Dealer's Office Space Requirements Quiz

OMVIC Automotive Certification Course

• The course is offered by the Automotive Business School of Canada at Georgian College, in collaboration with OMVIC
• The 2024 edition of the student manual covers laws, regulations, and practices
• The manual is intended to be a resource, and students shouldn't rely solely on this material for legal advice
• Consult legal counsel for questions about the Motor Vehicle Dealers Act, 2002, the Consumer Protection Act, 2002, and other relevant laws
• All new Ontario automotive dealers and salespeople are required to take the course

Fast Facts

• All new Ontario automotive dealers and salespeople must complete the course
• Students have 12 weeks to complete the course and pass the Automotive Certification Test
• To pass, a minimum grade of 75% is required
• Students must register with OMVIC to become a registered dealer or salesperson after passing the exam
• The designation "C.A.L.E. – Certified in Automotive Law and Ethics" is available once a student has obtained the required registration
• Using the C.A.L.E designation enhances dealer/salesperson credibility and builds customer trust

Table of Contents

• The manual is divided into 18 chapters covering various aspects of Ontario automotive law and regulations.
• Each chapter includes learning objectives, definitions, summaries, and test yourself sections at the end
• The appendices provide answers to the review questions for each chapter

Chapter 1: Introduction to the Course

• Learning objectives: Overview of Ontario automotive regulations, roles of OMVIC, transaction fee program, dealer responsibilities, important information for public
• OMVIC's Role: Registering dealers and salespeople; regularly inspecting dealers; receiving and investigating consumer complaints; disciplining and prosecuting dealers and salespeople who violate the law; administering the Motor Vehicle Dealer Compensation Fund
• Motor Vehicle Dealers Compensation Fund: A fund to compensate consumers who have suffered loses due to illegal or unethical dealer practices
• Transaction Fee Program: A fee that dealers pay to cover the costs of OMVIC's responsibilities; charged per vehicle
• Overseeing dealer advertising: Dealers are responsible to ensure accuracy and fairness of their advertising statements
• Appointing a receiver and manager: OMVIC may appoint a receiver and manager for dealerships that are in severe financial trouble, or risk being revoked.
• Protecting confidentiality: Information obtained by OMVIC regarding dealerships and employees is confidential, except when required by law
• Making information public: Specific information such as, business name, address, phone number, and names of salespeople, are put on the public website
• Definitions: Important terms explained like "appeal," "condition of OMVIC registration," "false or misleading advertising," and "registration."

Chapter 2: Registration of Dealers and Salespeople

• Learning objectives: Dealer registration process, salesperson registration requirements; why registration may be refused
• Dealer registration process: Requirements for registration, fees, background checks, and required disclosures
• Salesperson registration: Requirements for registration, renewal process if registration is expired, and how the fees work.
• Unregistered salespeople: Consequences for dealers employing unregistered salespeople, responsibility of dealer to register their employees

Chapter 3: Dealer Premises and Records

• Learning objectives: Registration requirements for a dealer's place of business, specific records dealers must keep, trust requirements, why OMVIC can issue a freeze order
• Dealer Premises: Specific legal requirements for a dealer's location and permit requirements
• Dealer Records: Detailed list of different kinds of records dealers must keep, such as vehicle records, transaction records, and business records
• Trust Account Requirements: Specific accounts dealers need to hold money in, to cover deposits and consignment sales, to ensure customer protections
• Freeze Order: Actions OMVIC can take to protect consumers if a dealer is not following rules and regulations

Chapter 4: Contract Requirements

• Learning objectives: Information that must be included in retail contracts for the sale of a new or used vehicle
• Requirements for trade-ins
• Requirements for consignment sales
• Contracts with a broker
• Information on showing negative equity

Chapter 5: Retail Disclosure Requirements (with customers)

• Learning Objectives: What vehicle information a dealer must disclose to a customer; previous use, history, condition
• Required Disclosures: Specific information regarding vehicle history/condition must be disclosed in every contract, examples include, previous use and history of vehicle
• Damage discussion: Dealer disclosure requirements when dealing with any damage over $3,000

Chapter 6: Rescission (cancelling a contract)

• Learning objectives: When a customer can cancel a contract; important details of cancelling contracts
• Cancelling a contract: Rules for cancelling a contract in case of dealer error; what a customer must disclose, conditions for cancelling or reclaiming deposit

Chapter 7: Wholesale Disclosure in Contracts

• Learning objectives: Information required from registered dealer to another registered dealer in contract
• Required Disclosures in contract: Information including vehicle use and history must be disclosed in contract when transferring vehicles between one dealer to another

