OMVIC Practice Test

Which of the following is a possible situation that could result in OMVIC applying to a court to appoint a receiver and manager to assume temporary control of a dealership?

1. If there is an ongoing investigation

2. If the dealership is about to fail

3. If OMVIC is proposing to revoke a registration

4. All of the above

The correct answer is: All of the above

A court appointment of a receiver and manager for a dealership can occur under various circumstances where it is deemed necessary to protect the interests of consumers and stakeholders involved. In the case of an ongoing investigation, OMVIC may determine that the dealership's operations are at risk due to potentially illegal activities or violations of regulations. By applying to the court for a receiver, OMVIC can ensure that the dealership's operations are managed appropriately while the investigation is conducted, safeguarding consumer interests. If a dealership is on the brink of failing, there may be concerns that its operations could lead to financial loss for consumers or creditors. Appointing a receiver allows for oversight and management of the dealership's assets in order to stabilize the situation and possibly facilitate a sale or transfer before further damage occurs. When OMVIC is proposing to revoke a dealer's registration, the appointment of a receiver can serve as a means to ensure that the dealership continues to operate in a manner that is compliant with the law during the revocation process. It allows for a seamless transition while protecting the rights of consumers who may have ongoing transactions with the dealership. Thus, all these scenarios highlight situations in which OMVIC has justified grounds to seek the court's intervention by appointing a receiver and manager to