OMVIC Certification Practice Test 5

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 former dealer owes the Compensation Fund. What can satisfy the Fund-related registration condition?

   1. Asking a former customer to waive the Fund’s repayment rights
   2. Promising orally to repay after the first profitable sales month
   3. Having a bank approve a loan without arranging repayment to the Fund
   4. Following a repayment arrangement accepted by the registrar
   Show answer and explanation

   Correct answer: Following a repayment arrangement accepted by the registrar

   Section 11(1), paragraph 6 allows a former registrant in default to meet this condition through an arrangement under MVDA section 42(8) that it has complied, or is complying, with. Owing money is not an absolute bar regardless of an accepted arrangement.

   Based on: O. Reg. 333/08, s. 11(1), para. 6; MVDA s. 42(8); 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. Under a future performance agreement, a consumer has paid 70% of the fixed payment obligation and defaults. What is needed to enforce its repossession clause?

   1. Give 10 days' notice by registered mail
   2. Get permission from a court
   3. Offer the consumer a new payment schedule
   4. Get written approval from OMVIC
   Show answer and explanation

   Correct answer: Get permission from a court

   Section 25 concerns a future performance agreement and its incidental security agreement. Once at least two-thirds of the fixed payment obligation is paid, the supplier needs leave of the Superior Court of Justice to enforce the covered repossession/resale provision. The question does not generalize this rule to every lender and financing arrangement.

   Based on: Consumer Protection Act, 2002, s. 25(1)–(2); checked 2026-10-24

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4. Which body hears the statutory appeal of a final discipline committee order under MVDA section 17?

   1. The Licence Appeal Tribunal as the first disciplinary appeal
   2. The registrar alone, as a routine registration renewal
   3. The original inspector by reopening the dealership visit
   4. The appeals committee established under section 17
   Show answer and explanation

   Correct answer: The appeals committee established under section 17

   A party may appeal a final discipline order to the appeals committee under section 17(5). Under section 17(6), it may overturn, affirm or modify the order and make an authorized discipline order. This question identifies that statutory appeal route; it does not rule out every possible judicial-review remedy.

   Based on: Motor Vehicle Dealers Act, 2002, s. 17(2), (5)–(6); checked 2026-10-24

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5. Who pays OMVIC the transaction fee on each vehicle sold or leased?

   1. The customer, directly to OMVIC within six days
   2. The finance company, whenever a loan is arranged
   3. The salesperson who wrote the deal, out of their commission on the sale
   4. The dealer, who may choose to charge it to the customer
   Show answer and explanation

   Correct answer: The dealer, who may choose to charge it to the customer

   Dealers remit a transaction fee for each sale or lease and may pass it on to the customer. Salespeople pay no fee, customers do not remit it to OMVIC, and lenders are not responsible for it.

   Based on: OMVIC — Transaction Fees, Who remits; renewal application; checked 2026-10-24

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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

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7. 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

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8. A dealer notices one buyer's name appearing many times in its garage register. What should it do?

   1. Find out why, because the buyer may be a curbsider
   2. Report the buyer to the Ministry of Transportation
   3. Nothing, as repeat customers are good for business
   4. Offer the buyer a volume discount on future sales
   Show answer and explanation

   Correct answer: Find out why, because the buyer may be a curbsider

   A repeated purchase pattern warrants checking the facts and whether the buyer is acting as a dealer without registration. It is a warning sign, not proof of wrongdoing or an automatic reporting conclusion. MVDA section 4(4) governs trading with someone acting as an unregistered dealer.

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

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9. What must a broker's contract tell the customer about payment for the vehicle?

   1. Pay into the broker's trust account until delivery
   2. Pay the broker, who forwards the money to the seller within seven days
   3. Pay OMVIC, which releases the money to the seller
   4. Pay the seller directly; the broker may not handle those funds
   Show answer and explanation

   Correct answer: Pay the seller directly; the broker may not handle those funds

   Section 49 requires the vehicle-payment statement in 12-point bold text. It directs payment to the seller or lessor and states the broker may not handle it. If that statement is not on the first contract page, the customer must initial it.

   Based on: O. Reg. 333/08, s. 49(1), para. 11; ss. 49(2), 49(5)(c); checked 2026-10-24

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10. A dealer’s creditor lawfully seizes a consumer’s purchased car and says it will not be returned. Can this support a Fund claim?

    1. No, the Fund only ever pays when a dealer is convicted of fraud
    2. No, lien problems are always the buyer's responsibility
    3. Yes, a lawful seizure by the dealer's creditor can support a claim
    4. Yes, but only if the buyer is a corporation
    Show answer and explanation

    Correct answer: Yes, a lawful seizure by the dealer's creditor can support a claim

    Section 79(3), paragraph 4 covers lawful seizure by a creditor other than the customer’s creditor where the vehicle will not be returned. The dealer must have been registered at the trade and the remaining consumer eligibility and procedure requirements still apply. The buyer’s own missed loan payments are a different case.

