In a regulatory prosecution arising from the sale and attempted sale of 11 damaged or rebuilt vehicles, the court held that the defendants acted as unregistered motor vehicle dealers on most of the impugned transactions and, in several instances, engaged in unfair practices by false, misleading, or deceptive representations to consumers.
Applying the strict liability framework, the court found that the prosecution proved the actus reus of 17 of 40 counts and that the defendants failed to establish the s. 5 personal use exemption for 10 of the 11 vehicles.
The court relied on a pattern of short ownership periods, minimal odometer changes, lack of licence plates, repeated purchases from a salvage-oriented seller, simultaneous advertisements, and misleading sale circumstances as indicia of curbsiding.
Only one vehicle fell within the personal use exemption because it had a registered plate, substantial mileage during ownership, and a lengthy ownership period.
Due diligence and mistake of fact defences were rejected.
