Dealer Education

STANDARDS OF BUSINESS PRACTICE

INTRODUCTION
Section 5 of the Motor Vehicle Dealers Act (the "Act") requires Dealers and Salespeople to conduct business activity with honesty, integrity, financial responsibility and in accordance with law.

The Standards of Business Practice apply to all motor vehicle Dealers in Ontario, including all persons employed, appointed or authorized by a motor vehicle Dealer to act on a Dealer’s behalf in any transaction arising from or related to the purchase, sale or lease of motor vehicles. Dealers who disregard the Code of Ethics are subject to having their conduct reviewed and, after a fair review of the situation, may face disciplinary action by the Discipline Committee.

The purpose of the Standards of Business Practice is to assist Dealers by illustrating what is expected of them. The Standards of Business Practice attempt to illustrate the OMVIC Code of Ethics by providing practical examples and by applying the standards of honesty and integrity in specific situations. These represent minimum standards and are illustrative rather than exhaustive. OMVIC anticipates that Dealers will wish to exceed these minimum standards.

Dealers who know about a possible violation of the law or the Standards by another Dealer, or if they know of a curbsider, are encouraged to report the matter to OMVIC together with all pertinent details of which the Dealer may be aware.

1. INTEGRITY

STANDARD

Conduct activities with honesty, fairness and financial responsibility.

EXAMPLES

1.1 The Code of Ethics and Standards of Business Practice set out minimum requirements that Dealers are expected to meet concerning the issues covered.

1.2 Dealers conduct all business activities with honesty, fairness and integrity at all times.

1.3 Dealers promptly, honestly and courteously respond to complaints made about them by other Dealers, consumers or others.

1.4 Dealers meet all financial obligations incurred in relation to motor vehicle transactions, including buying, selling or leasing vehicles.

2. DISCLOSURE

STANDARD

Communicate all material facts, and ensure products and services are fully understood.

EXAMPLES

2.1 MOTOR VEHICLE TRANSACTIONS GENERALLY

2.1.1 All contracts respecting motor vehicle transactions are in writing and disclose all terms and conditions, including the total amount of all payments made or received in relation to the sale or lease of a motor vehicle. After all terms and conditions have been filled out on the contract, every contract is signed by all parties to the contract and a signed, duplicate original copy of the contract is provided to all parties to the contract.

2.1.2 All terms and conditions in contracts respecting motor vehicle transactions are set out clearly and in plain language. Disclosure statements are expressed clearly and concisely in a logical order and in a manner that is likely to bring the information to the attention of the purchaser.

2.1.3 Dealers encourage consumers to read and understand the terms and conditions of all contracts before signing the contract.

2.2 DISTANCE TRAVELED

2.2.1 All wholesale and retail contracts state on the front of the contract the distance, measured in kilometres or miles, as appropriate, currently shown on the odometer of that motor vehicle.

2.2.2 Where a Dealer knows or has reasonable grounds to believe that the distance shown on an odometer does not accurately reflect the true distance traveled, the Dealer makes reasonable efforts to determine the minimum distance traveled by obtaining a reliable representation of the distance traveled by that motor vehicle on an earlier date.

2.2.3 Where a Dealer knows, or has reasonable grounds to believe that the distance shown on an odometer is not accurate, the purchaser is notified. Where this is the case, the contract includes one of the following plain language statements on the front of the contract:

(a) "The true distance traveled is unknown, but is believed to be in excess of {estimate of distance traveled} which was recorded on {date}".

(b) "The true distance traveled is unknown, but is believed to be substantially higher than that shown on the odometer".

2.2.4 Further to section 2.2.3, Dealers do not use abbreviations when disclosing the fact that an odometer does not accurately reflect the true distance traveled by a motor vehicle. Examples of prohibited abbreviations include: "T.K.U." and "T.M.U."

2.3 RETURN POLICIES

2.3.1. Where a retail contract expressly provides for a return policy, all terms and conditions of the return policy, including the length of the return period, are disclosed on the contract.

