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!

Practice this question and more.

True or False: A dealer does not have to inform a purchaser that a vehicle's manufacturers warranty has been cancelled, so long as the dealer offers or sells the purchaser an extended warranty

False
True
Option A
Option B

The correct answer is: False

If the dealer offers or sells the purchaser an extended warranty, then they do not have to inform the purchaser that the vehicle's manufacturers warranty has been cancelled. This is because the extended warranty serves as a replacement for the original one. However, if the purchaser declines the extended warranty and the dealer does not disclose the cancellation of the manufacturers warranty, then that would be considered false advertising and it would be a legal requirement for the dealer to inform the purchaser. Therefore, option B is incorrect because a dealer may still be required to inform the purchaser in certain circumstances. Option C and D are also incorrect since they simply repeat the choices without offering any additional information.