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Compensation Fund
5 questions. Pick an answer and the explanation reveals below it. Your score updates as you go.
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Question 1
What is the maximum amount the Motor Vehicle Dealers Compensation Fund will pay a customer in respect of a single claim?
Correct answer: C
Subsection 83(5) of O. Reg. 333/08 caps total compensation from the Fund at $45,000 per claim, and that ceiling includes any interim payment already made under section 84.
Source: O. Reg. 333/08, s. 83(5)
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Question 2
When a new application for registration as a general dealer or broker is granted, how much must the dealer pay to the Compensation Fund for each place from which the dealer is authorized to trade?
Correct answer: B
Clause 75(2)(a) of O. Reg. 333/08 sets the per-location Fund payment at $300 for general dealers and brokers on a new (non-renewal) registration.
Source: O. Reg. 333/08, s. 75(2)(a)
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Question 3
Within what time after a Compensation Fund claim first meets the eligibility requirements of subsection 79(3) must a customer give written notice of the claim to the registrar?
Correct answer: C
Subsection 80(1) of O. Reg. 333/08 requires written notice of a claim to be delivered to the registrar within two years after the claim first meets the requirements set out in the relevant paragraph of subsection 79(3).
Source: O. Reg. 333/08, s. 80(1)
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Question 4
A registered dealer who buys a vehicle wholesale from another registered dealer can claim against the Motor Vehicle Dealers Compensation Fund if the selling dealer goes bankrupt before delivering the vehicle. True or false?
Correct answer: B
Clause 79(1)(d) of O. Reg. 333/08 limits Fund eligibility to a customer who was acting in the trade as a consumer within the meaning of the Consumer Protection Act, 2002. A dealer buying wholesale is not acting as a consumer, so the wholesale buyer cannot claim.
Source: O. Reg. 333/08, s. 79(1)(d)
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Question 5
A court convicts a registered dealer of an offence connected with a trade and orders the dealer to pay restitution to the customer. The customer files a claim and the Compensation Fund pays it. What is the dealer's obligation toward the Fund?
Correct answer: B
Section 87 of O. Reg. 333/08 requires a registered dealer to reimburse the Fund for a claim paid to one of the dealer's customers when, among other triggers, the claim arose from a trade for which a court convicted the dealer of an offence and ordered restitution. The Fund is not no-fault coverage for the dealer.
Source: O. Reg. 333/08, s. 87
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