2.4 PRIOR USE

2.4.1 Wholesale and retail contracts state on the front of the contract any of the following statements if they accurately describe the past regular use of the motor vehicle:

(a) "Daily rental" if the motor vehicle was a rental vehicle and has never been owned by a consumer;

(b) "Police cruiser";

2.5 MOTOR VEHICLE CONDITION

2.5.1 Dealers offering a motor vehicle for sale or lease disclose in writing to purchasers all material facts about the motor vehicle’s condition known to the Dealer. In determining what material facts a Dealer knew about a motor vehicle, the Discipline Committee or Registrar shall fairly consider the individual circumstances of the motor vehicle, including the age of the motor vehicle.

2.5.2 Where a motor vehicle is sold on an "As Is" basis, this fact is clearly indicated on the front of the retail contract. Retail contracts for the sale of used motor vehicles include the following statement on the front of the contract:

VEHICLE SOLD AS IS: I agree that if the appropriate space is initialed by me, the vehicle is sold AS IS and is not represented as being in a road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at my expense.
Purchaser’s Initials

Use of the "AS IS" statement does not eliminate potential liability, since a purchaser may still choose to pursue the matter against a Dealer through civil action.

The "AS IS" statement is being provided to Dealers as a means of providing clear disclosure to a purchaser. If a Dealer believes that further disclosure is required, then the Dealer should be sure to make that further disclosure to the purchaser in writing on the Bill of Sale and have the disclosure signed by the purchaser.

2.5.3 Where a retail contract does not clearly indicate that a motor vehicle was sold on an "As Is" basis in accordance with section 2.5.2, the motor vehicle is not considered to be sold on an "As Is" basis.

2.5.4 A motor vehicle sold to a consumer that is not sold on an "As Is" basis is considered to be fit for the purpose of being driven for regular daily use for a reasonable period of time, having regard to factors including:

(a) The type or class of motor vehicle;

(b) Prior use of the motor vehicle previously disclosed to the consumer;

(d) Material facts described in section 2.5.1 previously disclosed to the consumer.

2.6 EXTENDED WARRANTIES, DEALER GUARANTEES AND SERVICE PLANS

2.6.1 Retail contracts state on the front of the contract whether or not an extended warranty, guarantee or service plan is provided with the motor vehicle. If provided, the source of the warranty, guarantee or service plan is identified on the front of the contract.

2.6.2 Where a Dealer offers its own guarantee, the front of the retail contract includes the terms and conditions of the guarantee including the following statements:

(a) The term expressed as a period of time or in kilometres, or both. For example: "30 days or 3000 km, whichever comes first";

(b) A description of the parts covered. For example: "power train";

(d) The total expense covered. For example: "50/50 parts and labour";

(e) A statement that repairs will be carried out by the Dealer or by a repair facility authorized by the Dealer.

2.6.3 Where a Dealer sells an extended warranty, product warranty or service plan for a third party, the Dealer promptly completes and submits the application and payment to the warrantor. In the event that the warrantor does not accept the application, the Dealer promptly refunds the warranty fee.

2.6.4 Dealers are strongly urged to only sell insured extended warranties, product warranties or service plans. Where a Dealer sells an uninsured extended warranty, product warranty, guarantee or service plan on behalf of a third party, and the third party fails to honour the warranty, guarantee or service plan, the Dealer assumes liability for all obligations under the warranty, guarantee or service plan.

2.6.5 Where a Dealer sells an extended warranty, product warranty, guarantee or service plan, the Dealer provides the consumer with a completed, duplicate copy of the application form that has been signed by the Dealer and the consumer. The Dealer retains a completed, signed duplicate copy of the application form as part of the Dealer’s records.

2.7 CONSUMER CREDIT AGREEMENTS

2.7.1 All terms and conditions of a credit agreement, including a consumer loan or lease, are set out in a written agreement that includes all matters required by credit disclosure legislation in force in Ontario.

2.8 CONSUMER CONSIGNMENT AGREEMENTS

2.8.1 These Standards apply with necessary modifications to motor vehicles sold on a consignment basis. In addition, where a Dealer intends to sell a motor vehicle on consignment, the Dealer enters into a consignment agreement with the Consignor that states:

(a) The registered name and registration number of the Dealer;

(b) The name, address and telephone number of the Consignor;

(d) The term of the agreement and how it may be extended;

(e) Conditions with respect to early termination of the agreement and the minimum fee, if any, that the Dealer intends to charge the Consignor for early termination of the agreement;

(f) The amount the Consignor will receive for the motor vehicle;

(g) What the Dealer will charge the Consignor for selling the motor vehicle and how this amount is calculated, e.g. as a percentage of the total sale price;

(h) What amount the Dealer will charge the consignor for any additional costs, including cleaning, transportation, storage, repair, safety inspection or other costs;

(i) A condition that the Dealer provide the Consignor with the name and address of the final purchaser and the sale price of the motor vehicle after it is sold.

