, but only if the buyer is not a consumer
    2. No, cancellation needs proof the dealer knew
    3. No, but the dealer must pay for an independent inspection
    4. Yes, the right applies even if the dealer acted in good faith
    Show answer and explanation

    Correct answer: Yes, the right applies even if the dealer acted in good faith

    Section 50(2) preserves this qualifying right despite the dealer’s lack of knowledge, honest belief or verification efforts. The buyer must still satisfy the other section-50 requirements, including the time and written-notice rules.

    Based on: O. Reg. 333/08, s. 50(2); checked 2026-10-24

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25. A private owner consigns their personal-use car to a dealer. Which price information must the written consignment contract include?

    1. The price the dealer would pay to buy the car outright
    2. A guarantee that the car will be sold within 30 days
    3. An estimated selling price and a minimum selling price
    4. The names of buyers who have already shown interest
    Show answer and explanation

    Correct answer: An estimated selling price and a minimum selling price

    A consignment contract with an exempt consignor lists the dealer's charges, an estimated selling price and a minimum selling price, the term and any extension, early cancellation terms and all restrictions on the consignor.

    Based on: O. Reg. 333/08, s. 45(4), paras. 10–13; checked 2026-10-24

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26. A buyer asks for dealer-only treatment because they resell cars as a business. What should the selling dealer verify?

    1. Only that the buyer promises to resell outside Ontario
    2. Only that the buyer offers cash rather than a bank transfer
    3. The buyer’s current motor vehicle dealer registration
    4. Only that the vehicle is less than three years old
    Show answer and explanation

    Correct answer: The buyer’s current motor vehicle dealer registration

    MVDA section 4(4) prohibits a registered dealer from trading with an unregistered person acting as a dealer. Verify the relevant registration rather than relying on payment method or a promise. A genuine private buyer is a different situation; this question states that the buyer is acting as a dealer.

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

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27. 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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