Automotive Certification and MVDA Regulations

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Questions and Answers

What must be done if the person in charge of the dealership has left?

  • Only complete the Automotive Certification Course.
  • Continue with the previous application.
  • Name a new person in charge for renewal. (correct)
  • Renew the registration without any changes.

What happens if an applicant does not meet the requirements of the MVDA?

  • They can still be registered after a review.
  • Their application can be denied without further explanation. (correct)
  • They will automatically be registered after a waiting period.
  • They must provide additional information before registration.

Who is required to complete the Automotive Certification Course in a sole proprietorship?

  • Only the manager of the dealership.
  • All employees of the dealership.
  • The sole proprietor. (correct)
  • One partner if it’s a partnership.

In a partnership, how many partners must complete the Automotive Certification Course?

<p>Only one partner must complete it. (C)</p> Signup and view all the answers

What may occur if a dealer or salesperson fails to comply with MVDA requirements?

<p>Their registration may be revoked. (A)</p> Signup and view all the answers

What is the registration validity period for salespeople under OMVIC?

<p>Two years (C)</p> Signup and view all the answers

Which of the following must a dealer provide to OMVIC for registration?

<p>Canada-wide criminal record search (D)</p> Signup and view all the answers

Who is referred to as the 'person in charge' in the dealer registration process?

<p>A designated representative of the dealership (D)</p> Signup and view all the answers

How long is the registration valid for dealers with OMVIC?

<p>One year (B)</p> Signup and view all the answers

What is one condition under which OMVIC may refuse registration?

<p>Previous criminal convictions (C)</p> Signup and view all the answers

What must dealers do if they have multiple locations?

<p>List all authorized places of business on their registration (B)</p> Signup and view all the answers

Which of the following types of individuals or organizations does not need to register with OMVIC?

<p>Private sellers of vehicles (B)</p> Signup and view all the answers

What is the role of the Licence Appeal Tribunal in the registration process?

<p>To handle appeals of registration refusals (C)</p> Signup and view all the answers

Which of the following relationships does NOT indicate that one person is associated with another?

<p>One person is merely a friend of another. (D)</p> Signup and view all the answers

Under which condition can a temporary suspension of registration occur?

<p>If the Registrar believes it's in the public interest. (A)</p> Signup and view all the answers

What happens to a suspended registration if the LAT starts a hearing before the suspension expires?

<p>The LAT may extend the suspension. (A)</p> Signup and view all the answers

Which scenario would indicate that both parties are associated with each other?

<p>Both are corporations controlled by the same individual. (B)</p> Signup and view all the answers

In what situation does a voting trust indicate association between individuals?

<p>Both individuals are part of the same voting trust. (C)</p> Signup and view all the answers

Which of the following describes individuals that are not financially responsible for one another?

<p>Members of different partnerships. (D)</p> Signup and view all the answers

Which relationship indicates direct control of a corporation?

<p>One corporation is controlled by the same individual as another. (C)</p> Signup and view all the answers

Which scenario involves cooperation between two parties without a direct financial obligation?

<p>Both parties are merely acquaintances. (C)</p> Signup and view all the answers

Which of the following is NOT a type of authorized role mentioned for someone handling estate matters?

<p>Mediator (A)</p> Signup and view all the answers

What is a requirement for a not-for-profit corporation providing consumer information on vehicle transactions?

<p>Must have no property interest in the vehicle (A)</p> Signup and view all the answers

Which of the following roles must be registered with OMVIC?

<p>Dealers (D)</p> Signup and view all the answers

If a person applies for dealer registration and their application is refused, what is one necessary step before they can reapply?

<p>They must correct the issues that led to refusal (A)</p> Signup and view all the answers

Which class of dealer is specifically excluded in the requirements for salespeople registration?

<p>Luxury vehicle dealer (D)</p> Signup and view all the answers

Which of these is an example of a person exempt from registration?

<p>An individual selling their own used car (B)</p> Signup and view all the answers

Which individual should the dealer designate to ensure all salespeople are properly registered?

<p>Sales manager (C)</p> Signup and view all the answers

What might be a reason for OMVIC to refuse a dealer's registration?

<p>Failure to provide financial disclosures (C)</p> Signup and view all the answers

What is the primary activity that a Lease Finance Dealer can perform?

<p>Buy motor vehicles (D)</p> Signup and view all the answers

What condition must be met for a Lease Finance Dealer to lease a vehicle?

<p>The lease must be made through a General Dealer (C)</p> Signup and view all the answers

Who can sell a previously leased vehicle according to the guidelines provided?

