Ch.1 - What is the primary legislation governing Ontario's retail automotive sector?

The Motor Vehicle Dealers Act, 2002

see 1.04
Ch.1 - Which body or agency enforces the MVDA?

a. Ministry of Government and Consumer Services

b. TADA
c. OMVIC
d. Automotive Business School of Canada
c. OMVIC

see 1.04
Ch.1 - List three functions carried out by OMVIC.
Any three of the following:
- Administers and enforces the MVDA
- Inspects dealers
- Maintains a complaint line for consumers
- Conducts investigations
- Conducts disciplinary hearings
-Conducts prosecutions
- Administers the Compensation Fund

see 1.07
Ch.1 - How many people compose OMVIC's Board of Directors? Of these, how many
represent the industry and how many represent the consumers?
Twelve total, nine dealers and three consumer reps

see 1.07
Ch.1 - Briefly explain the "Transaction Fee Program."
Under the transaction fee program, dealers are required to remit $10 for each vehicle
sold or leased (including fleet and "as is" transactions) to OMVIC. These funds are
remitted annually with the dealer's registration renewal fee.

see 1.08
Ch.1 - True of False: Under the Transaction Fee Program, dealers are required to remit
$10 (to OMVIC) for each retail vehicle sold or leased.
True

see 1.08
Ch.1 - True or False: The transaction fee can be passed along to the customer.
True

see 1.08
Ch.1 - What information is OMVIC required to make available to the public?
a. A dealer's business name, address and phone number
b. A Salesperson's name
c. Any proposal to refuse to renew, suspend or revoke the registration of a dealer or a
salesperson
d. All of the above
d. All of the above

see 1.12
Ch.1 - Should OMVIC determine a dealer's 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
retractions or correction.

see 1.12
Ch.1 - 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 two years

see 1.09
Ch.1 - 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 there has been an investigation
- If the dealership is about to fail
- If OMVIC is proposing to revoke a registration
- If a freeze order is about to be made

see 1.10
Ch.2 - What is the minimum age requirement to become a dealer?
18

see 2.05
Ch.2 - List three requirements that must be met when applying to become a
salesperson.
Three requirements are:
- Complete/pass certification course
- Pay fee
- Be employed or retained by a registered dealer to act as a salesperson

see 2.07
Ch.2 - True or False: All dealer and salesperson applicants undergo a Canada-wise
criminal record search as part of the application screening process.
True

see 2.03
Ch.2 - Which of the following must be registered with OMVIC (select all that apply):

a. Dealers
b. Salespersons
c. Business managers
d. Finance managers
e. Service managers
a. Dealers
b. Salespersons
c. Business managers
d. Finance managers

see 2.04
Ch.2 - List two reasons why OMVIC might refuse the registration of a dealer or
salesperson.
Any two of:
- Past conduct
- False statement on application
- Failed to comply with terms
- Cannot be expected to be financially responsible
- The Compensation Fund has paid out a claim and has not been reimbursed

see 2.05 and .10

Ch.2 - 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:
- Two years have passed
- New evidence to demonstrate circumstances have changed

see 2.13
Ch.2 - Should OMVIC issue a proposal to refuse (or revoke) registration, to whom can
the applicant appeal?
License Appeal Tribunal (LAT)

see 2.12
Ch.2 - List four "classes" of dealers.
Any four classes listed in 2.16

- General dealer, consisting of the following subclasses

++ New and used motor vehicles
++ Used motor vehicles
- Broker
- Wholesaler
- Exporter
- Outside Ontario dealer
- Lease finance dealer
- Fleet lessor, O. Reg. 333/08, s. 18(1), O. Reg 377/09, s 2.

see 2.16
Ch.2 - List three examples of individuals or business that are exempt from registration.
Any three from 2.14

1. Wholesale auction
2. Wrecker
3. Person selling a vehicle used for family or for a sole proprietorship business.
4. Selling a power-assisted bicycle equipped with both a pedal and auxiliary motor.
5. Registered charity
6. Heavy truck dealer
7. Bus or commercial vehicle dealer
8. Person selling under a court order as a liquidator, a receiver, a trustee in bankruptcy
or the executor (trustee) of an estate.
9. Lawyer
10. Car rental agency
11. Not-for-profit corporation that provides information to persons to assist with trade
12. Company acquiring vehicles for business use
13. Creditors and their agents
14. Insurance company
15. Manufacturer or authorized distributor

see 2.14
Ch.2 - Name on "change of information" that a dealer must notify OMVIC about.
Any of the following:
- Change of dealer address
- Changes of officers or directors (if dealer is a corporation or partnership)
- The date of commencement of employment of every salesperson
- The termination of employment of a salesperson and the date and reason for
termination

see 2.19
Ch.2 - Please choose the most correct answer:

