OMVIC FINAL EXAM WITH CORRECT
ANSWERS 2024\2025[GRADED A+]
What is the primary legislation governing Ontario's retail automotive sector? -
ANSWER>>MVDA
Which body or agency enforces MVDA? - ANSWER>>OMVIC
How many people compose OMVIC's board of directors? - ANSWER>>12 in total, 9 dealers
and 3 consumer reps
What is the "transaction fee program"? - 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 - ANSWER>>True
What is OMVIC required to make available to the public? - 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? - 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? - ANSWER>>up to 2 years
What is the minimum age requirement to become a dealer? - ANSWER>>18
If a person has been refused registration, what are 2 conditions that have to be met before
the person can reapply? - ANSWER>>2 years have passed; new evidence to demonstrate
circumstances
, If OMVIC issues a proposal to refuse registration, to whom can the applicant appeal? -
ANSWER>>LAT (license appeal tribunal ), Independent judicial body called LAT, within 15 days
of receiving the proposal
List the 4 classes of dealers - ANSWER>>General dealer, Broker, Exporter, Wholesaler, Lease
finance dealer
List 3 examples of individuals or businesses that are exempt from registration -
ANSWER>>Wholesale auction, wrecker, lawyer
Where is the certificate of the dealer registration kept? - 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 - ANSWER>>False
T or F: the MVDA specifies the records a dealer must maintain- these records must be held for
at least 6 years. - ANSWER>>True
Which records of employees must be maintained? - ANSWER>>Employee names, proof of
payments, and employee salaries
If a dealer's records are destroyed or stolen, the dealer must notify? - ANSWER>>OMVIC, in
writing, within 5 days
In order for a remote storage location to be approved by OMVIC, which condition must be
met? - 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 -
ANSWER>>False
Deposits over what amount must be kept in a trust account? - 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 - ANSWER>>False
ANSWERS 2024\2025[GRADED A+]
What is the primary legislation governing Ontario's retail automotive sector? -
ANSWER>>MVDA
Which body or agency enforces MVDA? - ANSWER>>OMVIC
How many people compose OMVIC's board of directors? - ANSWER>>12 in total, 9 dealers
and 3 consumer reps
What is the "transaction fee program"? - 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 - ANSWER>>True
What is OMVIC required to make available to the public? - 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? - 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? - ANSWER>>up to 2 years
What is the minimum age requirement to become a dealer? - ANSWER>>18
If a person has been refused registration, what are 2 conditions that have to be met before
the person can reapply? - ANSWER>>2 years have passed; new evidence to demonstrate
circumstances
, If OMVIC issues a proposal to refuse registration, to whom can the applicant appeal? -
ANSWER>>LAT (license appeal tribunal ), Independent judicial body called LAT, within 15 days
of receiving the proposal
List the 4 classes of dealers - ANSWER>>General dealer, Broker, Exporter, Wholesaler, Lease
finance dealer
List 3 examples of individuals or businesses that are exempt from registration -
ANSWER>>Wholesale auction, wrecker, lawyer
Where is the certificate of the dealer registration kept? - 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 - ANSWER>>False
T or F: the MVDA specifies the records a dealer must maintain- these records must be held for
at least 6 years. - ANSWER>>True
Which records of employees must be maintained? - ANSWER>>Employee names, proof of
payments, and employee salaries
If a dealer's records are destroyed or stolen, the dealer must notify? - ANSWER>>OMVIC, in
writing, within 5 days
In order for a remote storage location to be approved by OMVIC, which condition must be
met? - 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 -
ANSWER>>False
Deposits over what amount must be kept in a trust account? - 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 - ANSWER>>False
