OMVIC CHAPTER 9 EXAM QUESTIONS AND
ANSWERS GRADED A
Extended warranties must be backed or guaranteed financially to ensure
their viability. List two methods by which this backing can be provided. -
✔✔The seller of the warranty has provided security to the
Compensation Fund (for the extended warranties that it supplies) in the
form of an irrevocable letter of credit in the following amounts:
If a dealer wishes to offer their own uninsured extended warranty, theymust
provide to the Compensation Fund an irrevocable letter of credit in the
amount of - ✔✔$100,000
Provide three pieces of information related to the coverage offered by the
warranty that must be included in the warranty contract. - ✔✔A description
of the components covered by the warranty that is sufficient to identify them
with certainty and if the warranty is related to the manufacturer's warranty,
a description indicating how the warranty extends the manufacturer's
warranty.
ANSWERS GRADED A
Extended warranties must be backed or guaranteed financially to ensure
their viability. List two methods by which this backing can be provided. -
✔✔The seller of the warranty has provided security to the
Compensation Fund (for the extended warranties that it supplies) in the
form of an irrevocable letter of credit in the following amounts:
If a dealer wishes to offer their own uninsured extended warranty, theymust
provide to the Compensation Fund an irrevocable letter of credit in the
amount of - ✔✔$100,000
Provide three pieces of information related to the coverage offered by the
warranty that must be included in the warranty contract. - ✔✔A description
of the components covered by the warranty that is sufficient to identify them
with certainty and if the warranty is related to the manufacturer's warranty,
a description indicating how the warranty extends the manufacturer's
warranty.
