OMVIC Practice Test

True or False: Only monies over $10,000 that are received from a consignment sale must be deposited in the dealer's trust account.

1. False

2. True

The correct answer is: False

The assertion is false because all funds received from a consignment sale, regardless of the amount, must be deposited into the dealer's trust account. The purpose of the trust account is to protect consumers and ensure that funds are handled appropriately. The requirement does not being apply only to amounts exceeding $10,000; it encompasses all amounts that the dealer collects in this manner. By placing the money in a trust account, dealers can provide a transparent and accountable system for managing funds linked to consignment sales. Thus, the proper handling of any consignment proceeds is essential in maintaining compliance with regulatory standards and ensuring trust between dealers and their clients.