Sale, lease, consignment contracts: Practice Quiz | DealerPrep

Question 1

In what form must a motor vehicle dealer make prescribed disclosures to customers and to other dealers under the MVDA?

Accepted Answer

Section 30(1) of the MVDA requires every prescribed disclosure to be made in writing and at the time set by regulation. Oral or informal communications do not satisfy the duty.

Answer

In writing, at the time prescribed by regulation

Answer

Verbally, before the customer leaves the lot

Answer

By voicemail or text message any time before delivery

Answer

Whichever form the customer prefers, so long as it is documented later

Question 2

A non-dealer customer leaves a deposit (or a trade-in vehicle) with a dealer before any sale or lease contract is signed. The customer then asks for it back, still before signing. What does O. Reg. 333/08 require the dealer to do?

Accepted Answer

Section 38 of O. Reg. 333/08 requires the dealer to return a pre-contract deposit or trade-in immediately on request. The duty applies even if the customer never enters into a contract.

Answer

Return the deposit or trade-in immediately, even if the customer never signs a contract

Answer

Return it only after deducting a reasonable restocking fee

Answer

Hold it for up to 10 business days while the customer reconsiders

Answer

Return it only if the customer signs a written release of the dealer

Question 3

Once a new vehicle sale contract is signed, when must the purchaser receive a copy under O. Reg. 333/08?

Accepted Answer

Section 39(10)(c) of O. Reg. 333/08 requires the purchaser to receive a copy of the contract immediately after signing it. The same wording is repeated for used vehicle sales and leases.

Answer

Immediately after signing the contract

Answer

Within 24 hours of signing

Answer

At the time the vehicle is delivered with the keys

Answer

Within 10 days, by mail or email

Question 4

A dealer may sell a used vehicle to a non-dealer purchaser on an as-is basis even when a current Safety Standards Certificate has already been issued for the vehicle, provided the buyer initials the as-is statement.

Accepted Answer

Section 40(3) of O. Reg. 333/08 prohibits a dealer from selling a used vehicle on an as-is basis to a non-dealer purchaser when a current Safety Standards Certificate has been issued under the Highway Traffic Act. A buyer's initials cannot override this prohibition.

Answer

True

Answer

False

Question 5

Under section 40(4) of O. Reg. 333/08, a used vehicle sale contract must include the Canadian Motor Vehicle Arbitration Plan (CAMVAP) statement only when both conditions are met. What are those two conditions?

Accepted Answer

Section 40(4) of O. Reg. 333/08 requires the Canadian Motor Vehicle Arbitration Plan (CAMVAP) statement only where the vehicle is the current model year or one of the four preceding model years and the odometer is under 160,000 kilometres. Both thresholds must be satisfied.

Answer

The vehicle is the current model year or one of the four preceding model years, and it has been driven less than 160,000 kilometres

Answer

The vehicle is the current model year or one of the five preceding model years, and it has been driven less than 160,000 kilometres

Answer

The vehicle is the current model year or one of the four preceding model years, and it has been driven less than 100,000 kilometres

Answer

The vehicle is the current model year or one of the four preceding model years, or it has been driven less than 200,000 kilometres

Sale, lease, consignment contracts

In what form must a motor vehicle dealer make prescribed disclosures to customers and to other dealers under the MVDA?

A non-dealer customer leaves a deposit (or a trade-in vehicle) with a dealer before any sale or lease contract is signed. The customer then asks for it back, still before signing. What does O. Reg. 333/08 require the dealer to do?

Once a new vehicle sale contract is signed, when must the purchaser receive a copy under O. Reg. 333/08?

A dealer may sell a used vehicle to a non-dealer purchaser on an as-is basis even when a current Safety Standards Certificate has already been issued for the vehicle, provided the buyer initials the as-is statement.

Under section 40(4) of O. Reg. 333/08, a used vehicle sale contract must include the Canadian Motor Vehicle Arbitration Plan (CAMVAP) statement only when both conditions are met. What are those two conditions?

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