What is the primary legislation governing Ontario's retail automotive sector?

Moter Vehicle Dealers Act, 2002

Which body or agency enforces MVDA?

OMVIC

List Three Functions carried out by OMVIC

1) Administers and enforces the MVDA

2) Inspects dealers

3)Maintains a complaint line for consumers

4) Conducts investigations

5) Conducts disciplinary hearings

6) Conducts prosecutions

7) Administers the Compensation Fund

How many people compose OMVICS board of directors? How many dealers ? How many consumers?

12 total

9 dealer

3 consumer

Briefly explain the "Transactional Fee Program"

Under the transaction fee program , dealer are required to remit $10 for each vehicle sold or leased
(included fleet and "as is" transactions ) to OMVIC. These funds are remitted annually with the dealers
registration renewal fee.
True or False: The transaction fee can be passed along to the customer?

True

True or False: Under the Transaction Fee Program, dealers are required to remit $10 (to OMVIC) for each
retail vehicle sold or leased?

True

What information is OMVIC required to make available to the public?

1) A dealer's business name, address and phone number

2) A salespersons name

3) Any proposal to refuse to renew, suspend or revoke the registration of a dealer or salesperson

Should OMVIC determine a dealers advertising to be false or misleading, what powers does OMVIC have
to stop or correct it?

OMVIC may issue an order requiring the dealer to cease publication and/or issue a retraction or
correction

If an order is used to stop or correct false advertising, for how long may the dealer need to seek OMVIC's
pre-approval for future advertising?

Up to 2 years
List two possible situations which could result in OMVIC applying to a court to appoint a receiver and
manager to assume temporary control of a dealership.

This action might be taken if:

1) If there has been an investigation

2) If the dealership is about to fail

3) If OMVIC is proposing to revoke a registration

4) If a freeze order is about to be made

What is the minimum age requirement to become a dealer?

18 years old

List the three requirements that must be met when applying to become a salesperson?

1) Complete/Pass certification course

2) Pay Fee

3) Be employed or retained by a registered dealer to act as a salesperson

True or False: All dealer and salesperson applicants undergo a Canada-wide criminal record search as
part of the application screening process.

True
Which of the following must be registered with OMVIC?

1) Dealers

2) Salesperson

3) Business managers

4) Finance Managers

NOT

1) Service Managers

List two reasons why OMVIC might refuse the registration of a dealer or salesperson?

1) Past conduct

2) False statement on application

3) Failed to comply with terms

4) Cannot be expected to be financially responsible

5) The Compensation Fund has paid out a claim and has not been reimbursed

If a person has been refused registration, what is one condition that has to be met before the person can
reapply?

One of the following:

1) Two years have passed

2) New evidence to demonstrate circumstances have changed

Should OMVIC issue a proposal to refuse (or revoke) registration , to whom can the applicant appeal?
License Appeal Tribunal (LAT)

List the four "classes" of dealers

1) General Dealer

2) Broker

3) Wholesaler

4) Exporter

5) Outside Ontario Dealer

6) Lease finance dealer

7)Fleet Lessor

List three examples of individuals or businesses that are exempt from registration.

1) Wholesale auction

2) Wrecker

3) Person selling a vehicle used for family or for a sole proprietorship business

Name one "change of information" that a dealer must notify OMVIC about.

1) Change of dealers address

2) Changes of officers or directors (if dealer is a corporation or partnership0

3) The date of commencement of employment of every salesperson

4) The termination of employment of a salesperson and the date and reason for termination
In a large dealership, if the dealers principle delegates responsibility for ensuring that salespersons are
registered, this should be delegated to who ?

The Sales Manager

OMVIC can refuse, revoke or suspend registration to a dealer , salesperson or corporation if the financial
responsibility or past conduct of an "interested person in respect of the applicant / registrant" gives
reasonable grounds for it.

Who might OMVIC consider an "interested person" ?

1) Has or may have a beneficial interest in the business

2) Exercises or may exercise control either directly or indirectly over the dealer / salesperson

3) Has provided or may have provided financing either directly or indirectly to the business

Where is the certificate of the dealer registration kept?

Posted so the public is likely to see it

True of False: A salesperson must produce his or her registration certificate for inspection if a customer
asks to see it?

True

True or False: Dealers may sell vehicles from any location, so long as they have registered a head office
with OMVIC
False

List the three requirements for a dealers premises

1) Have a business office (large enough to store records securely)

2) Have a clearly visible sign identifying registered name

3) Be approved for use as a dealership by municipality

How long does the MVDA specify how long a dealer must maintain their records?

They must keep the records for a minimum of 6 years

List four examples of the information (related to vehicles sold or leased ) that must be maintained in a
dealer's records.