In a large dealership, if the dealer principal delegates responsibility for ensuring that
salespersons are registered, this should be delegated to:

a. The bookkeeper
b. Thesalesperson
c. The sales manager
d. The payroll supervisor
c. The sales manager

see 2.08
Ch.2 - 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"?
An interested person:
- Has or may have a beneficial interest in the business
- Exercises or may exercise control either directly or indirectly over the
dealer/salesperson
- Has provided or may have provided financing either directly or indirectly to the
business

see 2.11
Ch.2 - Where is the certificate of the dealer registration kept?
Posted so the public is likely to see it

see 2.09
Ch.2 - True of False: A salesperson must produce his or her registration certificate for
inspection if a customer asks to see it.
True

see 2.09
Ch.2 - In your own words describe:

a. Both classes of General Dealers

b. Three other classes
a. General dealer, consisting of the following subclasses
++ New and used motor vehicles
++ Used motor vehicles

- Broker
- Wholesaler
- Exporter
- Outside Ontario dealer
- Lease finance dealer
- Fleet lessor, O. Reg. 333/08, s. 18(1), O. Reg 377/09, s 2.

see 2.16
Ch.3 - True or False: Dealers may sell vehicles from any location, so long as they have
registered a head office with OMVIC.
False

see 3.04
Ch.3 - List two requirements for a dealer's premises.
Any two of:
- Have a business office (large enough to store records securely)
- Have a clearly visible sign identifying registered name
- Be approved for use as a dealership by municipality

see 3.04
Ch.3 - The MVDA specifies the records a dealer must maintain.
True or False: These records must be kept for at least six years.
True

see 3.05
Ch.3 - List four examples of the information (related to vehicles sold or leased) that
must be maintained in a dealer's records.
Any four points from 3.05 1
Ch.3 - Which of the following records related to employees must be maintained:

a. Employee names
b. Employee salaries
c. Proof of payments
d. All of the above
d. All of the above

see 3.05
Ch.3 - Choose the most correct answer. If a dealer's records are destroyed or stolen,
the dealer must notify:

a. The OMVIC inspector when he or she arrives for the next scheduled inspection
b. OMVIC, in writing, within five days
c. An OMVIC investigator within 30 days
d. The Ministry of Government and Consumer Services, in writing, within 10 days
b. OMVIC, in writing, within five days

see 3.05
Ch.3 - What must a dealer do if they wish to store records somewhere other than the
location from which they trade?
Apply for and receive written authorization from OMVIC's Registrar.

see 3.05
Ch.3 - In order for a remote storage location to be approved by OMVIC, which condition
must be met?

a. The location has a security system

b. The location is always accessible to OMVIC staff during normal business hours
c. The location is in the same municipality as the dealer's registered address
d. All of the above
b. The location is always accessible to OMVIC staff during normal business hours

see 3.05
Ch.3 - True of False: Under the MVDA, all dealers are required to maintain a trust
account.
False

see 3.07
Ch.3 - Deposits over what amount must be kept in a trust account?

a. $1,000
b. $5,000
c. $10,000
d. No amount of deposit needs to be placed in a trust account
c. $10,000

see 3.07
Ch.3 - True or False: Before issuing a freeze order (freezing the dealer's assets or trust
funds), OMVIC must first notify the dealer.
False

see 3.08
Ch.4 - On a purchase contract, what must be printed in 14 pt. bold font next to the
buyer's signature?
The mandatory "Sales Final" statement

see 4.04 19. or 4.05 17.

Ch.4 - List four items that must be in a contract for the sale of a new vehicle.
Any four from 4.04.
Ch.4 - 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 mileage?
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.

see 4.04 9.
Ch.4 - List four items that must be included in contracts for the sale of a used vehicle.
Any four from 4.05.
Ch.4 - If a Safety Standards Certificate is issued for a vehicle, it means:

a. The vehicle is safe and guaranteed free of mechanical defects

b. The vehicle met certain basic standards of safety on the date of inspection
c. The vehicle is safe and has a 36-day warranty
b. The vehicle met certain basic standards of safety on the date of inspection

see 4.05 22.

Ch.4 - What does the term "as is" mean?
"As Is": The vehicle is not represented as being in road worthy 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.

see 4.05 23.

Ch.4 - Choose the most correct answer. An "as is" sale...

a. Is not legal to a "consumer"

b. Does not require the buyer to initial the words "as is"
c. Must have the buyer write an explanation of "as is"
d. Must include a specific definition of "as is" in the contract
d. Must include a specific definition of "as is" in the contract

see 4.05 23
Ch.4 - True or False: A dealer selling a vehicle "as is" may also provide a Safety
Standards Certificate for the vehicle.
False

see 4.05 23
Ch.4 - Other than the information that identifies the consigner, dealer and vehicle, list
three details that must be included in consignment contracts.
Any four from 4.08 4. - 11.
Ch.4 - 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?
The agencies are:
- OMVIC
- Motor Vehicle Dealers Compensation Fund
- CAMVAP

see 4.04 20. - 21. or 4.05 18. - 19. or 4.06 8. - 9.