2.8.2 Where a Dealer sells a motor vehicle on consignment, the Dealer notifies the purchaser of the motor vehicle, prior to the sale, that the purchaser’s name and address will be disclosed to the Consignor of the motor vehicle.

2.8.3 Where a Dealer sells a motor vehicle on consignment, the Dealer discloses to the Consignor the name and address of the final purchaser of the motor vehicle, and the sale price of the motor vehicle, after the sale.

2.8.4 Dealers who sell motor vehicles on consignment comply with the provisions of the Highway Traffic Act by transferring the motor vehicle into the Dealer’s name prior to transferring the motor vehicle into the name of the final purchaser.

2.8.5 Dealers who enter into an agreement to sell a motor vehicle on consignment comply with the provisions of the Highway Traffic Act by entering all required information with respect to the motor vehicle in the Dealer’s Garage Register upon making the agreement.

2.8.6 Where a Dealer sells a motor vehicle on consignment, the bill of sale between the Dealer and the final purchaser is the same as for any other motor vehicle sale. The same disclosure requirements, implied warranties and obligations, as set out in the Business Practices Act, Consumer Protection Act, Sale of Goods Act, and other consumer protection legislation in force in Ontario, apply to Dealers offering and selling motor vehicles on consignment as they do to any other consumer transaction.

2.9 PUBLIC MOTOR VEHICLE AUCTIONS

2.9.1 These Standards apply to Dealers who carry on business as a public motor vehicle auction. In particular, without limiting the generality of the previous statement, the Standards set out in Section 2.8 with respect to consignment agreements apply to Dealers who carry on business as a public motor vehicle auction.

3. MARKETING

STANDARD

Guard against using any form of misleading advertising or innuendo in marketing our products and services.

INTERPRETATION

Section 19 of the Motor Vehicle Dealers Act states "where the Registrar believes on reasonable and probable grounds that a motor vehicle Dealer is making false, misleading or deceptive statements in any advertisement, circular, pamphlet or similar material, the Registrar may order the immediate cessation of the use of that material."

The following Standards are intended to assist Dealers by providing consistency and certainty about advertising that complies with the requirements of the Act.

EXAMPLES AND APPLICATION

3.1 DISCLOSURE GENERALLY

3.1.1 Any information required by these Standards to be disclosed is sufficiently clear and prominent so that in the consideration of the Registrar, it can be easily noticed and understood by a consumer. Disclosure is in a form appropriate to the advertising medium. The Registrar will consider factors that include:

(a) Size of print;

(b) Clarity, legibility of font;

(d) Prominence of the disclosed information compared to other information in the advertisement;

(e) In a broadcast advertisement, the length of time that the message appears or is presented.

3.1.2 In addition to 3.1.1, all disclosure in advertisements appearing in newspapers, periodicals and other publications is printed in a minimum size and font that is the same as that normally used in classified advertising by the publication where the advertisement appears.

3.2 DISCLOSURE IN BROADCAST ADVERTISEMENTS

3.2.1 Where disclosure of leasing or financial information is required by these Standards and applies to a broadcast advertisement, the advertisement includes as an alternative to the requirements in Section 3.1, either of the following messages:

(a) A telephone number and a statement that the number may be called to obtain pre-recorded disclosure of the information. For example: "Call [telephone number] for full financing information". The required information must be available on a pre-recorded message and may be followed by an option connecting the caller to a live operator;

(b) A pre-recorded message is not required if the broadcast advertisement discloses the monthly payment, the term, and the total due on delivery which shall include down payment, freight and PDI; or

(c) A statement that full disclosure can be obtained in a concurrent newspaper advertisement. For example: "See our ad in your local newspaper for full financing information". The newspaper must be locally available in the market area of the advertiser.

3.2.2 The message in 3.2.1 is sufficiently clear and prominent so that in the consideration of the Registrar, it can be easily noticed and understood by a consumer.

