OMVIC Dealership Regulations and Consumer Protection Act, Exams of Nursing

Download OMVIC Dealership Regulations and Consumer Protection Act and more Exams Nursing in PDF only on Docsity! 1 OMVIC Exam Questions and Answers 2023 What is the primary legislation governing Ontario's retail automotive sector? - Correct Answer- MVDA Which body or agency enforces MVDA? - Correct Answer-OMVIC How many people compose OMVIC's board of directors? - Correct Answer-12 in total, 9 dealers and 3 consumer reps What is the "transaction fee program"? - Correct Answer-under the transaction fee program, dealers are required to remit $10 for each vehicle sold or leased to OMVIC. These funds are remitted annually with the dealers registration renewal fee. T or F: the fee can be passed on to the consumer - Correct Answer-True What is OMVIC required to make available to the public? - Correct Answer-A dealers name, address and phone number; a salespersons name; 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 do they have to stop or correct it? - Correct Answer-Order to 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 pre approval for future advertising? - Correct Answer-up to 2 years What is the minimum age requirement to become a dealer? - Correct Answer-18 If a person has been refused registration, what are 2 conditions that have to be met before the person can reapply? - Correct Answer-2 years have passed; new evidence to demonstrate circumstances If OMVIC issues a proposal to refuse registration, to whom can the applicant appeal? - Correct Answer-LAT (license appeal tribunal ), Independent judicial body called LAT, within 15 days of receiving the proposal List the 4 classes of dealers - Correct Answer-General dealer, Broker, Exporter, Wholesaler, Lease finance dealer List 3 examples of individuals or businesses that are exempt from registration - Correct Answer-Wholesale auction, wrecker, lawyer Where is the certificate of the dealer registration kept? - Correct Answer-Where the public can see it T or F: Dealers may sell vehicles from any location so long as they have registered a head office with OMVIC - Correct Answer-False 2 T or F: the MVDA specifies the records a dealer must maintain- these records must be held for at least 6 years. - Correct Answer-True Which records of employees must be maintained? - Correct Answer-Employee names, proof of payments, and employee salaries If a dealer's records are destroyed or stolen, the dealer must notify? - Correct Answer-OMVIC, in writing, within 5 days In order for a remote storage location to be approved by OMVIC, which condition must be met? - Correct Answer-The location is always accessible to OMVIC staff during normal business hours T or F: Under the MVDA, all dealers are required to maintain a trust account - Correct Answer- False Deposits over what amount must be kept in a trust account? - Correct Answer-$10 000 (ten thousand) T or F: Before issuing a freeze order (freezing the dealer's assets or trust funds), OMVIC must first notify the dealer - Correct Answer-False On a purchase contact, what must be printed in 14 pt. bold font next to the buyer's signature? - Correct Answer-This "sales final" statement on the same page as the buyer's signature and adjacent to the signature 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? - Correct Answer-A maximum distance that will be shown on the odometer at the same time of delivery or a statement that there is no maximum If a statement Standards Certificate is issues for a vehicle, it means? - Correct Answer-The vehicle met certain basic standards of safety on the date of inspection An "as is" sale? - Correct Answer-Must include a specific definition of "as is" in the contract T or F: a dealer selling a vehicle "as is" may also provide a Safety Standards Certificate for the vehicle - Correct Answer-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. Name them. - Correct Answer-OMVIC, Motor Vehicle Dealer Compensation Fund, CAMVAP If a customer gives a deposit but don't sign a contract, what rights do they have? - Correct Answer-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. 5 Curbsiders : - Correct Answer-ignore tax law, avoid overhead, have an unfair advantage over registered dealers Is the compensation fund available to all customers or only customers who are consumers? - Correct Answer-consumers only How much does each salesperson pay into the fund? - Correct Answer-Nothing How much does each dealer pay into the fund? - Correct Answer-$300 T or F: the max individual claim from the fund is $15 000 - Correct Answer-False T or F: 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 - Correct Answer-False T or F: Protections under the CPA would apply to a carpenter buying a van for his or her small company - Correct Answer-False T or F: CPA protects "consumers" only - Correct Answer-True T or F: The CPA covers sales but not leases, and not services such as repairs - Correct Answer-False T or F: the consumer can waive their right under the CPA, but they must be in writing - Correct Answer-False What is the maximum penalty for an individual convicted of an offence under the CPA? - Correct Answer-A max of 2 years less a day in