OMVIC Practice Test

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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.

The irrevocable letter of credit for a dealer not selling their vehicle but offering an extended warranty must be:

$100,000
$200,000
$500,000
Varies based on vehicle model

The correct answer is: $500,000

The irrevocable letter of credit must be $500,000 because it is necessary to cover any expenses incurred from the extended warranty offered by the dealer. Option A and B are too low and would not provide enough coverage. Option D does not specify an amount and could potentially be lower than $500,000, thus not meeting the requirement.