Dealer's Office Space Requirements Quiz

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Questions and Answers

What is required for a dealer's office space?

Randomly located across the city

An office within a private residence

A shared desk in a public area

A separate and fully enclosed space (correct)

Which of the following is NOT an essential feature of a dealer's premises?

Access to a washroom

Space to securely store six years of records

Electricity and heating

Viewable from the dealer's house (correct)

How must the area for displaying vehicles be marked?

With the owner’s personal name

Without any branding at all

By any random sign

With the dealership’s name or a sign on each vehicle (correct)

Where can a dealer operate their business?

Only at the location listed on their OMVIC registration Signup and view all the answers

Which requirement is essential for dealers selling vehicles?

They must have a lot approved by the municipality Signup and view all the answers

What distinguishes a dealer's premises from those of other businesses?

It must be accessible and open to the general public Signup and view all the answers

In what way can dealers share office space?

With a related business they operate, like a repair shop Signup and view all the answers

What is NOT a requirement when selecting a premises location?

Adequate space for employee parking Signup and view all the answers

What must dealers keep in their records regarding certificates?

Copies of the certificates of registration Signup and view all the answers

Under what condition can OMVIC refuse a corporation's registration?

If the financial position of its officers/directors is questionable Signup and view all the answers

What action can lead to the refusal of a corporation's registration?

Submitting an application with false information Signup and view all the answers

What responsibility do dealers have regarding their salespeople?

They need to ensure all their salespeople are registered Signup and view all the answers

What might indicate that a corporation is unlikely to conduct business with integrity?

Past actions of its officers/directors Signup and view all the answers

Who can manage the online account for a dealership?

The dealer administrator (DA) Signup and view all the answers

Which of the following roles can appoint a dealer administrator?

The person on file with OMVIC holding specific roles Signup and view all the answers

What may the LAT impose on a salesperson’s registration?

Conditions such as not being an officer of the dealer's business Signup and view all the answers

Which type of person does not need to be registered with OMVIC to be a dealer administrator?

The dealer Signup and view all the answers

What is one possible condition the LAT may require of a dealer?

To follow government ministry directives Signup and view all the answers

What role at a dealership can be a dealer administrator?

An office manager or payroll manager Signup and view all the answers

Which of the following statements about OMVIC registration is true?

Some people and businesses are exempt from OMVIC registration Signup and view all the answers

What is the role of a dealer administrator in the context of OMVIC?

To manage the dealership's online account Signup and view all the answers

What must salespeople do if there is a change in their registration information?

Notify OMVIC within 5 days. Signup and view all the answers

How long must a dealer wait to reapply if their registration was refused or revoked?

2 years. Signup and view all the answers

Which of the following is NOT defined as a consumer?

A corporation purchasing a fleet of cars. Signup and view all the answers

What is the minimum fine for an unregistered dealer, also known as a curbsider?

$2,500. Signup and view all the answers

What is a curbsider, as defined in the content?

An illegal seller posing as a private seller. Signup and view all the answers

What are the possible reasons OMVIC can refuse or revoke registration?

Financial irresponsibility of interested persons Signup and view all the answers

Which role is NOT classified as an officer under the MVDA?

Independent contractor. Signup and view all the answers

Which of the following is a requirement for a dealer's place of business as per the MVDA?

Must have a valid municipal permit Signup and view all the answers

What distinguishes a sole proprietorship from other business structures?

It is a person carrying on business alone. Signup and view all the answers

Which statement about leasing is accurate?

The lessor retains the goods after leasing period. Signup and view all the answers

In what circumstance can dealers operate from locations not listed on their registration?

If classified as a Fleet Lessor or Outside Ontario Dealer Signup and view all the answers

To whom must a salesperson show their registration certificate upon request?

The customer who requests to see it Signup and view all the answers

Which statement is true regarding a dealer’s premises and records?

Dealers must have proper permits and insurance for their premises. Signup and view all the answers

What type of lease must a dealer have for their premises?

A lease with a term of at least six months Signup and view all the answers

What can OMVIC issue against a dealer for violations?

Freeze order Signup and view all the answers

Which of the following is NOT a requirement of a dealer's records?

Keeping personal sales strategies documented Signup and view all the answers

What information must be included in the garage register maintained by a dealer?

Complete records of each vehicle Signup and view all the answers

Which document is NOT required for Outside Ontario Dealers to keep records of?

Safety Standards Certificate Signup and view all the answers

How long must dealers store required records?

Six years Signup and view all the answers

Which of the following is a requirement for dealers regarding their premises?

Must provide evidence of valid garage and auto insurance Signup and view all the answers

What is required to be recorded for each sale, lease, or trade by a dealer?

Each transaction and its details Signup and view all the answers

What is the minimum requirement for the format of a garage register?

Can be either paper or electronic Signup and view all the answers

Which item must dealers keep a list of, related to their business?

Associated persons and their connections Signup and view all the answers

What is essential for a dealer's records when using digital formats?

Should make regular backups Signup and view all the answers

Which document must be provided to OMVIC regarding dealer premises?

Lease agreement copy if leased Signup and view all the answers

What type of records must dealers maintain related to banking?

Bank accounts and financing details Signup and view all the answers

Study Notes

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

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

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Description

Test your knowledge on the essential features needed for a dealer's office space. This quiz covers various regulations and requirements important for operating a dealer's premises. Challenges include identifying features, record-keeping, and conditions regarding corporate registration.