Ch.4 - If customers give dealers a deposit but don't 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.

see 4.12
Ch.5 - List three "previous uses of a vehicle" dealers must disclose.
Any three of:
- Taxi
- Limo
- Police vehicle
- Emergency services vehicle
- Daily rental (unless subsequently owned by someone other than a dealer)
see 5.06
Ch.5 - List three types of incident damage that must be disclosed.
Any three of:
- Collision (greater than $3,000 damage)
- Fire
- Flood
- Structural damage or alterations

see 5.06 5., 10. -12.

Ch.5 - True or 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 car's previous use
as a daily rental.
True

see 5.06 4.
Ch.5 - 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

see 5.06 8.
Ch.5 - Which of the following must be disclosed?

a. The replacement of any single body panel (excluding bumper covers)

b. The replacement of two or more adjacent body panels (excluding bumper covers)
c. The repainting of two or more adjacent body panels (excluding bumper covers)
b. The replacement of two or more adjacent body panels (excluding bumper covers)

see 5.06 8.
Ch.5 - Dealers must disclose known damage repairs in excess of:

a. $2,000
b. $3,000
c. $5,000
d. $10,000
b. $3,000

see 5.07
Ch.5 - True or False: A dealer does not have to inform a purchaser that a vehicle's
manufacturer's warranty has been cancelled, so long as the dealer offers or sells the
purchaser an extended warranty.
False

see 5.06 9.
Ch.5 - True or False: If a dealer knows the odometer of a vehicle is inaccurate, and
cannot provide any indication of what the true mileage might be, they must write on the
contract "TMU" (which stands for "true mileage unknown").
False

see 5.06 18.

Ch.5 - Which of the following must be disclosed (select all that apply)?

a. A vehicle was previously registered, in another province, state or country

b. A vehicle's anti-lock braking system is not functioning
c. A vehicle's airbags are missing
d. A vehicle's air conditioning system requires repair
e. All of the above
e. All of the above

see 5.06 12. - 15.

Ch.5 - Disclosure must be provided in a timely manner, in writing, and be presented in a
way that is:

a. Easy, precise and fair

b. Clear, comprehensible and prominent
c. Apparent, logical and friendly
b. Clear, comprehensible and prominent

see 5.09
Ch.5 - Give two examples of steps dealers can take to ensure they know the history of
vehicles they buy or accept in trade.
Any two of:
- Use a vehicle history report
- Understand the strengths and weaknesses of the various vehicle history reports
- Thoroughly examine the vehicles

see 5.07
Ch.6 - True of False: The MVDA remedy of rescission (cancellation of a sales contract)
is available only to a customer who is a "consumer."
False

see 6.05
Ch.6 - Dealers are required to disclose all the information set out below (a - f); however,
rescission is only granted automatically for failing to disclose three of them. Which are
they?

a. The make, model and model year of the vehicle

b. The vehicle is missing things
c. The vehicle was previously a taxi or limo
d. The vehicle's manufacturer's warranty has been cancelled
e. The vehicle has been branded
f. The vehicle was involved in a collision
a. The make, model and model year of the vehicle
c. The vehicle was previously a taxi or limo
e. The vehicle has been branded

see 6.05
Ch.6 - There are three other disclosure requirements that, if not met, trigger a
customer's rescission rights. What are they?
Rescission is triggered if the following is not disclosed:
- Previous use as police/emergency services vehicle
- Previous use as daily rental (unless subsequently owned by someone other than a
dealer)
- Mileage/distance travelled

see 6.05
Ch.6 - True of False: The remedy of rescission is available to a customer who is also a
dealer.
False

see 6.04
Ch.6 - Under the MVDA, a customer is entitled to rescission has how long to request
cancellation?

a. 30 days
b. 90 days
c. 180 days
d. One year
b. 90 days

see 6.06
Ch.6 - True or False: Consumers may also have up to one year to request rescission
under the Consumer Protection Act.
True

see 6.07
Ch.6 - What is the margin of error allowed to a dealer who provides the distance driven
(odometer reading) or who cannot determine the total distance driven, but can
determine the distance driven as of some past date?
A margin of error is allowed to a dealer when he or she determines the total distance
driven or when he or she cannot determine the total distance driven, but can determine
the distance driven as of some past date. The disclosure of distance made by the dealer
is deemed to be accurate if it is within the LESSER of five percent or 1,000 km of the
correct distance required to be disclosed.
Ch.6 - True or False: If the dealer "inflated" the selling amount of a vehicle and the
dollar amount of a trade-in, and the contract ends up being rescinded, the dealer would
have to return the inflated trade-in dollar amount.
True

see 6.06
Ch.6 - True or False: Customers cannot rescind a contract if the dealer was unaware of
a vehicle's true history, or honestly believed the disclosure given to be accurate.
False

see 6.06 2
Ch.7 - Check any statement that is correct (there may be more than one correct
statement):

