OMVIC exam flashcards

The farm tractor. The definition covers a vehicle propelled or driven otherwise than by muscular power and says a motorcycle is included, but it excludes a motorized snow vehicle, a farm tractor and other self-propelled machinery primarily intended for farming or construction purposes.

MVDA, s. 1(1)

No. Subsection 15(6) states that an inspector shall not use force to enter and inspect premises under section 15, and it attaches no exception, so the bar holds whatever the purpose of the inspection.

MVDA, s. 15(6)

The director must believe an order is advisable for the protection of the customers of the registrant or former registrant, and either a search warrant has been issued under the Act or criminal or contravention proceedings have been or are about to be instituted against that person. Both limbs are required, so the belief on its own will not carry an order.

MVDA, s. 22(2)

$250,000. The Act makes a corporation convicted of an offence liable to a fine of not more than that amount, and provides no term of imprisonment against a corporation because only the individual limb of the penalty carries one.

MVDA, s. 32(3)

Registrants, through such levies and payments as may be prescribed. The Act also requires the Fund to be held in trust, in accordance with the prescribed requirements, for the benefit of persons entitled to the payment of claims.

MVDA, s. 42(3)

Immediately. The order takes effect as soon as the registrar makes it, so the registration is suspended from that moment rather than only after the section 9 proposal is decided.

MVDA, s. 10(2)

Within five days after the event, and the notice must be in writing. Subsection 24(1) runs its clock from the event itself and sets the same five-day window for its third trigger, the commencement or termination of a salesperson's employment.

MVDA, s. 24(1)

Only when the individual trades on their own account or on a family member's account and the vehicle is used primarily for the personal use of the individual or a family member. Both limbs must hold, so a vehicle put mainly to any other use falls outside section 5.

MVDA, s. 5

At least 18 years of age, and the paragraph applies where the applicant is an individual. Age is one of the requirements prescribed for registration and renewal as a motor vehicle dealer, so an applicant under 18 does not meet them.

O. Reg. 333/08, s. 11(1) para. 2

The new and used subclass is authorized to act as a dealer for all trades in motor vehicles, so it may trade new vehicles as well as used. The used subclass must not act as a dealer for anything other than trades in used motor vehicles.

O. Reg. 333/08, s. 19

No. Section 2 states that the Regulation applies to registrants despite any contract or waiver to the contrary, so a signed waiver leaves every Code of Ethics duty in place.

O. Reg. 332/08, s. 2

The dealer who employs or retains the salesperson to act as a salesperson. Section 6(1) requires that registered motor vehicle dealer to ensure every such salesperson carries out their duties in compliance with the Regulation.

O. Reg. 332/08, s. 6(1)

Ethically, and with respect for their rights and interests. Section 8(2) states the duty in terms of the persons with whom the registrant does business, so it runs to each of those persons.

O. Reg. 332/08, s. 8(2)

No. Subsection 15(1) allows entry and inspection of a registrant's business premises at any reasonable time but carves out any part of the premises used as a dwelling, so the dwelling part sits outside the power at any hour.

MVDA, s. 15(1)

It can direct any person who has a registrant's or former registrant's assets or trust funds on deposit or under their control to hold them, and it can direct the registrant or former registrant either to refrain from withdrawing them or to hold a customer's or another person's asset or trust fund in trust for whoever is entitled to it. Subsection 22(1) opens the power only where the conditions in subsection 22(2) are met.

MVDA, s. 22(1)

The reading that was on the odometer both before and after the exchange or repair, according to the distance the odometer establishes. The record must also name the person who did the exchange or repair, and it is required for every vehicle that comes into the dealer's possession for a trade.

O. Reg. 333/08, s. 52(2)(e)

More than $10,000. Subsection 58(4) applies where a dealer receives a deposit greater than $10,000 from a purchaser towards the purchase of a motor vehicle, and it requires the entire deposit to be held in trust, not only the amount above the threshold.

