OMVIC Practice Test

For vehicles sold 'as is,' what must the contract explicitly disclose?

1. A detailed list of potential mechanical failures

2. The vehicle is being sold 'as is' and may require substantial repairs at the buyer's expense

3. That no repairs will be provided under any circumstances

4. That the vehicle cannot be driven until inspected

The correct answer is: The vehicle is being sold 'as is' and may require substantial repairs at the buyer's expense

When a vehicle is sold 'as is,' the buyer needs to be explicitly informed that they are purchasing the vehicle in its current condition without any guarantees or warranties. This means that any potential mechanical failures or necessary repairs will be the responsibility of the buyer. In option A, while providing a list of potential mechanical failures may be helpful, it does not explicitly disclose that the vehicle is being sold 'as is.' Option C is incorrect because it is not necessary to state that no repairs will be provided as it is already understood when a vehicle is sold 'as is.' Option D is incorrect because it is not required to explicitly state that the vehicle cannot be driven until inspected as it is the buyer's responsibility to inspect the vehicle before purchasing it. Option B provides the most important and necessary information for a buyer when purchasing a vehicle 'as is.'