When selling to another dealer:

a. Selling dealers must disclose previous use as a taxi, police vehicle, etc.
b. Selling dealers must disclose damage repairs in excess of $3,000
c. Selling dealers must disclose if the vehicle has two or more adjacent panels (that are
not bumper panels) that have been replaced
d. Selling dealers are not required to make disclosures in wholesale transactions
a. Selling dealers must disclose previous use as a taxi, police vehicle, etc.
b. Selling dealers must disclose damage repairs in excess of $3,000
c. Selling dealers must disclose if the vehicle has two or more adjacent panels (that are
not bumper panels) that have been replaced

see 7.04
Ch.7 - Are the requirements for the sale or lease of a vehicle to another dealer in the
MVDA the General Regulations or the Code of Ethics Regulations?
Code of Ethics Regulations

see 7.03
Ch.7 - Provide two potential facts related to a vehicles history that must be disclosed in
dealer-to-dealer sales and leases.
Any two from 7.04.
Ch.7 - True or False: In dealer-to-dealer transactions, the following disclosure is not
required as it is for retail transactions only - any fact about the vehicle that affects the
structural or mechanical quality or performance of the vehicle that, if disclosed, could
reasonably be expected to influence the decision of a reasonable buyer or lessee to buy
or least the vehicle.
False

see 7.04
Ch.7 - When selling to another dealer, what must the selling dealer do if he/she cannot
determine the distance the vehicle has been driven?
If the dealer cannot determine the total distance the vehicle has been driven, but can
determine the distance the vehicle has been driven as of some past date, provide a
statement of that distance and date, together with a statement that "the total distance
the vehicle has been driven is believed to be higher."

If the dealer cannot determine the total distance the vehicle has been driven, nor the
distance the vehicle has been driven as of some past date, provide a statement that
"the total distance the vehicle has been driven is unknown and may be substantially
higher than the reading shown on the odometer."

see 7.04 2., 3.

Ch.7 - Check any statement that is correct:

A contract for sale or least of a vehicle between dealers:

a. Must disclose specific information to comply with the Code of Ethics Regulations
b. Must disclose exactly the same information required in the sale of a vehicle to a
purchaser who is a consumer
c. Must disclose a statement as to whether CAMVAP is available
d. Is subject to the provisions of the Consumer Protection Act
a. Must disclose specific information to comply with the Code of Ethics Regulations

see 7.04
Ch.8 - If a dealer's advertisement contains a price for a vehicle, that price must include:

a. Administration fees
b. Taxes (unless ad states in a clear, comprehensible and prominent manner that taxes
are not included)
c. Freight and PDI
d. "Other" mandatory fees such as documentation fees, window-etching fees, SSC fees,
etc.
e. All of the above
e. All of the above

see 8.06
Ch.8 - True or False: If an advertisement is for a vehicle that was previously used as a
police vehicle, that information must be prominently displayed in the ad.
True

see 8.05 or 8.12

Ch.8 - True or False: If an advertisement is for a vehicle of the current model year, but
the vehicle is used, the ad must clearly state the vehicle is used.
True

see 8.05 or 8.12

Ch.8 - If OMVIC believes a dealer's advertisement to be false, misleading or deceptive,
it can:

a. Take the dealer to the LAT

b. Sue the dealer for misrepresentation
c. Order the dealer to issue a retraction or correction
c. Order the dealer to issue a retraction or correction

see 8.03 or 8.14

Ch.8 - Dealers found in breach of the advertising regulations may have to have their ads
pre-approved by OMVIC for a period of up to:

a. Six months
b. One year
c. 18 months
d. Two years
d. Two years

see 8.03 or 8.14

Ch.9 - Extended warranties must be backed or guaranteed financially to ensure their
viability. List two methods by which this backing can be provided.
Warranties can be backed by:
- An insurance company licenced under the Insurance Act
- An irrevocable letter of credit to the Compensation Fund

see 9.03 or 9.04 1.

