OMVIC Practice Test

Under what condition must a dealership issue a refund for a vehicle purchase?

1. When the customer complains

2. When there are hidden defects affecting usability

3. When the vehicle is returned within 30 days

4. When the dealership can no longer sell the vehicle

The correct answer is: When there are hidden defects affecting usability

A dealership is required to issue a refund for a vehicle purchase when there are hidden defects that significantly affect the vehicle's usability. This reflects the principle of consumer protection, which ensures that buyers receive a product that is not only safe but also meets the basic standards of quality and functionality. Hidden defects often refer to problems that are not immediately apparent and that a reasonable inspection would not reveal, meaning the dealership has an obligation to rectify the situation, typically by providing a refund or replacement. In this context, other choices do not necessarily warrant a refund. Complaints from customers may lead to discussions about potential issues, but they do not automatically invoke a refund unless the complaint relates to a substantive problem such as hidden defects. The decision to issue a refund when a vehicle is returned within 30 days may depend on the dealership's policy rather than a legal obligation tied to product defects. Lastly, the inability to sell a vehicle does not provide a basis for a refund; it may relate more to inventory management than consumer rights. Thus, the presence of hidden defects directly impacting usability is the clear condition that mandates a refund.