<p>The original lessor or a registered dealer (D)</p> Signup and view all the answers

Which class of dealer can register in more than one class?

<p>All other dealers (D)</p> Signup and view all the answers

Under what circumstances can a vehicle be sold at an auction by the dealer?

<p>The buyer must be a registered dealer in another jurisdiction (B)</p> Signup and view all the answers

Which of the following is NOT a criterion for leasing a vehicle to a lessee by a Lease Finance Dealer?

<p>The lessee must have a valid driver’s license (D)</p> Signup and view all the answers

What is one limitation of brokers in terms of vehicle registration?

<p>They cannot register in more than one class (A)</p> Signup and view all the answers

What type of vehicle dealer can only sell through specific partnerships or auctions?

<p>Lease Finance Dealer (D)</p> Signup and view all the answers

Which document must a dealer keep for every vehicle they have for sale?

<p>Vehicle identification number (VIN) (B)</p> Signup and view all the answers

What must a dealer do if there is a change in dealership name, location, or ownership?

<p>Notify OMVIC within five days (B)</p> Signup and view all the answers

Which of the following is NOT part of the vehicle records a dealer must maintain?

<p>Customer service feedback (D)</p> Signup and view all the answers

What specific odometer information must be recorded if a dealer replaces or repairs it?

<p>Reading both before and after the work (D)</p> Signup and view all the answers

What type of parts information must be included in repair records?

<p>Source of any parts used (A)</p> Signup and view all the answers

In which situation must a dealer keep a record of the costs associated with repairs?

<p>For every repair conducted (A)</p> Signup and view all the answers

What is the consequence of not adhering to the record-keeping rules for dealers?

<p>Potential penalties from regulatory authorities (C)</p> Signup and view all the answers

For how long must a dealer retain the records related to vehicle sales?

<p>Five years after sale (D)</p> Signup and view all the answers

Flashcards

What are some reasons why a dealer or salesperson might have their registration revoked?

Dishonesty, lack of integrity, or irresponsible financial practices by a dealer or salesperson.

What is the MVDA?

The Motor Vehicle Dealers Act sets out the rules for motor vehicle dealers to follow the law.

Who must take the Automotive Certification Course?

The Automotive Certification Course is a required course for individuals managing dealerships to ensure competency and adherence to industry standards.

What happens when a dealer renews their registration?

When a dealer renews their registration, they must provide accurate and up-to-date contact information.

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What happens if someone doesn't meet the MVDA requirements?

If an applicant doesn't meet the requirements of the MVDA, OMVIC can reject their application without needing to explain.

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OMVIC Registration Requirement

All motor vehicle dealers and salespeople in Ontario must register with OMVIC. This ensures they meet the requirements set by the Motor Vehicle Dealers Act (MVDA).

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OMVIC Registration Process

The registration process involves background checks and screening to ensure applicants meet OMVIC's standards. New applicants are required to provide a criminal record search.

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Registration Validity and Renewal

Registration is valid for two years for salespeople and one year for dealers. After this period, registration needs to be renewed. Dealers with multiple locations must list all authorized places of business on their registration.

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Outside Ontario Dealers

Dealers who are also registered in other provinces or countries are classified as 'Outside Ontario Dealers'.

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Person in Charge

Each dealership must designate a 'person in charge' who is responsible for the dealership's operations.

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Appeal Process for Registration Refusal

OMVIC has a defined process for appealing registration refusal. This process involves the Licence Appeal Tribunal.

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Exemptions from OMVIC Registration

Individuals or organizations that don't fall under OMVIC's regulatory scope (e.g., manufacturers, auctioneers) are exempt from registration.

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Classes of Dealers

OMVIC categorizes dealers into different classes (e.g., new car dealers, used car dealers) based on their specific business activities.

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Associated Persons

Two people are linked through various business relationships: one is an officer/director of a corporation, both are in a partnership, they are partners of the same firm, one controls a corporation the other is part of, both control corporations by the same person, they are members of the same voting trust, or are associated with the same person in one of these ways.

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Registration of dealers and salespeople

The process of officially registering individuals or businesses as dealers or salespeople in a specific industry.

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Temporary suspension

A temporary suspension of a dealer or salesperson's registration. It is initiated by the Registrar if there is a concern about public safety or interest.

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LAT (Land Appeal Tribunal )

A legal body responsible for reviewing appeals against the Registrar's decisions regarding temporary suspensions of registration.

