Premises, records, and trust accounts: Practice Quiz | DealerPrep

Question 1

For how long must a registered motor vehicle dealer retain a record required under sections 52, 53 or 54 of O. Reg. 333/08?

Accepted Answer

Section 56(1) of O. Reg. 333/08 sets a minimum six-year retention period for trade, vehicle, and business records, measured from the date of the related trade or, for business records, the date the record is made.

Answer

At least six years

Answer

At least three years

Answer

At least five years

Answer

As long as the vehicle remains registered in Ontario

Question 2

When a dealer takes a deposit greater than $10,000 from a purchaser toward the purchase of a motor vehicle, what does section 58(4) of O. Reg. 333/08 require the dealer to do with that deposit?

Accepted Answer

Section 58(4) of O. Reg. 333/08 requires the dealer to hold the entire deposit in trust until the purchase is concluded, not just the amount above the $10,000 threshold. The trigger is a deposit greater than $10,000.

Answer

Hold the entire deposit in the MVDA trust account until the purchase is concluded

Answer

Hold only the portion above $10,000 in trust and treat the first $10,000 as general funds

Answer

Hold the deposit in any business account so long as it is not commingled with personal funds

Answer

Send the deposit to OMVIC for safekeeping until the purchase closes

Question 3

Under section 25 of the MVDA, what is a motor vehicle dealer required to do with money held in the trust account?

Accepted Answer

Section 25 of the MVDA imposes a strict separation duty: at all times the dealer must keep trust money separate and apart from money belonging to the dealer. Commingling, short-term borrowing, and pledging trust funds as collateral all breach this fiduciary rule.

Answer

Keep it separate and apart from money belonging to the dealer at all times

Answer

Commingle it with operating funds while waiting for cheques to clear

Answer

Use it to bridge payroll provided it is replaced before month end

Answer

Pledge it as collateral for the dealership's line of credit when needed

Question 4

Under section 28(6) of O. Reg. 333/08, when may a place from which a registered motor vehicle dealer is authorized to trade be located in a dwelling?

Accepted Answer

Section 28(6) of O. Reg. 333/08 requires every place of business to be separate from a dwelling, with one exception: dealers registered only as wholesalers or brokers. General dealers cannot operate from a home regardless of zoning or sales volume.

Answer

When the dealer is registered only as a wholesaler or broker

Answer

When local zoning by-laws expressly permit a home-based dealership

Answer

When the dealer trades in fewer than 25 vehicles per year

Answer

Never, under any circumstance

Question 5

An overnight fire destroys a dealer's filing cabinet containing several years of trade records. Under section 55 of O. Reg. 333/08, what must the dealer do, and within what window?

Accepted Answer

Section 55 of O. Reg. 333/08 requires written notice to the OMVIC registrar within five days when a required record becomes unavailable by reason of force majeure, and the notice must specify the nature of the force majeure.

Answer

Advise the registrar in writing within five days and specify the nature of the force majeure

Answer

Report the loss to the registrar in writing within thirty days

Answer

Tell the next OMVIC inspector verbally on the next site visit

Answer

Notify the Ministry of Transportation within five business days

Premises, records, and trust accounts

For how long must a registered motor vehicle dealer retain a record required under sections 52, 53 or 54 of O. Reg. 333/08?

When a dealer takes a deposit greater than $10,000 from a purchaser toward the purchase of a motor vehicle, what does section 58(4) of O. Reg. 333/08 require the dealer to do with that deposit?

Under section 25 of the MVDA, what is a motor vehicle dealer required to do with money held in the trust account?

Under section 28(6) of O. Reg. 333/08, when may a place from which a registered motor vehicle dealer is authorized to trade be located in a dwelling?

An overnight fire destroys a dealer's filing cabinet containing several years of trade records. Under section 55 of O. Reg. 333/08, what must the dealer do, and within what window?

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