OMVIC Practice Test

True or false: A customer can't cancel a contract if the dealer didn't know the vehicle's true history or if they honestly believed they disclosed accurate information.

1. True

2. False

The correct answer is: False

The correct answer is false because, in a sales transaction involving vehicles, consumers have certain rights that are protected, regardless of the dealer’s knowledge or beliefs. If a dealer misrepresents a vehicle’s history, such as failing to disclose critical information about previous accidents, odometer tampering, or other significant issues, the buyer usually has the right to rescind the contract. This is rooted in consumer protection laws which hold dealers accountable for the accuracy of the information they provide. Even if a dealer believes they have provided accurate information, they are still responsible for their representations. Thus, consumers can often cancel contracts based on misleading or incomplete information about a vehicle's condition or history, as it can affect their decision to purchase.