What must a vehicle sale contract record about the salesperson acting for the dealer?

Their registered name and registration number

What must a new car contract state about the delivery of the vehicle?

The delivery date, or how it is set

Whether the dealer or the manufacturer delivers

The sale date only, delivery is optional

A delivery window of five business days

Where a dealer takes a vehicle on consignment, what form must the contract take?

Written, signed by the dealer and the other party

Verbal, since consignment rests on trust

Email only, signed by the consignor

Written, signed by the dealer alone

A dealer takes a car on consignment. What must the contract say about its charges?

The total charge, with every component itemized

The commission percentage, with no dollar figures

Charges are settled after the sale closes

A single bottom-line fee, with no breakdown

A broker signs up a customer. What must the contract say about paying for the car?

The payment goes directly to the seller

The payment passes through the broker's account

The broker holds the payment in trust

The broker may handle the money if initialled

A buyer takes a new car warranty dispute to the Canadian Motor Vehicle Arbitration Plan. Who decides it?

A Licence Appeal Tribunal adjudicator

What goes with a used vehicle contract when a current safety standards certificate has been issued?

The certificate and a bold statement about it

The certificate on its own, with no statement

The inspection report the certificate was based on

A bold statement about the certificate, nothing else

Which contract statement must be printed next to the buyer's signature on the same page?

The compensation fund statement

Which statement does the buyer initial when a used car is sold as-is?

The safety certificate statement

What does a dealer do in a consignment sale?

Sells the owner's vehicle on the owner's behalf

Buys the vehicle outright and resells it

Takes the vehicle in trade on another sale

Leases the vehicle back to its owner

Once a safety standards certificate is issued for a used car, which sale is ruled out?

A sale with the certificate statement in bold

A sale with the certificate and no as-is statement

A sale that hands the certificate to the buyer

Contracts: OMVIC practice quiz

Sale, lease, consignment contracts · 16 questions Free set

Question 1 of 16 Sale, lease, consignment contracts

What must a vehicle sale contract record about the salesperson acting for the dealer?
- Their commission rate
- Their home address
- Their driver's licence number
- Their registered name and registration number
O. Reg. 333/08, s. 39(2) para. 5 Source for this answer

Paragraph 5 of subsection 39(2) of O. Reg. 333/08 requires the contract to include the registered name and registration number of any salesperson acting on the dealer's behalf. Chapter 4 covers contract requirements.
Question 2 of 16 Sale, lease, consignment contracts

What must a new car contract state about the delivery of the vehicle?
- Whether the dealer or the manufacturer delivers
- The delivery date, or how it is set
- The sale date only, delivery is optional
- A delivery window of five business days
O. Reg. 333/08, s. 39(2) para. 7 Source for this answer

Paragraph 7 of subsection 39(2) of O. Reg. 333/08 requires the contract to state the date the vehicle is to be delivered or a manner for determining that date. Paragraph 6 separately requires the date of sale, so the sale date does not cover the delivery requirement. The regulation sets no maximum delivery window and does not ask who carries the delivery out. Chapter 4 covers contract requirements.
Question 3 of 16 Sale, lease, consignment contracts

Above what repair cost must a dealer state that a car was damaged?
- More than $2,000
- More than $5,000
- More than $1,000
- More than $3,000
O. Reg. 333/08, s. 42 para. 19 Source for this answer

Paragraph 19 of section 42 of O. Reg. 333/08 sets the trigger at total repair costs that exceed $3,000, and where the dealer knew that total the contract must state the amount as well as the fact. The figure is the cost of the repairs needed to fix the damage, so $3,500 of work on one incident triggers the statement even where the damage is not of a kind another paragraph names. Chapter 5 covers retail disclosure requirements.
Question 4 of 16 Sale, lease, consignment contracts

Where a dealer takes a vehicle on consignment, what form must the contract take?
- Verbal, since consignment rests on trust
- Email only, signed by the consignor
- Written, signed by the dealer alone
- Written, signed by the dealer and the other party
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(1) A registered motor vehicle dealer shall not enter into a consignment contract for the sale of a motor vehicle, whether or not the consignor is a registered motor vehicle dealer, unless the contract is in writing. O. Reg. 333/08, s. 45 (1).

