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Mixed OMVIC practice quiz
10 questions sampled across every category. Pick an answer to reveal the explanation. The selection updates every two days, so come back for a fresh round.
Last refreshed October 18, 2026.
Mixed set · 10 questions Across every topic
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Question 1 of 10 Consumer Protection Act for dealers
Taking advantage of a consumer is an unfair business practice even where nothing untrue was said.
Taking advantage of a consumer is one of the two kinds of unfair practice, the other being a false, misleading or deceptive representation, so unfair conduct does not require a lie at all. 13.04 covers unfair practices.
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Question 2 of 10 Curbsiders
A buyer answers a private ad placed by a curbsider. What kind of car is it often?
OMVIC says many of the vehicles curbsiders sell are previous write-offs with undisclosed accident repairs. The buyer learns nothing about the damage, which is why OMVIC treats the practice as a safety problem and not only a money one. Chapter 11 covers avoiding curbsiders.
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Question 3 of 10 Consumer Protection Act for dealers
How long after signing does a consumer have to give notice cancelling for an unfair practice?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 18 in full(3) A consumer must give notice within one year after entering into the agreement if,
(a) the consumer seeks to rescind an agreement under subsection (1); or
(b) the consumer seeks recovery under subsection (2), if rescission is not possible. 2002, c. 30, Sched. A, s. 18 (3).
Section 18(3) of the Consumer Protection Act, 2002 requires the consumer to give notice within one year after entering into the agreement. Chapter 13 covers the Consumer Protection Act.
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Question 4 of 10 Sale, lease, and consignment contracts
Once a safety standards certificate is issued for a used car, which sale is ruled out?
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.
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Question 5 of 10 Vehicle documents, UVIP, and permits
Which of these is a brand Ontario gives a badly damaged vehicle?
A badly damaged vehicle is branded in one of four categories, and irreparable, salvage and rebuilt are three of them, with none as the fourth for a vehicle that has never been given any of the others in Ontario. The brand is printed on the permit, the vehicle history and the information package, so the damage stays on the public record. 18.08 sets out the four.
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Question 6 of 10 Sale, lease, and consignment contracts
A dealer takes a car on consignment. What must the contract say about its charges?
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.
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Question 7 of 10 Vehicle documents, UVIP, and permits
How recent must a safety certificate be for a used car's permit to show fit status?
R.R.O. 1990, Reg. 628 under the HTA · reproduced on this site Press to read the wording here
Read section 2.0.1 in full(2) A permit indicating a fit status shall not be issued for a used motor vehicle unless a safety standards certificate was issued upon an inspection of the vehicle that was completed within the preceding 36 days. O. Reg. 172/22, s. 2 (4).
R.R.O. 1990, Reg. 628 will not let a used vehicle's permit go into fit status unless the Safety Standards Certificate behind it came out of an inspection finished no more than 36 days earlier, so a certificate resting on an older inspection no longer carries the transfer and the car goes back for another one.
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Question 8 of 10 Consumer Protection Act for dealers
Before charging a customer for repairs, what must a repair shop do first?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 56 in full(1) No repairer shall charge a consumer for any work or repairs unless the repairer first gives the consumer an estimate that meets the prescribed requirements. 2002, c. 30, Sched. A, s. 56 (1).
Section 56(1) of the Consumer Protection Act, 2002 bars a repairer from charging a consumer for any work or repairs unless the repairer first gives the consumer an estimate meeting the prescribed requirements. Section 56(2) sets out the one alternative: the repairer offers an estimate, the consumer declines it, the consumer authorizes a maximum amount and the charge stays within it. Insurance coverage, OMVIC registration and a waiting period play no part in the section. Chapter 14 covers repairs.
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Question 9 of 10 Curbsiders
Studies have found what share of ads that claim to be from private sellers actually come from curbsiders?
The course material states that studies put about a quarter of the ads placed as private-seller ads with curbsiders, which means an ad reading as private is no assurance the seller is out of the business. The chapter 11 fast facts carry the 25 per cent figure.
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Question 10 of 10 Liens on trade-ins and repaired vehicles
Which number is a lien search on a trade-in run against?
Section 43(1) of the Personal Property Security Act makes the registrar's search indexes the debtor names and the motor vehicle identification number, so a lien search on a vehicle is run against that number, which stays with the vehicle while a plate or a permit changes hands. 3.09 carries the definition.
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Advertising rules and all-in pricing
What must an online ad for a used car show about the dealer?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(2) Subject to subsection (3), an advertisement that attempts to induce a trade in a motor vehicle shall include, in a clear, comprehensible and prominent manner, a registered name and contact information of the motor vehicle dealer. O. Reg. 333/08, s. 36 (2); O. Reg. 278/24, s. 5 (1).
Section 36(2) of O. Reg. 333/08 requires every ad that attempts to induce a trade to carry a registered dealer name and contact information clearly, comprehensibly, and prominently. None of the other options supplies both halves of that pairing, so none of them satisfies the subsection. Chapter 8 covers disclosure in advertising.
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Advertising rules and all-in pricing
Prior use as a police cruiser must be disclosed when the car is advertised.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(5) If any of the following is true of a motor vehicle, an advertisement that attempts to induce a trade in the specific vehicle shall indicate, in a clear, comprehensible and prominent manner, that the vehicle was previously,
(a) leased on a daily basis, unless the vehicle was subsequently owned by a person who was not a registered motor vehicle dealer;
(b) used as a police cruiser or used to provide emergency services; or
(c) used as a taxi or limousine. O. Reg. 333/08, s. 36 (5).
Section 36(5)(b) of O. Reg. 333/08 lists prior use as a police cruiser or to provide emergency services as a required clear, comprehensible, and prominent disclosure in the ad. Chapter 8 covers disclosure in advertising.
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Advertising rules and all-in pricing
Which past use must an ad for a used car disclose?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(5) If any of the following is true of a motor vehicle, an advertisement that attempts to induce a trade in the specific vehicle shall indicate, in a clear, comprehensible and prominent manner, that the vehicle was previously,
(a) leased on a daily basis, unless the vehicle was subsequently owned by a person who was not a registered motor vehicle dealer;
(b) used as a police cruiser or used to provide emergency services; or
(c) used as a taxi or limousine. O. Reg. 333/08, s. 36 (5).
Section 36(5)(c) of O. Reg. 333/08 lists prior use as a taxi or limousine as a required ad disclosure. The other options describe ordinary or marketing uses that the regulation does not single out. Chapter 8 covers disclosure in advertising.
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Advertising rules and all-in pricing
What must the price advertised for a car represent?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(7) If an advertisement indicates the price of a motor vehicle, the price shall be set out in a clear, comprehensible and prominent manner and shall be set out as the total of,
(a) the amount that a buyer would be required to pay for the vehicle; and
(b) subject to subsections (9) and (10), all other charges related to the trade in the vehicle, including, if any, charges for freight, charges for inspection before delivery of the vehicle, fees, levies and taxes. O. Reg. 333/08, s. 36 (7).
Section 36(7) of O. Reg. 333/08 requires an advertised price to be set out as the total of what a buyer would have to pay for the vehicle plus all other charges related to the trade, including freight, pre-delivery inspection, fees, levies and taxes. Only two narrow reliefs exist, s. 36(9) for a charge that varies between dealers in a jointly placed ad and s. 36(10) for sales tax, and each demands its own on-the-ad statement rather than letting charges be split out or deferred to signing. Chapter 8 covers disclosure in advertising.
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Advertising rules and all-in pricing
Dealers may leave the administration fee out of an advertised price.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(7) If an advertisement indicates the price of a motor vehicle, the price shall be set out in a clear, comprehensible and prominent manner and shall be set out as the total of,
(a) the amount that a buyer would be required to pay for the vehicle; and
(b) subject to subsections (9) and (10), all other charges related to the trade in the vehicle, including, if any, charges for freight, charges for inspection before delivery of the vehicle, fees, levies and taxes. O. Reg. 333/08, s. 36 (7).
Clause 36(7)(b) makes the advertised price the total of what a buyer must pay for the vehicle plus all other charges related to the trade, naming freight, inspection before delivery, fees, levies and taxes. Subsection 36(10) is the sole clear-statement relief and it reaches Retail Sales Tax Act amounts and the federal goods and services tax, so freight, pre-delivery inspection and dealer administration fees stay inside the advertised price. Chapter 8 covers disclosure in advertising.
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Advertising rules and all-in pricing
Where OMVIC orders a dealer to correct a false ad, how prominent must the correction be?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 29 in full(1) If the registrar believes on reasonable grounds that a registrant is making a false, misleading or deceptive statement in any advertisement, circular, pamphlet or material published by any means, the registrar may,
(a) order the cessation of the use of such material;
(b) order the registrant to retract the statement or publish a correction of equal prominence to the original publication; or
(c) order both a cessation described in clause (a) and a retraction or correction described in clause (b). 2002, c. 30, Sched. B, s. 29 (1).
Section 29(1)(b) of the MVDA sets the benchmark at equal prominence to the original publication, so a correction pitched below that fails and one pitched above it is not what the clause demands either. Chapter 1 covers what OMVIC can do about false advertising.
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Advertising rules and all-in pricing
For how long at most may OMVIC require a dealer to submit ads for approval?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 37 in full(1) For the purposes of subsection 29 (5) of the Act, a two-year period is prescribed. O. Reg. 333/08, s. 37 (1).
Section 37(1) of O. Reg. 333/08 prescribes a two-year period for the purposes of subsection 29(5) of the MVDA, and subsection 29(5) lets the registrar specify a pre-approval period only up to the prescribed one, so two years is the ceiling and a longer order is outside the registrar's power. Chapter 1 covers what OMVIC can do about false advertising.
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Advertising rules and all-in pricing
A dealer advertises an inflated regular price so the sale price looks like a deal. What is that?
Paragraph 11 of section 14(2) of the Consumer Protection Act lists a representation that a specific price advantage exists, if it does not, as a deceptive representation. Window stickers and consumer expectations do not save the claim. Chapter 13 covers the Consumer Protection Act.
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Advertising rules and all-in pricing
A dealer scripts a radio ad quoting credit terms. Which credit claims must follow the rules?
O. Reg. 17/05 under the CPA, 2002 · reproduced on this site Press to read the wording here
Read section 61 in full(1) Any person who makes representations in respect of a credit agreement, or causes representations to be made in respect of a credit agreement, in an advertisement shall do so in accordance with this section, regardless of whether the representations are made orally, in writing or in any other form. O. Reg. 17/05, s. 61 (1).
Subsection 61(1) of O. Reg. 17/05 binds any person who makes representations about a credit agreement in an advertisement or causes them to be made, whether those representations are oral, in writing or in any other form. A dealer who hands a script to a radio station causes the representation to be made, so the section applies even though someone else reads the words out. Chapter 13 covers the Consumer Protection Act.