    Based on: O. Reg. 333/08, s. 79(1); s. 79(3), para. 4; checked 2026-10-24

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11. An ad offers a model at a special price, but only two vehicles are available. What must the ad say?

    1. That supplies are limited, without a number
    2. That the offer ends when OMVIC says so
    3. Nothing, as long as at least one is in stock
    4. The number of vehicles available at that price
    Show answer and explanation

    Correct answer: The number of vehicles available at that price

    An advertised price must be available for the period of the ad, and if only a limited number are available at that price the ad must state how many.

    Based on: O. Reg. 333/08, ss. 36(12)–(13); checked 2026-10-24

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12. A buyer assumes every new vehicle defect guarantees a CAMVAP buy-back. Which correction is accurate?

    1. Any defect automatically requires the dealer to buy the car back
    2. A safety certificate guarantees approval of the consumer’s CAMVAP claim
    3. Every manufacturer participates, including those not listed by CAMVAP
    4. The claim and any buy-back must meet the program’s specific conditions
    Show answer and explanation

    Correct answer: The claim and any buy-back must meet the program’s specific conditions

    CAMVAP is an eligible-dispute arbitration process, not an automatic refund for every defect. The agreement limits covered claims and participating manufacturers, and imposes separate buy-back conditions. Other legal rights may exist; do not describe CAMVAP as the sole possible remedy.

    Based on: CAMVAP — Agreement for Arbitration, ss. 4.2–4.4, 6.1; checked 2026-10-24

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13. A total-loss vehicle was immersed in liquid to the bottom of its dashboard. Which classification is specified by O. Reg. 376/02’s definition?

    1. No brand
    2. Salvage, until inspected
    3. Rebuilt
    4. Irreparable
    Show answer and explanation

    Correct answer: Irreparable

    The definition of irreparable includes a total-loss vehicle immersed to the bottom of the dashboard or higher, as well as listed electrical-system and structural cases. This question uses that stated threshold rather than asserting that every vehicle with any water exposure has the same brand.

    Based on: O. Reg. 376/02, s. 1(1), definition of irreparable; checked 2026-10-24

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14. When can a dealer use a stock photo in a vehicle ad?

    1. When it accurately shows the same make, model, year and condition
    2. Only for new vehicles that have not yet been built
    3. Never, because stock photos are banned by the MVDA
    4. Whenever the actual vehicle is still being cleaned or reconditioned
    Show answer and explanation

    Correct answer: When it accurately shows the same make, model, year and condition

    The advertisement must truthfully represent the actual vehicle. A stock image must not create a misleading impression about its make, model, year or condition. The fact that an image is labelled stock does not authorize a false representation.

    Based on: O. Reg. 332/08, ss. 3–4; MVDA s. 28; checked 2026-10-24

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15. 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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16. When its additional buy-back conditions are satisfied, which award can a CAMVAP arbitrator make?

    1. A refund of the dealer's administration fee
    2. An extension of the factory warranty for three more years
    3. A manufacturer buy-back of the vehicle under the formula
    4. Punitive damages to punish the manufacturer
    Show answer and explanation

    Correct answer: A manufacturer buy-back of the vehicle under the formula

    Section 6.1 permits a manufacturer buy-back under the program’s calculation and conditions, including less than 60,000 km and no more than 36 months in service at the hearing. Other authorized awards include repairs and specified reimbursement. Section 6.5 excludes punitive awards and warranty extensions.

    Based on: CAMVAP — Agreement for Arbitration, ss. 6.1, 6.2, 6.5; checked 2026-10-24

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17. A dealer sells a used car as-is to a consumer. What must happen with the as-is statement?

    1. It is printed on the bill of sale but never initialled
    2. It appears in bold on the contract and the buyer initials it
    3. It is posted on the lot, so no contract wording is required
    4. The salesperson reads it aloud, and no written copy is needed
    Show answer and explanation

    Correct answer: It appears in bold on the contract and the buyer initials it

    The regulation's full as-is statement must be in the contract in bold type and initialled by the buyer. A verbal warning or a lot sign does not meet the requirement.

    Based on: O. Reg. 333/08, s. 40(2), para. 5; s. 40(6); checked 2026-10-24

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18. What minimum warranty applies to new or reconditioned parts installed in a consumer's vehicle repair?

    1. One year or 20,000 km, whichever comes first
    2. 30 days or 1,000 km, whichever comes later
    3. 90 days or 5,000 km, whichever comes first
    4. The manufacturer's warranty only, with no labour
    Show answer and explanation

    Correct answer: 90 days or 5,000 km, whichever comes first

    Section 63 covers new or reconditioned installed parts and installation labour for at least 90 days or 5,000 km, whichever occurs first. Misuse/abuse concerns the affected part, and a repairer needs reasonable grounds before refusing reimbursement on that basis. It does not automatically void every unrelated repair warranty.

    Based on: Consumer Protection Act, 2002, s. 63(1), (5)–(6); checked 2026-10-24

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19. A dealer sells a former taxi to another registered dealer. What does the Code of Ethics regulation require?

