OMVIC Practice Test

What must be true about the advertising by dealers and salespeople according to the Code of Ethics Regulations?

1. It must be extravagant and eye-catching

2. It must be legal, decent, ethical, and truthful

3. It can be exaggerated for effect

4. It should focus on the competition's weaknesses

The correct answer is: It must be legal, decent, ethical, and truthful

According to the Code of Ethics Regulations, advertising by dealers and salespeople must be legal, decent, ethical, and truthful. This is to ensure fair and honest business practices and to protect customers from false or misleading information. Option A is incorrect because extravagant and eye-catching advertising can often be misleading or unethical. Option C is also incorrect because advertising should not exaggerate the facts for effect, as this can also be misleading to the customer. Option D is incorrect because advertising should not focus on the competition's weaknesses, as this can be seen as unethical or creating a negative and hostile business environment. Option B is the correct answer as it aligns with the Code of Ethics Regulations and promotes fairness, honesty, and integrity in advertising.