Chapter 8: Disclosure in Advertising

• Learning objectives: The information and disclosures required in dealer advertising; penalties for dealers who don't follow these advertising requirements
• Advertising Disclosures; Requirements for ads placed by multiple dealers, and ad requirements for "as-is" and "unfit" cars
• Advertising fees; Ad requirements if advertising a loan; requirements for lease advertising

Chapter 9: Extended Warranties and Service Plans

• Learning objectives: How extended warranties must be protected or insured; Contract requirements for the sale of an extended warranty; Contract requirements for the sale of a service plan
• Dealers responsibilities; What constitutes a warranty and service plan; and the procedures when selling a warranty/service plan

Chapter 10: Enforcing the MVDA

• Learning objectives: The role and authority of the OMVIC inspector; Why it's important for dealers and salespeople to cooperate with the inspector; The penalties for obstructing an inspector; The powers of an OMVIC investigator
• Introduction to MVDA enforcement; Information about inspections, including requirements, and investigative procedures; and specific penalties for not complying with MVDA requirements

Chapter 11: Avoiding Curbsiders

• Learning objectives: What a curbsider is; how dealers can be sure not to sell to them
• Introduction; Ways to avoid selling to an unregistered dealer (curbsider); and how to identify such transactions

Chapter 12: Motor Vehicle Dealers Compensation Fund

• Learning objectives: The purpose of the Motor Vehicle Dealers Compensation Fund; Who does and does not pay into the Fund; When a consumer can make a claim against the Fund; Two ways to promote the Fund; Why dealers must reimburse the Fund, and the penalties if they don't
• Introduction to the compensation fund; details of who is liable and who pays for the fund; information about legitimate claims; and procedures for claims

Chapter 13: Consumer Protection Act (CPA)

• Learning objectives: The difference between a customer and a consumer; Two types of unfair business practices prohibited by the CPA; What material fact means; Penalties for retailers who break the CPA; Consumer's right to cancel a contract or get a credit card refund; How the two-thirds exception on repossession works; Dealer's obligations in financing and leasing agreements under the CPA; Maximum liability under a residual obligation lease
• Introduction to the CPA; Types of unfair business practices, including "false, misleading or deceptive representation" and "unconscionable representation"; Consequences of breaking the CPA; Requirements when dealers provide financing, leasing agreements; and definitions

Chapter 14: Repairs

• Learning objectives: The act that regulates vehicle repairs; Requirements for a repair estimate; Requirements for replacing parts; Legally required warranty on repairs; Authorizing repairs over the phone; Statement that must be on every repair invoice; Importance of a detailed repair invoice
• Introduction to rules of repair work; Estimate details; how labour costs are calculated/determined; warranty information; and requirements for repair invoices, and their contents

Chapter 15: Researching a Vehicle

• Learning objectives; How a dealer or salesperson must disclose that they think the vehicle has been driven further than the odometer reading shows; What to do when an odometer has been replaced; How to research and find out the true distance a vehicle has been driven; Why it's important to check for liens on vehicles and give clear title to customers
• Importance of proper research for accurate disclosures; how to deal with broken or rolled-backed odometers; issues with vehicle liens; and how to research vehicle history

Chapter 16: Sale of Goods Act

• Learning objectives: What the Sale of Goods Act means by merchantable quality, fit for purpose, quiet possession; Dealer's obligation for conditions of sale; What happens to a deposit if no contract is made; What happens if the customer refuses to complete the sale; Damages a dealer can take out of a deposit
• Introduction to Sale of Goods Act; Details of merchantable quality, fit for purpose, and quiet possession
• Customer's rights if a dealer fails to follow this Act's requirements, such as a deposit or trade

Chapter 17: Code of Ethics Regulations

• Learning objectives: Dealers' and salespeople's responsibilities under the Code of Ethics Regulations; What "clear and truthful" means; What "legal, decent, ethical and truthful” means; Seven requirements of the Code of Ethics; Disciplinary process for dealers or salespeople who don't follow the Code of Ethics; Role of the Discipline Panel and Appeals Panel
• Specific responsibilities under the code of ethics

Chapter 18: A Variety of Topics

• Dealers' and Salespeople's Responsibilities Under the Code of Conduct; the role of the Arbitration Process, Dealer Plates, Service Plates and information about Branding Vehicles
• Introduction to a variety of topics, discussion about CAMVAP, consignment sale, dealer plates, service plates, and wholesale auctions, vehicle branding information, and UVIPs

Appendix 1: Test Yourself Answers

• Answers for all chapters' test yourself sections

Appendix 2: Resource List

• Contact information for organizations relevant to the course

Appendix 3: Summary of Acts

• Summaries of the Acts relating to the automotive industry in Ontario

Appendix 4: Glossary

• Definitions of terms that are important to the course