O. Reg. 333/08, s. 58(4)

A statement obtained from the person trading in the motor vehicle, covering the information section 42 requires a contract to include. Subsection 43(2) requires the selling dealer that receives the trade-in to put the subsection 43(4) list into the sale contract, and paragraph 10 of that list is that statement.

O. Reg. 333/08, s. 43(4) para. 10

In writing. Subsection 30 (1) requires a motor vehicle dealer to disclose the prescribed information in writing, and to make the disclosure at the time the regulations prescribe.

MVDA, s. 30(1)

The manufacturer's suggested retail price for the vehicle excluding extras, an itemized list of that price for all extra equipment and options sold or installed under the contract, and the total of those two. Paragraph 13 defines that total as the sum of the other two figures, so extras are priced apart from the vehicle and never folded into its own price.

O. Reg. 333/08, s. 39(2) paras. 11 to 13

Initial it. Paragraph 5 of subsection 40 (2) requires the contract to carry the as-is statement set out in subsection 40 (6), initialled by the purchaser, in 12 point bold font with a 14 point bold heading.

O. Reg. 333/08, s. 40(2) para. 5

A copy of a current safety standards certificate for the vehicle, because the requirement applies where the vehicle being leased is a used one, and the certificate must reach the lessee along with the contract itself.

O. Reg. 333/08, s. 41(9)(d)

Structural damage to the vehicle, and any repairs, replacements or alterations to its structure. Paragraph 10 names the two as alternatives, so either one on its own requires the statement.

O. Reg. 333/08, s. 42 para. 10

A statement that the badge relates to a different model than the model of the vehicle. Paragraph 18 applies to any badge or other indication on the vehicle, so the statement is required whatever form the mismatched marking takes.

O. Reg. 333/08, s. 42 para. 18

One or more permits issued for the vehicle under section 7 of the Highway Traffic Act covering at least the seven previous consecutive years. A single permit spanning that period is enough, since paragraph 22 states the exception as one or more permits.

O. Reg. 333/08, s. 42 para. 22

Contracts where a registered motor vehicle dealer sells or leases a motor vehicle to a person who is also a registered motor vehicle dealer. Section 5 requires the dealer to ensure the listed information is disclosed in that contract, so both sides being registered is what brings the wholesale list into play.

O. Reg. 332/08, s. 5

Yes, because the contract must say so where the vehicle is equipped with an anti-lock braking system that is not operational, so the duty turns on the system being fitted and not working.

O. Reg. 332/08, s. 5 para. 9

No. Paragraph 18 of section 5 requires a statement where the vehicle was declared by an insurer to be a total loss, and the paragraph applies regardless of whether the vehicle was classified as irreparable or as salvage under section 199.1 of the Highway Traffic Act.

O. Reg. 332/08, s. 5 para. 18

The total distance that the vehicle has been driven, and only where the dealer can determine the distance. Paragraph 1 of section 5 states the figure and its condition together, and paragraphs 2 and 3 cover the cases where the dealer cannot determine it.

O. Reg. 332/08, s. 5 para. 1

A purchaser or lessee who was not a registered motor vehicle dealer. Subsection (1) makes that status a condition of the right, so a registered dealer who buys from another dealer cannot cancel under section 50.

O. Reg. 333/08, s. 50(1)

In writing. The notice may be expressed in any way as long as it indicates the intention to cancel, so no prescribed form or wording is required, but nothing spoken will do.

O. Reg. 333/08, s. 50(6)

On or after 21 days and no later than 30 days after giving the notice of cancellation. That window applies only where no agreement was reached inside the 20 days the dealer is given to reach one, so it opens when that period closes.

O. Reg. 333/08, s. 50(11)(a)

Reasonable care of the motor vehicle. Subsection (13) runs the duty from the time of receiving the vehicle until returning it, so it covers the whole period of possession and not only the days after the notice was given.

O. Reg. 333/08, s. 50(13)

The annual percentage rate (APR) for the credit agreement, because subsection 61(2) applies as soon as a fixed credit advertisement discloses the interest rate or the amount of a payment, and it requires the length of the credit agreement's term alongside that rate.

