OMVIC Practice Test

Who pays into the Motor Vehicle Dealers Compensation Fund, and how often?

1. Salespeople only, annually

2. General Dealers and Brokers, one-time fee at initial registration

3. Customers, at the time of purchase

4. Manufacturers, annually

The correct answer is: General Dealers and Brokers, one-time fee at initial registration

This option is the only one that correctly identifies who pays into the Motor Vehicle Dealers Compensation Fund (MVDCF), which is General Dealers and Brokers. This industry-specific fund is designed to protect consumers in case a dealer or broker goes bankrupt or violates their contract. The fee is a one-time payment made during the initial registration process. None of the other options accurately identify who pays into the MVDCF or the frequency of payments. Option A incorrectly states that only salespeople pay into the fund, and they pay annually instead of one-time. Option C wrongly suggests that customers pay into the fund when making a purchase. Option D incorrectly claims that manufacturers pay into the MVDCF on an annual basis. Therefore, option B is the only correct choice as it accurately identifies the specific group responsible for paying into the MVDCF and the frequency of payments.