OMVIC Practice Test

When is a dealer required to provide a written contract to the buyer?

1. Within a week after the sale

2. At the time of the sale, prior to accepting any payment

3. Only if requested by the buyer

4. After the vehicle has been delivered

The correct answer is: At the time of the sale, prior to accepting any payment

A dealer is required to provide a written contract to the buyer at the time of the sale, prior to accepting any payment. This requirement is in place to ensure that both parties have a clear understanding of the terms and conditions of the sale. Providing a written contract at this stage protects the buyer by outlining their rights and obligations, as well as those of the dealer, thereby promoting transparency and fairness in the transaction. Issuing the contract before payment also helps to prevent potential disputes that might arise later regarding the details of the sale, such as pricing, vehicle condition, and warranties. It establishes a formal record of the agreement, which can be referenced by both parties should any issues arise post-sale. Other timeframes for providing a contract, such as within a week after the sale or only upon buyer request, do not fulfill the legal obligation that aims to ensure immediate clarity and documentation of the agreement at the time the buyer commits financially. Likewise, waiting until after the vehicle has been delivered does not create a record of the sales agreement before the transaction is finalized.