Read section 45 in full

Subsections 45(1) to (3) of O. Reg. 333/08 require every consignment contract to be in writing and signed by the dealer and by the other party. Chapter 4 covers contract requirements.
Question 5 of 16 Sale, lease, consignment contracts

A dealer takes a car on consignment. What must the contract say about its charges?
- The commission percentage, with no dollar figures
- Charges are settled after the sale closes
- A single bottom-line fee, with no breakdown
- The total charge, with every component itemized
O. Reg. 333/08, s. 45(4) para. 10 Source for this answer

Paragraph 10 of subsection 45(4) of O. Reg. 333/08 requires the total amount (fixed or commission share) plus an itemized list of all components of those charges. Chapter 4 covers contract requirements.
Question 6 of 16 Sale, lease, consignment contracts

A broker signs up a customer. What must the contract say about paying for the car?
- The payment goes directly to the seller
- The payment passes through the broker's account
- The broker holds the payment in trust
- The broker may handle the money if initialled
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(2) The statement mentioned in paragraph 11 of subsection (1) is as follows:
Any payment for the purchase or lease of a motor vehicle should be made directly to the seller or lessor, as the case may be. A broker is prohibited from taking or handling funds that are used to pay for the purchase or lease.
A broker is not authorized to make promises on behalf of any person. O. Reg. 333/08, s. 49 (2).

Read section 49 in full

Section 49 fixes the wording of that statement: any payment for the purchase or lease is to be made directly to the seller or lessor, because a broker is prohibited from taking or handling the funds used to pay for the purchase or lease. A broker arranges the trade and never holds the customer's money, so any arrangement that routes the payment through the broker breaches the rule. Chapter 4 covers contract requirements.
Question 7 of 16 Sale, lease, consignment contracts

A buyer takes a new car warranty dispute to the Canadian Motor Vehicle Arbitration Plan. Who decides it?
- A Small Claims Court judge
- An OMVIC complaints officer
- A Licence Appeal Tribunal adjudicator
- An independent arbitrator
The plan hands the dispute to a neutral arbitrator, independent of both sides, so the outcome comes from that arbitrator and not from OMVIC, a tribunal or a court. Chapter 18 covers the arbitration plan.
Question 8 of 16 Sale, lease, consignment contracts

Dealers must put every vehicle sale or lease contract in writing.
- True
- False
A vehicle sale or lease has to be recorded in a written contract both parties sign, so an agreement reached only out loud is not the contract the law works from. 4.03 states the writing requirement.
Question 9 of 16 Sale, lease, consignment contracts

Two vehicles sold to the same buyer in one deal can share a single contract.
- True
- False
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here

(8) The registered motor vehicle dealer shall ensure that there is a separate contract under subsection (2) for each motor vehicle that the dealer sells. O. Reg. 333/08, s. 39 (8).

Read section 39 in full

Each vehicle a dealer sells needs a contract of its own, so a buyer taking two vehicles in one deal signs two contracts rather than one covering both. Section 39(8) of O. Reg. 333/08 sets the separate-contract rule, and 4.03 states it.
Question 10 of 16 Sale, lease, consignment contracts

What goes with a used vehicle contract when a current safety standards certificate has been issued?
- The certificate on its own, with no statement
- The inspection report the certificate was based on
- The certificate and a bold statement about it
- A bold statement about the certificate, nothing else
O. Reg. 333/08, s. 40(2) Source for this answer

Where a current safety standards certificate has been issued for the vehicle, the contract carries the certificate itself and a bold statement telling the buyer what the certificate does and does not mean. Section 40(2) of O. Reg. 333/08 requires both, and 4.04 covers them.
Question 11 of 16 Sale, lease, consignment contracts

