OMVIC Practice Test

Which of the following expenses can a dealer deduct from a deposit if the purchaser backs out of the deal?

1. Advertising costs

2. Another Safety Standards Certificate

3. Storage expenses

4. All of the above

The correct answer is: All of the above

If the purchaser backs out of the deal, the dealer has the right to deduct all expenses incurred from the deposit. All of the options listed in the choices are valid expenses that may be incurred by the dealer in the process of completing the sale. Therefore, any of these expenses may be deducted from the deposit if the purchaser backs out. This includes advertising costs, which may have been used to promote the sale of the vehicle, and another Safety Standards Certificate, which may have been obtained before the sale was finalized. Storage expenses may also be incurred if the vehicle was stored at the dealership for a certain period of time. Therefore, the correct answer is D, as all of the options can potentially be deducted from the deposit in this scenario.