OMVIC and the MVDA: Practice Quiz | DealerPrep

Question 1

Under the MVDA, what is required before a person may act as a motor vehicle dealer in Ontario?

Accepted Answer

Section 4(1)(a) of the MVDA prohibits any person from acting as a motor vehicle dealer unless that person is registered as a motor vehicle dealer under the Act. Registration with OMVIC, the administrative authority, is the gating requirement, and there is no volume threshold below which registration is excused.

Answer

The person must be registered as a motor vehicle dealer under the MVDA

Answer

The person must hold a licence issued by the Ministry of Transportation

Answer

The person must be a member of the Canadian Motor Vehicle Arbitration Plan

Answer

The person must be registered only if they sell more than 12 vehicles per year

Question 2

Tomas advertises and sells four used vehicles a year on Kijiji from his driveway, none of which he or his family ever drove, and he tells buyers he is "just selling personal cars." Is Tomas covered by the section 5 personal-use exemption from registration?

Accepted Answer

Section 5 of the MVDA exempts an individual who trades in a motor vehicle on their own account or on behalf of a family member only if the vehicle is used primarily for the personal use of the individual or a family member. Vehicles bought to resell, even from a driveway, fail the personal-use test, so Tomas would be acting as an unregistered dealer (a curbsider).

Answer

No, because the exemption only applies when the vehicle is used primarily for the personal use of the seller or a family member

Answer

Yes, because the exemption applies to anyone selling on their own account regardless of how the vehicle was used

Answer

Yes, because the exemption applies to anyone who sells fewer than five vehicles per year

Answer

Yes, because the exemption applies as long as the seller is not operating from a commercial lot

Question 3

How does the MVDA define "trade" in relation to a motor vehicle?

Accepted Answer

Section 1 of the MVDA defines "trade" broadly to include buying, selling, leasing, advertising, or exchanging an interest in a motor vehicle, as well as negotiating or attempting to induce any of those activities. The breadth of this definition is what catches advertising-only conduct, including curbsider posts on classified sites.

Answer

Buying, selling, leasing, advertising, or exchanging an interest in a motor vehicle, including negotiating or attempting to induce any of those activities

Answer

Buying or selling a motor vehicle once title and possession have actually changed hands

Answer

Any cash sale of a motor vehicle, but not a lease or a consignment arrangement

Answer

Only retail transactions between a dealer and a consumer, excluding wholesale dealings

Question 4

Which statement about the Motor Vehicle Dealers Compensation Fund is correct?

Accepted Answer

Section 42(1) of the MVDA continues the Motor Vehicle Dealers Compensation Fund, and section 42(4) lets a customer of a registrant make a claim for compensation from the Fund. The Fund only protects customers who dealt with a registered dealer, which is one of the practical reasons consumers should buy from a registrant.

Answer

The Fund is continued under section 42 of the MVDA, and a customer of a registrant may make a claim for compensation from it

Answer

The Fund is funded by the Ontario government and is open to any consumer who has been wronged in a vehicle purchase

Answer

The Fund is administered directly by the Ministry of Transportation and pays claims at the Ministry's discretion

Answer

The Fund is available to any buyer, including someone who bought from an unregistered curbsider, provided the buyer files within 90 days

Question 5

When may a motor vehicle dealer retain the services of a salesperson under the MVDA?

Accepted Answer

Section 4(3) of the MVDA prohibits a motor vehicle dealer from retaining the services of a salesperson unless the salesperson is registered in that capacity. The duty falls on the dealer, so the dealer must confirm a salesperson's registration before letting them trade on the dealer's behalf.

Answer

Only when the salesperson is registered as a salesperson under the MVDA

Answer

As soon as the salesperson has submitted an application for registration

Answer

When the salesperson works under the supervision of another registered salesperson

Answer

When the salesperson is engaged on a part-time basis only

OMVIC and the MVDA

Under the MVDA, what is required before a person may act as a motor vehicle dealer in Ontario?

Tomas advertises and sells four used vehicles a year on Kijiji from his driveway, none of which he or his family ever drove, and he tells buyers he is "just selling personal cars." Is Tomas covered by the section 5 personal-use exemption from registration?

How does the MVDA define "trade" in relation to a motor vehicle?

Which statement about the Motor Vehicle Dealers Compensation Fund is correct?

When may a motor vehicle dealer retain the services of a salesperson under the MVDA?

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