3.3 GENERIC ADVERTISING

3.3.1 Advertisements do not present insulting portrayals of individuals or groups, and do not exploit violence, sex, children, customs or characteristics of religious or ethnic groups, persons with disabilities or any person or group in a way that offends current legal and ethical standards. Advertisements do not portray the motor vehicle industry, salespeople or Dealers in an insulting or derogatory manner.

3.4 IDENTIFICATION OF DEALER STATUS

3.4.1 Advertisements by or on behalf of a Dealer disclose the Dealer’s status in one of two ways:

(a) With a trade style name provided to the Registrar. This can be the Dealer’s registered name;

(b) By including the word "Dealer" in the advertisement.

3.4.2 Advertisements do not indicate or imply that consumers may purchase or lease a car from an unregistered salesperson. Example:

(a) No salespeople.

3.4.3 Advertising of specific vehicles do not indicate or imply, through words, phrases, or style that it is not presented for commercial purposes. Example:

(a) Public Service Announcement.

3.5 AMBIGUOUS OR MISLEADING STATEMENTS

3.5.1 Advertisements do not contain statements which, in the consideration of the Registrar, are ambiguous, misleading or deceptive due to unclear, unverifiable or inaccurate information.

3.5.2 Advertisements do not refer to an award unless its source and date is disclosed. Advertisements do not refer to an award when it was purchased by the Dealer, and is not based on any verifiable test or research. This does not refer to celebrity endorsements.

3.6 TRANSACTION NOT IN ORDINARY COURSE OF BUSINESS

3.6.1 Advertisements do not indicate or imply that vehicles are being offered out of the ordinary course of business unless full disclosure of the situation is made. Examples of prohibited terms include:

(a) Going out of business, closing;

(b) Bankrupt, in receivership, liquidation;

(d) Fleet sale;

(e) Repossessed motor vehicles.

3.6.2 "Wholesale" is not used to describe any transaction other than one between motor vehicle Dealers.

3.6.3 If a Dealer’s registered or trade style name includes "liquidation" or "wholesale," all advertisements for vehicles offered for retail sale or lease include the word "retail".

3.7 DEALER COST ADVERTISING

3.7.1 Advertisements do not indicate or imply that vehicles are offered for retail sale or lease without economic advantage to the Dealer. Examples of prohibited terms include:

(a) Dealer cost;

(b) Factory price, invoice price, under/over invoice price.

3.8 DISCLOSURE OF VEHICLE HISTORY

3.8.1 Advertisements for specific vehicles that are of the current model year or the previous model year disclose whether the vehicle is new or used. Advertisements of used vehicles must include one of the phrases "used," "preowned," "previously driven," "used as a demonstrator by the Dealership," "used as an executive vehicle by the Dealership," or other phrase that is accurate.

3.8.2 Advertisements of a specific used vehicle disclose all known material facts about the prior regular use of the vehicle, including if it was a:

(a) Daily rental that was not previously owned by a consumer;

(b) Police cruiser;

3.9 BAIT AND SWITCH ADVERTISING

3.9.1 The advertised vehicle is to be:

a) At the advertised location or available at the advertised location;

b) In condition to be shown;

c) Willingly shown to a consumer;

d) Willingly shown under the same terms as advertised; and

e) Sold on the same terms as advertised.

3.9.2 A vehicle or class of vehicles are not advertised at a specific price or other incentive unless the Dealer is able to supply a quantity of those vehicles that, in the consideration of the Registrar, is reasonable considering factors that include the size of the Dealership, and the target area of the advertisement.

3.9.3 Advertisements do not misrepresent the opportunity to purchase a vehicle. If the available supply of vehicles is unusually limited, the nature of the limit, such as the number available or the time they are available, must be disclosed. If a factory order or acquisition from another Dealer is, or may be required, this must be disclosed.

3.9.4 Dealers do not use phrases such as "supply limited’’ and "limited time only" if they are misleading considering factors including the number of vehicles available to the Dealer, and the Dealer’s target area.

3.9.5 Illustrations of vehicles offered for sale will be reasonable representations of the vehicle(s) if an exact illustration is not available.

