True or False: A prior rental vehicle must always state its history on the contract.

The statement that a prior rental vehicle must always state its history on the contract is true. In Ontario, any vehicle that has been previously used as a rental vehicle must be disclosed to potential buyers. This requirement is in place to ensure transparency and provide consumers with all relevant information regarding the vehicle's history.

By stating the vehicle's history, dealers are recognizing the importance of honesty in advertising and sales practices. This obligation helps protect consumers from buying a vehicle that may have undergone extensive wear and tear or other issues related to its use as a rental. Full disclosure fosters trust and informs buyers, enabling them to make more educated purchasing decisions.

This requirement is applicable regardless of the vehicle's age, ensuring all potential buyers are aware of the prior use, thus not confined to any arbitrary distinctions like whether the buyer asked or the age of the vehicle.