OMVIC GREASY DEALER FINAL EXAM
QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE TESTED AND GRADED A+
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 Consumer Services, in writing, within 10 days -
CORRECT ANSWER>>b
What must a dealer do if they wish to store records somewhere other than the
location from which they trade? - CORRECT ANSWER>>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?
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
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,d) All of the above - CORRECT ANSWER>>b
True or False: Under the MVDA, all dealers are required to maintain a trust
account. - CORRECT ANSWER>>f
Deposits over what amount must be kept in a trust account? a)
$1,000 c) $10,000
b) $5,000 d) No amount of deposit needs to be
placed in a trust account - CORRECT ANSWER>>c
True or False: Before issuing a freeze order (freezing the dealer's assets or trust
funds), OMVIC must first notify the dealer. - CORRECT ANSWER>>f
What is the primary legislation governing Ontario's retail automotive sector -
CORRECT ANSWER >>The
Motor Vehicle Dealers Act, 2002
Which body or agency enforces the MVDA? a) Ministry of Consumer Services
b) OADA/TADA
c) OMVIC
d) Automotive Business School of Canada - CORRECT
ANSWER>>OMVIC
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,List three functions carried out by OMVIC - CORRECT ANSWER>>•
Administers and enforces the MVDA •
Inspects dealers
• Maintains a complaint line for consumers
• Conducts investigations
• Conducts disciplinary hearings
• Conducts prosecutions
• Administers the Compensation Fund
How many people compose OMVIC's Board of Directors? Of these, how many
represent the industry and how many represent consumers? - CORRECT
ANSWER>>Twelve total, nine dealers and three consumer reps
Briefly explain the "Transaction Fee Program." - CORRECT
ANSWER>>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.
True or False: Under the Transaction Fee Program, dealers will be required to
remit $10 (to OMVIC) for each vehicle sold or leased. - CORRECT
ANSWER>>T
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, True or False: The transaction fee can be passed along to the customer. -
CORRECT ANSWER>>T
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 salesperson
d) All of the above - CORRECT ANSWER>>All of the above
Should OMVIC determine a dealer's advertising to be false or misleading, what
powers does OMVIC have to stop or correct it? - CORRECT
ANSWER>>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? - CORRECT
ANSWER>>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 -
CORRECT ANSWER>>• If there has been an investigation
• If the dealership is about to fail
• If OMVIC is proposing to revoke a registration
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QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE TESTED AND GRADED A+
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 Consumer Services, in writing, within 10 days -
CORRECT ANSWER>>b
What must a dealer do if they wish to store records somewhere other than the
location from which they trade? - CORRECT ANSWER>>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?
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
Page 1 of 42
,d) All of the above - CORRECT ANSWER>>b
True or False: Under the MVDA, all dealers are required to maintain a trust
account. - CORRECT ANSWER>>f
Deposits over what amount must be kept in a trust account? a)
$1,000 c) $10,000
b) $5,000 d) No amount of deposit needs to be
placed in a trust account - CORRECT ANSWER>>c
True or False: Before issuing a freeze order (freezing the dealer's assets or trust
funds), OMVIC must first notify the dealer. - CORRECT ANSWER>>f
What is the primary legislation governing Ontario's retail automotive sector -
CORRECT ANSWER >>The
Motor Vehicle Dealers Act, 2002
Which body or agency enforces the MVDA? a) Ministry of Consumer Services
b) OADA/TADA
c) OMVIC
d) Automotive Business School of Canada - CORRECT
ANSWER>>OMVIC
Page 2 of 42
,List three functions carried out by OMVIC - CORRECT ANSWER>>•
Administers and enforces the MVDA •
Inspects dealers
• Maintains a complaint line for consumers
• Conducts investigations
• Conducts disciplinary hearings
• Conducts prosecutions
• Administers the Compensation Fund
How many people compose OMVIC's Board of Directors? Of these, how many
represent the industry and how many represent consumers? - CORRECT
ANSWER>>Twelve total, nine dealers and three consumer reps
Briefly explain the "Transaction Fee Program." - CORRECT
ANSWER>>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.
True or False: Under the Transaction Fee Program, dealers will be required to
remit $10 (to OMVIC) for each vehicle sold or leased. - CORRECT
ANSWER>>T
Page 3 of 42
, True or False: The transaction fee can be passed along to the customer. -
CORRECT ANSWER>>T
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 salesperson
d) All of the above - CORRECT ANSWER>>All of the above
Should OMVIC determine a dealer's advertising to be false or misleading, what
powers does OMVIC have to stop or correct it? - CORRECT
ANSWER>>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? - CORRECT
ANSWER>>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 -
CORRECT ANSWER>>• If there has been an investigation
• If the dealership is about to fail
• If OMVIC is proposing to revoke a registration
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