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OMVIC Chapter 1-18 Questions And Answers Complete
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OMVIC Chapter 1-18 Questions And Answers Complete That s all questions.If you read the questions easy to pass.
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1. What is the primary legislation 8. What information is OMVIC required togoverning Ontario’s retail automotive make available to the public?
sector? a) A dealer’s business name, address
The Motor Vehicle Dealers Act, 2002 and phone number
b) A salesperson’s name
2. Which body or agency enforces the c) Any proposal to refuse to renew,
MVDA? suspend or revoke the
a) Ministry of Government and Consumer registration of a dealer or salesperson
Services (d) All of the above
b) TADA
(c) OMVIC 9. Should OMVIC determine a dealer’s
d) Automotive Business School of advertising to be false or misleading,
Canada what powers does OMVIC have to stop or
correct it?
3. List three functions carried out by OMVIC may issue an order requiring
OMVIC. the dealer
Any three of the following: to cease publication and/or issue a
• Administers and enforces the MVDA retraction or
• Inspects dealers correction.
• Maintains a complaint line for
consumers 10. If an order is used to stop or correct
• Conducts investigations false advertising, for how long may
• Conducts disciplinary hearings the dealer need to seek OMVIC’s
• Conducts prosecutions pre-approval for future advertising?
• Administers the Compensation Fund Up to two years
4. How many people compose OMVIC’s 11. List two possible situations which
Board of Directors? Of these, how could result in OMVIC applying to a
many represent the industry and how court to appoint a receiver and manager to
many represent consumers? assume temporary control of
Twelve total, nine dealers and three a dealership
consumer reps This action might be taken:
• If there has been an investigation
5. Briefly explain the “Transaction Fee • If the dealership is about to fail
Program.” • If OMVIC is proposing to revoke a
Under the transaction fee program, registration
dealers are • If a freeze order is about to be made
required to remit $10 for each vehicle
sold or
leased (including fleet and “as is”
transactions) to
OMVIC. These funds are remitted
annually with
the dealer’s registration renewal fee.
6. True or False: Under the Transaction
Fee Program, dealers are required to
remit $10 (to OMVIC) for each retail
vehicle sold or leased.
True
7. True or False: The transaction fee can
be passed along to the customer.
True
,1. What is the minimum age requirement to 10. Name one “change of information” that a
become a dealer? dealer must notify OMVIC about.
18 Any of the following:
• Change of dealer address
2. List three requirements that must be met • Changes of officers or directors (if dealer
when applying to become is a
a salesperson. corporation or partnership)
Three requirements are: • The date of commencement of
• Complete/pass certification course employment of
• Pay fee every salesperson
• Be employed or retained by a registered • The termination of employment of a
dealer to salesperson
act as a salesperson and the date and reason for termination
3. True or False: All dealer and salesperson 11. Please choose the most correct answer:
applicants undergo a Canada-wide In a large dealership, if the dealer principal
criminal record search as part of the delegates responsibility for ensuring
application screening process. that salespersons are registered, this should
True be delegated to:
a) The bookkeeper
4. Which of the following must be registered b) The salesperson
with OMVIC (select all that apply): (c) The sales manager
a) Dealers d) The payroll supervisor
b) Salespersons
c) Business managers 12. OMVIC can refuse, revoke or suspend
d) Finance managers registration to a dealer, salesperson or
e) Service managers corporation if the financial responsibility or
past conduct of an “interested
5. List two reasons why OMVIC might refuse person in respect of the applicant/registrant”
the registration of a dealer gives reasonable grounds for it.
or salesperson. Who might OMVIC consider an “interested
Any two of: person”?
• Past conduct An interested person:
• False statement on application • Has or may have a beneficial interest in
• Failed to comply with terms the
• Cannot be expected to be financially business
responsible • Exercises or may exercise control either
• The Compensation Fund has paid out a directly
claim or indirectly over the dealer/salesperson
and has not been reimbursed • Has provided or may have provided
financing
6. If a person has been refused registration, either directly or indirectly to the business
what is one condition that has to be met before
the person can reapply? 13. Where is the certificate of the dealer
One of the following: registration kept?
• Two years have passed Posted so the public is likely to see it
• New evidence to demonstrate
circumstances 14. True or False: A salesperson must
have changed produce his or her registration certificate
for inspection if a customer asks to see it.
7. Should OMVIC issue a proposal to refuse True
(or revoke) registration, to whom
can the applicant appeal? 15. In your own words describe:
Licence Appeal Tribunal (LAT) a) Both classes of General Dealers
b) Three other classes
8. List four “classes” of dealers. Compare your definitions to those in 2.15.
Any four classes listed in 2.16
9. List three examples of individuals or
businesses that are exempt from registration.
Any three from 2.14
, 1. True or False: Dealers may sell vehicles 8. In order for a remote storage location to
from any location, so long as be approved by OMVIC,
they have registered a head office with which condition must be met?
OMVIC. a) The location has a security system
False (b) The location is always accessible to
OMVIC staff during
2. List two requirements for a dealer’s normal business hours
premises. c) The location is in the same municipality
Any two of: as the
• Have a business office (large enough dealer’s registered address
to store d) All of the above
records securely)
• Have a clearly visible sign identifying 9. True or False: Under the MVDA, all
registered dealers are required
name to maintain a trust account.
• Be approved for use as a dealership False
by
municipality 10. Deposits over what amount must be
kept in a trust account?
3. The MVDA specifies the records a a) $1,000
dealer must maintain. b) $5,000
True or False: These records must be kept (c) $10,000
for at least six years. d) No amount of deposit needs to
True be placed in a trust account
4. List four examples of the information 11. True or False: Before issuing a freeze
(related to vehicles sold or leased) that order (freezing the dealer’s assets
must be maintained in a dealer’s records. or trust funds), OMVIC must first notify the
Any four points from 3.05 1 dealer
False
5. Which of the following records related to
employees must be maintained:
a) Employee names
c) Proof of payments
b) Employee salaries
(d) All of the above
6. Choose the most correct answer. If a
dealer’s records are destroyed or stolen,
the dealer must notify:
a) The OMVIC inspector when he or she
arrives for the next
scheduled inspection
(b) OMVIC, in writing, within five days
c) An OMVIC investigator within 30 days
d) The Ministry of Government and
Consumer Services, in writing,
within 10 days
7. What must a dealer do if they wish to
store records somewhere other
than the location from which they trade?
Apply for and receive written
authorization from
OMVIC’s Registrar.
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