Code of Ethics: Practice Quiz | DealerPrep

Question 1

Under the Code of Ethics regulation, what four standards must all representations and advertising made by or on behalf of a registrant meet?

Accepted Answer

Section 4(2) of O. Reg. 332/08 requires every representation, including advertising, made by or on behalf of a registrant to be legal, decent, ethical and truthful. The four words are tested verbatim.

Answer

Legal, decent, ethical and truthful

Answer

Fair, accurate, lawful and balanced

Answer

Clear, complete, honest and respectful

Answer

Conspicuous, prominent, current and verifiable

Question 2

Who is responsible under the Code of Ethics regulation for ensuring that a registered salesperson carries out their duties in compliance with the regulation?

Accepted Answer

Section 6(1) of O. Reg. 332/08 places the duty squarely on the dealer: a registered motor vehicle dealer must ensure that every salesperson the dealer employs or retains carries out their duties in compliance with the regulation.

Answer

The registered motor vehicle dealer who employs or retains the salesperson

Answer

OMVIC, through ongoing inspection of every salesperson

Answer

The salesperson alone, since the dealer's registration is separate

Answer

The customer, who is expected to report any breach

Question 3

When must a dealer explain the terms of a sales or lease contract, including any financial and other obligations, to a customer who is not a registered dealer?

Accepted Answer

Section 4(3) of O. Reg. 332/08 requires the dealer to explain the contract terms, including the customer's financial and other obligations, before entering into the contract. The duty is pre-signature, not post-signature or on request.

Answer

Before the dealer enters into the contract with the customer

Answer

Within 24 hours after the customer signs the contract

Answer

Only if the customer asks for an explanation

Answer

At the time of vehicle delivery, before the keys are handed over

Question 4

A salesperson tells a customer that the documentation fee on a vehicle deal is set by OMVIC. Is this statement permitted under the Code of Ethics?

Accepted Answer

Section 3(2) of O. Reg. 332/08 prohibits a registrant from indicating, directly or indirectly, that any payment, commission or other remuneration on a vehicle trade is fixed or approved by OMVIC, a government authority, or a motor vehicle board or association. Documentation fees are set by the dealer, not by OMVIC.

Answer

Permitted

Answer

Prohibited

Question 5

A retail customer trades in a financed vehicle on a new purchase, and the dealer agrees in the contract to pay off the outstanding loan on the trade-in. The dealer never makes the payoff and the lender starts collection against the customer. Under the Code of Ethics, who is on the hook to fulfil the payoff obligation?

Accepted Answer

Section 9(5) of O. Reg. 332/08 says that where a dealer takes a trade-in from a non-dealer customer and agrees to pay an outstanding loan, repair bill or storage bill on that vehicle, the dealer who receives the trade-in must fulfil that obligation. The duty cannot be passed off to the lender, the customer's prior dealer, or any later buyer.

Answer

The dealer who received the trade-in

Answer

The lender that originally financed the trade-in

Answer

The customer's previous selling dealer

Answer

The next retail buyer of the trade-in vehicle

Code of Ethics

Under the Code of Ethics regulation, what four standards must all representations and advertising made by or on behalf of a registrant meet?

Who is responsible under the Code of Ethics regulation for ensuring that a registered salesperson carries out their duties in compliance with the regulation?

When must a dealer explain the terms of a sales or lease contract, including any financial and other obligations, to a customer who is not a registered dealer?

A salesperson tells a customer that the documentation fee on a vehicle deal is set by OMVIC. Is this statement permitted under the Code of Ethics?

5 questions here. 1,000+ more in the app.