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 correct answer is based on the regulations set by OMVIC regarding the handling of trust funds in dealership operations. Under these regulations, while it is true that any money received from a consignment sale must be held in trust, the important distinction is that this rule applies regardless of the amount — not just for sums over $10,000. This means that any amount received from a consignment sale, including smaller amounts, must be deposited in the dealer's trust account. This practice is enforced to ensure proper financial handling and accountability for funds that belong to others, particularly in situations involving consignment sales. By requiring all received sums to be treated as trust funds, the regulations aim to protect consumers and ensure transparency in financial transactions within the automotive sales industry. Therefore, the assertion that only amounts over $10,000 need to be deposited in the dealer's trust account is inaccurate.