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Advertising rules and all-in pricing
A salesperson personally misleads a buyer. Who does the Consumer Protection Act's unfair practice ban bind?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 17 in full(1) No person shall engage in an unfair practice. 2002, c. 30, Sched. A, s. 17 (1).
Section 17(1) of the Consumer Protection Act, 2002 reads that no person shall engage in an unfair practice, so the prohibition reaches a salesperson personally, an unregistered seller and a registered dealership alike. Nothing in the subsection narrows it to suppliers, to registrants or to a signed deal. Chapter 13 covers the Consumer Protection Act.
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Advertising rules and all-in pricing
Where an ad says an extended warranty is included, it must state the term and any claim limits.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(14) An advertisement that indicates that an extended warranty is included with the purchase of a motor vehicle shall indicate, in a clear, comprehensible and prominent manner, the term of the warranty and the maximum individual claim limits, if any, for the warranty. O. Reg. 333/08, s. 36 (14).
An advertisement that says an extended warranty comes with the vehicle must set out the term of that warranty and any maximum individual claim limits, clearly and prominently, because a buyer cannot judge what is being offered without both. O. Reg. 333/08, s. 36(14) sets the duty, and 8.04 covers disclosure in dealer advertising.
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Advertising rules and all-in pricing
An ad showing this year's model year on a used car must say the car is used.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 36 in full(6) If an advertisement that attempts to induce a trade in a specific motor vehicle discloses the model year of the vehicle and the model year so disclosed is the current model year or the immediately previous model year, the advertisement shall indicate, in a clear, comprehensible and prominent manner, that the vehicle is a used motor vehicle, if that is true of the vehicle. O. Reg. 333/08, s. 36 (6).
Section 36(6) of O. Reg. 333/08 requires an ad that gives the current or the immediately previous model year to indicate clearly, comprehensibly and prominently that the vehicle is used, because a fresh model year on its own reads as new. 8.04 carries the rule.
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Code of Ethics and professional conduct
Besides being honest and fair, what must a dealer be in carrying on business?
O. Reg. 332/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 3 in full(1) A registrant shall be financially responsible in carrying on business. O. Reg. 332/08, s. 3 (1).
Section 3(1) of O. Reg. 332/08 requires a registrant to be financially responsible in carrying on business. The duty is about responsible conduct with money, not profit, credit ratings, or insurance. Chapter 17 covers the Code of Ethics Regulations.
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Code of Ethics and professional conduct
What must a salesperson be when describing a car's features, benefits and price?
O. Reg. 332/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 4 in full(1) A registrant shall be clear and truthful in describing the features, benefits and prices connected with the motor vehicles in which the registrant trades and in explaining the products, services, programs and prices connected with those vehicles. O. Reg. 332/08, s. 4 (1).
Section 4(1) of O. Reg. 332/08 requires that a registrant be clear and truthful in describing the features, benefits, and prices of vehicles, and in explaining the products, services, programs, and prices connected with them. Chapter 17 covers the Code of Ethics Regulations.
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Code of Ethics and professional conduct
A discipline committee finds a dealer broke the Code of Ethics. What may it order?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 17 in full(4) If the discipline committee makes a determination under subsection (1) that a registrant has failed to comply with the code of ethics, it may order any of the following, as appropriate:
1. Require the registrant to take further educational courses.
2. In accordance with the terms that may be specified by the committee, require the motor vehicle dealer to fund educational courses for salespersons employed by the dealer or to arrange and fund such educational courses.
3. Despite subsection 12 (1) of the Safety and Consumer Statutes Administration Act, 1996, impose such fine as the committee considers appropriate, to a maximum of $25,000, or such lesser amount as may be prescribed, to be paid by the registrant to the administrative authority or to the Minister of Finance if there is no designated administrative authority.
4. Suspend or postpone the taking of further educational courses, the funding or the funding and arranging of educational courses or the imposition of the fine for such period and upon such terms as the committee designates.
5. Fix and impose costs to be paid by the registrant to the administrative authority or to the Minister of Finance if there is no designated administrative authority. 2002, c. 30, Sched. B, s. 17 (4).
Subsection 17(4) of the MVDA lets the discipline committee require further educational courses, require a dealer to fund or arrange courses for its salespersons, impose a fine of up to $25,000 payable to the administrative authority, or suspend any of those. Revoking a registration is the registrar's power under section 8 and not the committee's, the subsection provides no compensation order, and clause 32(1)(c) puts a code of ethics outside the offence provision. Chapter 17 covers disciplinary action.
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Code of Ethics and professional conduct
Who hears and decides whether a dealer has broken the Code of Ethics?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 17 in full(1) The board of the administrative authority or, if there is no designated administrative authority, the Minister may establish a discipline committee to hear and determine, in accordance with the prescribed procedures, issues concerning whether registrants have failed to comply with the code of ethics established by the Minister. 2002, c. 30, Sched. B, s. 17 (1).
Section 17(1) of the Motor Vehicle Dealers Act, 2002 lets the board of the administrative authority, or the Minister where no administrative authority is designated, establish a discipline committee, and that committee is what hears and determines whether registrants have broken the code of ethics. A code complaint therefore lands with the committee rather than with the registrar, a tribunal or a court. Chapter 17 covers the Code of Ethics Regulations.
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Code of Ethics and professional conduct
Dealers and salespeople may treat the Code of Ethics under the MVDA as advice rather than law.
The Code of Ethics is a regulation made under the Motor Vehicle Dealers Act, 2002, so it carries the force of law and a dealer or salesperson has to follow it rather than choose to. 17.04 sets out the Code of Ethics requirements.
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Code of Ethics and professional conduct
What kind of rule is the Code of Ethics for dealers and salespeople?
The Code of Ethics sits in a regulation made under the MVDA, so a dealer or salesperson follows it as law and not as a standard the dealership chose to adopt. 17.06 sums up the chapter.
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Code of Ethics and professional conduct
What can OMVIC do to the registration of a dealer who breaks the Code of Ethics?
A breach of the code exposes the registration itself: it can be refused, suspended or revoked, and conditions can be attached to it instead, so all three steps are open to OMVIC. 17.05 covers disciplinary action.
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Code of Ethics and professional conduct
What does the word ethics mean in the Code of Ethics?
Ethics means the principles of right and wrong that guide how a person behaves, and the Code of Ethics holds a dealer and a salesperson to that standard, not to a trade association's rules or one dealership's own policy. 17.05 covers the definition.
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Motor Vehicle Dealers Compensation Fund
Which loss on a car deal does the compensation fund cover?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 79 in full(1) A customer of a registered motor vehicle dealer is entitled to compensation from the Fund in respect of a claim for a pecuniary loss if,
(a) the claim arose from a trade in a motor vehicle between the customer and the dealer;
(b) the claim meets the requirements set out in a paragraph of subsection (3);
(c) at the time of the trade, the dealer was a registrant;
(d) the customer was acting in the trade as a consumer within the meaning of the Consumer Protection Act, 2002; and
(e) the customer has given the dealer, in accordance with section 37 of the Act, a written notice of demand for payment of the claim and the dealer has refused to pay the claim or is unable to do so. O. Reg. 333/08, s. 79 (1).
Section 79(1) of O. Reg. 333/08 entitles a customer to compensation from the Fund only for a pecuniary loss arising from a trade between the customer and a registered dealer. Chapter 12 covers the compensation fund.
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Motor Vehicle Dealers Compensation Fund
What is the most the compensation fund pays on one claim?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 83 in full(5) No person or body, including the Board and the Trustee, shall pay compensation from the Fund to a customer in respect of a claim if the total compensation, including compensation under section 84, exceeds $45,000. O. Reg. 333/08, s. 83 (5).
Section 83(5) of O. Reg. 333/08 caps total compensation per claim, including any interim payment made under section 84, at $45,000. Chapter 12 covers the compensation fund.
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Motor Vehicle Dealers Compensation Fund
Where a customer claims on the compensation fund, in what capacity must they have bought?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 79 in full(1) A customer of a registered motor vehicle dealer is entitled to compensation from the Fund in respect of a claim for a pecuniary loss if,
(a) the claim arose from a trade in a motor vehicle between the customer and the dealer;
(b) the claim meets the requirements set out in a paragraph of subsection (3);
(c) at the time of the trade, the dealer was a registrant;
(d) the customer was acting in the trade as a consumer within the meaning of the Consumer Protection Act, 2002; and
(e) the customer has given the dealer, in accordance with section 37 of the Act, a written notice of demand for payment of the claim and the dealer has refused to pay the claim or is unable to do so. O. Reg. 333/08, s. 79 (1).
Section 79(1)(d) of O. Reg. 333/08 requires the customer to have been acting in the trade as a consumer within the meaning of the Consumer Protection Act, 2002, which excludes purchases made in a business capacity. Chapter 12 covers the compensation fund.
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Motor Vehicle Dealers Compensation Fund
A consumer buys from a curbsider and loses money. Can the consumer claim from the fund?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 79 in full(1) A customer of a registered motor vehicle dealer is entitled to compensation from the Fund in respect of a claim for a pecuniary loss if,
(a) the claim arose from a trade in a motor vehicle between the customer and the dealer;
(b) the claim meets the requirements set out in a paragraph of subsection (3);
(c) at the time of the trade, the dealer was a registrant;
(d) the customer was acting in the trade as a consumer within the meaning of the Consumer Protection Act, 2002; and
(e) the customer has given the dealer, in accordance with section 37 of the Act, a written notice of demand for payment of the claim and the dealer has refused to pay the claim or is unable to do so. O. Reg. 333/08, s. 79 (1).
Section 79(1)(c) of O. Reg. 333/08 requires that, at the time of the trade, the dealer was a registrant. Trades with curbsiders or other unregistered sellers fall outside the Fund's coverage. Chapter 12 covers the compensation fund.
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Motor Vehicle Dealers Compensation Fund
What does a dealer owe after the fund pays a claim resting on a final court judgment?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 87 in fullA registered motor vehicle dealer is required to reimburse the Fund for a claim paid to a customer of the dealer if,
(a) the claim arose from a trade in connection with which a court convicted the dealer of an offence and ordered the dealer to pay compensation or make restitution to the customer;
(b) the claim is described in paragraph 10 of subsection 79 (3);
(c) the dealer is insolvent; or
(d) the dealer has become a bankrupt or a winding-up order has been made or a receiver appointed in respect of the business of the dealer under the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or the Winding-up and Restructuring Act (Canada). O. Reg. 333/08, s. 87.
Section 87(b) of O. Reg. 333/08 requires the dealer to reimburse the Fund where the claim is described in paragraph 10 of section 79(3) (a final court judgment for compensation or restitution). Chapter 12 covers the compensation fund.
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Motor Vehicle Dealers Compensation Fund
Salespeople registering with OMVIC make no payment into the Motor Vehicle Dealers Compensation Fund.
Only the dealer classes pay into the Motor Vehicle Dealers Compensation Fund, because the charge falls on the business when its registration is granted and not on the people it hires. 12.03 covers who pays into the Fund.
