OMVIC Practice Test 2025 – All-In-One Guide to Exam Success!

Question: 1 / 400

If a dealer innocently sells a consumer a vehicle that turns out to be stolen and is seized by the police, what is the dealer obliged to do?

Contact the police for a detailed report

Refund the purchaser's money and contact the seller of the vehicle to seek a refund

When a dealer innocently sells a vehicle that is later discovered to be stolen and subsequently seized by the police, the appropriate course of action involves refunding the purchaser's money and addressing the situation with the seller from whom the vehicle was acquired.

This obligation stems from the understanding that the dealer, while acting in good faith, has a responsibility to the consumer to ensure that the sale is legitimate and that the vehicle is lawfully owned. If a vehicle is seized due to it being stolen, the consumer has the right to receive a full refund since they did not receive clear title to the vehicle.

Furthermore, by contacting the seller of the vehicle to seek a refund, the dealer is taking steps to resolve the financial responsibility resulting from the situation. This action demonstrates the dealer's commitment to fairness and compliance with legal and ethical standards in the automotive sales industry.

Providing a replacement vehicle or pursuing legal action against the previous owner does not address the immediate obligation to refund the consumer, and contacting the police for a report does not resolve the financial loss experienced by the consumer in this scenario.

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Offer a replacement vehicle to the consumer

File a lawsuit against the previous owner

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