OMVIC Practice Test

Can a customer rescind a contract if a dealer fails to disclose that the vehicle's warranty had been cancelled?

1. Yes, immediately upon discovery

2. No, rescission is not available for warranty issues

3. Yes, but only within 30 days of purchase

4. No, unless the customer can prove harm resulted from the lack of disclosure

The correct answer is: Yes, immediately upon discovery

A customer may rescind a contract with a dealer if the dealer fails to disclose that the vehicle's warranty had been cancelled. Immediately upon the discovery of this failure, the customer has the right to rescind the contract. Option B is not correct because rescission is available for warranty issues, as seen in the correct answer. Rescission may also be available for other breaches of contract. While option C is somewhat close to the correct answer, it is not fully accurate. The customer does not have a limited amount of time (such as 30 days) to rescind the contract; it can be done immediately upon discovery of the failure to disclose. Option D is incorrect because the customer does not need to prove harm resulted from the lack of disclosure in order to rescind the contract. The lack of disclosure itself is enough to allow the customer to rescind the contract