OMVIC Certification Practice Test 6

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

1. After being served a proposal to revoke their registration, how long does a salesperson have to request a Licence Appeal Tribunal hearing?

   1. 90 days
   2. 15 days
   3. 30 days
   4. 5 days
   Show answer and explanation

   Correct answer: 15 days

   Under section 9(2), the applicant or registrant has 15 days after service to send or deliver the written hearing request to both the registrar and the Tribunal. Without a request, the registrar may carry out the proposal.

   Based on: Motor Vehicle Dealers Act, 2002, s. 9(2); checked 2026-10-24

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2. A salesperson tells a buyer out loud that the car was once a taxi. Is that enough disclosure?

   1. Yes, if the buyer nods to show they understood
   2. Yes, if a witness heard the conversation
   3. No, it must be written on the contract
   4. Yes, as long as it is said before the test drive
   Show answer and explanation

   Correct answer: No, it must be written on the contract

   Verbal disclosure does not meet the MVDA. Required disclosures must be in writing on the contract, clear, comprehensible and prominent, and given before the customer signs.

   Based on: O. Reg. 333/08, s. 39(2), para. 22; ss. 40(2), 42, para. 7; checked 2026-10-24

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3. Which staff member is trading in vehicles and must be registered?

   1. A mechanic who only diagnoses and repairs customers’ vehicles
   2. A receptionist who only routes calls to registered sales staff
   3. A finance manager who negotiates lease terms for the dealer
   4. A lot attendant whose only work is washing and parking inventory
   Show answer and explanation

   Correct answer: A finance manager who negotiates lease terms for the dealer

   Negotiating a vehicle lease on a dealer’s behalf is trading, so the registration rules apply. A job title alone is not the test. The other examples expressly limit the duties to work that does not involve vehicle trading.

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

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4. A dealer plans to share a customer’s credit information with additional lenders. What should it do first?

   1. Explain that sharing and obtain valid consent where required
   2. Send it, then tell the customer if one approves
   3. Nothing, since lenders protect credit data
   4. Only inform the lender with the best rate
   Show answer and explanation

   Correct answer: Explain that sharing and obtain valid consent where required

   Meaningful consent requires understandable information about the personal data, purposes and recipients. A new lender or purpose may require renewed consent. This question concerns authorization to share information, not a promise that the dealer must always obtain one particular interest rate.

   Based on: Office of the Privacy Commissioner of Canada — meaningful consent, Meaningful consent: recipients, purposes and changed practices; checked 2026-10-24

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5. An individual applying to register as an Ontario motor vehicle dealer must be at least what age?

   1. 18
   2. 16
   3. 21
   4. 19
   Show answer and explanation

   Correct answer: 18

   A dealer applicant must be 18 or older. Ontario does not use 16, 19 or 21 as the dealer age requirement.

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

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6. Under the Consumer Protection Act, who is a consumer?

   1. An individual acting for personal, family or household purposes
   2. Anyone who buys a vehicle worth less than $50,000
   3. Only a person who pays cash rather than financing
   4. Any customer, including corporations buying fleet vehicles
   Show answer and explanation

   Correct answer: An individual acting for personal, family or household purposes

   The statutory definition concerns an individual acting for personal, family or household purposes and excludes business purposes. It is not determined by cash payment or a price threshold. A transaction outside this definition may still be governed by other laws; it does not become unregulated.

   Based on: Consumer Protection Act, 2002, s. 1, definition of consumer; checked 2026-10-24

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7. What is the maximum penalty for an individual convicted of an MVDA offence?

   1. A $10,000 fine or up to six months in jail
   2. A $250,000 fine, but no jail term is possible
   3. A $25,000 fine and a five-year ban from working in the industry
   4. A $50,000 fine, up to two years less a day in jail, or both
   Show answer and explanation

   Correct answer: A $50,000 fine, up to two years less a day in jail, or both

   An individual faces a fine of up to $50,000 and/or imprisonment for up to two years less a day; a corporation faces up to $250,000. $25,000 is the Discipline Panel's maximum fine.