O. Reg. 17/05, s. 61(2) para. 1

Yes. The Act lists exaggeration, innuendo or ambiguity as to a material fact, and failure to state a material fact, among its false, misleading or deceptive representations, but only where the use or the failure deceives or tends to deceive.

CPA, s. 14(2) para. 14

Use as a police cruiser or to provide emergency services, use as a taxi or limousine, and leasing on a daily basis unless the vehicle was later owned by someone who was not a registered motor vehicle dealer. The regulation requires each of these to be indicated in a clear, comprehensible and prominent manner.

O. Reg. 333/08, s. 36(5)

Only where the vehicle is available from the registered motor vehicle dealer at that price during the time to which the advertisement applies. Subsection 36(12) ties the advertised price to actual availability across the advertisement's own run, so a price that has lapsed cannot stay in a live advertisement.

O. Reg. 333/08, s. 36(12)

In addition to a warranty supplied by law or implied by the operation of law. Section 1 builds the definition on that add-on character, so coverage that only repeats the warranty the law already gives is not an extended warranty, and neither is a contract whose provider is exempt under paragraph 21 of subsection 2(1).

O. Reg. 333/08, s. 1

Either the performance of the warranty is insured by an insurer licensed under the Insurance Act, or the seller of the warranty has provided the Motor Vehicle Dealers Compensation Fund with security in the form of an irrevocable letter of credit: $100,000 where that seller is the dealer who sold or leased the vehicle, and $500,000 in any other case. Subsection 47(1) prohibits the sale, and facilitating one, unless one of the two is in place.

O. Reg. 333/08, s. 47(1)

By calendar date, by kilometres the vehicle has been driven, or by a combination of both, because the contract must fix both ends of the coverage and the regulation allows time, distance, or the two together.

O. Reg. 333/08, s. 47(4) para. 12

Within seven days, because a dealer that facilitates a service plan sale must give the seller of the plan every document detailing the contract that it holds and all payments it has received from the purchaser.

O. Reg. 333/08, s. 48(6)(c)

On request. Subsection 15(3) requires the inspector to produce evidence of authority to carry out an inspection, so the duty is triggered by someone asking rather than by the start of the inspection.

MVDA, s. 15(3)

The director. Subsection 18(1) provides that the director may appoint persons to be investigators for the purposes of conducting investigations, and subsection 18(2) requires the director to issue every one of them a certificate of appointment bearing the director's signature or a facsimile of it.

MVDA, s. 18(1), (2)

Up to the second anniversary of that day, because section 13 bars a referral under paragraph 4 of subsection 14 (4) of the Act after it. The two years run from the registrar's knowledge of the facts on which the complaint is based, not from the day the complaint was made.

O. Reg. 332/08, s. 13

Conduct. A motor vehicle dealer is a person who trades in motor vehicles, whether for the person's own account or the account of any other person, or who holds himself, herself or itself out as trading in motor vehicles. The definition states no exception for a seller who calls the sale private.

MVDA, s. 1(1)

A curbsider can show up in the register as one buyer name appearing many times, so the dealership has reason to ask why before it sells to that buyer again.

$5,000, because subsection 32(4) of the MVDA sets a minimum fine for any conviction for an offence under subsection 4(1), which is the subsection barring a person from acting as a motor vehicle dealer or as a salesperson without registration.

MVDA, s. 32(4)

The registrar may refuse to renew the registration, subject to section 9 of the MVDA. The power applies only where the registrant is in default on prescribed levies, payments or reimbursements and has also failed to make or to keep to arrangements for payment.

MVDA, s. 42(9)

$300 for each place from which the dealer is authorized to trade. Subsection 75(3) requires the same $300 forthwith for any place the dealer adds later, so the payment follows the number of places and not the registration.

O. Reg. 333/08, s. 75(2), (3)

Written details of every liability or obligation the dealer knows of that could give rise to a Fund claim, unsettled claims included, and a written explanation of any arrangements made to satisfy them. Section 78 attaches both duties to the moment registration in one of those classes ends.