Ch.9 - If a dealer wishes to offer their own uninsured extended warranty, they must
provide to the Compensation Fund an irrevocable letter of credit in the amount of:

a. $100,000
b. $250,000
c. $500,000
d. $1,000,000
a. $100,000

see 9.04 1.b) i)

Ch.9 - Provide three pieces of information related to the coverage offered by the
warranty that must be included in the warranty contract.
Any three from 9.04 4 (k - r).
Ch.9 - Dealers must sent all payments and documents detailing the contract to the
warranty company within:

a. Two days
b. Seven days
c. Two weeks
d. 30 days
b. Seven days

see 9.04 7 . b) iii)

Ch.9 - True or False: Service plans must be backed by an insurance company.
False

see 9.05 1.f)

Ch.9 - Contract for service plans must disclose in a clear, comprehensible and
prominent manner:

a. The goods and services provided under the plan and a specific description for each
item listed
b. All restrictions, limitations and conditions
c. The locations at which the vehicle can be serviced
d. Information stating whether or not the service plan is transferable
e. All of the above
e. All of the above

see 9.05
Ch.10 - OMVIC inspectors must give how much notice before visiting/inspecting a
dealer:

a. 24 hours' notice
b. 48 hours' notice
c. Seven days' notice
d. None
d. None

see 10.04
Ch.10 - True or False: An OMVIC inspector has the right to access dealer records, but
not the vehicles on the dealer's lot.
False

see 10.04
Ch.10 - True or False: If an OMVIC inspector asks for assistance from the dealer, there
is no legal obligation for the dealer to help.
False

see 10.04
Ch.10 - True or False: The inspector cannot remove anything from the dealer without
the dealer's permission or a warrant.
False

see 10.04
Ch.10 - What is the main difference between an OMVIC "inspector" and an
"investigator"?
Inspectors are somewhat similar to an auditor. They have the right to inspect a dealer's
premises, records and vehicles.

Investigators are somewhat similar to a police officer. They conduct investigations

based on complaints and allegations and can lay charges if warranted.

see 10.03
Ch.10 - Choose the most correct answer:
The OMVIC inspector:
a. Can remove a document or a disk only if the inspector has a search warrant
b. May copy a document only if the dealer agrees
c. May use the dealer's own computer system to produce required information
d. Cannot demand assistance from the dealer if the inspector wants to make use of the
dealer's computer system
c. May use the dealer's own computer system to produce required information

see 10.04
Ch.10 - Provide two sources of information that might trigger an investigation.
Any two of the following:
- OMVIC inspectors
- Consumer complaints
- Police
- Government ministries/agencies
- Other dealers

see 10.06
Ch.11 - What is a "curbsider"?
Curbsiders are unlicensed dealers. They are in the business of selling cars but pose as
private sellers.

see 11.03
Ch.11 - What are common problems with the vehicles curbsiders sell?
Often the cars curbsiders sell are misrepresented, accident-damaged, odometer-
tampered, stolen or have liens.

see 11.03
Ch.11 - Studies have shown the percentage of "private" vehicle ads that are actually
placed by curbsiders is:

a. Five per cent

b. 10 per cent
c. 20 per cent
d. 25 per cent
d. 25 per cent

see 11.03
Ch.11 - Curbsiders:

a. Ignore tax laws

b. Avoid overhead
c. Have an unfair advantage over registered dealers
d. All of the above
d. All of the above

see 11.03
Ch.11 - List three steps a dealer can take to avoid selling vehicles to curbsiders.
Three steps are:
- Register the vehicle in the buyer's name
- Check the garage register looking for individual buyer of multiple vehicles
- Establish a zero-tolerance policy

see 11.04
Ch.12 - Is the Compensation Fund available to all customers, or only customers who
are considered "consumers"?
Consumers only

see 12.03
Ch.12 - How much does each salesperson pay into the Fund?
Nothing

see 12.04
Ch.12 - How much does each dealer pay into the Fund?
$324

see 12.04
Ch.12 - True or False: The maximum individual claim from the Fund is $15,000.
False

see 12.05
Ch.12 - List three types of valid claims against the Fund.
Any three from 12.05
Ch.12 - True or False: The Fund is similar to an insurance policy, so a dealer does not
have to reimburse the Fund should the Fund pay out a claim on behalf of a dealer.
False

see 12.07
Ch.12 - Choose the correct answer:

a. The maximum individual claim is $45,000

b. A claim can be made only if the dealer is bankrupt or insolvent
c. A salesperson makes a one-time payment into the Fund
d. Dealers pay $300 to the Fund each year
a. The maximum individual claim is $45,000

see 12.04 and 12.05

Ch.13 - "Not all customers are consumers, but all consumers are customers." Explain
the difference between a consumer and a customer.
A "customer" is anyone who buys, leases or receives services from a dealer and may
be an individual acting for personal, family or household purposes, an individual acting
for business purposes (such as a sole proprietor) or a corporation.