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Motor Vehicle Dealers Compensation Fund
The fund is a dealer's insurance policy, so a dealer never pays back what it pays a customer.
The fund pays the customer, not the dealer, and the dealer can be made to pay the money back afterwards. Where it cannot be recovered the dealer's registration is at risk, which is the opposite of a policy that settles the matter. Chapter 12 states it in those terms.
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Consumer Protection Act for dealers
Who counts as a consumer when a car is sold?
Section 1 of the Consumer Protection Act, 2002 defines "consumer" as an individual acting for personal, family or household purposes, and expressly excludes a person acting for business purposes. Chapter 13 covers the Consumer Protection Act.
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Consumer Protection Act for dealers
Is a contract clause giving up the buyer's rights under the Consumer Protection Act binding?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 7 in full(1) The substantive and procedural rights given under this Act apply despite any agreement or waiver to the contrary. 2002, c. 30, Sched. A, s. 7 (1).
Section 7(1) of the Consumer Protection Act, 2002 says the substantive and procedural rights given under the Act apply despite any agreement or waiver to the contrary, so a clause purporting to give those rights up does nothing. Reading and signing the clause, setting it in bold type above the signature line and taking legal advice first all leave section 7(1) untouched. Chapter 13 covers the Consumer Protection Act.
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Consumer Protection Act for dealers
What is an "as-is, no warranties" clause in a used car contract worth?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 9 in full(3) Any term or acknowledgement, whether part of the consumer agreement or not, that purports to negate or vary any implied condition or warranty under the Sale of Goods Act or any deemed condition or warranty under this Act is void. 2002, c. 30, Sched. A, s. 9 (3).
Section 9(3) of the Consumer Protection Act, 2002 makes any term that purports to negate or vary an implied condition or warranty under the Sale of Goods Act, or any deemed warranty under the Act, void. Chapter 13 covers the Consumer Protection Act.
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Consumer Protection Act for dealers
A shop working on a customer's car must always give an estimate before it can charge for the work.
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 56 in full(2) Despite subsection (1), a repairer may charge for work or repairs without giving an estimate if,
(a) the repairer offers to give the consumer an estimate and the consumer declines the offer of an estimate;
(b) the consumer specifically authorizes the maximum amount that he or she will pay the repairer to make the repairs or do the work; and
(c) the cost charged for the work or repairs does not exceed the maximum amount authorized by the consumer. 2002, c. 30, Sched. A, s. 56 (2).
Subsection 56(2) of the Consumer Protection Act, 2002 lets a repairer charge without giving an estimate where it offered one, the customer declined the offer, the customer authorized a maximum amount and the charge stays inside that maximum. The estimate duty is not absolute, so the proposition is false. Chapter 14 covers repairs.
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Consumer Protection Act for dealers
A salesperson is convicted of an offence under the CPA. What is the most they face?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 116 in full(5) An individual who is convicted of an offence under this Act is liable to a fine of not more than $50,000 or to imprisonment for a term of not more than two years less a day, or both, and a corporation that is convicted of an offence under this Act is liable to a fine of not more than $250,000. 2002, c. 30, Sched. A, s. 116 (5).
Section 116(5) of the Consumer Protection Act, 2002 makes an individual convicted of an offence liable to a fine of not more than $50,000 or imprisonment for not more than two years less a day, or both. The $250,000 figure in the same subsection is the maximum fine for a corporation, and the Act sets no separate first-offence or indictable scale. Chapter 13 covers the consequences of breaking the CPA.
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Consumer Protection Act for dealers
By how much may a repair bill exceed the estimate given for the work?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 58 in full(2) No repairer shall charge, for work or repairs for which an estimate was given, an amount that exceeds the estimate by more than 10 per cent. 2002, c. 30, Sched. A, s. 58 (2).
Subsection 58(2) prohibits a repairer from charging an amount that exceeds the estimate by more than 10 per cent for the work or repairs that were estimated. Anything above that threshold is not chargeable to the consumer, regardless of cost overruns the repairer encountered. Chapter 14 covers repairs.
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Consumer Protection Act for dealers
Vehicle leases and repairs fall outside the Consumer Protection Act, 2002, which reaches sales only.
The Consumer Protection Act, 2002 sets rules for retail transactions in goods and in services, and vehicle sales, leasing and repairs are all named, so a lease or a repair order is reached the same way a sale is. 13.02 covers the reach of the Act.
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Consumer Protection Act for dealers
Removed parts go back to the customer only where the customer asks for them.
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 61 in full(1) Every repairer shall offer to return to the consumer all parts removed in the course of work or repairs and shall return all such parts unless advised when the work or repairs are authorized that the consumer does not require their return. 2002, c. 30, Sched. A, s. 61 (1).
Section 61 of the Consumer Protection Act, 2002 requires the repairer to offer the removed parts back and to return them unless told at the time the work is authorized that they are not wanted, so the duty runs without any request from the customer. 14.03 covers replacement parts.
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Consumer Protection Act for dealers
What must a shop record besides the caller's name, date and time when repairs are authorized by phone?
O. Reg. 17/05 under the CPA, 2002 · reproduced on this site Press to read the wording here
Read section 49 in fullFor the purpose of section 59 of the Act, if an authorization that is not in writing is given to a repairer who works on or repairs vehicles, the following is required to be recorded in order for the authorization to be effective:
1. The name of the person giving the authorization.
2. The date and time of the authorization.
3. If the non-written authorization is given by telephone, the telephone number of the person giving the authorization, and if the non-written authorization is given by a method other than telephone, information regarding how the person giving the authorization can be contacted using the other method. O. Reg. 17/05, s. 49.
Section 49 of O. Reg. 17/05 makes a spoken repair authorization effective only where the shop records the name of the person who gave it, the date and time, and that person's telephone number. 14.03 covers repairs.
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Consumer Protection Act for dealers
What must a lease disclosure statement say about ending the lease early?
Section 74 of O. Reg. 17/05 requires a lease disclosure statement to set out the amount of any payment the lessee must make on early termination, or, where the amount cannot be worked out at the time of disclosure, the manner of determining it. 13.08 covers lease agreements.
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Consumer Protection Act for dealers
What makes a piece of information about a vehicle a material fact?
Information counts as material where knowing it might change the buyer's decision to go ahead, so the test is the effect on that decision rather than whether anyone asked about it or wrote it down. 13.02 defines the term.
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Consumer Protection Act for dealers
Where a buyer has paid two-thirds or more of what the contract requires, the seller needs the court's permission to repossess.
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 25 in full(1) Where a consumer under a future performance agreement has paid two-thirds or more of his or her payment obligation as fixed by the agreement, any provision in the agreement, or in any security agreement incidental to the agreement, under which the supplier may retake possession of or resell the goods or services upon default in payment by the consumer is not enforceable except by leave obtained from the Superior Court of Justice. 2002, c. 30, Sched. A, s. 25 (1).
Section 25(1) of the Consumer Protection Act, 2002 makes a repossession term unenforceable once the consumer has paid two-thirds or more of the payment obligation fixed by the agreement, except by leave of the Superior Court of Justice, so the seller must go to court first. 13.06 covers the two-thirds exception on repossession.
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Consumer Protection Act for dealers
What is the least a repairer must warrant on new parts and the labour to fit them?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 63 in full(1) On the repair of a vehicle, every repairer shall be deemed to warrant all new or reconditioned parts installed and the labour required to install them for a minimum of 90 days or 5,000 kilometres, whichever comes first, or for such greater minimum as may be prescribed. 2002, c. 30, Sched. A, s. 63 (1).
Section 63(1) of the Consumer Protection Act, 2002 deems every repairer to warrant new or reconditioned parts and the labour to install them for a minimum of 90 days or 5,000 kilometres, whichever comes first, so the cover takes in the work as well as the parts. 14.03 covers the legally required warranty.
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Consumer Protection Act for dealers
Which law sets the rules a dealership's service department follows when repairing a consumer's vehicle?
Motor vehicle repairs fall under the Consumer Protection Act, 2002 and not under the MVDA, so a dealership's service work follows that Act's repair rules in Part VI. Manual 14.02 sets this out.
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Sale, lease, and consignment contracts
What must a vehicle sale contract record about the salesperson acting for the dealer?
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.
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Sale, lease, and consignment contracts
What must a new car contract state about the delivery of the vehicle?
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.
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Sale, lease, and consignment contracts
Above what repair cost must a dealer state that a car was damaged?
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.
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Sale, lease, and consignment contracts
Where a dealer takes a vehicle on consignment, what form must the contract take?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 45 in full(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).
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.
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Sale, lease, and consignment contracts
A broker signs up a customer. What must the contract say about paying for the car?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 49 in full(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).
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.
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Sale, lease, and consignment contracts
A buyer takes a new car warranty dispute to the Canadian Motor Vehicle Arbitration Plan. Who decides it?
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.
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Sale, lease, and consignment contracts
Dealers must put every vehicle sale or lease contract in writing.
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.
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Sale, lease, and consignment contracts
Two vehicles sold to the same buyer in one deal can share a single contract.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 39 in full(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).
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.
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Sale, lease, and consignment contracts
What goes with a used vehicle contract when a current safety standards certificate has been issued?
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.
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Sale, lease, and consignment contracts
A dealer and a consignor may settle the dealer's fee after the vehicle sells and leave it out of the contract.
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.
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Sale, lease, and consignment contracts
Which contract statement must be printed next to the buyer's signature on the same page?
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.
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Sale, lease, and consignment contracts
Which statement does the buyer initial when a used car is sold as-is?
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.
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Sale, lease, and consignment contracts
What does a dealer do in a consignment sale?
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.
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Sale, lease, and consignment contracts
What are the three categories a used vehicle can fall into?
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.
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Curbsiders
If a person sells cars for profit without registering, when do they become a curbsider?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 4 in full(1) No person shall,
(a) act as a motor vehicle dealer unless the person is registered as a motor vehicle dealer under this Act; or
(b) act as a salesperson unless he or she is registered as a salesperson. 2002, c. 30, Sched. B, s. 4 (1).
Section 4(1) of the MVDA prohibits a person from acting as a motor vehicle dealer unless registered as one, so the conduct itself is what makes the person a curbsider. A cease-and-desist order, a charge, and a court date are consequences that may follow, not the point at which the person crosses the line. The Act sets no yearly allowance of vehicles before registration is required. Chapter 11 covers avoiding curbsiders.
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Curbsiders
What is the smallest fine for a curbsider convicted of selling cars unregistered?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 32 in full(4) The minimum fine upon conviction for an offence under subsection 4 (1) is $5,000. 2002, c. 30, Sched. B, s. 32 (4); 2023, c. 20, Sched. 10, s. 1.
Section 32(4) of the MVDA sets a $5,000 statutory minimum fine on conviction for an offence under section 4(1). A court cannot go below that floor. Chapter 1 covers the penalties under the Act.
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Curbsiders
A curbsider prices the same vehicle below a registered dealer's price. What makes that possible?