3.10 ENCOURAGING BREACH OF CONTRACT

3.10.1 Advertisements do not encourage a breach of contract. For example: "we will beat your best deal."

3.11 "FREE" OPTIONS OR OFFERS

3.11.1 Advertisements using the word "free" clearly indicate that the item is free with purchase at the advertised price.

3.12 MINIMUM TRADE IN ALLOWANCE OFFERS

3.12.1 Advertisements do not guarantee a minimum trade in allowance. For example: "Push, Pull, Drag your trade in for $2000.00 guaranteed."

3.13 WARRANTY ADVERTISING

3.13.1 Advertisements do not offer an extended warranty included with purchase unless the following information is delcared: term and lifetime claim maximum.

3.13.2 Words or phrases that indicate or imply that a warranty covers all of a vehicle, or lasts for an unlimited time, or both, are not used unless the warranty is without such exclusions. Prohibited phrases include:

(a) Bumper to bumper;

(b) Inclusive / all-inclusive;

3.14 PRICE ADVERTISING

3.14.1 Vehicle price advertising discloses that the advertised price does not include the following:

(a) Industry specific taxes;

(b) Freight charges;

(d) Administration fees charged by the Dealer.

3.14.2 The following are examples of acceptable wording: "Not including taxes, freight, pre delivery and administration charges"; "Taxes, freight, PDI and administration charges extra".

3.14.3 All disclosure in advertisements appearing in newspapers, periodicals and other publications is printed in a minimum size and font that is the same as that normally used in classified advertising by the publication where the advertisement appears.

3.15 DISCLOSURE OF FINANCIAL INFORMATION - SAVINGS AMOUNTS

3.15.1 Savings amounts shown in new vehicle advertising are based on a vehicle’s average selling price, not the Manufacturers Suggested Retail Price (M.S.R.P.) The Dealer is able and willing to support the average selling price. For example:

M.S.R.P. $20,000.00
Average Selling Price $19,000.00
Sale Price $18,500.00
Savings $ 500.00

3.16 DISCLOSURE OF FINANCIAL INFORMATION - COST OF BORROWING

3.16.1 Advertisements conform to the cost of credit disclosure legislation in force in Ontario.

3.16.2 Advertisements for every credit offer disclose the following:

(a) The annual cost of borrowing stated as an annual interest rate, and the total cost of borrowing expressed in dollars (e.g. 8.9% annually, $1 500.00); and,

(b) The term of the credit transaction;

3.16.3 Where the information required by 3.16.2 is not the same for all credit offers shown in an advertisement, the information may be for a representative offer if this fact is disclosed.

3.16.4 Advertisements that indicate or imply that all credit applications will be approved, disclose whether a down payment may be required.

3.16.5 An advertisement of a variable interest rate discloses any of the following information that applies to that transaction:

(a) A statement that the interest rate is subject to change during the transaction term;

(b) For any period that the interest rate is set out in the credit agreement, when the period begins and ends, and the annual interest rate during the period;

(c) For any period that the interest rate is variable, when the period begins and ends if less than the entire term of the transaction;

(d) If the variable rate is based on a prime rate, disclosure of this fact, together with a statement that the prime rate may vary, and the source of the prime rate;

(e) Where the interest rate is variable and is also subject to a minimum or maximum rate, the minimum or maximum interest rate.

3.17 DISCLOSURE OF FINANCIAL INFORMATION - LEASE ADVERTISING

3.17.1 The Standards apply to lease advertising. All advertisements for specific lease offers disclose:

(a) That the transaction is a lease;

(b) The term of the lease;

(d) The frequency of payments;

(e) If a payment is required before the beginning of the lease term, the amount of that payment, e.g. a security deposit;

(f) The annual cost of borrowing stated as an annual interest rate;

(g) If additional costs may be charged for vehicle options, this fact must be disclosed;

(h) If the consumer will be required to pay an extra usage charge at the end of the lease term (e.g. limitations on kilometres traveled) and the way it will be calculated.

3.17.2 Where the information required by 3.17.1 is not the same for all leases referred to in the advertisement, the information may be for a representative transaction if this fact is disclosed.

3.17.3 All advertising referring generally to leases discloses the fact that the transactions referred to are leases.

3.17.4 An advertisement of an open-end lease also discloses what the consumer’s financial obligation will be at the end of the lease term.