   Based on: Motor Vehicle Dealers Act, 2002, s. 32(3); checked 2026-10-24

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8. What is the maximum fine for a corporation convicted under the Consumer Protection Act?

   1. $50,000
   2. $250,000
   3. $25,000
   4. $100,000
   Show answer and explanation

   Correct answer: $250,000

   A corporation can be fined up to $250,000. An individual can be fined up to $50,000 and/or jailed for up to two years less a day.

   Based on: Consumer Protection Act, 2002, s. 116(5); checked 2026-10-24

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9. The dealer that sold the car also sells its own uninsured warranty. What letter of credit must it give the Fund?

   1. $250,000
   2. $100,000
   3. $500,000
   4. $50,000
   Show answer and explanation

   Correct answer: $100,000

   The irrevocable letter of credit is $100,000 when the warranty seller is the dealer that sold or leased the vehicle, and $500,000 in any other case.

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

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10. When do dealers send their collected transaction fees to OMVIC?

    1. Only when an OMVIC inspector asks for them during an audit
    2. Within five days after each sale or lease
    3. Once a year, when they renew their registration
    4. At the end of every calendar month
    Show answer and explanation

    Correct answer: Once a year, when they renew their registration

    Transaction fees are remitted once a year with the dealer's registration renewal. There is no per-deal five-day or monthly remittance, and payment does not depend on an inspection.

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

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11. Which is a ground on which the registrar may refuse an application?

    1. The applicant plans to sell only used vehicles
    2. The applicant was born outside Canada
    3. Past conduct suggests the applicant will not act honestly
    4. The applicant has never sold vehicles before
    Show answer and explanation

    Correct answer: Past conduct suggests the applicant will not act honestly

    The registrar may refuse an applicant who is not expected to be financially responsible, whose past conduct suggests they will not act with honesty and integrity, who gave false information or who has not met registration conditions. Inexperience, a used-only business and birthplace are not grounds.

    Based on: Motor Vehicle Dealers Act, 2002, s. 6(1); checked 2026-10-24

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12. What must a salvage vehicle obtain before it can be branded rebuilt?

    1. An OMVIC inspector's written approval of all the repair receipts
    2. A structural inspection certificate following the required authorized inspection
    3. A letter from the insurer cancelling the total loss
    4. A new VIN issued by the Ministry of Transportation
    Show answer and explanation

    Correct answer: A structural inspection certificate following the required authorized inspection

    Ontario currently requires a repaired salvage vehicle to pass the structural inspection at a registered DriveON vehicle inspection centre before rebranding as rebuilt. A safety standards certificate is a separate road-registration requirement where applicable. Receipts or an OMVIC inspection do not replace the structural process.

    Based on: Ontario — Mandatory Vehicle Branding Program, Rebuilt; Salvage; DriveON structural inspection; checked 2026-10-24

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13. When must the buyer receive a copy of the signed sale contract?

    1. When the vehicle is delivered, whenever that is
    2. Immediately after signing it
    3. Only if the buyer asks for a copy in writing
    4. Within five days, by mail or email
    Show answer and explanation

    Correct answer: Immediately after signing it

    The purchaser must receive a copy immediately after signing. The parties sign, and a registered salesperson also signs if acting for the dealer in the sale. The regulation does not allow a five-day delay or make the copy conditional on a written request.

    Based on: O. Reg. 333/08, ss. 39(10), 40(9); checked 2026-10-24

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14. After later non-dealer ownership, what happens to the specific daily-rental-use disclosure rule?

    1. Yes, but only if the car is less than five years old
    2. No, rental use never has to be disclosed in Ontario
    3. Yes, rental history must be disclosed for the life of the car
    4. That specific rule no longer automatically applies
    Show answer and explanation

    Correct answer: That specific rule no longer automatically applies

    Section 42, paragraph 7(i) contains the later-non-dealer-ownership exception. It does not erase other disclosure duties, including material facts under paragraph 25. This is not permission to conceal relevant history whenever a private owner appears in the chain.

