Material facts and retail disclosures: Practice Quiz | DealerPrep

Question 1

At what dollar threshold for the total cost of repairs caused by an incident must a registered motor vehicle dealer disclose the prior damage on the retail sale or lease contract?

Accepted Answer

Paragraph 19 of section 42 of O. Reg. 333/08 sets the threshold at $3,000. If the total cost of repairs to fix incident damage exceeds that amount, the dealer must say so on the contract, and must state the actual cost if the dealer knows it.

Answer

$2,500

Answer

$3,000

Answer

$5,000

Answer

$7,500

Question 2

Which prior use of a vehicle must a dealer disclose to a retail buyer or lessee under section 42 of O. Reg. 333/08?

Accepted Answer

Paragraph 7 of section 42 lists the prior-use disclosures: previously leased on a daily basis, used as a police cruiser or to provide emergency services, or used as a taxi or limousine. Taxi or limousine use is on the list.

Answer

Use as a driver-training vehicle by a licensed driving school

Answer

Ownership by a corporate fleet for executive travel

Answer

Use as a taxi or limousine

Answer

Garage parking under a covered carport

Question 3

A used vehicle was declared a total loss by an insurer after a collision, but it was repaired and never classified as irreparable or salvage under section 199.1 of the Highway Traffic Act. What must the dealer do when reselling it at retail?

Accepted Answer

Paragraph 21 of section 42 requires disclosure of an insurer's total-loss declaration regardless of whether the vehicle was classified as irreparable or salvage under section 199.1 of the Highway Traffic Act. The two regimes are independent.

Answer

Disclose the prior total-loss declaration on the contract regardless of the Highway Traffic Act classification

Answer

Disclose only if the vehicle is currently classified as salvage

Answer

Make no disclosure, because the vehicle has a clean Highway Traffic Act classification

Answer

Make no disclosure, because the insurer's call is private and not a regulated fact

Question 4

A dealer needs to disclose structural damage on a retail contract only if the cost of the structural repairs exceeded $3,000.

Accepted Answer

Paragraph 10 of section 42 of O. Reg. 333/08 makes structural damage and any repairs, replacements, or alterations to the structure a stand-alone disclosure trigger. There is no dollar threshold; the $3,000 rule in paragraph 19 is a separate trigger for incident-repair totals.

Answer

True

Answer

False

Question 5

Under section 42 of O. Reg. 333/08, what must a dealer disclose about a vehicle beyond the specific items the section names?

Accepted Answer

Paragraph 25 of section 42 is a catch-all. Beyond the named items, the dealer must disclose any other fact that, if disclosed, could reasonably be expected to influence a reasonable purchaser or lessee's decision to buy or lease on the contract terms.

Answer

Only the items expressly named in section 42; anything not on the list is left to the buyer to discover

Answer

Any other fact that, if disclosed, could reasonably be expected to influence a reasonable buyer or lessee's decision to buy or lease on those terms

Answer

Only facts the dealer learned directly from the manufacturer or the previous registered owner

Answer

Only facts that have a measurable effect on the resale value of the vehicle

Material facts and retail disclosures

At what dollar threshold for the total cost of repairs caused by an incident must a registered motor vehicle dealer disclose the prior damage on the retail sale or lease contract?

Which prior use of a vehicle must a dealer disclose to a retail buyer or lessee under section 42 of O. Reg. 333/08?

A used vehicle was declared a total loss by an insurer after a collision, but it was repaired and never classified as irreparable or salvage under section 199.1 of the Highway Traffic Act. What must the dealer do when reselling it at retail?

A dealer needs to disclose structural damage on a retail contract only if the cost of the structural repairs exceeded $3,000.

Under section 42 of O. Reg. 333/08, what must a dealer disclose about a vehicle beyond the specific items the section names?

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