The Registrar of the Motor Vehicle Dealers Act proposed to revoke the registrations of a motor vehicle salesperson and his dealership, alleging fraudulent financing practices and failure to conduct business with honesty and integrity.
The allegations stemmed from a police investigation into the dealership's practice of having clients sign blank bills of sale and manipulating numbers to secure financing for clients with negative equity.
The Licence Appeal Tribunal found that while having clients sign blank documents was a bad business practice, there was no evidence of dishonest intent or fraud.
The Tribunal noted that the clients had not complained, the financial institutions accepted the financing practices, and the police investigation was flawed.
The Tribunal directed the Registrar not to carry out the proposal to revoke the registrations.