A curbsider ignores the tax rules and avoids the business expenses a registered dealership carries, so the same vehicle can be priced lower. That cost gap is the unfair advantage OMVIC means when it says illegal, unregistered sellers compete unfairly.
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Curbsiders
What separates a curbsider from someone selling their own car privately?
A curbsider sells vehicles as a business but dresses each sale up as a private sale, which means the giveaway is the hidden business and not the seller's address or a lapsed registration. 11.04 summarises the chapter.
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Curbsiders
What legal protection does a consumer who buys from a curbsider have?
Ontario's dealer law gives a buyer its remedies only against a seller who is registered, so a curbsider sale carries no cancellation right, no fund claim and no conduct code behind it. 11.02 covers the loss of protection.
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Material facts and retail disclosures
Where a dealer sells a used vehicle and can work out its distance driven, what must the contract state?
Paragraph 3 of s. 42 requires the contract to state the total distance that the used vehicle has been driven if the dealer can determine that distance. Chapter 5 covers retail disclosure requirements.
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Material facts and retail disclosures
A dealer who sells the customer an extended warranty can skip the cancelled-warranty disclosure.
Paragraph 20 of s. 42 requires disclosure whenever the manufacturer's warranty was cancelled. Selling an extended warranty does not displace that disclosure obligation. Chapter 5 covers retail disclosure requirements.
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Material facts and retail disclosures
Telling the customer a required disclosure out loud satisfies the disclosure rule.
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 30 in full(1) Motor vehicle dealers shall disclose in writing to customers and to motor vehicle dealers such information as may be prescribed and shall make the disclosure at such time as may be prescribed. 2002, c. 30, Sched. B, s. 30 (1).
Section 30(1) of the MVDA says the prescribed information shall be disclosed in writing. Saying it out loud leaves that duty unmet, so the statement is false. Chapter 5 covers retail disclosure requirements.
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Material facts and retail disclosures
When must a retail buyer get a copy of the signed contract?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 39 in full(10) For each contract mentioned in subsection (2) into which the registered motor vehicle dealer enters, the dealer shall ensure that,
(a) the contract is signed by the parties;
(b) if a registered salesperson is acting on behalf of the dealer respecting the sale, the contract is signed by the salesperson; and
(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 39 (10).
Subsection 39(10) clause (c) requires the purchaser to receive a copy of the contract immediately after signing it. Chapter 4 covers contract requirements.
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Material facts and retail disclosures
Where does the final-once-signed warning go in a new-car contract?
Paragraph 24 of subsection 39(2) requires the subsection 39(3) warning to appear on the same page of the contract as the purchaser's signature and next to it, in 12-point bold font with a 14-point bold heading. Position and font are both part of the requirement, so a cover page, regular font elsewhere in the document, or burial among the attached statements all fall short. Chapter 4 covers contract requirements.
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Material facts and retail disclosures
What standard must a dealer's disclosure to a customer meet?
Consumer Protection Act, 2002 · reproduced on this site Press to read the wording here
Read section 5 in full(1) If a supplier is required to disclose information under this Act, the disclosure must be clear, comprehensible and prominent. 2002, c. 30, Sched. A, s. 5 (1).
Section 5(1) of the Consumer Protection Act, 2002 sets one standard over every disclosure that Act requires, which is that the disclosure be clear, comprehensible and prominent. A term buried in fine print therefore counts as undisclosed even though the words sit somewhere in the agreement. Chapter 13 covers the Consumer Protection Act.
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Material facts and retail disclosures
A buyer has a concern about the sale. Who does the contract say to contact first?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 39 in full(4) The statement mentioned in paragraph 25 of subsection (2) is as follows:
The statement prescribed by subsection 39(4) of O. Reg. 333/08 sends the purchaser to the dealer first and to OMVIC as the administrative authority only if the concern persists. That order is part of the prescribed wording, so the regulator is the second step rather than the first. Chapter 4 covers contract requirements.
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Material facts and retail disclosures
Every required disclosure still has to be made when a vehicle is sold as-is or unfit.
Selling a vehicle as-is or unfit speaks to its condition on delivery and says nothing about its past, so every required disclosure, material facts included, still belongs on the contract. 4.04 covers the as-is contract.
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Material facts and retail disclosures
Which three areas of vehicle information must a dealer disclose to a customer?
The retail disclosure rules are built around three headings: what the vehicle was used for before, what has happened to it, and what state its quality or condition is in now. 5.02 sets out the three.
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Material facts and retail disclosures
A collision repair too small for the contract's damage statement is still a material fact the dealer must disclose.
A repair below that trigger counts as a material fact in its own right, so the buyer must still be told about it. The trigger decides only whether the separate damage statement goes on the contract. 5.05 covers the damage discussion.
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Material facts and retail disclosures
Which body work on a used car puts a replaced-panel statement in the contract?
The contract must state that the vehicle has two or more adjacent panels that are not bumper panels and that have been replaced, so a single panel, a repaint or a bumper on its own does not reach the requirement. O. Reg. 333/08, s. 42 para. 15; 5.04.
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Material facts and retail disclosures
How must a dealer make a required disclosure?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 30 in full(1) Motor vehicle dealers shall disclose in writing to customers and to motor vehicle dealers such information as may be prescribed and shall make the disclosure at such time as may be prescribed. 2002, c. 30, Sched. B, s. 30 (1).
The MVDA requires dealers to disclose in writing, so telling a customer about a previous use or past damage out loud leaves the dealer short of the requirement. MVDA, s. 30(1); 5.02.
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Inspections, investigations, and discipline
During an inspection, an OMVIC inspector may examine the dealership's books and records only, not its vehicles or parts.
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 15 in full(2) While carrying out an inspection, an inspector,
(a) is entitled to free access to all money, valuables, documents, records, motor vehicles and motor vehicle parts of the person being inspected that are relevant to the inspection;
(b) may use any data storage, processing or retrieval device or system used in carrying on business in order to produce information that is relevant to the inspection and that is in any form; and
(c) may, upon giving a receipt for them, remove for examination and may copy anything relevant to the inspection including any data storage disk or other retrieval device in order to produce information, but shall promptly return the thing to the person being inspected. 2002, c. 30, Sched. B, s. 15 (2); 2006, c. 34, s. 17 (2).
An inspector's free access on an inspection runs to money, valuables, documents, records, motor vehicles and motor vehicle parts that are relevant to the inspection, so the cars on the lot sit inside that reach rather than outside it. Section 15(2)(a) of the MVDA sets the list. Chapter 10 covers enforcing the Act.
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Inspections, investigations, and discipline
How may an OMVIC inspector get at sales information that a dealership keeps only on its computer system?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 15 in full(2) While carrying out an inspection, an inspector,
(a) is entitled to free access to all money, valuables, documents, records, motor vehicles and motor vehicle parts of the person being inspected that are relevant to the inspection;
(b) may use any data storage, processing or retrieval device or system used in carrying on business in order to produce information that is relevant to the inspection and that is in any form; and
(c) may, upon giving a receipt for them, remove for examination and may copy anything relevant to the inspection including any data storage disk or other retrieval device in order to produce information, but shall promptly return the thing to the person being inspected. 2002, c. 30, Sched. B, s. 15 (2); 2006, c. 34, s. 17 (2).
Section 15(2)(b) of the MVDA expressly authorises an inspector to use any data storage, processing or retrieval device or system used in carrying on business to produce information relevant to the inspection. Section 15(4) then compels whatever assistance is reasonably necessary, so printouts are no substitute for system access, and nothing in section 15 makes a warrant or a notice period a condition. Chapter 10 covers enforcing the Act.
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Inspections, investigations, and discipline
An OMVIC inspector requires a dealer to produce a record. What must the dealer do?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 15 in full(4) An inspector may, in the course of an inspection, require a person to produce a document or record and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce information that is relevant to the inspection and that is in any form, and the person shall produce the document or record or provide the assistance. 2002, c. 30, Sched. B, s. 15 (4); 2006, c. 34, s. 17 (2).
Section 15(4) of the MVDA requires the person to produce the document or record and to provide whatever assistance is reasonably necessary, including using a data storage, processing or retrieval device or system to produce information. The duty is immediate and unconditional, so there is no pause for counsel, no right to hand over printouts instead of system access, and no requirement that the inspector name a customer or justify the request. Chapter 10 covers enforcing the Act.
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Inspections, investigations, and discipline
OMVIC uses inspectors and investigators. What role does each one play?
OMVIC inspectors work as auditors do, going over a dealership's premises, its records and its vehicles, while investigators are provincial offences officers who look into complaints and can lay charges, so only the investigating side carries a power to prosecute. 10.02 covers the two roles.
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Inspections, investigations, and discipline
What usually sets an OMVIC investigation into a dealer going?
An investigation usually begins once information about a dealer reaches OMVIC investigators from outside, namely from inspectors, consumer complaints, the police and other dealers, so it is triggered by what is reported rather than by a schedule. 10.05 covers how one starts.
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Inspections, investigations, and discipline
An inspector tells a dealership when to expect an inspection before arriving at the premises.
No notice is given at all. An inspector may arrive at the registered premises unannounced and read the books, the records and the vehicles, and a dealership that turns them away risks charges or its registration. Chapter 10 says so in terms.
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Inspections, investigations, and discipline
Dealers and salespeople must cooperate with an OMVIC investigator, not only with an inspector.
Cooperation is owed to both officers OMVIC sends, so an investigator who asks for help is owed no less than an inspector. 10.02 states the duty for inspectors and investigators together.
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Inspections, investigations, and discipline
Which of a dealer's books and records may an OMVIC inspector examine during an inspection?
The reach is every record the law makes a dealer keep, and the dealer does not pick which ones: MVDA s. 15(2)(a) entitles an inspector to free access to the documents and records of the business that are relevant to the inspection. 10.04 states the records limb.
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Inspections, investigations, and discipline
What can an OMVIC investigation into a dealership and its staff result in?
An investigation can end in more than one way, because charges against the dealer or salesperson, revocation of the registration and disciplinary action from OMVIC are each an outcome it can produce. 10.05 lists the three.
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Liens on trade-ins and repaired vehicles
What is a lien registered against a vehicle a dealer is taking on trade?
The Personal Property Security Act defines a security interest as an interest in personal property that secures payment or performance of an obligation, and section 62(1) lets the secured party take possession of the collateral on default. A repairer's lien under section 3(1) of the Repair and Storage Liens Act works the same way against an article it has repaired. A transfer tax, an ownership history and a wholesale appraisal are all real parts of a used-vehicle deal, and none of them secures a debt. Chapter 15 covers researching a vehicle.
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Liens on trade-ins and repaired vehicles
A dealer keeps leaving trade-in liens unpaid and the registrar acts in the public interest. What may follow?
