OMVIC Practice Test

True or False: A dealer does not have to inform a purchaser that a vehicle's manufacturer's warranty has been cancelled, so long as the dealer offers or sells the purchaser an extended warranty.

1. True

2. False

The correct answer is: False

A dealer is required to inform a purchaser that a vehicle's manufacturer's warranty has been cancelled, even if the dealer offers or sells an extended warranty. Transparency is a key principle in dealer-purchaser relationships, and failing to disclose such critical information could mislead the buyer about the vehicle's warranty coverage and its associated risks. The presence of an extended warranty does not negate the obligation to disclose the status of the manufacturer's warranty. Consumers have the right to make informed decisions, and part of that decision-making process involves understanding what type of warranty coverage exists or has been lost. Providing all relevant information about warranties ensures that purchasers can weigh their options properly and understand the implications of their purchase.