OMVIC Practice Test

True or false: If the dealer inflated a vehicle's selling price and the value of a trade-in and the contract is cancelled, the dealer would have to pay back the inflated trade-in amount.

1. True

2. False

The correct answer is: True

If the contract is cancelled, the dealer would have to reimburse the buyer for the inflated selling price and trade-in amount. This includes any added fees or charges. This is because the dealer is not allowed to engage in deceptive or fraudulent practices, such as inflating prices and values. In this scenario, the dealer would be required to pay back the inflated trade-in amount as part of the reimbursement. Therefore, the statement "if the dealer inflated a vehicle's selling price and the value of a trade-in and the contract is cancelled, the dealer would have to pay back the inflated trade-in amount" is true. The option B, "False," is incorrect because, as explained above, the dealer would indeed be responsible for reimbursing the inflated trade-in amount if the contract is cancelled. Additionally, it is important to note that altering prices and values is considered predatory and unethical behavior, and should be reported to the appropriate authorities.