OMVIC Regulations for Corporations

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Questions and Answers

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

If the corporation's financial position is stable.

If the corporation is unlikely to conduct business in a financially responsible way. (correct)

If the corporation's officers have made past financial losses.

If the corporation has a history of integrity and honesty.

Which of the following must be kept in a dealer's records?

Personal identification of all customers.

Financial statements of all sales transactions.

The last five audits conducted.

Certificates of registration. (correct)

What could indicate that a corporation's officers are unsuitable for registration?

Submitting false information on an application. (correct)

Providing all required documentation for registration.

Having a strong financial background.

Having previously held a registration with OMVIC.

What requirement is there for salespeople under OMVIC regulations?

All salespeople must be registered. Signup and view all the answers

What does OMVIC depend on to assess a corporation's ability to operate with integrity?

The financial position of its officers/directors. Signup and view all the answers

Under what circumstances may OMVIC appoint a receiver and manager for a dealership?

If the dealership is about to go out of business Signup and view all the answers

What is one reason OMVIC may issue a freeze order?

To protect the public in extreme situations Signup and view all the answers

What type of information is OMVIC required to keep confidential?

Information collected about dealers and salespeople Signup and view all the answers

What might happen to a dealer’s registration if OMVIC finds issues?

It can be revoked or suspended Signup and view all the answers

What might prompt OMVIC to take immediate action regarding a dealership's assets?

A criminal case has been initiated Signup and view all the answers

What can be included in a dealer's registration information?

The class or classes a dealer is registered in Signup and view all the answers

When may OMVIC issue a freeze order without prior notice to the dealer?

In response to a search order or criminal case Signup and view all the answers

What is the primary law governing the retail automotive industry in Ontario?

The Motor Vehicle Dealers Act (MVDA) Signup and view all the answers

What is the primary role of a General Dealer?

Trades in only used vehicles Signup and view all the answers

Who qualifies as a Broker in vehicle transactions?

An individual who arranges vehicle sales on behalf of others Signup and view all the answers

Which type of dealer primarily buys vehicles to export them outside Ontario?

Outside Ontario Dealer Signup and view all the answers

What distinguishes a Wholesaler from other types of dealers?

They buy and sell vehicles only among registered dealers Signup and view all the answers

What is a key restriction for a Lease Finance Dealer in terms of association?

They can only be associated with General Dealers under specific conditions Signup and view all the answers

What does the General Dealer class specifically exclude?

Sales of new vehicles Signup and view all the answers

Which of the following is NOT a function of a Broker?

Buying vehicles outright for resale Signup and view all the answers

Which subclass of dealer primarily participates in wholesale transactions?

Wholesaler Signup and view all the answers

What information must be entered for a Dealer Administrator after activating an online account?

First and last name as it appears on their driver’s licence and date of birth Signup and view all the answers

What can a Dealer Administrator NOT do?

Submit a renewal application on behalf of a salesperson Signup and view all the answers

How does a Dealer Administrator confirm the email of another person designated as a DA?

The designated DA will receive an email to confirm their account Signup and view all the answers

Which of the following is NOT a feature available for a Dealer Administrator?

Change dealership ownership information Signup and view all the answers

What happens if a salesperson does not register for OMVIC’s online services?

The DA can still receive notifications about the salesperson’s registration Signup and view all the answers

What must officers, directors, owners, and partners show to complete their registration?

A copy of the sales and service agreement Signup and view all the answers

Which of these options is a notification that a Dealer Administrator can subscribe to?

Dealer registration approvals Signup and view all the answers

Who is responsible for managing the registrations and notifications of a dealership?

The Dealer Administrator Signup and view all the answers

What is the consequence for a dealer or salesperson whose registration is revoked?

They can reapply after two years with proof of change Signup and view all the answers

How soon must registered dealers notify OMVIC of any changes to their registration information?

Within 5 days Signup and view all the answers

What is the minimum fine imposed on unregistered dealers, also known as curbsiders?

$2,500 Signup and view all the answers

Which of the following best describes a curbsider?

An illegal seller misrepresenting vehicles Signup and view all the answers

In relation to the MVDA, who qualifies as an independent contractor?

Someone providing specific services for themselves Signup and view all the answers

What is the definition of a corporation under the provided information?

A legal entity separate from its shareholders Signup and view all the answers

What must a consumer be acting for to fit the provided definition?

Personal, family, or household purposes Signup and view all the answers

What describes the relationship of an officer in a corporation under the MVDA?

A person designated by bylaws or resolutions Signup and view all the answers

What should new employees do to show they are aware of the clauses in their employment agreement?

Initial the clause Signup and view all the answers

Where should a dealer ideally keep customers' personal information?

In a central location that can be locked Signup and view all the answers

What must a dealer do before taking any fee from a consignment sale?

Pay the consignor the agreed amount Signup and view all the answers

What does reconciling a trust account involve?

Checking the statement against transaction records Signup and view all the answers

What is the maximum deposit amount that a dealer must hold in a trust account?

$10,000 Signup and view all the answers

What should salespeople do with personal information at the end of their shifts?

Mark it as 'do not copy' and secure it Signup and view all the answers

Under what circumstances may OMVIC issue a freeze order on a dealer's assets?

To protect customers and the public in extreme situations Signup and view all the answers

What is the primary purpose of a trust account for a general dealer?

To securely hold money for deposits and consignment sales Signup and view all the answers

Study Notes

OMVIC Certification Course

This manual is for the Automotive Certification Course, offered by the Automotive Business School of Canada at Georgian College, in collaboration with OMVIC.
The course is mandatory for all new automotive dealers and salespeople in Ontario.
The 2024 edition of the student manual covers laws, regulations and practices related to automotive sales in Ontario.
The manual is divided into 18 chapters, each with review questions.

Important Information

OMVIC (Ontario Motor Vehicle Industry Council) is Ontario's vehicle sales regulator.
The course provides the necessary knowledge required by the Motor Vehicle Dealers Act (MVDA) in Ontario.
This course is the first of its kind in Canada to be mandatory.
The manual includes a table of contents and an appendix with answers to the review questions.

Registration

Students have 12 weeks to complete course materials and the Automotive Certification Test.
A passing grade of 75% is required to pass the test.
Registration in this course does not automatically register you with OMVIC.
Students must register separately with OMVIC upon successful completion of the certification test.
Fees for registration must be paid in full according to instructions provided in course materials.
There are separate processes for dealer and salesperson registration with OMVIC.

Designation

Passing the course and registering with OMVIC will allow for the designation of "C.A.L.E. - Certified in Automotive Law and Ethics."
A certificate, letter of congratulations and an industry pin are awarded to successful graduates.

Fast Facts

All new dealerships and salespeople in Ontario are required to take this course.
Students have 12 weeks to complete the course and pass the test.
Success on the test requires a minimum score of 75%.
OMVIC registration for dealers or salespeople should be sought once the course is complete.
Using the C.A.L.E. designation demonstrates the dealership's and salesperson’s professionalism and builds consumer trust.

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Description

Test your knowledge on the regulations set by OMVIC regarding corporate registration and dealer record-keeping. This quiz covers essential criteria for corporate officers and requirements for salespeople within the automotive industry. Ensure you understand the measures OMVIC uses to assess corporate integrity in operations.