Question

List two possible situations which could result in OMVIC applying to a court to appoint a receiver and manager to assume temporary control of a dealership.

Answer 1

OMVIC may apply to appoint a receiver and manager to take control of a dealership in situations such as significant financial mismanagement or fraudulent activities that risk consumer or market integrity.

Step-by-step explanation:

In the context of OMVIC (Ontario Motor Vehicle Industry Council) operations, there are several situations which could warrant applying to a court to appoint a receiver and manager for a dealership. Notably, two such situations could be:

• A scenario where there is evidence of significant financial mismanagement within the dealership, which puts consumers or other stakeholders at risk of substantial financial loss.
• A situation where the dealership has engaged in fraudulent activities, such as tampering with odometer readings or selling vehicles with undisclosed liens, which could potentially harm the consumer and affect market integrity

In these circumstances, the intervention by a receiver and manager aims to protect the interests of consumers and creditors, and to ensure the dealership's operations adhere to legal and ethical standards.