OMVIC Practice Test

Image Description

Question: 1 / 400

What is the consequence for a dealer who sells a warranty without the required financial backing?

They must personally repair the vehicle

They are liable for all claims under the warranty

Selling a warranty without the required financial backing can be a serious offense for a dealer. This means that in case of any claims made under the warranty, the dealer will have to personally pay for the repairs or reimburse the customer, as they will be held fully liable. Other incorrect options include receiving a warning from the licensing authority, which may not have as severe consequences, and having no consequences for a first-time offense, which may not be true according to the laws and regulations in place. It is important for dealers to ensure they have the necessary financial backing before selling warranties to avoid potential consequences.

Get further explanation with Examzify DeepDiveBeta

They receive a warning from the licensing authority

No consequences if it's a first-time offense

Next Question

Report this question

Download OMVIC Practice Test PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy