OMVIC Practice Test

List two possible situations which could result in OMVIC applying to a court to appoint a receiver and manager to assume temporary control of a dealership.

1. If the dealership is about to fail

2. If OMVIC is proposing to revoke a registration

3. If a freeze order is about to be made

4. A and B

The correct answer is: A and B

In the context of the Ontario Motor Vehicle Industry Council (OMVIC), a situation that warrants applying to the court for the appointment of a receiver and manager is typically tied to serious concerns regarding a dealership's operations—especially surrounding financial stability and compliance with industry regulations. When there has been an investigation into a dealership, it often indicates that there are significant issues, such as fraudulent practices, financial mismanagement, or violations of the Motor Vehicle Dealers Act. An investigation may reveal that the dealership is not operating in accordance with the law or is harming consumers. In such cases, OMVIC has the authority to take protective actions to mitigate potential harm to consumers and the automotive marketplace. Appointing a receiver and manager allows for temporary control to ensure that the dealership's assets are managed properly while a resolution to the issues uncovered by the investigation is sought. This action serves as a mechanism to protect consumers and uphold the integrity of the automotive industry, ensuring that any illegal or unethical activities can be curtailed effectively. The other scenarios presented do not directly reflect OMVIC's immediate need for court intervention in terms of taking over a dealership's operations in response to an investigation.