3.18 DISCLOSURE OF FINANCIAL INFORMATION - NO INTEREST PERIODS

3.18.1 Advertisements that offer no interest periods state the period of time that the offer applies and disclose whether:

(a) The transaction is without any interest during the advertised period; or,

(b) Interest accumulates during the advertised period but will be forgiven under certain conditions.

3.18.2 If interest accumulates during the period but may be forgiven, the advertisement discloses:

(a) The conditions for interest forgiveness; and,

(b) The interest rate for the period, if the conditions for forgiveness of interest are not met.

3.18.3 An advertisement that does not disclose all information required by this section is considered to indicate that the transaction is unconditionally interest-free during the advertised period.

3.19 DISCLOSURE OF FINANCIAL INFORMATION – OPTION OF LOW INTEREST RATE FINANCING OR A REBATE

3.19.1 Advertisements offering a choice between low interest rate financing and a rebate disclose the effective interest rate of the financing option. The effective interest rate is the cost of borrowing at the low interest rate plus the value of the rebate. For example, if the choice is between a 1.9% annual interest rate or a $2000.00 cash rebate, the real cost of the financing option is 1.9% annually plus $2000.00. The following is an example of acceptable wording: "If vehicle financed at 1.9 % and the $2000.00 rebate is not taken, the effective interest rate is 9.2%."

3.20 THE FOLLOWING ARE TERMS THAT ARE RESTRICTED OR PROHIBITED.

They are provided as examples only. Other terms that have a similar meaning or intent to those shown below are subject to the same restriction or prohibition. The numbers following the term refer to the section of these Standards that describes the restriction.

No salespeople Section 3.4.2

Public Service Announcement Section 3.4.3

Going out of Business Section 3.6.1

Closing Section 3.6.1

Bankrupt, bankruptcy Section 3.6.1

In receivership Section 3.6.1

Liquidation Section 3.6.1

Lease expired Section 3.6.1

Moving, relocating Section 3.6.1

Fleet sale Section 3.6.1

Repossessed motor vehicles Section 3.6.1

Wholesale Section 3.6.2

Dealer cost Section 3.7.1

Factory price Section 3.7.1

Invoice price, under/over invoice price Section 3.7.1

Supply limited Section 3.9.4

Limited time only Section 3.9.4

Beat your best deal Section 3.10.1

Free Section 3.11.1

Push, pull, drag (or similar) Section 3.12.1

Extended warranty included Section 3.13.1

Bumper-to-bumper Section 3.13.2

All-inclusive Section 3.13.2

Savings Section 3.15.1

4. ACCOUNTABILITY

STANDARD

Fulfill all contractual obligations promptly and completely, and resolve legitimate claims without delay.

EXAMPLES

4.1 GENERALLY

4.1.1 Dealers promptly, honestly and willingly perform all of their contractual obligations.

4.2 MOTOR VEHICLE FITNESS

4.2.1 Dealers sell or lease motor vehicles reasonably fit for the intended use that a consumer expressly or by implication makes known to the Dealer. A motor vehicle may be considered not reasonably fit because it is not designed for the intended use, or because it has structural or mechanical defects.

4.3 LIENS

4.3.1 A Dealer ensures that all liens have been discharged prior to selling a motor vehicle to a purchaser.

4.3.2 Where a Dealer sells a motor vehicle that has a lien against it, the Dealer either:

(a) Ensures that the lien against the motor vehicle in question is discharged; or

(b) Ensures that the lien holder has confirmed in writing that it no longer has a financial interest in the vehicle; or

(c) Buys the vehicle back from the purchaser for an amount representing the current fair value of the motor vehicle, accounting for depreciation.

4.4 LEASED MOTOR VEHICLES

4.4.1 When leasing a used motor vehicle, Dealers ensure that the motor vehicle has been inspected and that a Safety Standards Certificate has been issued for that vehicle.

5. COMPLIANCE

STANDARD

Abide by all applicable laws and regulations and never knowingly do business with those operating outside these laws.

