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

OMVIC can apply for a freeze order when proposing to revoke a dealer or salesperson's registration to prevent them from conducting any business until the revocation process is complete. This action helps protect consumers and maintain the integrity of the automotive marketplace by ensuring that individuals or businesses that may pose a risk or have violated regulations cannot continue their operations during the review process. The other options indicate actions that are either too extreme or not permitted under the regulatory framework. For instance, issuing an immediate ban on activities without due process or justification would infringe on the rights of the dealer or salesperson, and revoking the registration without providing a reason contradicts the principles of fairness and transparency that regulatory bodies are expected to uphold. Selecting "none" fails to recognize the regulatory measures available to OMVIC in such situations.