← Advertising Rules and All-In Pricing
Practice quizAdvertising Rules and All-In Pricing
5 questions. Pick an answer and the explanation reveals below it. Your score updates as you go.
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Question 1
When a dealer advertises a price for a motor vehicle, what must that price represent?
Correct answer: A
Section 36(7) of O. Reg. 333/08 requires the advertised price to be set out as the total of what a buyer would have to pay plus all other charges related to the trade, including freight, pre-delivery inspection, fees, levies, and taxes (with a narrow carve-out for clearly identified sales taxes under s. 36(10)).
Source: O. Reg. 333/08, s. 36(7)
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Question 2
Which of the following best describes the MVDA's prohibition on false advertising by registrants?
Correct answer: A
Section 28 of the MVDA prohibits any registrant from making false, misleading, or deceptive statements in any advertisement, circular, pamphlet, or material published by any means relating to trading in motor vehicles. The rule has no medium-based or content-based carve-out.
Source: MVDA, s. 28
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Question 3
Select all that apply
Under O. Reg. 333/08, an ad inducing a trade in a specific vehicle must clearly disclose which previous uses of that vehicle? Select all that apply.
Correct: A, B, C
Section 36(5) of O. Reg. 333/08 lists exactly three previous-use disclosures that must appear in an ad inducing a trade in a specific vehicle: daily lease (unless subsequently owned by a non-dealer), police cruiser or emergency services use, and taxi or limousine use. Other history items belong to contract-stage disclosure rules, not the advertising rule.
Source: O. Reg. 333/08, s. 36(5)
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Question 4
A dealer's online ad shows a specific used SUV at $18,995 all-in. The vehicle sells on Tuesday morning, but the ad continues to run unchanged for the rest of the week. Which statement is correct?
Correct answer: A
Section 36(12) of O. Reg. 333/08 prohibits a dealer from advertising a price for a motor vehicle unless the vehicle is actually available from the dealer at that price during the time the ad applies. Once the vehicle is sold, the ad has to be taken down or updated; running it unchanged is bait-pricing.
Source: O. Reg. 333/08, s. 36(12)
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Question 5
When does an ad for a used vehicle have to expressly state that the vehicle is used?
Correct answer: A
Section 36(6) of O. Reg. 333/08 triggers the explicit "used" disclosure only when the ad discloses a model year that is the current or immediately previous model year. Older model years do not trigger this specific labelling rule, though general false-advertising and contract-disclosure obligations still apply.
Source: O. Reg. 333/08, s. 36(6)
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