EXAMPLES

5.1 KNOWLEDGE OF AND COMPLIANCE WITH APPLICABLE LAWS

5.1.1 Dealers comply with the all laws that govern the motor vehicle industry, including applicable parts of the following legislation:

(a) Motor Vehicle Dealers Act;

(b) Business Practices Act;

(d) Highway Traffic Act;

(e) Ontario Human Rights Code;

(f) Sale of Goods Act;

(g) Environmental Protection Act;

(h) Personal Property Security Act;

(i) Repair and Storage Liens Act.

(j) Competition Act (as it pertains to the advertising of motor vehicles)

5.1.2 Nothing in the Code of Ethics or the Standards exempts Dealers from any law.

5.1.3 Dealers have knowledge of and comply with the Code of Ethics and these Standards. Dealers cannot avoid the Code of Ethics or these Standards by making a contract or agreement with another person.

5.2 DEALERS RESPONSIBILITY FOR CONDUCT

5.2.1 Dealers are responsible for the business conduct of employees of the Dealership and for maintaining a high quality of sales and service practices.

5.2.2 Dealers do not knowingly do business with curbsiders.

5.2.3 Dealers do not knowingly allow anyone other than a registered Salesperson to be involved in negotiating or approving motor vehicle transactions or to give information about specific motor vehicles that are for sale or lease. Without limiting the generality of the foregoing, such positions include those typically known as business managers, finance and insurance staff, leasing staff, sales staff and all sales and leasing managers.

5.3 OMVIC PROCEDURES

5.3.1 Dealers cooperate with OMVIC representatives carrying out OMVIC’s administrative activities including inquiries, inspections, investigations and discipline.

5.3.2 The obligations in 5.3.1 apply whether the issue concerns that Dealer, another Dealer or any other person.

6. COMPETITION

STANDARD

Ensure fair and open competition and refrain from unfairly attacking the products, services or business practices of others.

EXAMPLES

6.1 Dealers do not encourage or counsel anyone to break a contract already made with another Dealer.

6.2 Dealers do not provide anyone who is not registered under the Motor Vehicle Dealers Act with access to Dealer-only motor vehicle auctions, i.e. Wholesale Auctions.

7. CONFIDENTIALITY

STANDARD

Hold all personal and financial information we receive in the strictest confidence.

EXAMPLES

7.1 Dealers only collect and use such personal information, including financial information disclosed in the course of negotiating a motor vehicle transaction, that is necessary to complete the transaction.

7.2 Dealers do not collect or use personal information without the knowledge or consent of the individual, unless:

(a) Required or expressly permitted by law; or,

(b) The collection or use is clearly in the interests of the individual and consent cannot be obtained in a timely way; or

(c) It is reasonable to expect that collection of the information from the individual would adversely affect its accuracy or would defeat the purpose for collecting or using the information.

7.3 Dealers use personal information only for the purpose for which it was collected, except where used in accordance with Section 7.2 above.

7.4 Dealers do not disclose personal information, without the knowledge or consent of the individual unless:

(a) Required or expressly permitted by law; or,

(b) For the purpose of conducting legal proceedings to recover a debt by the Dealer against the individual.

7.5 Dealers disclose personal information only for the purpose for which it was collected, except where disclosed in accordance with Section 7.4 above.

8. RESPECT

STANDARD

Treat all people with equality and respect, regardless of gender, age, race or religion.

EXAMPLES

8.1 Dealers comply with the provisions of the Ontario Human Rights Code.

8.2 Dealer employees treat customers in a courteous, straightforward and respectful manner, acting professionally at all times.

8.3 Dealer employees are clear and truthful in describing vehicle features, benefits and prices, and in explaining products, services, programs and charges. They assist customers to find the vehicle that best meets their needs and financial ability.

9. PROFESSIONALISM

STANDARD

Enhance our professional knowledge, skills and competencies throughout our careers.

EXAMPLES

9.1 Dealers keep informed with respect to all matters essential to the conduct of business in the motor vehicle Dealer industry.

10. ENVIRONMENT

STANDARD

Remain committed to a healthy co-existence with our environment.

EXAMPLES

10.1 Dealers comply with the Environmental Protection Act, including in particular all laws in force in Ontario with respect to the storage and disposal of waste material, and all laws in force in Ontario with respect to vehicle emissions, catalytic converters, and abandoned motor vehicles.

GLOSSARY (In these Standards)

ADVERTISING, ADVERTISEMENT includes any advertisement made by or on behalf of a motor vehicle Dealer in any medium of communication including the Internet, unless the Standards limit this definition in a specific situation.