A "consumer" also buys, leases or receives services from a dealer; however, a

consumer is someone acting for personal, family or household purposes only, NOT an
individual acting for business purposes or a corpration.
Ch.13 - True or False: The CPA protects "consumers" only.
True

see 13.04
Ch.13 - True or False: Protections under the CPA would apply to a carpenter buying a
van for his or her small carpentry business.
False

see 13.04
Ch.13 - True or False: The CPA covers sales but not leases, and not services such as
repairs.
False

see 13.03
Ch.13 - True or False: The consumer can waive their rights under the CPA, but this
must be in writing.
False

see 13.03
Ch.13 - Penalties for breaching the CPA can be severe. What is the maximum penalty
for an individual convicted of an offence under the CPA?
A maximum of two years less a day in jail and/or a fine of up to $50,000

see 13.05
Ch.13 - True or False: In matters related to the CPA, courts will only consider evidence
that is written into the contract.
False

see 13.08
Ch.13 - True or False: If a consumer defaults on a loan/payment schedule but has paid
off more than two-thirds of the total purchase price, the dealer must get permission from
the court to repossess the vehicle.
True

see 13.07
Ch.13 - The two "types" of unfair practices are (choose two):

a. Unconscionable representations
b. Ambiguous representations
c. Disingenuous representations
d. False, misleading or deceptive representations
a. Unconscionable representations
d. False, misleading or deceptive representations

see 13.11
Ch.13 - Provide three examples of a "false, misleading or deceptive practice."
Any three of the following (there may be others as well):
- Failing to disclose a "material fact" (e.g., not informing a customer of structural
damage to the vehicle)
-Deceiving a customer by distorting a "material fact' (using exaggeration, hints or double
meanings)
- Telling the customer the car can perform in a way that it cannot, or is still under a
manufacturer's warranty if it is not
- Saying the vehicle is of a particular model, style, quality or grade if it is not
- Telling the customer that the vehicle or a part is new (or unused) if it's not
- Seriously understating the distance the vehicle has been driven or the amount of use it
has had.
- Selling a repair, replacement, service or part that is not needed
- Saying there is a specific price advantage if this is not true (e.g., "The price will go up
on Monday morning!")
- The dealer or salesperson misrepresents the authority of some employee to negotiate
the final terms of the agreement
- The dealer or salesperson misrepresents the purpose of an additional charge
Ch.13 - What is the essential element of an "unconscionable representation"?
Demonstrating a lack of conscience; taking advantage of a consumer who cannot
adequately protect his or her own interests

see 13.11
Ch.13 - Choose the most correct answer.

An unconscionable representation:
a. May involve taking advantage of a consumer who cannot protect his or her own
interests
b. Involves a customer who has no conscience
c. Must involve selling a vehicle at a price that is ridiculously high
a. May involve taking advantage of a consumer who cannot protect his or her own
interests

see 13.11
Ch.13 - Provide three examples of an "unconscionable representation."
Any three of the following representations in which:
- The consumer cannot protect his or her own interests (perhaps because of a disability,
illiteracy, impairment, etc.)
- The price grossly exceeds the price that should be charged
- The dealer or salesperson put too much pressure on the consumer
- The consumer has no possibility of meeting the payments
- This is an absolutely poor deal for the consumer (and is one-sided, excellent deal for
the dealer)
- The dealer or salesperson gave a misleading opinion and the consumer relied on that
opinion to his or her detriment
Ch.13 - Explain "material fact."
Material fact is information that might affect a customer's decision to purchase or lease
the vehicle if he or she knew about it, or the price the customer would be willing to pay.

see 13.12
Ch.13 - List four pieces of information that must be included in an Initial Disclosure
Statement.
Any four from 13.14
Ch.13 - List four pieces of information that must be included in a Lease Disclosure
Statement.
Any four from 13.16
Ch.13 - True or False: If a dealer acted in good faith and unknowingly breached the
CPA, the consumer is no longer protected by the CPA.
False

see 13.13
Ch.14 - Motor vehicle repairs are governed by which Ontario legislation?

a. Motor Vehicle Repair Act

b. Consumer Protection Act
c. Motor Vehicle Dealers Act
d. None of the above
b. Consumer Protection Act

see 14.03
Ch.14 - True or False: Dealers/repairers must provide estimates for repairs.
True

see 14.04
Ch.14 - True or False: Final repair costs may not exceed the estimate by more than 10
per cent.
True

see 14.04
Ch.14 - List five pieces of information that must be on all repair invoices.
Any five from 14.05
Ch.14 - If a repair involves the installation of new or reconditioned parts, which of the
following statements is most correct?

a. The minimum warranty on repairs is 90 days or 5,000 km (whichever comes first)

b. The minimum warranty on repairs is 180 days or 10,000 km (whichever comes first)
c. There is no warranty on repairs unless it is written on the repair invoice
a. The minimum warranty on repairs is 90 days or 5,000 km (whichever comes first)

see 14.04
Ch.14 - Choose the most correct answer.

