OMVIC (Ontario Motor Vehicle Industry Council) Automotive Certification Course Practice Test

Question: 1 / 50

Which of the following is a true statement regarding consignment sales?

Dealers are not allowed to sell vehicles on consignment

All consignment agreements must be verbal

Consignment agreements must be in writing and signed

Consignment sales require a written and signed agreement between the consignor and dealer, making option C the correct choice. Option A is incorrect because dealers are allowed to sell vehicles on consignment. Option B is incorrect because while verbal agreements may be made, they are not required. Option D is incorrect because consignors typically receive a percentage of the proceeds, after any agreed upon fees or commissions have been deducted.

Consignors receive all proceeds without fees