Under section 10 of the Motor Vehicle Dealers Act, 2002, where the registrar proposes to suspend or revoke a registration under section 9 and considers it in the public interest to do so, the registrar may order a temporary suspension, and that order takes effect immediately. Revocation is not immediate. It runs as a section 9 proposal, and the registrant may request a hearing before the Licence Appeal Tribunal within 15 days after the notice is served. The registrar has no power under the Act to issue a bare warning, to levy a fixed fine, or to ban deposits without a proposal and a right to a hearing.
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Liens on trade-ins and repaired vehicles
What has to be true before a dealer can say a used vehicle has clear title?
A vehicle has clear title when no lien is registered against it, so no creditor holds a security interest to enforce over the car. A dealer must pay out or discharge any lien before selling, which is why a lien search belongs in vehicle research. Chapter 15 covers researching a vehicle.
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Liens on trade-ins and repaired vehicles
Where a dealer has promised to clear a lien on a trade-in, when must it pay?
OMVIC requires the payout immediately rather than on any later trigger, because the customer stays liable to the creditor until the debt is discharged. A dealer who delays, or who delivers a car with the lien still registered against it, risks suspension or revocation of the registration. Chapter 15 covers researching a vehicle.
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Liens on trade-ins and repaired vehicles
A lender finances a car. What step makes the lien show up in a search?
Personal Property Security Act · reproduced on this site Press to read the wording here
Read section 23 in fullRegistration perfects a security interest in any type of collateral. R.S.O. 1990, c. P.10, s. 23.
Section 23 of the Personal Property Security Act states that registration perfects a security interest in any type of collateral. For a financed vehicle, the lender registers a financing statement, which is what a dealer's lien search later picks up by VIN. Chapter 15 covers researching a vehicle.
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Liens on trade-ins and repaired vehicles
Once a bank's lien turns up on a trade-in, no other lien can be registered against that vehicle.
One vehicle can carry liens from more than one creditor at the same time, because a car loan and an unpaid repair bill are separate debts secured against the same vehicle, so finding one lien does not end the search. 15.05 covers the lien check.
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Liens on trade-ins and repaired vehicles
Dealers that pay out the lien on a customer's trade-in give the customer the creditor's release letter.
A dealership that undertakes to clear the debt on a trade hands the customer the creditor's own release letter, where the creditor provides one, because only the creditor that registered the claim can confirm it has been settled. 15.05 covers the lien payout.
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Liens on trade-ins and repaired vehicles
Which vehicles should a dealership run a lien check on?
A lien follows the vehicle rather than the person who owed the money, so a dealership runs the check on any vehicle it plans to buy or take on trade, before the vehicle comes in and before it has paid for it. 15.05 covers the lien check.
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Liens on trade-ins and repaired vehicles
What does it mean for a customer to have negative equity on their vehicle?
Negative equity means the customer owes more on the vehicle loan than the vehicle is worth, so the shortfall has to be dealt with somewhere in the new deal instead of disappearing when the vehicle is traded. 4.09 covers negative equity.
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Liens on trade-ins and repaired vehicles
A customer buying from a dealership is expected to run their own lien check before closing.
The search belongs to the dealership. It runs a lien check on anything it buys or takes on trade, and a vehicle with a lien still on it is not one to sell, so the buyer is not the one expected to look. Chapter 15 sets out the practice.
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Liens on trade-ins and repaired vehicles
What does a dealership give the customer after clearing the loan on her trade-in?
Proof that the debt is gone has to come from the creditor holding the claim, so OMVIC requires the dealership to pass on the release letter that creditor issues. 15.05 covers the trade-in payout.
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OMVIC and the MVDA
Which Act and its regulations set the registration and conduct requirements for Ontario car dealers?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 43 in full(1) The Minister may make regulations,
(a) establishing a code of ethics for the purposes of subsection 17 (1);
(b) governing the jurisdiction and procedures of any committee established under this Act;
(c) respecting any matter that is delegated by the Lieutenant Governor in Council to the Minister under paragraph 40 of subsection 44 (1). 2002, c. 30, Sched. B, s. 43 (1); 2004, c. 19, s. 16 (24).
Dealers and salespeople register under the MVDA, and the working rules are made by regulation under it, with O. Reg. 333/08 (General) prescribing the requirements for registration and O. Reg. 332/08 carrying the code of ethics. The Act supplies both powers, s. 43(1)(a) for the code of ethics and s. 44 for the Lieutenant Governor in Council's general regulations. Chapter 1 covers the law and the regulator.
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OMVIC and the MVDA
Which body does Ontario designate to administer the Motor Vehicle Dealers Act?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 39 in full(4) The statement mentioned in paragraph 25 of subsection (2) is as follows:
Subsection 1(1) of the MVDA defines the administrative authority as the body designated under section 3 of the Safety and Consumer Statutes Administration Act, 1996 to administer the Act, and the statement prescribed by subsection 39(4) of O. Reg. 333/08 names the Ontario Motor Vehicle Industry Council as the administrative authority designated for administering the Act. Day-to-day administration and enforcement therefore belong to that authority rather than to a ministry, and the police have no part in dealer registration. Chapter 1 covers the law and the regulator.
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OMVIC and the MVDA
When a dealer sells the dealership, can the registration pass to the buyer?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 6 in full(3) A registration is not transferable. 2002, c. 30, Sched. B, s. 6 (3).
Section 6(3) of the MVDA states plainly that a registration is not transferable. A new owner or business must apply for its own registration. Chapter 2 covers registration of dealers and salespeople.
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OMVIC and the MVDA
A dealer may recover the OMVIC transaction fee by building it into the price of the car.
The dealer is the one who owes OMVIC the fee, so recovering it from the buyer is the dealer's own choice and is permitted. Telling the buyer that OMVIC sets the charge, or dressing it up as a government levy the buyer must pay, is a separate problem because it misstates who the charge belongs to. Chapter 1 covers the transaction fee program.
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OMVIC and the MVDA
Who is bound by the ban on false or misleading statements about vehicles, and in what material?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 28 in fullNo registrant shall make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to trading in motor vehicles. 2002, c. 30, Sched. B, s. 28.
Section 28 puts the duty on a registrant, and the Act defines a registrant as a registered motor vehicle dealer or salesperson, so a salesperson is bound as much as the dealership. The section reaches material published by any means, so the breach turns on what the published statement says rather than on the channel it went out on, the registrant's state of mind or whether any buyer acted on it.
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OMVIC and the MVDA
Who owes OMVIC's transaction fee, and how is it counted?
The fee is the dealer's to pay and is counted one per vehicle sold or leased, so a fleet deal and an as-is deal each carry one. Only two trades sit outside the program, a sale or lease made with another registered dealer and the sale of a leased vehicle to its own lessee, since that vehicle was charged when the lease began. Chapter 1 covers the transaction fee program.
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OMVIC and the MVDA
A dealer must be told before OMVIC freezes the dealership's assets or trust funds.
False. The director's written freeze order turns on protecting customers once a search warrant has issued or proceedings have started, and section 22 of the Motor Vehicle Dealers Act, 2002 sets no step for warning the dealer first, so the accounts can be held before the dealer hears anything. 1.06 covers the freeze order, which is a separate power from the receiver and manager a court appoints.
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OMVIC and the MVDA
What does the transaction fee a dealer gives OMVIC for each vehicle sold or leased pay for?
The fee pays for OMVIC's own work because running the regulator costs money, and the transaction fee program is what covers registering dealers and salespeople, inspecting dealerships and investigating complaints. 1.04 covers collecting transaction fees.
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Premises, records, and trust accounts
What is prohibited while an inspector carries out an inspection at a dealership?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 15 in full(5) No person shall obstruct an inspector conducting an inspection or withhold from him or her or conceal, alter or destroy any money, valuables, documents, records, motor vehicles or motor vehicle parts that are relevant to the inspection. 2002, c. 30, Sched. B, s. 15 (5).
Section 15(5) of the MVDA prohibits any person from obstructing the inspector or from withholding, concealing, altering or destroying any money, valuables, documents, records, motor vehicles or motor vehicle parts that are relevant to the inspection. Vehicles and parts are named in the subsection alongside documents, the prohibition does not lift because the dealer principal is away, and asking for the inspector's authority is what section 15(3) expressly entitles the dealer to do. Chapter 10 covers enforcing the Act.
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Premises, records, and trust accounts
How soon and in what form must a dealer tell OMVIC of a new address for service?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 24 in full(1) Every motor vehicle dealer shall, within five days after the event, notify the registrar in writing of,
(a) any change in address for service;
(b) in the case of a corporation or partnership, any change in the officers or directors; and
(c) the date of commencement or termination of the employment of every salesperson and, in the case of termination of employment of a salesperson, the reason for the termination. 2002, c. 30, Sched. B, s. 24 (1); 2004, c. 19, s. 16 (18).
Section 24(1) of the MVDA requires a dealer to notify the registrar in writing within five days of any change in address for service. Chapter 2 covers registration of dealers and salespeople.
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Premises, records, and trust accounts
A dealer loses its required records when the office floods overnight. What must the dealer do?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 55 in fullIf a record required under section 52, 53 or 54 becomes unavailable by reason of force majeure, the registered motor vehicle dealer shall advise the registrar in writing within five days and specify the nature of the force majeure. O. Reg. 333/08, s. 55.
Section 55 of O. Reg. 333/08 requires the dealer to advise the registrar in writing within five days and specify the nature of the force majeure when records required under sections 52, 53 or 54 become unavailable for that reason. Chapter 3 covers dealer premises and records.
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Premises, records, and trust accounts
How long must a dealer keep the records it is required to retain?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 56 in full(1) A registered motor vehicle dealer shall retain a record required under section 52, 53 or 54 for at least six years after,
(a) in the case of a record required under section 52 or 53, the date of the consignment contract or trade made by the dealer for the motor vehicle to which the record relates; or
(b) in the case of a record required under section 54, the date that the record is made. O. Reg. 333/08, s. 56 (1).
Section 56(1) of O. Reg. 333/08 sets the minimum retention period at six years from the date of the consignment contract or trade (for vehicle and trade records) or from the date the record is made (for business records). Chapter 3 covers dealer premises and records.
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Premises, records, and trust accounts
A buyer puts a $15,000 deposit on a car. What must the dealer do with it?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 58 in full(4) For the purposes of clause 25 (b) of the Act, if a registered motor vehicle dealer receives, from a purchaser towards the purchase of a motor vehicle, a deposit that is greater than $10,000, the dealer shall hold the entire deposit in trust until the purchase is concluded. O. Reg. 333/08, s. 58 (4).
Section 58(4) of O. Reg. 333/08 requires the dealer to hold the entire deposit in trust until the purchase is concluded whenever the deposit from the purchaser is greater than $10,000. Chapter 3 covers dealer premises and records.
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Premises, records, and trust accounts
Where must a dealer keep each salesperson's certificate of registration, and who may see it?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 29 in full(4) A registered motor vehicle dealer, other than a registered motor vehicle dealer described in subsection (2), shall,
(a) keep, at the place from which the dealer is authorized to trade, a copy of the certificate of registration for each salesperson registered to the dealer who trades from that place; and
(b) produce the copy described in clause (a) for inspection on the request of any person. O. Reg. 333/08, s. 29 (4).
