NEW OMVIC Greasy Dealer Chapters 1-18 Questions And
100% Correct Answers (A+)
Capter 1
What is the main legislation that regulates Ontario's retail automotive industry -
ANSWER The Motor Vehicle Dealers Act, 2002
Which organization or agency administers the MVDA?
a) Ministry of Consumer Services
b) OADA/TADA
c) OMVIC
d) Automotive Business School of Canada - ANSWER OMVIC
Name three roles exercised by OMVIC - 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 members does OMVIC have on its Board of Directors? How many of those
members represent the industry and how many represent consumers? - ANSWER
Twelve in total nine dealers and three
consumer reps
, Briefly describe the "Transaction Fee Program." - 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 registration renewal fee of the dealer.
True or False: Under the Transaction Fee Program, dealers will have to remit $10 to
OMVIC for every vehicle sold or leased. - ANSWER T
True or False: The transaction fee may be passed on to the customer. - ANSWER T
What does OMVIC have to make accessible to the public?
a) Dealer's business name, address and phone number
b) 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 - 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? - 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 have
to seek OMVIC's pre-approval for future advertising? - 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 - ANSWER • If there
has been an investigation
• If the dealership is about to fail
• If OMVIC is proposing to revoke a registration
• If a freeze order is about to be made
Capter 2 - ANSWER
. What is the minimum age requirement to become a dealer? - ANSWER 18
List three requirements that must be met when applying to become
a salesperson. - ANSWER Three requirements are:
• Complete/pass certification course
• Pay fee
• Be employed or retained by a registered dealer to
act as a salesperson
True or False: All dealer and salesperson applicants undergo a Canada-wide criminal
record search as part of the application screening process. - ANSWER T
Which of the following must be registered with OMVIC (select all that apply):
a) Dealers d) Finance managers
b) Salespersons e) Service managers
c) Business managers - ANSWER a), b), c), d)
List two reasons why OMVIC might refuse the registration of a dealer
or salesperson - ANSWER Any two of:
• Past conduct
, • False statement on application
• Failed to comply with terms
• Cannot be expected to be financially responsible
• The Compensation Fund has paid out a claim
and has not been reimbursed
If an individual has been refused registration, what is one of the criteria that must be
satisfied before the individual may reapply? - ANSWER One of the following:
• Two years have elapsed
• New evidence to
.
If OMVIC make a proposal to refuse (or revoke) registration, to whom may the applicant
appeal? - ANSWER Licence Appeal Tribunal (LAT)
.
Name four classes of dealers. - ANSWER Any four classes listed in 2.16
List three examples of individuals or businesses that are exempt from registration -
ANSWER Any three from 2.14
Name one "change of information" that a dealer must notify OMVIC about. - ANSWER
Any of the following:
• Change of dealer address
• Changes of officers or directors (if dealer is a
corporation or partnership)
• The date of commencement of employment of
every salesperson
• The termination of employment of a salesperson
and the date and reason for termination
100% Correct Answers (A+)
Capter 1
What is the main legislation that regulates Ontario's retail automotive industry -
ANSWER The Motor Vehicle Dealers Act, 2002
Which organization or agency administers the MVDA?
a) Ministry of Consumer Services
b) OADA/TADA
c) OMVIC
d) Automotive Business School of Canada - ANSWER OMVIC
Name three roles exercised by OMVIC - 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 members does OMVIC have on its Board of Directors? How many of those
members represent the industry and how many represent consumers? - ANSWER
Twelve in total nine dealers and three
consumer reps
, Briefly describe the "Transaction Fee Program." - 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 registration renewal fee of the dealer.
True or False: Under the Transaction Fee Program, dealers will have to remit $10 to
OMVIC for every vehicle sold or leased. - ANSWER T
True or False: The transaction fee may be passed on to the customer. - ANSWER T
What does OMVIC have to make accessible to the public?
a) Dealer's business name, address and phone number
b) 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 - 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? - 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 have
to seek OMVIC's pre-approval for future advertising? - 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 - ANSWER • If there
has been an investigation
• If the dealership is about to fail
• If OMVIC is proposing to revoke a registration
• If a freeze order is about to be made
Capter 2 - ANSWER
. What is the minimum age requirement to become a dealer? - ANSWER 18
List three requirements that must be met when applying to become
a salesperson. - ANSWER Three requirements are:
• Complete/pass certification course
• Pay fee
• Be employed or retained by a registered dealer to
act as a salesperson
True or False: All dealer and salesperson applicants undergo a Canada-wide criminal
record search as part of the application screening process. - ANSWER T
Which of the following must be registered with OMVIC (select all that apply):
a) Dealers d) Finance managers
b) Salespersons e) Service managers
c) Business managers - ANSWER a), b), c), d)
List two reasons why OMVIC might refuse the registration of a dealer
or salesperson - ANSWER Any two of:
• Past conduct
, • False statement on application
• Failed to comply with terms
• Cannot be expected to be financially responsible
• The Compensation Fund has paid out a claim
and has not been reimbursed
If an individual has been refused registration, what is one of the criteria that must be
satisfied before the individual may reapply? - ANSWER One of the following:
• Two years have elapsed
• New evidence to
.
If OMVIC make a proposal to refuse (or revoke) registration, to whom may the applicant
appeal? - ANSWER Licence Appeal Tribunal (LAT)
.
Name four classes of dealers. - ANSWER Any four classes listed in 2.16
List three examples of individuals or businesses that are exempt from registration -
ANSWER Any three from 2.14
Name one "change of information" that a dealer must notify OMVIC about. - ANSWER
Any of the following:
• Change of dealer address
• Changes of officers or directors (if dealer is a
corporation or partnership)
• The date of commencement of employment of
every salesperson
• The termination of employment of a salesperson
and the date and reason for termination
