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. If there has been an investigation

The correct answer is: If there has been an investigation

When it comes to OMVIC's authority to appoint a receiver and manager to take temporary control of a dealership, specific situations warrant this action in order to protect consumers and ensure compliance with regulations. One key situation that could lead to OMVIC seeking court intervention is the presence of ongoing investigations. If OMVIC uncovers evidence that indicates potential misconduct, fraud, or significant violations within the dealership operations, this could pose a threat to consumer interests and the integrity of the automotive marketplace. As investigations unfold, OMVIC may determine that immediate action is necessary to prevent further disarray or harm, thereby justifying the need for a receiver and manager to step in and oversee the dealership's activities during this critical time. The other scenarios, such as potential registration revocation, impending freeze orders, or dealership failures, do indicate serious issues but do not directly trigger the same need for immediate control as investigations, where the integrity of current operations might be compromised significantly.