OMVIC FINAL EXAM PRACTICE
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES 2026
(VERIFIED ANSWERS)
Question 1: Mandatory Disclosure of Prior Use
A dealer is selling a used vehicle that was previously used as a daily rental. What
must be disclosed?
A. Only if the customer asks
B. Only if the vehicle has over 100,000 km
C. The prior daily rental use, before the sale
D. Nothing, because rentals are not material facts
Correct Answer: C
Rationale: Under the MVDA, prior use as a daily rental is a material fact that must
be disclosed in writing before the sale. Failure to disclose is a serious violation.
Other mandatory prior use disclosures include taxi, limo, police, and emergency
services.
Question 2: All-In Pricing Requirements
Which of the following may be added to an advertised price under Ontario's all-in
pricing rules?
,A. Freight and PDI
B. OMVIC fee only
C. Documentation fee
D. Dealer preparation fee
Correct Answer: B
Rationale: Ontario law requires all-in pricing. The only mandatory extra charges
allowed are HST, licensing, and the OMVIC fee. All other fees (freight, PDI,
admin, documentation, dealer prep) must be included in the advertised price.
Question 3: Definition of Curbsiding
What best describes curbsiding?
A. Selling vehicles without advertising
B. Selling more than 3 vehicles per year privately
C. A dealer selling vehicles at auction
D. A salesperson working at two dealerships
Correct Answer: B
Rationale: Curbsiding occurs when unregistered individuals repeatedly sell
vehicles for profit, often posing as private sellers. It is illegal and actively enforced
by OMVIC. Curbsiders ignore tax laws, avoid overhead, and have an unfair
advantage over registered dealers.
Question 4: Advertising Accuracy
,A dealer advertises a vehicle online but it was already sold earlier that day. This is:
A. Acceptable if the ad is removed within 48 hours
B. Considered false or misleading advertising
C. Only a problem if the price was below market value
D. Legal if the dealer has a similar vehicle
Correct Answer: B
Rationale: Advertising a vehicle that is no longer available is considered false or
misleading. Ads must reflect actual availability. OMVIC may order the dealer to
cease publication and/or issue a retraction or correction.
Question 5: Primary Legislation Governing Ontario's Automotive Sector
What is the primary legislation governing Ontario's retail automotive sector?
A. The Motor Vehicle Act (MVA)
B. The Consumer Protection Act (CPA)
C. The Motor Vehicle Dealers Act (MVDA)
D. The Highway Traffic Act (HTA)
Correct Answer: C
Rationale: The Motor Vehicle Dealers Act (MVDA) is the primary legislation that
governs Ontario's retail automotive industry. OMVIC is the agency that enforces
the MVDA.
Question 6: OMVIC Enforcement Authority
, Which agency enforces the MVDA?
A. Ministry of Government and Consumer Services
B. TADA (Toronto Automobile Dealers Association)
C. OMVIC
D. Automotive Business School of Canada
Correct Answer: C
Rationale: OMVIC (Ontario Motor Vehicle Industry Council) is the regulatory
authority responsible for administering and enforcing the MVDA, registering
dealers and salespeople, inspecting dealers, investigating complaints, and
disciplining violators.
Question 7: Unfair Practices Under MVDA
Which is considered an unfair practice under the MVDA?
A. Offering extended warranties
B. Failing to disclose accident damage over $3,000
C. Negotiating price
D. Refusing a trade-in
Correct Answer: B
Rationale: Accident damage exceeding $3,000 (including parts and labour) must
be disclosed in writing before the sale. Non-disclosure is an unfair practice under
the MVDA and can trigger a consumer's right of rescission.
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES 2026
(VERIFIED ANSWERS)
Question 1: Mandatory Disclosure of Prior Use
A dealer is selling a used vehicle that was previously used as a daily rental. What
must be disclosed?
A. Only if the customer asks
B. Only if the vehicle has over 100,000 km
C. The prior daily rental use, before the sale
D. Nothing, because rentals are not material facts
Correct Answer: C
Rationale: Under the MVDA, prior use as a daily rental is a material fact that must
be disclosed in writing before the sale. Failure to disclose is a serious violation.
Other mandatory prior use disclosures include taxi, limo, police, and emergency
services.
Question 2: All-In Pricing Requirements
Which of the following may be added to an advertised price under Ontario's all-in
pricing rules?
,A. Freight and PDI
B. OMVIC fee only
C. Documentation fee
D. Dealer preparation fee
Correct Answer: B
Rationale: Ontario law requires all-in pricing. The only mandatory extra charges
allowed are HST, licensing, and the OMVIC fee. All other fees (freight, PDI,
admin, documentation, dealer prep) must be included in the advertised price.
Question 3: Definition of Curbsiding
What best describes curbsiding?
A. Selling vehicles without advertising
B. Selling more than 3 vehicles per year privately
C. A dealer selling vehicles at auction
D. A salesperson working at two dealerships
Correct Answer: B
Rationale: Curbsiding occurs when unregistered individuals repeatedly sell
vehicles for profit, often posing as private sellers. It is illegal and actively enforced
by OMVIC. Curbsiders ignore tax laws, avoid overhead, and have an unfair
advantage over registered dealers.
Question 4: Advertising Accuracy
,A dealer advertises a vehicle online but it was already sold earlier that day. This is:
A. Acceptable if the ad is removed within 48 hours
B. Considered false or misleading advertising
C. Only a problem if the price was below market value
D. Legal if the dealer has a similar vehicle
Correct Answer: B
Rationale: Advertising a vehicle that is no longer available is considered false or
misleading. Ads must reflect actual availability. OMVIC may order the dealer to
cease publication and/or issue a retraction or correction.
Question 5: Primary Legislation Governing Ontario's Automotive Sector
What is the primary legislation governing Ontario's retail automotive sector?
A. The Motor Vehicle Act (MVA)
B. The Consumer Protection Act (CPA)
C. The Motor Vehicle Dealers Act (MVDA)
D. The Highway Traffic Act (HTA)
Correct Answer: C
Rationale: The Motor Vehicle Dealers Act (MVDA) is the primary legislation that
governs Ontario's retail automotive industry. OMVIC is the agency that enforces
the MVDA.
Question 6: OMVIC Enforcement Authority
, Which agency enforces the MVDA?
A. Ministry of Government and Consumer Services
B. TADA (Toronto Automobile Dealers Association)
C. OMVIC
D. Automotive Business School of Canada
Correct Answer: C
Rationale: OMVIC (Ontario Motor Vehicle Industry Council) is the regulatory
authority responsible for administering and enforcing the MVDA, registering
dealers and salespeople, inspecting dealers, investigating complaints, and
disciplining violators.
Question 7: Unfair Practices Under MVDA
Which is considered an unfair practice under the MVDA?
A. Offering extended warranties
B. Failing to disclose accident damage over $3,000
C. Negotiating price
D. Refusing a trade-in
Correct Answer: B
Rationale: Accident damage exceeding $3,000 (including parts and labour) must
be disclosed in writing before the sale. Non-disclosure is an unfair practice under
the MVDA and can trigger a consumer's right of rescission.
