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!

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Which of the following is a true statement regarding consignment sales?

  1. Dealers are not allowed to sell vehicles on consignment

  2. All consignment agreements must be verbal

  3. Consignment agreements must be in writing and signed

  4. Consignors receive all proceeds without fees

The correct answer is: Consignment agreements must be in writing and signed

Consignment sales require a written and signed agreement between the consignor and dealer, making option C the correct choice. Option A is incorrect because dealers are allowed to sell vehicles on consignment. Option B is incorrect because while verbal agreements may be made, they are not required. Option D is incorrect because consignors typically receive a percentage of the proceeds, after any agreed upon fees or commissions have been deducted.

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