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Written request for a hearing

A formal request to have a hearing to challenge a temporary suspension.

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Suspension expiry

A specific timeframe during which a temporary suspension remains in effect.

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LAT extending suspension

The ability of the LAT to extend a temporary suspension if the hearing begins before the suspension expires.

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What is a motor vehicle dealer?

A person or company licensed to buy and sell vehicles in Ontario.

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What is the minimum age required to be a dealer?

They must be at least 18 years old.

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What are the requirements for a salesperson?

They must be at least 18 years old, pass a written test, and complete a Criminal Record Check.

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Why might OMVIC refuse someone’s registration?

OMVIC might refuse registration if they don't meet the requirements, or if they have previous misconduct.

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What must a person do if their registration is refused?

They must reapply and provide evidence that they now meet the requirements.

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What are the four classes of dealers?

New, Used, Wholesale and Reconditioning.

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Who is exempt from registration?

OMVIC doesn't require registration for people who are selling their own vehicles, auctioneers, or manufacturers and distributors selling through their own dealer network.

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What information changes must a dealer notify OMVIC about?

A dealer must notify OMVIC if they change their business address, phone number, or ownership.

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General Dealer

A type of dealer that primarily buys and sells motor vehicles, offering both new and used vehicles.

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Lease Finance Dealer

A dealer specializing in leasing motor vehicles. They cannot directly sell to the public but can only lease to individuals or businesses and then sell to other registered dealers or at specific auctions.

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Fleet Lessor

A dealer focused on leasing vehicles to fleets, like businesses owning multiple vehicles.

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Which type of dealer can only register in one category?

This type of dealer can only register in one category, including General Dealer, Broker or Outside Ontario Dealer. All other dealer types can register in multiple categories.

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Wholesaler

This dealer can only buy vehicles, but cannot sell them directly to the public. They may sell to other registered dealers.

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What kind of dealer cannot operate outside Ontario?

A dealer who only buys or sells vehicles within Ontario. They cannot operate outside the province, so they are limited to Ontario only.

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Registered Dealer

A dealer licensed to sell motor vehicles in Canada, either new or used. They may operate online or have a physical location.

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What records must dealers keep for each vehicle?

Dealers are required to keep detailed records about each vehicle in their inventory, including the VIN, any Safety Standards Certificate, results of inspections under the Highway Traffic Act, any repairs or reconditioning performed, and odometer information.

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What repair information is required to be documented by dealers?

Dealers must maintain records of any repairs or reconditioning work performed on vehicles, including the source of the parts, cost of the work, and the name of the repairer.

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What odometer information is required?

Dealers must keep records of the odometer reading before and after any replacement or repair of the odometer.

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How long must dealers retain vehicle records?

Dealers must store their vehicle records and other required documents for a minimum of two years after the sale of the vehicle, or three years if the vehicle is still in their inventory.

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What customer contact records are required?

Dealers must keep records of the date and time of any customer contact, including phone calls, emails, and in-person visits.

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What transaction records are required?

Dealers must maintain records of all transactions, including sales, leases, and trade-ins.

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How must dealers store required records?

Dealers must store all records in a secure and accessible location. These records can be maintained electronically or in hard copy, but they must be organized and readily available for inspection.

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Who has access to review dealer records?

OMVIC can inspect a dealer's records at any time, and the dealer must allow for inspection.

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Study Notes

Automotive Certification Course - Student Manual

  • This is a student manual for the Automotive Certification Course, developed by the Automotive Business School of Canada at Georgian College, in collaboration with OMVIC (Ontario Motor Vehicle Industry Council)
  • The 2024 edition of the student manual covers laws, regulations, and practices for the automotive industry in Ontario
  • The manual is divided into 18 chapters, each with a review of questions to help remember the material and apply what is learned
  • Different question types are included, including multiple choice, true-false, fill in the blank, activities, and assignments. However, the Automotive Certification Test only includes multiple choice questions
  • Students have 12 weeks to complete the course material and pass the Automotive Certification Test, needing a minimum grade of 75% to pass
  • Enrolling in the course doesn't register you with OMVIC; separate registration with OMVIC is required once the test is passed
  • The C.A.L.E. designation (Certified in Automotive Law and Ethics) is obtained upon completion and registration with OMVIC
  • The manual is not legal advice, and students should consult a lawyer for detailed legal info on Ontario laws and regulations
  • The curriculum covers the Motor Vehicle Dealers Act, 2002, the Consumer Protection Act, 2002, and other relevant legislation

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