Licence Tribunal
Appeal d'appel en
Tribunal matière de permis
DATE:
2014-10-09
FILE:
8999/MVDA
CASE NAME:
8999 v. Registrar, Motor Vehicle Dealers Act 2002
An Appeal from a Notice of Proposal by the Registrar, Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sch. B – dated July 22, 2014 to Revoke Registrations
Ryan MacLennan,
1905109 Ontario Limited o/a The Auto Bank
Appellants
-and-
Registrar, Motor Vehicle Dealers Act, 2002
Respondent
CONSENT ORDER
CONSENT ORDER
Upon the application to the Tribunal by Ryan MacLennan , 1905109 Ontario Limited o/a The Auto Bank, the Appellants and the Registrar, under the Motor Vehicle Dealers Act, 2002 for issuance of a Consent Order of the Tribunal without a hearing pursuant to section 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22; and
Having reviewed the written settlement signed by the Appellant and the Registrar, Motor Vehicle Dealers Act, 2002 as to the disposition of these proceedings which is filed and attached hereto as Schedule "A";
NOW THEREFORE, upon consent of the parties, this Tribunal orders that the proceedings in this matter are concluded and disposed of without a hearing on the basis of the terms set out in the said Schedule "A", which are incorporated into and made part of this Order, with one clarification noted – the application for deletion of the Term and Condition of Registration in paragraph 13 will be an application to the Registrar.
LICENCE APPEAL TRIBUNAL
Gary Yee, Associate Chair
RELEASED: October 9, 2014
SCHEDULE "A"
TO: Licence Appeal Tribunal
530 - 20 Dundas Street West (5th Floor)
Toronto, ON M5G 2C2
FROM: The Registrar
Motor Vehicle Dealers Act, 2002
Ontario Motor Vehicle Industry Council
65 Overlea Blvd., Suite 300
Toronto, Ontario M4H 1P1
AND FROM: Ryan MacLennan and 1905109 Ontario Limited o/a The Auto Bank
c/o Gerard Edward Robert McAndrew
400-233 Brady Street
Sudbury, ON P3B 4H5
Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002 (the "Act"), RYAN MACLENNAN AND 1905109 ONTARIO LIMITED O/A THE AUTO BANK (the "Registrants"), and the Registrar, Motor Vehicle Dealers Act, 2002, (the "Registrar"), in accordance with section 4.1 of the Statutory Powers Procedure Act, do hereby waive the requirements of a hearing and consent to an Order of the Licence Appeal Tribunal based upon the following terms and conditions:
Registration
- 1905109 Ontario Limited o/a The Auto Bank ("The Auto Bank") acknowledges that the Terms and Conditions of Registration executed on May 6, 2014, and attached hereto as "Schedule 'A' ", shall be incorporated into the following additional Terms and Conditions of Registration.
Interested Persons
The Registrants shall not directly or indirectly conduct business relating to trade in motor vehicles with Micheline Cooper or any business entity in which Micheline Cooper is an interested party.
The Registrants will not permit the involvement of Micheline Cooper directly or indirectly in the operation of The Auto Bank. This includes, but is not limited to, any involvement in any administrative, supervisory, management, financing or customer service capacity. Further, the Registrants will not permit the involvement of Micheline Cooper in the capacity of repair or service of motor vehicles.
The Registrants specifically acknowledge Micheline Cooper is not a partner, shareholder, officer or director at The Auto Bank and that she shall not have direct or indirect control of The Auto Bank.
The Registrants confirm that Micheline Cooper will not be financing the dealership, either directly or indirectly. The Registrants will make reasonable efforts to determine the source of financing received to ensure compliance with these Terms and Conditions.
Page 3
Initials
Notification of Events
The Registrants will provide the Registrar with notice in writing, within five (5) days, of any future findings of guilt, convictions, and pending charges relating to either/both Registrants.
The Registrants will provide the Registrar with notice in writing, within five (5) days, of any future statement of claim, judgment, instances involving receivership, seizure of assets by any creditor(s), or bankruptcy proceedings relating to either/both Registrants.
The Registrants will provide the Registrar with notice in writing, within five (5) days, of any future consumer complaint.
Financial Responsibility
The Registrants specifically agree to pay any outstanding judgments, collections or court orders against either Registrant without delay.
The Registrants specifically acknowledge that they have a positive obligation to pay out and discharge any liens registered against motor vehicles taken-in on trade, and shall ensure that any and all liens are discharged as soon as possible, but in any event within seven (7) days of accepting a motor vehicle on trade.
The Registrants specifically acknowledge that they have a positive obligation to ensure that all liens have been discharged prior to selling a motor vehicle to a purchaser.
The Registrants specifically acknowledge that they have a positive obligation to remit all funds received from consumers towards the purchase of third-party warranties or service plan, and shall do so without delay. In any event, the funds shall be remitted to the third-party warranty company or service plan within seven (7) days of receipt by either Registrant.
Paragraph 24 of 1905109 Ontario Limited o/a The Auto Bank's Terms and Conditions of Registration, which are attached hereto as Schedule "A", is hereby deleted. The Registrants agree that that they shall not take deposits from any single consumer which exceed ten-thousand ($10,000) dollars. The Registrants may jointly or severally apply for deletion of this Term and Condition of Registration in two (2) years' time.
The Registrants will ensure that any consumer claim made to the Motor Vehicle Dealers Compensation Fund (the "Fund") in relation to The Auto Bank, where the Fund determines entitlement to compensation of the claim pursuant to section 42 of Ontario Regulation 338/08; that the Registrants are jointly and severally liable to reimburse the Fund for any monies paid in relation to the claim.
Page 2 Initials
- The Registrants agree that they shall not offer and/or sell in-house warranties to consumers.
Trade in Motor Vehicles
The Registrants will not take motor vehicles on consignment from consumers without the prior written consent of the Registrar. The Registrants may apply to the Registrar's office for the deletion of this condition in two (2) years' time.
The Registrants specifically acknowledge that they are under a positive obligation to truthfully and accurately represent all information relating to the financing of motor vehicles to third-party lenders. Without limitation, these include any representation regarding delivery and acceptance of the vehicle by the purchaser and the current fair market value of the vehicle, accounting for depreciation.
The Registrants acknowledge that the Registrar may take further administrative action, including a proposal to revoke their respective registrations, arising from any matters that have occurred, or may occur, relating to honesty, integrity or financial position.
The Registrants acknowledge that they have obtained, or have had the opportunity to obtain, independent legal advice with respect to its consent on the Terms and Conditions set out herein.
Signed in the City of this day of 2014.
Ryan MacLennan (signature)
(Signature)
1905109 ONTARIO LTD. O/A THE AUTO BANK
I have authority to bind the dealership
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Date:
Carl Compton