O. Reg. 333/08, s. 78

Yes. Paragraph 3 of subsection 79 (3) covers a purchase or lease from the dealer where a law enforcement authority has seized the vehicle and indicated it will not be returned, so the seizure is the subsection (3) requirement that claim meets.

O. Reg. 333/08, s. 79(3) para. 3

No to either. The regulation bars any person or body, including the Board and the Trustee, from paying an award of punitive damages or interest relating to that award out of the Fund, and it allows interest only where a court has awarded it.

O. Reg. 333/08, s. 83(2), (3)

No. The Act defines a consumer as an individual acting for personal, family or household purposes and expressly excludes a person who is acting for business purposes, so a van bought for a business fails the definition even though the buyer is an individual.

CPA, s. 1

One. Subsection 17 (2) deems a person who performs one act referred to in section 14, 15 or 16 to be engaging in an unfair practice, so no repetition must be proved.

CPA, s. 17(2)

By no more than 10 per cent above the estimate. Section 58(2) forbids a repairer to charge, for work an estimate was given for, an amount exceeding that estimate by more than 10 per cent, so the estimate plus a tenth is the ceiling on the bill.

CPA, s. 58(2)

An implied condition that the goods will correspond with the description. Section 14 holds even where the sale is by sample as well as by description, so matching the bulk to the sample is not sufficient if the goods do not also correspond with the description.

Sale of Goods Act, s. 14

A good title, because section 24 only passes good title where the seller's title had not been avoided at the time of the sale and the buyer bought in good faith without notice of the defect.

Sale of Goods Act, s. 24

Not by itself. Subsection 46(1) states that the contract is not rescinded by the mere exercise of those rights, but subsection 46(4) does rescind it where the seller expressly reserved a right of resale on default and resells after the buyer defaults.

Sale of Goods Act, s. 46(1) and (4)

Only a form, type or proof provided by or approved by the Ministry of Transportation. The Act prohibits any person from using any other form, and that bar covers every certificate, sticker and other proof of inspection, not the safety standards certificate alone.

HTA, s. 100.4(4)

A valid Used Vehicle Information Package (UVIP) for that vehicle, because the seller must provide one for inspection by proposed purchasers or transferees and must also deliver it to the purchaser or transferee at the time of the sale or transfer.

HTA, s. 11.1(1)

The Act otherwise requires a licence from the Ministry of Transportation for each separate premises used to deal in motor vehicles or trailers, run a used car lot, or wreck or dismantle vehicles. That requirement expressly does not apply to a person registered as a motor vehicle dealer under the Motor Vehicle Dealers Act, 2002.

HTA, s. 59(2)

A currently validated permit must exist for the vehicle, and number plates issued in accordance with the regulations and showing that permit's number must be displayed in the prescribed manner. Where the regulations require it, evidence of the permit's current validation must also be affixed to a number plate.

HTA, s. 7(1)

Until it is perfected, the security interest is subordinate to a perfected interest, to a lien given under another Act and to a creditor who causes the collateral to be seized, and it is not effective against a trustee in bankruptcy. Subsection 20(3) is the exception, since a purchase-money security interest registered before or within 15 days after the debtor gets possession outranks the seizing creditor and is effective against that trustee.

PPSA, s. 20(1), (3)

A financing statement or financing change statement showing that number, and any claim for lien or change statement registered against it under the Repair and Storage Liens Act, because clauses (a) and (c) of subsection 43(1) both answer a search of the motor vehicle identification number index. Clause (b) turns on a debtor name and not on a number.

PPSA, s. 43(1)

At least fifteen days, in writing, because section 15 stops a lien claimant from exercising a right of sale until a notice of intention to sell has been given. It goes to the person the article came from, to the registered owner where that was someone else, and to every Personal Property Security Act secured party or non-possessory lien claimant registered against that owner or the vehicle identification number.

RSLA, s. 15(1), (2)

When the repair is commenced. Subsection 3(2) gives no lien at all if the repairer was required to comply with sections 56, 57 and 59 and subsection 58(1) of the Consumer Protection Act, 2002 and did not.

RSLA, s. 3(2)