OMVIC Practice Test

What does 'material fact' mean in the context of vehicle sales?

1. Information about the color and aesthetics of the vehicle

2. Information that might affect the customer's decision to purchase

3. The cost of the vehicle only

4. Information pertaining purely to the manufacturer

The correct answer is: Information that might affect the customer's decision to purchase

In the context of vehicle sales, 'material fact' refers to any information that might affect the customer's decision to purchase the vehicle. This goes beyond just the color and aesthetics of the vehicle, as it could also include important details about the vehicle's safety, performance, history, and any potential issues or defects. The cost of the vehicle would also be considered a material fact, as it can greatly impact a customer's decision to purchase. Option D is incorrect because material facts are not limited to just information about the manufacturer. It is important for car dealers and salespeople to disclose all material facts to potential customers in order to ensure an informed and fair transaction.