A dealer and a consignor may settle the dealer's fee after the vehicle sells and leave it out of the contract.
- True
- False
The fee is one of the terms the written consignment contract has to carry, beside the estimated selling price and the minimum selling price, so it is agreed before the vehicle goes on the lot rather than settled once the money is in. Chapter 18 states it in those terms.
Question 12 of 16 Sale, lease, consignment contracts

Which contract statement must be printed next to the buyer's signature on the same page?
- The compensation fund statement
- The as-is statement
- The sales final statement
- The arbitration plan statement
O. Reg. 333/08, s. 39(2) para. 24 and s. 39(3) Source for this answer

O. Reg. 333/08, s. 39(2) puts the sales final statement on the same page as the purchaser's signature and next to it, in bold, and s. 39(3) sets its words, so that placement belongs to that statement alone. 4.03 lists what a sale contract carries.
Question 13 of 16 Sale, lease, consignment contracts

Which statement does the buyer initial when a used car is sold as-is?
- The arbitration plan statement
- The as-is statement
- The safety certificate statement
- The sales final statement
O. Reg. 333/08, s. 40(2) Source for this answer

O. Reg. 333/08, s. 40(2) requires a used vehicle contract for an as-is sale to carry the prescribed as-is statement in bold, with the purchaser initialling it, so the initials go on that statement and on no other. 4.04 lists the statements a used vehicle contract carries.
Question 14 of 16 Sale, lease, consignment contracts

What does a dealer do in a consignment sale?
- Buys the vehicle outright and resells it
- Takes the vehicle in trade on another sale
- Leases the vehicle back to its owner
- Sells the owner's vehicle on the owner's behalf
On a consignment the owner, the consignor, hands the vehicle to the dealer, the consignee, to sell for the owner, so the dealer never buys the car and is selling somebody else's vehicle. 18.04 covers consignment sales.
Question 15 of 16 Sale, lease, consignment contracts

Once a safety standards certificate is issued for a used car, which sale is ruled out?
- An as-is sale of that car
- A sale with the certificate statement in bold
- A sale with the certificate and no as-is statement
- A sale that hands the certificate to the buyer
The chapter puts it flat: a used car goes out either certified or as-is, never both, so once a certificate has been issued for that car the as-is sale is the one that is out. 4.04 carries the note and 16.03 repeats it; O. Reg. 333/08, s. 40(3) is the provision behind it.
Question 16 of 16 Sale, lease, consignment contracts

What are the three categories a used vehicle can fall into?
- Fit, certified or as-is
- Fit, unfit or salvage
- Fit, unfit or as-is
- New, used or as-is
A used vehicle is categorized as fit, unfit or as-is, and a vehicle sold as-is is the one that is not represented as being in road worthy condition. 4.04 sets out the three categories at the end of the used vehicle contract list.

Sale, lease, consignment contracts

What must a vehicle sale contract record about the salesperson acting for the dealer?

What must a new car contract state about the delivery of the vehicle?

Above what repair cost must a dealer state that a car was damaged?

Where a dealer takes a vehicle on consignment, what form must the contract take?

A dealer takes a car on consignment. What must the contract say about its charges?

A broker signs up a customer. What must the contract say about paying for the car?

A buyer takes a new car warranty dispute to the Canadian Motor Vehicle Arbitration Plan. Who decides it?

Dealers must put every vehicle sale or lease contract in writing.

Two vehicles sold to the same buyer in one deal can share a single contract.

What goes with a used vehicle contract when a current safety standards certificate has been issued?

A dealer and a consignor may settle the dealer's fee after the vehicle sells and leave it out of the contract.

Which contract statement must be printed next to the buyer's signature on the same page?

Which statement does the buyer initial when a used car is sold as-is?

What does a dealer do in a consignment sale?

Once a safety standards certificate is issued for a used car, which sale is ruled out?

What are the three categories a used vehicle can fall into?

16 questions here. 17 topics in all.