Section 6 of the Motor Vehicle Dealers Act, 2002 (the “Act") requires dealers and salespeople (collectively referred to as “Registrants”), to conduct business activity with honesty, integrity, financial responsibility and in accordance with law. It is important to note that despite any contract or waiver to the contrary the Code of Ethics applies to all Registrants.
The Standards of Business Practice, 2010 apply to all Registrants in Ontario, including all persons employed, appointed or authorized by a motor vehicle dealer to act on the dealer’s behalf in any transaction arising from or related to the trade in a motor vehicle. Registrants who disregard the Code of Ethics are subject to having their conduct reviewed and, after a fair review of the situation, may face disciplinary action by the Discipline Committee.
The purpose of the Standards of Business Practice, 2010 is to assist Registrants by illustrating what is expected of them. The
Standards of Business Practice, 2010 attempts to illustrate the Code of Ethics by providing practical examples and by applying the standards of honesty and integrity in specific situations. These represent minimum standards and are illustrative rather than exhaustive. OMVIC anticipates that Registrants will wish to exceed these minimum standards and that they conduct all business activities with honesty, fairness, integrity and within the law at all times.
registrant shall be financially
responsible in carrying on
registrant shall not indicate to
any person, directly or
indirectly, that any payment,
commission or other remuneration
in connection with a trade in a
motor vehicle is fixed or
approved by the administrative
authority, if any, a government
authority or any motor vehicle
board of association.
4. DISCLOSURE AND MARKETING
(1) A registrant shall be clear and truthful in describing the features, benefits and prices connected with the motor vehicles in which the registrant trades and in explaining the products, services, programs and prices connected with those vehicles.
(2) A registrant shall ensure that all representations, including advertising, made by or on behalf of the registrant in connection with trading in motor vehicles, are legal, decent, ethical and truthful.
(3) Before entering into a contract with a customer who is not a registered motor vehicle dealer in respect of a trade in a motor vehicle, a registered motor vehicle dealer shall explain to the customer the terms of the contract between the customer and the dealer, including the financial and other obligations, if any, of the customer under the contract.
Going Out of Business
Invoice price, under/over
Limited time only
Beat your best deal
Push, pull, drag (or
5. DISCLOSURE OF INFORMATION IN
CONTRACTS OF SALE AND LEASE
A registered motor vehicle dealer who enters into a contract to sell or lease a motor vehicle to a person who is also a registered motor vehicle dealer shall ensure that the following information is disclosed in the contract:
1. If the vehicle is a used motor vehicle, the total distance that it has been driven if the dealer can determine the distance.
2. If the vehicle is a used motor vehicle and the dealer cannot determine the total distance that the vehicle has been driven but can determine the distance that the vehicle has been driven as of some past date, a statement of that distance and date, together with a statement that the total distance that the vehicle has been driven is believed to be higher than that distance.
3. If the vehicle is a used motor vehicle and the dealer can determine neither the total distance that the vehicle has been driven, nor the distance that the vehicle has been driven as of some past date, a statement that the total distance that the vehicle has been driven is unknown and may be substantially higher than the reading shown on the odometer.
4. If the vehicle’s odometer is broken or faulty, has been replaced, has been rolled back or is in miles, a statement to that effect.
5. If any of the following is true of the vehicle, a statement to the effect that the vehicle was previously,
i. leased on a daily basis, unless the vehicle was subsequently owned by a person who was not registered as a motor vehicle dealer under the
Motor Vehicle Dealers Act
or the Motor Vehicle Dealers Act, 2002,
ii. used as a police cruiser or used to provide emergency services, or
iii. used as a taxi or limousine.
6. If the vehicle has sustained any damage caused by fire, a statement to that effect.
7. If the vehicle has sustained any damage caused by immersion in liquid that has penetrated to the level of at least the interior floorboards, a statement to that effect.
8. If there has been structural damage to the vehicle or any repairs, replacements or alterations to the structure of the vehicle, a statement to that effect.