Section 29(4) of O. Reg. 333/08 requires the dealer to keep a copy of each salesperson's certificate of registration at the place that salesperson trades from, and to produce that copy for inspection when any person asks, so the copies sit at the trading location and are open to anyone who asks rather than to the registrar alone. Chapter 2 covers registration of dealers and salespeople.
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Premises, records, and trust accounts
Records a dealer is required to retain may be destroyed three years after the deal.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 56 in full(1) A registered motor vehicle dealer shall retain a record required under section 52, 53 or 54 for at least six years after,
(a) in the case of a record required under section 52 or 53, the date of the consignment contract or trade made by the dealer for the motor vehicle to which the record relates; or
(b) in the case of a record required under section 54, the date that the record is made. O. Reg. 333/08, s. 56 (1).
O. Reg. 333/08 s. 56(1) requires a dealer to keep its vehicle records, trade records and business records for at least six years, so shredding a file at three years leaves the dealer half a retention period short. 3.04 puts the same six years under storing records.
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Premises, records, and trust accounts
Which class of dealer must keep a trust account?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 25 in fullEvery motor vehicle dealer shall,
(a) maintain in Ontario, in accordance with the prescribed conditions, an account designated as a trust account, in,
(i) a bank, or an authorized foreign bank, within the meaning of section 2 of the Bank Act (Canada),
(ii) a loan or trust corporation, or
(iii) a credit union, as defined in the Credit Unions and Caisses Populaires Act, 2020;
(b) deposit into the account all money that is required by the regulations to be held in trust;
(c) at all times keep the money separate and apart from money belonging to the motor vehicle dealer; and
(d) disburse the money in accordance with the prescribed conditions, if any. 2004, c. 19, s. 16 (20); 2020, c. 36, Sched. 7, s. 322 (2).
O. Reg. 333/08 s. 58(1) exempts a dealer registered only as a broker, wholesaler, exporter, outside Ontario dealer, lease finance dealer or fleet lessor, which leaves the general dealer carrying the duty to hold a trust account for deposits and consignment money. 3.06 sets out the trust account.
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Premises, records, and trust accounts
Which document must a dealer post where the public is likely to see it?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 29 in full(1) A registered motor vehicle dealer shall post, at each place from which the dealer is authorized to trade, the dealer’s certificate of registration for that place so that the public is likely to see it. O. Reg. 333/08, s. 29 (1).
O. Reg. 333/08 s. 29(1) makes a dealer post, at each place it is authorized to trade from, the certificate of registration for that place, positioned so that the public is likely to see it. Nothing in the rule asks for a licence, a policy or a report on the wall. 2.07 covers the certificate of registration.
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Premises, records, and trust accounts
Who is responsible for protecting a customer's personal information at a dealership?
Customer information belongs to the dealership rather than to any employee, which means the business is the one required to keep and protect it under privacy law, whoever at the desk actually wrote it down. 3.05 covers who the information belongs to.
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Premises, records, and trust accounts
What are the three general types of records a dealer must keep?
The MVDA requires a dealer to keep records about the vehicles it has for sale, records about each purchase, sale or trade, and records about the business itself. 3.02 names the three kinds.
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Premises, records, and trust accounts
A dealer must keep its records in electronic form.
Keeping records electronically is a choice and not a duty, because no dealer-law requirement makes anybody digitize what they keep. 3.04 covers electronic record-keeping.
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Premises, records, and trust accounts
Which single piece of customer information identifies a person on its own?
Information is personal when it can identify someone: any two of a name, date of birth, address, phone number or email address, or one piece such as a driver's licence, health card or credit card number that does the job alone. 3.05 sets out the test.
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Premises, records, and trust accounts
What premises does a dealer selling vehicles to the public need?
A dealer that sells vehicles to the public must have both an office and a lot, meaning land or space where the vehicles for sale are shown, and a home, driveway or curb cannot serve as the lot. 3.03 covers dealer premises.
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Registration and dealer classes
Who must be registered when a dealership sells cars through its staff?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 4 in full(1) No person shall,
(a) act as a motor vehicle dealer unless the person is registered as a motor vehicle dealer under this Act; or
(b) act as a salesperson unless he or she is registered as a salesperson. 2002, c. 30, Sched. B, s. 4 (1).
Section 4(1) of the MVDA prohibits any person from acting as a motor vehicle dealer unless registered as one, and prohibits any person from acting as a salesperson unless registered as a salesperson. Both registrations are required. Chapter 2 covers registration of dealers and salespeople.
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Registration and dealer classes
What must a dealer check before taking on someone to sell cars for it?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 4 in full(3) A motor vehicle dealer shall not retain the services of a salesperson unless the salesperson is registered in that capacity. 2002, c. 30, Sched. B, s. 4 (3).
Section 4(3) of the MVDA prohibits a dealer from retaining the services of a salesperson unless that salesperson is registered in that capacity. The duty falls on the dealer to verify registration before engaging the person. Chapter 2 covers registration of dealers and salespeople.
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Registration and dealer classes
What must a dealer check before supplying cars to another dealer to sell?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 4 in full(4) A motor vehicle dealer shall not supply motor vehicles to another motor vehicle dealer for the purpose of trading in motor vehicles unless the other motor vehicle dealer is registered in that capacity. 2002, c. 30, Sched. B, s. 4 (4).
Section 4(4) of the MVDA forbids a dealer from supplying vehicles to another dealer for trading unless that other dealer is registered. A wholesaler that supplies an unregistered curbside lot contravenes section 4(4). Chapter 2 covers registration of dealers and salespeople.
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Registration and dealer classes
A dealer is served a notice of proposal. How long to ask for a hearing, and who gets the request?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 9 in full(2) The notice of proposal shall set out the reasons for the proposed action and shall state that the applicant or registrant is entitled to a hearing by the Tribunal if the applicant or registrant mails or delivers, within 15 days after service of the notice, a written request for a hearing to the registrar and to the Tribunal. 2002, c. 30, Sched. B, s. 9 (2).
Section 9(2) of the MVDA gives the applicant or registrant 15 days from service of the notice to mail or deliver a written hearing request, and the request must reach both the registrar and the Tribunal. Chapter 2 covers registration of dealers and salespeople.
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Registration and dealer classes
How many classes of motor vehicle dealer are established for registration?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 18 in full(1) The following classes and subclasses of motor vehicle dealers are established for the purpose of registration:
1. General dealer, consisting of the following subclasses:
i. New and used motor vehicles.
ii. Used motor vehicles.
2. Broker.
3. Wholesaler.
4. Exporter.
5. Outside Ontario dealer.
6. Lease finance dealer.
7. Fleet lessor. O. Reg. 333/08, s. 18 (1); O. Reg. 377/09, s. 2.
Subsection 18(1) of O. Reg. 333/08 establishes seven classes: general dealer, broker, wholesaler, exporter, outside Ontario dealer, lease finance dealer, and fleet lessor. New-and-used and used-only are subclasses of the general dealer class, not classes, so counting them separately gives the wrong total. Broker, wholesaler and outside Ontario dealer are each classes in their own right. Chapter 2 covers registration of dealers and salespeople.
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Registration and dealer classes
What must be in place before a salesperson works for two dealers at once?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 14 in fullIt is a condition of registration as a salesperson that the salesperson is employed or retained to act as a salesperson by no more than one registered motor vehicle dealer unless all the dealers give their written consent in a form approved by the registrar. O. Reg. 333/08, s. 14.
Section 14 of O. Reg. 333/08 makes the one-dealer limit a condition of the salesperson's own registration, and the only thing that lifts it is written consent from all the dealers involved on a form the registrar approves. The registrar supplies the form, and the permission itself comes from the dealers. Chapter 2 covers registration of dealers and salespeople.
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Registration and dealer classes
Every new applicant for registration must give OMVIC criminal record search results from across Canada.
OMVIC screens every new applicant before it registers them, and the record search it asks for covers the whole country, so results limited to Ontario would not satisfy the requirement. 2.02 covers what a new applicant files.
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Registration and dealer classes
A salesperson working a deal must produce their certificate of registration for anyone who asks to see it.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 29 in full(6) While engaged in activities that require registration, a registrant who is an individual shall carry the certificate of registration provided by the registrar for that purpose and shall produce it for inspection on the request of any person. O. Reg. 333/08, s. 29 (6).
The duty runs to any person who asks, not to an OMVIC inspector alone, so a salesperson doing anything that needs registration has to carry the certificate and hand it over when a customer asks for it. O. Reg. 333/08, s. 29(6) sets the duty, and 2.07 covers the certificate.
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Registration and dealer classes
Besides the fee and the course, what must a salesperson have before registration?
The MVDA defines a salesperson as an individual employed by a motor vehicle dealer to trade on that dealer's behalf, so there is no registration to hold until a registered dealer employs the applicant. MVDA s. 1(1); 2.05 lists the employment condition beside the fee and the course.
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Registration and dealer classes
How old must an individual be to register as a motor vehicle dealer?
Where the applicant for dealer registration is an individual, the prescribed requirement is that the applicant be at least 18 years of age, so 18 is the floor on a first application and on a renewal alike. O. Reg. 333/08 s. 11(1) para. 2; 2.03 lists it as a condition.
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Registration and dealer classes
Where does a dealer appeal a proposal to revoke its registration?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 9 in full(2) The notice of proposal shall set out the reasons for the proposed action and shall state that the applicant or registrant is entitled to a hearing by the Tribunal if the applicant or registrant mails or delivers, within 15 days after service of the notice, a written request for a hearing to the registrar and to the Tribunal. 2002, c. 30, Sched. B, s. 9 (2).
A notice of proposal must state that the dealer is entitled to a hearing by the Licence Appeal Tribunal on a written request, so it is the Tribunal and not a body inside the regulator that reviews the proposal. MVDA s. 9(2); 2.10.
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Registration and dealer classes
What must a new applicant give OMVIC besides completing the certification course?
A new applicant files criminal record search results covering the whole of Canada as well as completing the Automotive Certification Course, because the screening tests the honesty, integrity and financial responsibility the MVDA sets as requirements. 2.02.
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Registration and dealer classes
How long does a dealer's registration run before it must be renewed?
Registration is valid for one year for dealers and two years for salespeople, so a dealer renews every year while the salespeople it employs renew every second year. 2.02.
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Registration and dealer classes
Who must a dealer name in order to register with OMVIC?
A dealer cannot register without naming a person in charge of the dealership, and the requirement applies whatever business form the dealership uses. The dealer makes that appointment itself. 2.03 carries the naming requirement.
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Rescission and contract cancellation
A dealer honestly believed the disclosure was accurate and checked it. Can the customer still cancel?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 50 in full(2) A person may cancel a contract under subsection (1) even if the registered motor vehicle dealer did not know the information that the dealer was required to disclose under that subsection or honestly believed it to be accurate, regardless of the steps taken by the dealer to ascertain or verify the information. O. Reg. 333/08, s. 50 (2).
