OMVIC Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Dive into the OMVIC Practice Test and test your knowledge on laws, regulations, and ethical practices in the automotive industry. Perfect for aspiring dealers and salespersons to validate their expertise!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How must the sale price of the extended warranty be presented in the contract?

As a percentage of the vehicle sale price
In a clear, comprehensible, and prominent manner
As an optional fee
Deferred until the warranty is utilized

The correct answer is: In a clear, comprehensible, and prominent manner

The other options are incorrect because they do not accurately present how the extended warranty price should be displayed in the contract. Option A is incorrect because the extended warranty price should not be represented as a percentage of the vehicle sale price, as this could be confusing and misleading for the customer. Option C is incorrect because the extended warranty should not be presented as an optional fee, as it is an additional cost that the customer can choose to add on to their purchase. Option D is incorrect because the extended warranty price should not be deferred until it is utilized, as this would not accurately reflect the true cost of the warranty. It is important that the extended warranty price is clearly and prominently displayed in the contract to ensure transparency and understanding for the customer.