Who must a dealer give the prescribed written disclosures to?

Customers and other motor vehicle dealers

The Ministry of Transportation, on every sale

Retail customers who are not themselves dealers

OMVIC alone, whenever it demands them

A dealer sells on a car with $1,200 of fire damage to its wiring. Must it disclose that?

Yes, fire damage of any amount must be disclosed

Only if the wiring is a structural component

No, the cost sits below the $3,000 threshold

Only if the dealer's insurer paid a claim

When must a dealer report that a car bought at a wholesale auction is salvage?

Within six days of acquiring ownership

Within twenty-six days of the incident

Within ninety days of acquiring ownership

Within fourteen days of the determination

Which odometer condition needs a statement of its own on a wholesale sale to another dealer?

The odometer reads in miles rather than kilometres

The odometer is digital rather than mechanical

The odometer shows more than 200,000 kilometres

The reading was confirmed by a licensed mechanic

Wholesale disclosure: practice quiz

Wholesale disclosure

6 questions. Pick an answer and the explanation reveals below it. Your score updates as you go.

Wholesale disclosure · 6 questions Free set

Question 1 of 6 Wholesale disclosure

Who must a dealer give the prescribed written disclosures to?
- The Ministry of Transportation, on every sale
- Customers and other motor vehicle dealers
- Retail customers who are not themselves dealers
- OMVIC alone, whenever it demands them
Motor Vehicle Dealers Act, 2002 · reproduced on this site Press to read the wording here

(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).

Read section 30 in full

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.
Question 2 of 6 Wholesale disclosure

A dealer sells on a car with $1,200 of fire damage to its wiring. Must it disclose that?
- Only if the wiring is a structural component
- Yes, fire damage of any amount must be disclosed
- No, the cost sits below the $3,000 threshold
- Only if the dealer's insurer paid a claim
O. Reg. 332/08, s. 5 Source for this answer

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.
Question 3 of 6 Wholesale disclosure

Where a scrap buyer wrecks four cars and resells the fifth whole, the wrecking exemption still covers the buyer.
- True
- False
O. Reg. 333/08, s. 2(1) Source for this answer

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.
Question 4 of 6 Wholesale disclosure

When must a dealer report that a car bought at a wholesale auction is salvage?
- Within six days of acquiring ownership
- Within twenty-six days of the incident
- Within ninety days of acquiring ownership
- Within fourteen days of the determination
O. Reg. 376/02 under the HTA · reproduced on this site Press to read the wording here

(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).

Read section 4 in full

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.
Question 5 of 6 Wholesale disclosure

Which odometer condition needs a statement of its own on a wholesale sale to another dealer?
- The odometer is digital rather than mechanical
- The odometer reads in miles rather than kilometres
- The odometer shows more than 200,000 kilometres
- The reading was confirmed by a licensed mechanic
O. Reg. 332/08, s. 5, para. 4 Source for this answer

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.
Question 6 of 6 Wholesale disclosure

Gathering a vehicle's history can wait until a retail customer asks to see it.
- True
- False
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.

End of the free set

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