    Based on: O. Reg. 333/08, s. 42, paras. 7(i), 25; checked 2026-10-24

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15. An insurer declared a car a total loss, but it was never branded salvage. Must this be disclosed?

    1. No, not if the car now has a current Safety Standards Certificate
    2. No, only the Highway Traffic Act brand matters
    3. Yes, a total loss declaration must be disclosed regardless of brand
    4. Yes, but only if the buyer asks about accidents
    Show answer and explanation

    Correct answer: Yes, a total loss declaration must be disclosed regardless of brand

    The regulation requires disclosure if an insurer declared the vehicle a total loss, whether or not it was classified as irreparable or salvage. A later safety certificate does not remove the requirement.

    Based on: O. Reg. 333/08, s. 42, para. 21; checked 2026-10-24

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16. In which deal is no OMVIC transaction fee payable?

    1. Selling a used vehicle to a consumer on an as-is basis
    2. Selling a demonstrator to a retail buyer
    3. Leasing an ordinary passenger car to a company’s sales team
    4. Sale of the leased vehicle to its existing lessee
    Show answer and explanation

    Correct answer: Sale of the leased vehicle to its existing lessee

    The fee was already paid when the vehicle was leased, so a sale to the lessee during or at the end of the lease is exempt, as is a sale to another registered dealer. As-is, fleet and demonstrator deals all attract the fee.

    Based on: OMVIC — Transaction Fees, Exempt transactions; checked 2026-10-24

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17. 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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18. On a three-member discipline panel hearing a salesperson’s case, which composition meets Code section 14(4)?

    1. Three trade-association officers with no salesperson on the panel
    2. Two qualifying industry members, including a salesperson, and one qualifying independent member
    3. Two salespeople plus a former registered dealer as the independent member
    4. Three inspectors who conducted the original dealership inspection
    Show answer and explanation

    Correct answer: Two qualifying industry members, including a salesperson, and one qualifying independent member

    At least two members must be registrants or officers/directors of a registered dealer; a salesperson’s case requires a salesperson member. At least one member must never have been a registrant, former registrant, or a shareholder, officer, director or employee of one. Merely being currently unregistered does not meet that independent-member condition.

    Based on: O. Reg. 332/08 — Code of Ethics, s. 14(3)–(4); checked 2026-10-24

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19. A dealer includes winter tires and a service plan at no extra charge. What must the contract show?

    1. The dealer's cost of each item, initialled by the buyer
    2. Only a note saying the bonus items were included
    3. A fair description and the retail value of each item
    4. Nothing, because free items are not part of the sale
    Show answer and explanation

    Correct answer: A fair description and the retail value of each item

    Items or inducements included at no additional charge must be itemized with a fair description and their retail value, if any. Section 39(2), paragraph 15 covers these agreed extras; calling something free does not justify leaving it out of the contract.

    Based on: O. Reg. 333/08, s. 39(2), para. 15; checked 2026-10-24

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20. Which listed prior use must a retail used-vehicle contract disclose?

    1. Use by a family for a long road trip
    2. Use by a dealer's employee as a personal car
    3. Use as a commuter car by a single owner
    4. Use as a police cruiser or emergency vehicle
    Show answer and explanation

    Correct answer: Use as a police cruiser or emergency vehicle

    Section 42, paragraph 7 lists police/emergency use and taxi/limousine use. Daily rental has its own later-non-dealer-ownership exception. Other facts can still require disclosure under the general material-fact rule; the list does not make all other use irrelevant.

    Based on: O. Reg. 333/08, s. 42, paras. 7, 25; checked 2026-10-24

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21. Three dealers place a joint ad showing a price. What must the ad also state?

    1. That prices vary daily without notice
    2. That the price is guaranteed at every dealer
    3. That OMVIC has approved the advertised price
    4. That the dealer may sell for less
    Show answer and explanation

    Correct answer: That the dealer may sell for less

    A price ad placed jointly by two or more dealers must say the actual price may be less than advertised, for example "dealer may sell for less". Each dealer in the joint ad is responsible for compliance.

    Based on: O. Reg. 333/08, s. 36(8); checked 2026-10-24

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22. A full-length online vehicle-lease ad allows 16,000 km yearly. Which extra detail must it disclose?