AS IS means a vehicle that, when it is sold, is not represented as being in a road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser’s expense.

BRAND, BRANDING refers to the Ministry of Transportation program through which vehicles are branded. Brands include: "Irreparable", "Rebuilt" and "Salvage" which are further defined in this Glossary.

BROADCAST ADVERTISEMENT means an advertisement in any electronic medium including radio and television, but does not include the Internet or other electronic images that mainly consist of written text. Broadcast advertisements also include billboard, public transit and similar advertising.

CLOSED END LEASE means that the lessee is not responsible for a predetermined amount of money at the end of the lease.

CONSIGNOR means the owner of a motor vehicle who provides or delivers it to a Dealer to be sold on a consignment basis.

CONSUMER means a natural person but does not include a natural person, partnership, or an association of persons acting in the course of carrying on business.

CREDIT AGREEMENT means an agreement under which one party extends credit in any form to another party, including a lease.

CURBSIDER means a person buying, selling or leasing vehicles who is not registered under the Motor Vehicle Dealers Act, R.S.O. 1990, c.M.42, as amended, or a person registered under the Act but posing as an unregistered person when buying, selling or leasing vehicles. This does not include persons exempted under the Act.

DEALER, DEALERSHIP means a motor vehicle Dealer registered under the Motor Vehicle Dealers Act. This includes a group or organization of Dealers that advertises vehicle transactions on behalf of the members of the group or organization. This also includes all persons employed, appointed or authorized by a motor vehicle Dealer to act on Dealer‘s behalf in any transaction arising from or related to the purchase, sale or lease of motor vehicles.

DISCIPLINE COMMITTEE means the Discipline Committee of the Ontario Motor Vehicle Industry Council.

EXTENDED WARRANTY, PRODUCT WARRANTY OR SERVICE PLAN means an extended warranty, product warranty or service plan that is not provided by a motor vehicle manufacturer.

IRREPARABLE means any motor vehicle, which is incapable of operation or use on a highway and has no resale value except as a source of parts or scrap.

LEASE TERM means the period between the first installment payment under a transaction and the final installment payment anticipated in the transaction.

MEMBER means a motor vehicle Dealer registered under the Motor Vehicle Dealers Act.

MOTOR VEHICLE means a motor vehicle as defined by the Motor Vehicle Dealers Act.

OPEN END LEASE means that the lessee is responsible for a predetermined amount of money at the end of the lease.

PERSONAL INFORMATION means any information about an individual person who can be identified, however collected, including the individual’s name, address, telephone number, information relating to an individual’s income and an individual’s financial transactions.

PUBLIC MOTOR VEHICLE AUCTION means a motor vehicle auction to which purchasers other than Dealers are invited.

PURCHASER means any person, including consumers, business entities or Dealers, buying or leasing, or potentially buying or leasing, a vehicle.

REGISTRAR means the Registrar of Motor Vehicle Dealers and Salespersons under the Motor Vehicle Dealers Act.

REBUILT means any vehicle declared "salvage" which has been rebuilt and inspected for the purpose of registration or titling.

RETAIL CONTRACT means a contract of sale or lease of a vehicle made between a Dealer and a purchaser, other than a purchaser who is a Dealer.

SALESPERSON means a registered Salesperson under the Motor Vehicle Dealers Act.

SALVAGE means a vehicle, which is damaged by collision, fire, flood, accident, trespass or other to the extent that the cost of repairing the vehicle for legal operation on a highway exceeds its fair market value immediately prior to the damage being incurred.

STANDARDS mean these Standards of Business Practice. TARGET AREA means the geographic area that an advertisement is intended to reach, even if others outside the target area also receive the advertisement.

TERM means the period between the first payment under a transaction and the final payment anticipated by the transaction.

TRANSACTION means a contract, entered into or in the process of being negotiated in respect of a motor vehicle, including a sale or lease.

WHOLESALE CONTRACT means a motor vehicle transaction between Dealers, or the purchase of a motor vehicle by a Dealer from a private seller.

to enhance the image of the used vehicle industry

Representation

Education

Mediation

are the three pillars on which the association has been built.

Used Car Dealers Association of Ontario