jail and or a fine of up to $50 000 T or F: in matter related to the CPA, courts will only consider the evidence that is written into the contract - Correct Answer-False T or F: if the consumer defaults on a loan/payment schedule but has paid off more than two- thirds if the total purchase price, the dealer must get permission from the court to repossess the vehicle - Correct Answer-True What are the 2 types of unfair practices? - Correct Answer-Unconscionable representations, and false, misleading or deceptive representations What is the essential element of an "unconscionable representation"? - Correct Answer- demonstrating a lack of conscience, taking advantage of a consumer who cannot adequately protect his or her own interests What is a "material fact"? - Correct Answer-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 T or F: If a dealer acted in good faith and unknowingly breached the CPA, the consumer is no longer protected by the CPA - Correct Answer-False 6 Motor vehicle repairs are governed by which Ontario legislation? - Correct Answer-Consumer Protection Act T or F: dealers/repairers must provide estimates for repairs - Correct Answer-True T or F: Final repair costs may not exceed the estimate by more than 10% - Correct Answer- True If a repair involves the installation of new or reconditioned parts: - Correct Answer-the minimum warranty on repairs is 90 days or 5000 km (whichever comes first) When a dealer replaces a part: - Correct Answer-the dealer must offer the old part to the consumer Dealers must post a sign stating: - Correct Answer-labour charges and how they are computed; the dealer's obligation to provide estimates; that each part is removed and available to the consumer Why should a dealer do a lien check on a vehicle that is being taken in on trade? - Correct Answer-to protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien what is a lien? - Correct Answer-a right to keep possession of a property belonging to another person until debt owed to that person is discharged Is it possible for more than one party to hold a lien on the same vehicle? - Correct Answer-yes If a dealer agrees to pay out a lien on a customer's trade-in, the lien must be paid out: - Correct Answer-immediately T or F: 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 - Correct Answer-true T or F: a customer should do a lien check on a vehicle being purchased from a dealer - Correct Answer-False Explain the "merchantable quality" as it relates to a used vehicle - Correct Answer-A used vehicle of merchantable quality has no hidden defects and will provide reasonable transportation for a reasonable period of time T or F: the Sale of Goods Act covers repairs - Correct Answer-false Purchasers are entitled to "quiet procession" 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? - Correct Answer-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 7 Under the Sale of Goods Act, vehicles sold must: - Correct Answer-provide reasonable transportation for a reasonable period of time; be fit for the purpose for which they are intended T or F: the Sale of Goods Act does not apply to vehicles sold "as is" - Correct Answer-False T or F: If the customer enters into the contract but refuses to complete the sale, the dealer can keep 100% of any deposit, regardless of the sale - Correct Answer-False T or F: The Code of Ethics Regulations are guidelines or "best practices" but do not have any legal authority - Correct Answer-False Dealers and salespeople are required to conduct business in accordance with the law and with? - Correct Answer-Integrity, fairness and honesty Failure to abide by the Code of Ethics Regulations can result in: - Correct Answer-Revocation of registration, a disciplinary hearing, refusal to grant or renew registration T or F: an "order" of the OMVIC discipline committee is final and cannot be appealed - Correct Answer-False What is the Canadian Motor Vehicle Arbitration Plan? - Correct Answer-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 Briefly explain a "consignment transaction" - Correct Answer-a vehicle owner (cosigner) gives a vehicle to a dealer (consignee) to sell on the owner's behalf T or F: the total amount the dealer will charge the cosigner on the sale of the vehicle (whether as a fixed amount or a commission share) can be negotiated after the sale and does not have to be included in the contract - Correct Answer-false T or F: all new car manufacturers participate in CAMVAP - Correct Answer-false T or F: CAMVAP decisions cannot be appealed - Correct Answer-True T or F: only monies over $10 000 that are received from a consignment sale must be deposited in the dealer's trust account - Correct Answer-true Dealer plates are issued by: - Correct Answer-Ministry of Transportation T or F: at a wholesale auction, dealers may be accompanied by a customer so long as the customer bids only through the dealer - Correct Answer-False Who administers Ontario's Drive Clean program? - Correct Answer-Ministry of Environment T or F: Vehicles branded as irreparable can be rebranded as rebuilt only after the vehicle receives a Structural Repair Certificate from a licensed repair facility - Correct Answer-False