    1. The charge for kilometres over the allowance
    2. The lessee's credit score needed to qualify
    3. The dealer's markup over the money factor
    4. The residual value the dealer expects at auction
    Show answer and explanation

    Correct answer: The charge for kilometres over the allowance

    For a motor-vehicle lease allowance below 20,000 km a year, section 73(2), paragraph 6 requires the excess-kilometre amount or its method of determination. The question specifies an ordinary online ad; section 73(3) has separate rules for limited-space or broadcast media.

    Based on: O. Reg. 17/05, s. 73(2), para. 6; s. 73(3); checked 2026-10-24

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23. Under the MVDA, what is an extended warranty?

    1. An insurance policy that replaces the car if it is stolen
    2. A promise that the vehicle will pass its next annual safety inspection
    3. A plan that covers routine oil changes and tire rotations
    4. An agreement to pay component repair or replacement costs, including labour
    Show answer and explanation

    Correct answer: An agreement to pay component repair or replacement costs, including labour

    The General regulation defines an extended warranty as an agreement by a non-exempt person to pay component repair or replacement costs, including labour, in addition to a warranty supplied or implied by law. It need not begin only when a manufacturer’s warranty expires.

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

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24. An ad says “one private driver since new.” The dealer knows a leasing company rotated the car among many drivers. What is wrong?

    1. A used car can never be advertised with a verified use history
    2. A company-owned vehicle is legally a new vehicle at every resale
    3. The use-history claim misleads the buyer
    4. Leasing companies are legally forbidden from reselling vehicles
    Show answer and explanation

    Correct answer: The use-history claim misleads the buyer

    A single legal owner does not prove a single driver. Here the ad expressly claims one private driver despite known contrary history. CPA section 14 prohibits misleading representations about use and misleading ambiguity; the conclusion does not depend on assuming that every “one-owner” statement is false.

    Based on: Consumer Protection Act, 2002, s. 14(1), (2) paras. 5, 14; checked 2026-10-24

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25. Who must give a buyer a Used Vehicle Information Package?

    1. A private seller, in most private sales
    2. Only a dealer selling a branded vehicle
    3. Every dealer, on every used vehicle sale
    4. The buyer's insurance company
    Show answer and explanation

    Correct answer: A private seller, in most private sales

    ServiceOntario generally requires the seller in a private sale to give the package, subject to listed exceptions such as qualifying family transfers. OMVIC-registered dealerships do not have to provide a UVIP to the buyer. Other dealer disclosure and research duties still apply.

    Based on: ServiceOntario — Used vehicle information package, When you need a package; exceptions; checked 2026-10-24

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26. A buyer orders a new car that the dealer must still locate. What odometer disclosure does the contract need?

    1. The maximum delivery distance, or a buyer-initialled statement that none is set
    2. Nothing about distance, since new vehicles are not driven
    3. The exact odometer reading of the car, filled in by the dealer after delivery
    4. A guarantee that the odometer will read zero when it arrives
    Show answer and explanation

    Correct answer: The maximum delivery distance, or a buyer-initialled statement that none is set

    If the contract does not identify a specific new vehicle, it must state the maximum distance on the odometer at delivery or include a statement, initialled by the buyer, that no maximum is specified. A specific in-stock vehicle needs the maximum distance.

    Based on: O. Reg. 333/08, s. 42, paras. 1–2; checked 2026-10-24

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27. A consumer authorizes the work covered by an $800 estimate. With no separately authorized additional work, what is the statutory ceiling for that work?

    1. $960
    2. $880
    3. $1,000
    4. $800
    Show answer and explanation

    Correct answer: $880

    Section 58(2) prohibits charging more than 10% above the estimate for the estimated work: $800 × 1.10 = $880. Work must still be authorized; this ceiling is not an automatic entitlement to charge extra. The declined-estimate/authorized-maximum route has separate conditions in section 56(2).

    Based on: Consumer Protection Act, 2002, ss. 56(2), 58(1)–(2); checked 2026-10-24

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