When the dealer replaces a part:

a. The consumer can have the old part returned if the consumer asks for it
b. The dealer must offer the old part to the consumer
c. The dealer must warn the consumer that the part is greasy and dirty
d. The dealer can keep the old part
b. The dealer must offer the old part to the consumer

see 14.04
Ch.14 - If the dealer/repairer is seeking authorization for repairs by phone, they must
document four pieces of information. What are they?
The four pieces of information are:
-The name of the person authorizing
His or her phone number
-The date of the call
-The time of the call

see 14.04
Ch.14 - Dealers must post a sign stating:

a. Labour charges and how they are computed

b. The dealer's obligation to provide estimates
c. That each part removed is available to the consumer
d. All of the above
d. All of the above

see 14.04
Ch.15 - Explain four techniques that can be used to determine or research the distance
a vehicle has been driven.
Any four of the following:
- Do a thorough physical examination of the vehicle
- Be suspicious if the mileage seems particularly low for the age or condition of the
vehicle.
- Check service records and oil-change stickers, or call the garage or dealer that
previously worked on the vehicle
- Contact the vehicle's previous owners
- Check the manufacturer's warranty records
- Consult vehicle history products
- Check with the Ontario Ministry of Transportation. The Used Vehicle Information
Package (UVIP) may contain odometer readings, as will transfer documents.

see 15.05
Ch.15 - Why should a dealer do a lien check on a vehicle that is being taken in on
trade?
To protect the dealer and to ensure the dealer does not subsequently sell a vehicle with
a lien.

see 15.06
Ch.15 - Is it possible for more than one party to hold a lien on the same vehicle?
Yes

see 15.06
Ch.15 - If a dealer agrees to pay out a lien on a customer's trade-in, the lien must be
paid out:

a. Within five business days

b. Within two weeks
c. Any time prior to reselling the vehicle
d. Immediately
d. Immediately

see 15.06
Ch.15 - True or False: If a dealer pays out a lien on a customer's trade-in, he or she
must give the customer a copy of the release letter from the financial institution.
True

see 15.06
Ch.15 - True or False: A customer should do a lien check on vehicle being purchased
from a dealer
False

see 15.06
Ch.16 - Explain the "merchantable quality" as it relates to a used vehicle.
A used vehicle of merchantable quality has no hidden defects and will provide
reasonable transportation for a reasonable period of time.

see 16.03
Ch.16 - True or False: The Sale of Goods Act covers repairs.
False

see 16.03
Ch.16 - Purchases are entitled to "quiet possession" of their vehicles. If a dealer
innocently sold a consumer a vehicle that subsequently turned out to be stolen and was
seized by the police, what should the dealer do?
Return the purchaser's money and contact the seller of the vehicle to seek a refund of
the money paid by the dealer. The dealer may also contact OMVIC for assistance.

see 16.03
Ch.16 - Select all that apply: Under the Sale of Goods Act, vehicles sold must:

a. Provide reasonable transportation for a reasonable period of time

b. Be covered by a 30-day warranty
c. Be fit for the purpose for which they are intended
d. Be covered by a 90-day warranty
a. Provide reasonable transportation for a reasonable period of time
c. Be fit for the purpose for which they are intended

see 16.03
Ch.16 - True or False: The Sale of Goods Act does not apply to vehicles sold "as is."
False

see 16.04
Ch.16 - Provide three examples of "conditions" customers may want included in the
contract.
The following are examples of conditions customers may want to include, but there may
be many others:
- Financing approval
- Finding affordable insurance
- Spouse, partner, parent approval
- Equipment to be added
- Repairs to be conducted

see 16.05
Ch.16 - What rights do customers have if they give a deposit or trade-in to a dealer, but
no written contract was signed?
The customer may demand the return of the deposit or trade-in vehicle and the dealer
shall immediately return the deposit or the trade-in vehicle.

see 16.06
Ch.16 - The "cooling-off period" when a customer signs a contract to purchase a vehicle
from a registered dealer is:

a. 24 hours
b. 48 hours
c. 10 days
d. There is no "cooling-off period"
d. There is no "cooling-off period"

see 16.07
Ch.16 - True or False: If the customer enters into the contract but refuses to complete
the sale, the dealer can keep 100 per cent of any deposit, regardless of the amount.
False

see 16.07
Ch.16 - List two costs/expenses that a dealer can deduct from a deposit if the purchaser
backs out of the deal.
The following are examples of expenses that can be deducted from a deposit, but there
may be many others:
- Further advertising
- Storage
- Another Safety Standards Certificate (SSC)
- Another detailing
Ch.17 - True or False: The Code of Ethics Regulations are guidelines or "best practices"
but do not have any real legal authority.
False

see 17.03
Ch.17 - Dealers and salespeople are required to conduct business in accordance with
the law and with (select all that apply):

a. Integrity
b. Honesty
c. Fairness
d. Passion
a. Integrity
b. Honesty
c. Fairness

see 17.04 7.b)