Section 50(2) lets the person cancel even if the dealer did not know the information it had to disclose or honestly believed it was accurate, regardless of the steps the dealer took to ascertain or verify it. That makes the right strict: due diligence is not a defence, and the customer has no negligence or bad-faith element to prove. Chapter 6 covers cancelling a contract for non-disclosure.
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Rescission and contract cancellation
How long after getting the car may a customer cancel for a missed disclosure?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 50 in full(5) A person may not cancel a contract under subsection (1) more than 90 days after actually receiving the motor vehicle. O. Reg. 333/08, s. 50 (5).
Subsection 50(5) of O. Reg. 333/08 caps the cancellation window at 90 days after the consumer actually receives the motor vehicle. The clock runs from receipt of the vehicle, not from contract signing or delivery date promises. Chapter 6 covers cancelling a contract for non-disclosure.
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Rescission and contract cancellation
Who may cancel a contract because the dealer missed a required disclosure?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 50 in full(1) For the purposes of section 30 (2) of the Act, if a registered motor vehicle dealer entered into a contract under which another person, who was not a registered motor vehicle dealer, purchased or leased a motor vehicle from the dealer, the person may cancel the contract if,
(a) the dealer has not accurately disclosed, in the contract, the information required under any of paragraphs 3, 7, 17 and 23 of section 42;
(b) the dealer, in the contract, made the statements described in paragraph 4 of section 42 but could have made the statement described in paragraph 3 of that section;
(c) the dealer, in the contract, made the statements described in paragraph 4 of section 42 but the statement of the distance that the vehicle has been driven as of some past date is inaccurate; or
(d) the dealer, in the contract, made the statement described in paragraph 5 of section 42 but could have made the statements described in paragraph 3 or 4 of that section. O. Reg. 333/08, s. 50 (1).
Subsection 50(1) limits the cancellation right to the other party in the contract who was not a registered motor vehicle dealer. Wholesale dealer-to-dealer transactions are outside the section 50 regime. Chapter 6 covers cancelling a contract for non-disclosure.
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Rescission and contract cancellation
Any disclosure the dealer left out of the contract lets the customer cancel and get their money back.
The right to cancel runs off a short list of disclosure failures, being previous use, make, model and model year, branding and the distance driven, so a missed disclosure outside that list does not by itself give the customer a way out of the contract. 6.02 covers which failures carry the cancellation right.
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Sale of Goods Act and implied warranties
What must the bold as-is statement in a used vehicle contract say?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 40 in full(6) The statement mentioned in paragraph 5 of subsection (2) is as follows:
The statement prescribed by O. Reg. 333/08 says the vehicle is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. It represents nothing at all about condition, and goes on to warn that the vehicle may not be fit for use as a means of transportation and may not be registrable as it stands. Chapter 4 covers contract requirements.
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Sale of Goods Act and implied warranties
Where a dealer sells as-is to a retail customer, the dealer may also hand over a current safety certificate.
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 40 in full(3) No registered motor vehicle dealer shall sell a used motor vehicle on an as-is basis to a purchaser who is not a registered motor vehicle dealer if a current safety standards certificate under the Highway Traffic Act has been issued for the vehicle. O. Reg. 333/08, s. 40 (3).
O. Reg. 333/08 bars a dealer from selling a used vehicle on an as-is basis to a purchaser who is not a registered dealer where a current safety standards certificate has been issued for that vehicle, so on a retail sale it is certified or as-is, never both. The bar runs only to non-dealer purchasers, which leaves a sale between two registered dealers outside it. Chapter 4 covers contract requirements.
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Sale of Goods Act and implied warranties
Under the Sale of Goods Act, what does merchantable quality ask of a used car?
Merchantable quality is a sellability standard measured at the sale: the vehicle has to actually serve as transportation for a reasonable stretch of time, and a fault the buyer could not see that would have moved the price defeats it. It sets a floor on what the buyer gets, not a promise that nothing on the vehicle will ever fail. Chapter 16.02 covers the implied conditions of sale.
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Sale of Goods Act and implied warranties
A buyer cancels a signed deal; the dealer paid for inspection, advertising and storage. What is the dealer entitled to do about its costs?
Where a buyer cancels a signed contract, the dealer may take its own costs out of the deposit and return the rest, and may ask the buyer to pay the difference where those costs run past the deposit. The deposit is money held against proven loss, so a dealer may neither keep it as a flat fee nor recover the same costs twice. Chapter 16.06 covers a customer who does not complete the sale.
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Sale of Goods Act and implied warranties
A buyer who signs a vehicle contract may still cancel within a cooling-off period by changing their mind.
Buying a vehicle from a dealer carries no cooling-off period, so a signed contract binds the buyer. A right to cancel arises only where the dealer has failed a legal obligation, and that is a cancellation right earned by the dealer's default rather than a period for changing one's mind. Chapter 16.06 covers a customer who does not complete the sale.
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Sale of Goods Act and implied warranties
A customer asks for their trade-in back before any contract is signed. What must the dealer do?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 38 in fullIf a customer who is not a registered motor vehicle dealer gives a registered motor vehicle dealer a deposit or a motor vehicle as a trade-in before entering into a contract for the purchase or lease of a motor vehicle, then requests the return of the deposit or the vehicle being traded-in before entering into the contract, the dealer shall immediately return the deposit or the vehicle being traded-in, as the case may be, to the customer, even if,
(a) the dealer is not the dealer who sells or leases the vehicle being sold or leased to the customer; or
(b) the customer does not enter into a contract for the purchase or lease of a motor vehicle. O. Reg. 333/08, s. 38.
Section 38 of O. Reg. 333/08 requires a dealer to immediately return the deposit or the vehicle being traded-in once a customer who is not a registered motor vehicle dealer asks for it back before entering into the contract, so the dealer may not hold it, delay the return or charge anything against it. Chapter 4 covers contract requirements.
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Sale of Goods Act and implied warranties
What does the fitness for purpose condition ask of a vehicle a dealer sells?
Fitness for purpose asks that the vehicle actually suit the use the buyer made known, so a truck bought to haul loads of gravel must be strong enough to do that work. 16.02 covers the three implied conditions.
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Sale of Goods Act and implied warranties
Implied conditions attach to a vehicle sale even where the contract never writes them in.
Merchantable quality, fitness for purpose and quiet possession are implied conditions of a vehicle sale, which means they attach by law and need no wording in the contract to take effect. 16.02 covers the three implied conditions.
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Sale of Goods Act and implied warranties
How long is the cooling-off period after a customer signs a contract to buy a vehicle?
Signing the contract binds the dealer and the customer alike to complete the deal, so no period runs in which the buyer may simply change their mind. 16.06 is where the rule sits, and the MVDA requires the contract to disclose that the sale is final.
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Vehicle documents, UVIP, and permits
What must be in place before a car is driven on a highway?
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 7 in full(1) No person shall drive a motor vehicle on a highway unless,
(a) there exists a currently validated permit for the vehicle;
(b) there are displayed on the vehicle, in the prescribed manner,
(i) number plates issued in accordance with the regulations showing the number of the permit issued for the vehicle, or
(ii) number plates described in subsection (7.2) if the vehicle is an historic vehicle and the Ministry has issued a currently validated permit for it; and
(c) if required under the regulations, evidence of the current validation of the permit is affixed to a number plate in the prescribed manner. R.S.O. 1990, c. H.8, s. 7 (1); 2000, c. 29, s. 1 (1); 2019, c. 15, Sched. 18, s. 2 (1).
Section 7(1) of the Highway Traffic Act requires a currently validated permit for the vehicle, the prescribed number plates displayed on it, and, where the regulations require it, evidence of validation affixed to a plate. Number plates are required on every motor vehicle driven on a highway, not just commercial ones. A Safety Standards Certificate is a condition of registering a used vehicle rather than of driving one, and OMVIC does not issue number plates.
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Vehicle documents, UVIP, and permits
A permit holder sells their car. What must they do with the plates and permit?
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 11 in full(1) Upon the holder of a permit ceasing to be the owner or lessee of the motor vehicle or trailer referred to in the permit, he, she or it shall,
(a) remove his, her or its number plates from the vehicle;
(b) retain the plate portion of the permit; and
(c) on delivery of the vehicle,
(i) to the new owner, complete and sign the transfer application of the vehicle portion of the permit including the date of the delivery and give that portion of the permit to the new owner, or
(ii) to a lessor, give the vehicle portion of the permit to the lessor. R.S.O. 1990, c. H.8, s. 11 (1).
Section 11(1) of the Highway Traffic Act requires a permit holder who ceases to be the owner to remove the number plates, retain the plate portion of the permit, and, on delivery of the vehicle, complete and sign the transfer application on the vehicle portion and give that portion to the new owner. The plates and the plate portion stay with the seller, so any answer that leaves the plates on the vehicle or hands the whole permit to the buyer is wrong. Nothing in section 11 calls for surrendering plates to ServiceOntario on a sale.
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Vehicle documents, UVIP, and permits
How long does a new owner have to apply for a vehicle permit?
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 11 in full(2) Every person shall, within six days after becoming the owner of a motor vehicle or trailer for which a permit has been issued, apply to the Ministry, on the form provided therefor, for a new permit for the vehicle. R.S.O. 1990, c. H.8, s. 11 (2).
Section 11(2) of the Highway Traffic Act requires every new owner to apply to the Ministry for a new permit within six days of becoming the owner.
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Vehicle documents, UVIP, and permits
Where a used car is offered for sale, what must the seller do with the Used Vehicle Information Package?
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 11.1 in full(1) Every person who sells, offers for sale or transfers a used motor vehicle shall provide a valid used vehicle information package in respect of the vehicle for inspection by proposed purchasers or transferees and shall deliver the package to the purchaser or transferee at the time of sale or transfer of the vehicle. 1993, c. 13, s. 1.
Section 11.1(1) of the Highway Traffic Act requires every person who sells, offers for sale or transfers a used motor vehicle to provide a valid Used Vehicle Information Package for inspection by proposed purchasers and to deliver it to the purchaser at the time of sale or transfer. The duty does not wait on a written request and is not met by keeping the package on file or mailing it to the Ministry. Delivery is due at the time of sale, not after the price has been paid. Chapter 15 covers researching a vehicle.
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Vehicle documents, UVIP, and permits
Running a used car lot needs a Highway Traffic Act licence on top of OMVIC registration.
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 59 in full(2) Subsection (1) does not apply to a person who is registered as a motor vehicle dealer in accordance with the Motor Vehicle Dealers Act, 2002. R.S.O. 1990, c. H.8, s. 59 (2); 2002, c. 30, Sched. E, s. 7.
Section 59(2) of the Highway Traffic Act states that the section 59(1) licensing requirement does not apply to a person registered as a motor vehicle dealer under the Motor Vehicle Dealers Act, so a separate licence is not required.
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Vehicle documents, UVIP, and permits
A vehicle branded irreparable can be rebranded rebuilt once it passes a structural inspection.