1) Employee records, including the names of employees, positions held , dates of employment , how
much each employee is paid and proof of payment

2) A list of "persons associated with the dealer" and the nature of their association

3) Records of all dealership bank accounts and any financing of the business , including loan
agreements , credit arrangements or any security interest granted by the dealer

Which of the following records related to employees must be maintained:

1) Employee names
2) Employee Salaries

3) Proof of Payments

All of the Above

If a dealers records are destroyed or stolen the dealer must notify who?

OMVIC in writing, within 5 days

What must a dealer do if they wish to store records somewhere other then the location from which they
trade?

Apply for and receive written authorization from OMVIC's Registrar

In order for a remote storage location to be approved by OMVIC,which condition must be met?

The location is always accessible to OMVIC staff during normal business hours

True or False: Under the MVDA,2002 all dealers are required to maintain a trust account?

False

Deposits over what amount must be kept in a trust account?

$10,000

True or False: Before issuing a freeze order (freezing the dealers assets or trust funds), OMVIC must first
notify the dealer?
False

On a purchase contract, what must be printed in 14 pt. bold font next to the buyer's signature?

The mandatory "Sales Final" statement

If a dealer does not have a specific new vehicle in stock but will locate the vehicle and bring it in, what
must be disclosed to the purchaser regarding the milage?

A maximum distance that will be shown on the odometer at the time of delivery or a statement
(initialled by the buyer) that there is no maximum

If a Safety Standards Certificate is issued for a vehicle, it means?

The vehicle met certain basic standards of safety on the date of inspection

What does the term "as is" mean ?

The vehicle is not represented as being in roadworthy condition, mechanically sound, or maintained at
any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may
require substantial repairs at the buyer's expense. It may not be possible to register the vehicle to be
driven in its current condition.

What must an "as is" sale include in the contract?

Must include a specific definition of "as is" in the contract

True or False: A dealer selling a vehicle "as is" may also provide a Safety Standards Certificate for the
vehicle?

False
Contracts must have advisory or educational statements designed to inform purchasers /lessees about
their rights and responsibilities and to ensure they know about the existence of certain agencies or
organizations.

What are these organizations / agencies?

1) OMVIC

2) Motor Vehicle Dealers Compensation Fund

3) CAMVAP

If customers give dealers a deposit but do not sign a contract, what rights do they have?

If there is no signed contract and a deposit or trade-in is given to the dealer, the purchaser can cancel
the contract at any time and demand his or her deposit or trade-in back.

List three "previous uses of a vehicle" dealers must disclose

Taxi

Limo

Police Vehicle

Emergency service vehicle

Daily Rental (Unless subsequently owned by someone other than a dealer)

Collision (greater then $3000 in damage)

Fire

Flood

Structural Damage or altercations

True of False: Dealer A buys from a daily rental company, a car previously used in the rental fleet. Dealer
A then sells the car (giving full disclosure of the car's history as a daily rental) to a consumer who buys it
for personal use. A year later, the consumer trades that car in to Dealer B. Dealer B does a history search
and sees the car was once a daily rental. Under Regulation 42 of the MVDA, when Dealer B sells this car
to another customer they are not required to inform the customer of the cars previous use as a daily
rental.

True

True or False: If a vehicle was declared a total loss in a collision, but has since been repaired and received
a structural safety certificate and a Safety Standards Certificate (SSC) from an authorized repair centre ,
the dealer does not need to notify a purchaser of the previous damage.

False

Which of the following must be disclosed:

1) The replacement of any single body panel excluding bumper covers

2) The replacement of two or more adjacent body panels

The replacement of two or more adjacent body panels

Dealers must disclose known damage repairs in excess of how much ?

$3,000

True or False: A dealer does not have to inform a purchaser that a vehicle's manufacturers warranty has
been cancelled, so long as the dealer offers or sells the purchaser an extended warranty

False

True or False: If a dealer knows the odometer of a vehicle is inaccurate, and cannot provide any
indication of what the true milage

might be, they must write on the contract "TMU" (Which stands for "true milage unknown"

False

Which of the following must be disclosed

1) A vehicle was previously registered, in another province, state, or country

2) A vehicle's anti lock braking system is not functioning

3) A vehicles air conditioning system requires repair

4) All of the above

All of the above

Clear, comprehensible and prominent

Give two examples of steps dealers can take to ensure they know the history of vehicles they buy or
accept in trade.

1) Use a vehicle history report

2)Understand the strength and weaknesses of the various vehicle history reports

3) Thoroughly examine the vehicles

The MVDA remedy of rescission (cancellation of a sales contract) is available only to a customer who is a
"consumer"?

False

Rescission is only granted automatically for failing to disclose what?

1) The make, model, and year of the vehicle

2) The vehicle was previously a taxi or limo

3) The vehicle has been branded

There are three disclosure requirements that, if not met trigger a customer's rescission rights. What are
they?
Recession is triggered if the following is not disclosed:

1) Previous use as police/emergency services vehicle

2) Previous use as daily rental (unless subsequently owned by someone other than a dealer0

3) Mileage / distance travelled

True or False: The remedy of rescission is available to a customer who is also a dealer.

False