Ch.17 - Failure to abide by the Code of Ethics Regulations can result in :
a. Revocation of registration
b. Refusal to grant or renew registration
c. A disciplinary hearing
d. All of the above
d. All of the above

see 17.03
Ch.17 - True or False: If the Discipline Panel decides that a dealer or salesperson failed
to comply with the Code of Ethics Regulations, the committee may impose a maximum
fine of $10,000.
False (the maximum fine is $25,000)
Ch.17 - Other than a fine, what other penalties might the Discipline Committee impose?
The Discipline Committee can also order:
- The dealer or salesperson to take further educational courses
- The dealer to pay for educational courses for its salespeople
- The dealer or salesperson to pay costs

see 17.06
Ch.17 - True or False: An "order" of the OMVIC Discipline Committee is final and cannot
be appealed.
False

see 17.06
Ch.17 - Choose the two correct answers:

a. A Salesperson must not do anything that causes the dealer to break the Code of
Ethics Regulations
b. A salesperson must ensure that the dealer does not break the Code of Ethics
Regulations
c. The dealer must ensure the salesperson complies with the Code of Ethics
Regulations
d. While it is good to follow the Code of Ethics Regulations, this is not required by any
law
a. A Salesperson must not do anything that causes the dealer to break the Code of
Ethics Regulations
c. The dealer must ensure the salesperson complies with the Code of Ethics
Regulations

see 17.04
Ch.18 - What is the Canadian Motor Vehicle Arbitration Plan?
CAMVAP is a program where disputes between consumers and vehicle manufacturers
about alleged manufacturing defects or implementation of a manufacturer's new vehicle
warranty can be put before an arbitrator for resolution.

see 18.04
Ch.18 - Briefly explain a "consignment transaction."
A vehicle owner (consignor) gives a vehicle to the dealer (consignee) to sell on the
owner's behalf.

see 18.05
Ch.18 - True or False: The total amount the dealer will charge the consigner on the sale
of the vehicle (whether as a fixed amount or a commission hare) can be negotiated after
the sale and does not have to be included in the contract.
False

see 18.05 7.
Ch.18 - True or False: All new car manufacturers participate in CAMVAP.
False

see 18.04
Ch.18 - List three criteria that must be met for a vehicle to be eligible for CAMVAP.
Any three of the following:
- The vehicle was manufactured by a participant in CAMVAP
- The vehicle is a passenger car, light duty truck, van, sport utility vehicle or multi-
purpose passenger vehicle that weights no more than 4,536 kg (10,000 lbs) gross
vehicle weight
- The vehicle has travelled not more than 160,000 km at the time of the hearing
- The vehicle is of the current or four previous model years

see 18.04
Ch.18 - True or False: A four-year-old vehicle with 151,000 km could qualify for
CAMVAP.
True

see 18.04
Ch.18 - True or False: CAMVAP decisions cannot be appealed.
True

see 18.04
Ch.18 - True or False: Only monies over $10,000 that are received from a consignment
sale must be deposited in the dealer's trust account.
False (all monies received in consignment deal must be placed in a trust account.)
Ch.18 - List five pieces of information that must be included in a consignment contract.
Any five from 18.05
Ch.18 - Dealer plates are issued by:

a. Ministry of Consumer Services

b. OMVIC
c. Ministry of Transportation
d. TADA
c. Ministry of Transportation

see 18.07
Ch.18 - True or False: At a wholesale auction, dealers may be accompanied by a
customer so long as the customer bids only through the dealer.
False

see 18.08
Ch.18 - True or False: Dealers must wear visible photo ID at wholesale auctions.
True

see 18.08
Ch.18 - The Highway Traffic Act requires dealers to keep a complete record of each
vehicle sold. Where is this information to be recorded and where can the "book" be
obtained?
In a "garage register" available from the Ministry of Transportation.

see 18.09
Ch.18 - List the four "brands" that fall under the vehicle branding program.
The four brands are:
- Irreparable
- Salvage
- Rebuilt
- None

see 18.10
Ch.18 - True or False: Vehicles branded as irreparable can be rebranded as rebuilt only
after the vehicle receives a Structural Repair Certificate from a licensed repair facility.
False

see 18.10
Ch.18 - A Safety Standards Certificate is required when:

a. Transferring a used motor vehicle to a new owner as fit

b. Registering a motor vehicle in Ontario that was previously registered in another
province or country
c. Changing the status of a vehicle from unfit to fit
d. Registering a rebuilt motor vehicle
e. All of the above
e. All of the above

see 18.11
Ch.18 - How long is a Safety Standards Certificate valid?
36 days

see 18.11
Ch.18 - Used Vehicle Information Packages are required in:

a. Private sales
b. Dealer sales
c. Consignment sales
d. All sales
a. Private sales

see 18.12