OMVIC Practice Test

What action can OMVIC take if it proposes to revoke a dealer or salesperson's registration?

1. Apply for a freeze order

2. Issue an immediate ban on the dealer's activities

3. Revocation without providing a reason

4. None

The correct answer is: Apply for a freeze order

This is because applying for a freeze order is a common action taken by OMVIC to protect consumers if they believe a dealer or salesperson is engaging in deceptive or fraudulent practices. Option B, issuing an immediate ban, is not a correct answer because OMVIC must first present evidence and give the dealer or salesperson an opportunity to respond before taking such drastic action. Option C, revocation without providing a reason, is not a correct answer because OMVIC must always provide a reason for revoking a registration. Option D, stating that OMVIC can take no action, is also incorrect as OMVIC has the authority to revoke a registration if necessary.