9. If the vehicle is equipped with an anti-lock braking system that is not operational, a statement to that effect.
10. If any of the vehicle’s airbags are missing or are not operational, a statement to that effect.
11. If the vehicle is materially different from the original or advertised production specifications, a statement to that effect.
12. If the vehicle has two or more adjacent panels that are not bumper panels and that have been replaced, a statement to that effect.
13. If the model year of the vehicle is the current model year or the immediately preceding model year and any panels have been repainted, a statement to that effect.
14. The make, model, trim level and model year of the vehicle.
15. If any badge or other indication on the vehicle relates to a different model than the model of the vehicle, a statement to that effect.
16. If the total costs of repairs to fix the damage caused to the vehicle by an incident exceed $3,000, a statement to that effect and if the dealer knew the total costs, a statement of the total costs.
17. If the manufacturer’s warranty on the vehicle was cancelled, a statement to that effect.
18. If the vehicle was declared by an insurer to be a total loss, regardless of whether the vehicle was classified as irreparable or as salvage under section 199.1 of the
Highway Traffic Act, a statement to that effect.
19. If the vehicle previously received treatment in a jurisdiction other than Ontario that was equivalent to having had a permit issued under section 7 of the
Highway Traffic Act or having been traded in Ontario, a statement to that effect and a statement of which jurisdictions, except if one or more permits have been issued for the vehicle under section 7 of that Act to cover at least the seven previous consecutive years.
20. If the vehicle has been classified, under section 199.1 of the
Highway Traffic Act, as irreparable, salvage or rebuilt, a statement as to how it was last classified.
21. If the vehicle had been recovered after being reported stolen, a statement to that effect.
22. Any other fact about the vehicle that affects the structural or mechanical quality or performance of the vehicle and that, if disclosed, could reasonably be expected to influence the decision of a reasonable purchaser or lessee to buy or lease the vehicle.
(1) A registered motor vehicle dealer shall ensure that every registered salesperson that the dealer employs or retains to act as a salesperson carries out his or her duties in compliance with this Regulation.
(2) A registered salesperson shall not do or omit to do anything that causes the registered motor vehicle dealer who employs or retains the salesperson to contravene this Regulation or any applicable law with respect to trading in motor vehicles.
(1) A registrant shall ensure that all documents used by the registrant in the course of a trade in a motor vehicle are current and comply with the law.
(2) A registered motor vehicle dealer who enters into a contract with a person for the sale of a motor vehicle shall facilitate compliance by the person with the person’s obligations under subsection 11 (2) of the
Highway Traffic Act unless the person instructs the dealer not to do so.
(1) In carrying on business, registrants shall not engage in any act or omission that, having regard to all of the circumstances, would reasonably be regarded as insulting to human dignity or integrity and shall not use symbols that, having regard to all of the circumstances, would reasonably be regarded as offensive.
(2) Registrants shall carry on business ethically and with respect for the rights and interests of the persons with whom they do business.
(1) In carrying on business, a registrant shall not engage in any act or omission that, having regard to all of the circumstances, would reasonably be regarded as disgraceful, dishonourable, unprofessional or unbecoming of a registrant.
(2) In carrying on a business, a registrant shall act with honesty, integrity and fairness.
(3) A registrant shall use the registrant’s best efforts to prevent error, misrepresentation, fraud or any unethical practice in respect of a trade in a motor vehicle.
(4) A registrant shall provide conscientious service to the registrant’s customers in the course of a trade in a motor vehicle and shall demonstrate reasonable knowledge, skill, judgment and competence in providing the services.
(a) a registered motor vehicle dealer enters into a contract to sell or lease a motor vehicle to a purchaser or lessee who is not another registered motor vehicle dealer;
(b) the purchaser or lessee trades in another motor vehicle to the dealer under the contract or to another registered motor vehicle dealer under a separate contract; and
(c) the dealer who receives the vehicle being traded in agrees to pay any outstanding loan on the vehicle or to pay any outstanding bill for the repair or storage of the vehicle,
the dealer who receives the vehicle being traded in shall fulfil the dealer’s obligations under the agreement described in clause (c).
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