    1. Disclosure only on the retail contract, not the wholesale one
    2. No disclosure, since dealers are expected to inspect cars
    3. The contract between the dealers must disclose the taxi use
    4. Disclosure only if the buying dealer asks in writing
    Show answer and explanation

    Correct answer: The contract between the dealers must disclose the taxi use

    When selling or leasing to another registered dealer, the Code of Ethics regulation requires the contract to disclose prior use, history, condition and other material facts. This lets the next dealer disclose correctly to its retail customer.

    Based on: O. Reg. 332/08, s. 5, para. 5(iii); checked 2026-10-24

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20. A fixed-credit vehicle ad features a monthly payment. How prominently must it show the APR?

    1. Only on request from the customer
    2. At least as prominently as the payment amount
    3. Only if the interest rate is higher than 5 per cent
    4. In a footnote anywhere on the page
    Show answer and explanation

    Correct answer: At least as prominently as the payment amount

    For this fixed-credit ad, section 61(4) requires APR disclosure as prominent as the most prominent displayed interest-rate or payment amount. Other required information and media-specific exceptions are addressed separately in section 61.

    Based on: O. Reg. 17/05, s. 61(2)–(4); checked 2026-10-24

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21. When may the director make a freeze order under MVDA section 22?

    1. Whenever a supplier invoices the dealer, even if no statutory condition exists
    2. Whenever a competing dealer asks to delay a registrant’s next vehicle sale
    3. For customer protection when a listed warrant or proceedings condition exists
    4. Only after a salesperson chooses to leave the dealership for another employer
    Show answer and explanation

    Correct answer: For customer protection when a listed warrant or proceedings condition exists

    Section 22(2) combines a customer-protection requirement with a listed trigger: a search warrant or specified business-related proceedings. It does not create an unrestricted power to freeze funds for any business disagreement.

    Based on: Motor Vehicle Dealers Act, 2002, s. 22(1)–(2); checked 2026-10-24

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22. What does it mean for a disclosure to be clear, comprehensible and prominent?

    1. Read aloud to the customer and recorded on video
    2. Written in legal language a lawyer would approve
    3. Printed on the back page so it does not crowd the deal
    4. Easy to understand and noticeable, not buried in fine print
    Show answer and explanation

    Correct answer: Easy to understand and noticeable, not buried in fine print

    The contract information must be understandable and readily noticeable to the customer. Hiding a required statement in obscure wording or hard-to-find fine print does not meet the clear, comprehensible and prominent requirement. A video explanation alone does not replace written contract disclosure.

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

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23. Excluding separately eligible court-awarded costs and interest, what is the Fund’s total compensation cap for one claim?

    1. $25,000
    2. $45,000
    3. $100,000
    4. $50,000
    Show answer and explanation

    Correct answer: $45,000

    Section 83(5) caps total compensation, including an interim payment, at $45,000. Section 83(6) excludes court-awarded costs and interest from that calculation; the eligibility limits in sections 83(1)–(4) still apply. The Fund does not pay punitive damages or interest on them.

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

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24. Which body work must be disclosed?

    1. Both front and rear bumpers replaced after a parking lot bump
    2. Two non-adjacent panels polished and waxed
    3. Any single panel repainted after a scratch
    4. Two or more adjacent panels replaced, other than bumpers
    Show answer and explanation

    Correct answer: Two or more adjacent panels replaced, other than bumpers

    The regulation requires disclosure if two or more adjacent panels that are not bumper panels have been replaced. A single repaint, bumpers alone or cosmetic polishing are not on the list, though material facts must still be disclosed.

    Based on: O. Reg. 333/08, s. 42, paras. 15, 25; checked 2026-10-24

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25. What is the current minimum fine on conviction for trading in vehicles without registration?

    1. $25,000
    2. $500
    3. $5,000
    4. $2,500
    Show answer and explanation

    Correct answer: $5,000

    MVDA section 32(4) sets a $5,000 minimum fine on conviction for the section 4(1) offence. This is a conviction-based minimum, not a fee that makes unregistered trading lawful. Use the current legislation rather than assuming a practice answer is an official exam key.

    Based on: Motor Vehicle Dealers Act, 2002, s. 32(4); checked 2026-10-24

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26. 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

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27. Can a registered salesperson work for two dealers at the same time?

    1. Yes, but only if they are part-time at both locations
    2. No, a salesperson can only ever be registered to one dealer
    3. Yes, with all dealers’ written consent in the registrar-approved form
    4. Yes, but only if both dealers are in the same municipality
    Show answer and explanation

    Correct answer: Yes, with all dealers’ written consent in the registrar-approved form

    Section 14 permits work for more than one registered dealer only with every dealer’s written consent in the approved form. Registration must cover the dealers represented, and section 31 requires notice of the consent. Municipality and part-time status do not replace these conditions.

    Based on: O. Reg. 333/08, ss. 14, 31(1)(b); MVDA s. 4(5); checked 2026-10-24

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