OMVIC Practice Test

When selling a new vehicle, what information regarding the manufacturer must be included in the contract?

1. Manufacturer's middle name

2. Manufacturer's suggested retail price (MSRP)

3. Manufacturer's guarantee of no defects

4. Manufacturer's personal phone number

The correct answer is: Manufacturer's suggested retail price (MSRP)

Including the manufacturer's suggested retail price (MSRP) in the contract is essential when selling a new vehicle because it represents the price recommended by the manufacturer for the vehicle model. This information is crucial for consumers, as it provides a baseline for assessing the vehicle's value and understanding the pricing structure. The MSRP is not just a recommendation; it serves as a point of reference for potential negotiations and ensures transparency in the sale. Customers need to know this key figure to make informed decisions and to compare prices from different dealerships effectively. Other options listed do not provide relevant or necessary information for the contract. For instance, the manufacturer's middle name, personal phone number, or a guarantee of no defects does not typically form part of the standard contract provisions and might even be deemed irrelevant in the context of vehicle sales. Therefore, the inclusion of the MSRP caters to both legal requirements and consumer protection by ensuring clarity and fairness in the transaction.