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 199.1 in full(23) A vehicle that is classified in the vehicle permit records as irreparable cannot subsequently be reclassified as rebuilt. 2000, c. 15, s. 2.
An irreparable vehicle can never be reclassified as rebuilt, whatever certificate is produced for it, because the rebuilt brand is reached from salvage: a salvage vehicle is repaired, passes a structural inspection and is then rebranded rebuilt. Subsection 199.1(23) of the Highway Traffic Act states the bar, and 18.08 sets the two brands side by side.
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Vehicle documents, UVIP, and permits
Dealer plates and service plates come from the Ministry of Transportation rather than from OMVIC.
Plates and vehicle permits come from the Ministry of Transportation, because OMVIC registers dealers and salespeople and issues no plates at all, so a registered dealer applies to the ministry for the dealer plate it runs on its inventory vehicles. 18.06 covers dealer and service plates and 18.11 restates it.
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Vehicle documents, UVIP, and permits
Which of these calls for a Safety Standards Certificate?
A Safety Standards Certificate is required on four occasions: handing a used car to its next owner with fit status, first registering here a car last registered outside Ontario, taking a permit out of unfit status, and registering a car as rebuilt. Each of the three events listed here is one of those four, so they stand together. 18.09 carries the list.
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Vehicle documents, UVIP, and permits
A buyer wants a used vehicle information package before signing. Who issues one?
Highway Traffic Act · reproduced on this site Press to read the wording here
Read section 11.1 in full(2) The Ministry shall issue a used vehicle information package in respect of any used motor vehicle to any person who applies therefor and pays the prescribed fee. 1993, c. 13, s. 1.
The Ministry must issue a used vehicle information package for any used vehicle to any person who applies for one and pays the prescribed fee, so a buyer can order the package themselves and run the lien and history check before signing anything. Subsection 11.1(2) of the Highway Traffic Act provides it, and 18.10 covers what the package holds.
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Vehicle documents, UVIP, and permits
Who is allowed to buy a vehicle at a wholesale auction?
Only a dealer registered in Ontario and a dealer registered outside Ontario may buy at a wholesale auction, so a guest walked in by a dealer and a person holding an auction card are both outside that set. 18.07 states who may buy.
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Vehicle documents, UVIP, and permits
A safety certificate used to transfer ownership stays valid for 36 days after it is issued.
A Safety Standards Certificate carries a transfer of ownership for 36 days counted from the day it was issued, so a certificate older than that will not move the vehicle to its new owner as fit and the car goes back for another inspection. 18.09 states the period.
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Vehicle documents, UVIP, and permits
Who may be issued a service plate and permit in Ontario?
R.R.O. 1990, Reg. 628 under the HTA · reproduced on this site Press to read the wording here
Read section 13.1 in full(1) Upon filing satisfactory evidence as to the need for it, a Service permit and number plate may be issued to a person engaged in the business of,
(a) repairing, customizing, modifying or transporting trailers or motor vehicles other than motorcycles and motor assisted bicycles;
(b) manufacturing or selling trailers; or
(c) selling, repairing, customizing, modifying, transporting or storing vessels, motorized snow vehicles or off-road vehicles. O. Reg. 38/19, s. 1 (1); O. Reg. 734/20, s. 2.
A service plate goes to a person in the business of repairing, customizing, modifying or transporting vehicles or trailers, so a repair or transport business qualifies and a seller of motor vehicles takes a dealer plate instead. Reg. 628, s. 13.1(1) sets who may hold one, and 18.06 covers plates.
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Extended warranties and service plans
Under which law must the insurer backing an extended warranty on a used car be licensed?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 47 in full(1) A registered motor vehicle dealer shall not sell an extended warranty to a purchaser or lessee of a motor vehicle who is not another registered motor vehicle dealer or facilitate the sale of an extended warranty to that purchaser or lessee through the dealer where the dealer is not selling the warranty unless,
(a) the performance of the warranty is insured by an insurer licensed under the Insurance Act; or
(b) the seller of the warranty has provided security to the Fund for extended warranties that it supplies, where the security is in the form of an irrevocable letter of credit in the following amounts,
(i) $100,000, if the seller of the warranty is the dealer who sold or leased the vehicle to the purchaser or lessee, as the case may be, or
(ii) $500,000, in any other case. O. Reg. 333/08, s. 47 (1).
Section 47(1)(a) requires that the warranty's performance be insured by an insurer licensed under the Insurance Act, the Ontario statute that licenses insurers. Chapter 9 covers extended warranties and service plans.
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Extended warranties and service plans
A buyer is offered an extended warranty on a used car. What does it cover?
Section 1 of O. Reg. 333/08 defines an extended warranty as a contract covering the costs of repairing or replacing motor vehicle components, including the labour to do so, that is in addition to a warranty supplied by law or implied by the operation of law. Chapter 9 covers extended warranties and service plans.
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Extended warranties and service plans
What must a service plan contract state about the deductible for goods and services?
Paragraph 11 of section 48(2) of O. Reg. 333/08 requires the amount of the deductible, if any, for goods and services provided under the service plan. A plan that carries a deductible must therefore print the figure on the contract rather than leave it to a brochure, and a plan with no deductible has nothing to state. Chapter 9 covers extended warranties and service plans.
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Extended warranties and service plans
A dealer facilitates a service plan sale. What must the contract say about the plan's seller?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 48 in full(4) A registered motor vehicle dealer shall not facilitate the sale of a service plan through the dealer to a purchaser or lessee of a motor vehicle who is not a registered motor vehicle dealer unless the contract for the plan includes, in a clear, comprehensible and prominent manner,
(a) the information required by subsection (2), except for paragraphs 3 and 4;
(b) the name and address of the seller of the plan;
(c) a registered name and the registration number of the dealer who facilitated the sale of the contract, together with the legal name of that dealer if it is different from the registered name; and
(d) the registered name and registration number of the salesperson, if any, who is acting on behalf of the dealer who facilitated the sale of the contract. O. Reg. 333/08, s. 48 (4).
Clause 48(4)(b) of O. Reg. 333/08 requires the name and address of the seller of the plan on a facilitated contract. The buyer's claim under the plan lies against that seller rather than against the dealership that handed the form over, so the buyer needs a name and somewhere to send it. Chapter 9 covers extended warranties and service plans.
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Extended warranties and service plans
Who must sign an extended warranty contract the dealership sells itself?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 47 in full(5) For each contract for an extended warranty mentioned in subsection (4) into which the registered motor vehicle dealer enters, the dealer shall ensure that,
(a) the contract is signed by the parties;
(b) if a registered salesperson is acting on behalf of the dealer, the salesperson signs next to the indication on the contract of the information described in paragraph 4 of subsection (4); and
(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 47 (5).
O. Reg. 333/08, s. 47(5) requires the dealer to make sure the contract is signed by the parties, and on a warranty the dealership sells itself those parties are the buyer and the dealer. 9.03 covers the signing rule.
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Extended warranties and service plans
What two backings let a dealer sell an extended warranty to a buyer?
O. Reg. 333/08 under the MVDA, 2002 · reproduced on this site Press to read the wording here
Read section 47 in full(1) A registered motor vehicle dealer shall not sell an extended warranty to a purchaser or lessee of a motor vehicle who is not another registered motor vehicle dealer or facilitate the sale of an extended warranty to that purchaser or lessee through the dealer where the dealer is not selling the warranty unless,
(a) the performance of the warranty is insured by an insurer licensed under the Insurance Act; or
(b) the seller of the warranty has provided security to the Fund for extended warranties that it supplies, where the security is in the form of an irrevocable letter of credit in the following amounts,
(i) $100,000, if the seller of the warranty is the dealer who sold or leased the vehicle to the purchaser or lessee, as the case may be, or
(ii) $500,000, in any other case. O. Reg. 333/08, s. 47 (1).
Section 47(1) of O. Reg. 333/08 lets a dealer sell an extended warranty only where its performance is insured by an insurer licensed under the Insurance Act or the seller has provided security to the Fund as an irrevocable letter of credit, so those are the only two backings. 9.03 covers how an extended warranty must be backed.
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Wholesale (dealer-to-dealer) disclosure
Who must a dealer give the prescribed written disclosures to?
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here
Read section 30 in full(1) Motor vehicle dealers shall disclose in writing to customers and to motor vehicle dealers such information as may be prescribed and shall make the disclosure at such time as may be prescribed. 2002, c. 30, Sched. B, s. 30 (1).
Section 30(1) of the MVDA requires written disclosure of prescribed information to both customers and other motor vehicle dealers, with the timing also prescribed. The wholesale disclosure list in O. Reg. 332/08 s. 5 flows from this hook. Chapter 7 covers wholesale disclosure between dealers.
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Wholesale (dealer-to-dealer) disclosure
A dealer sells on a car with $1,200 of fire damage to its wiring. Must it disclose that?
Item 6 of section 5 requires disclosure of any damage caused by fire, with no dollar threshold. The $3,000 threshold belongs to item 16 (incident damage) and does not apply to fire damage. Chapter 7 covers wholesale disclosure between dealers.
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Wholesale (dealer-to-dealer) disclosure
Where a scrap buyer wrecks four cars and resells the fifth whole, the wrecking exemption still covers the buyer.
The wrecking exemption in paragraph 2 of subsection 2(1) of O. Reg. 333/08 holds only if, after buying the vehicles, the person wrecks or dismantles them in accordance with the Highway Traffic Act and does not trade in the vehicles, so reselling one of them whole breaks the condition and the exemption does not cover the buyer.
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Wholesale (dealer-to-dealer) disclosure
When must a dealer report that a car bought at a wholesale auction is salvage?
O. Reg. 376/02 under the HTA · reproduced on this site Press to read the wording here
Read section 4 in full(3) If a person described in paragraph 2 of subsection (1) determines that a vehicle is irreparable or salvage, that person shall so notify the Registrar under subsection 199.1 (5) of the Act within six days after acquiring ownership of the vehicle. O. Reg. 376/02, s. 4 (3).
Subsection 4(3) of O. Reg. 376/02 gives a person who deals in used vehicles six days after acquiring ownership to notify the Registrar once that person determines the vehicle is irreparable or salvage, so the clock runs from the acquisition of ownership rather than from the incident or from the day the inspection was done.
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Wholesale (dealer-to-dealer) disclosure
Which odometer condition needs a statement of its own on a wholesale sale to another dealer?
Item 4 of section 5 requires a statement where the odometer is broken or faulty, has been replaced, has been rolled back or is in miles, so a reading in miles needs the statement even though the reading itself is accurate. Chapter 7 covers wholesale disclosure between dealers.
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Wholesale (dealer-to-dealer) disclosure
Gathering a vehicle's history can wait until a retail customer asks to see it.
A dealer has to collect and record a vehicle's history when the vehicle comes in, because the disclosure owed to a retail buyer later is built out of what the earlier paperwork captured. 7.02 sets that order out.
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