Licence Appeal Tribunal
Appeal d'appel en Tribunal matière de permis
FILE: 8922/MVDA
CASE NAME: 8922 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 June 16, 2014 to Revoke Registrations
Christopher Hader and Matkath Auto Sales Appellants
-and-
Registrar, Motor Vehicle Dealers Act, 2002 Respondent
CONSENT ORDER
CONSENT ORDER
Upon the application to the Tribunal by Christopher Hader and Matkath Auto Sales, 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.
LICENCE APPEAL TRIBUNAL
Patricia McQuaid, Vice Chair
RELEASED: December 15, 2014
SCHEDULE "A"
TO: Licence Appeal Tribunal 530 - 20 Dundas Street West Toronto, ON M5G 2C2
FROM: The Registrar Motor Vehicle Dealers Act, 2002 Ontario Motor Vehicle Industry Council 65 Overlea Blvd., Suite 300 Toronto, ON M4H 1P1
AND FROM: Matkath Corporation o/a Matkath Auto Sales 74 Kenilworth Avenue North Hamilton ON L8H 4R5
AND FROM: Christopher Hader c/o Matkath Corporation o/a Matkath Auto Sales 74 Kenilworth Avenue North Hamilton ON L8H 4R5
Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002 Christopher Hader and Matkath Corporation o/a Matkath Auto Sales (collectively 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:
- The Registrants will comply with all requirements of the MVDA and Ontario Regulation 333/08, the Code of Ethics in Ontario Regulation 332/08, the Ontario Motor Vehicle Industry Council (“OMVIC”) Standards of Business Practice, 2010 and OMVIC Guidelines, as may be amended from time to time. The Registrants further agree to read all correspondence and bulletins from OMVIC as released.
Disclosure
The Registrants will ensure that all trades in motor vehicles are completed in accordance with section 30 of the MVDA and pursuant to sections 39, 40, 41, 42 and 43 of Ontario Regulation 333/08 and section 4 of Ontario Regulation 332/08, where applicable.
The Registrants will disclose all material facts about the motor vehicles it sells or leases to its customers. The Registrants further agree that notwithstanding whether or not the Registrants consider a fact to be material, the Registrants will comply with their disclosure obligations. The Registrants further agree to disclose all material facts on the Bill of Sale, in writing. The Registrants will ensure compliance with their disclosure obligations notwithstanding whether or not the vehicle has been branded through MTO. For greater certainty, a material fact is one that if disclosed could affect the decision of a reasonable person to purchase or lease the vehicle or affect the purchase price. In the case of damaged vehicles, the Registrants further agree to disclose as much detail as possible regarding the nature and severity of the damage. The Registrant undertakes to research the history of all the motor vehicles under trade to ensure all material facts are disclosed.
The Registrants agree not to represent any charges or fees on a Bill of Sale as being required by law where the charges or fees are not required by law. For greater clarity, this includes charges or fees such as tax, registration fees or certification.
The Registrants will comply with all requests made by the Registrar in relation to any failure to comply with disclosure obligations. Further, where the Registrants breach their disclosure obligations, the Registrants will provide compensation to a purchaser concerning a motor vehicle under trade.
The Registrant agrees to accept full responsibility for the quality of any repairs or alterations to a motor vehicle completed by the Registrant’s personnel, agents, assignees, affiliated repair facilities or anyone acting on behalf of the Registrant.
Advertising
- The Registrants will ensure that all advertisements placed by or on behalf of the Registrants will comply with section 36 of Ontario Regulation 333/08 as well as the Code of Ethics in Ontario Regulation 332/08, OMVIC Standards of Business Practice, 2010 and OMVIC Guidelines, as may be amended from time to time.
Financial Responsibility
The Registrants agree not to receive any new private sources of financing without the prior approval of the Registrar. This does not apply where the Registrants have applied on his and/or its own account and has obtained financing from a corporation registered under the Loan and Trust Corporations Act, The Bank Act or from a credit union or league to which the Credit Unions and Caisses Popularies Act, as may be amended from time to time.
The Registrants will maintain bank accounts that are compliant with section 59 of Ontario Regulation 333/08.
The Registrants will not take vehicles on consignment from any person and/or Individual who is not a Registered Motor Vehicle Dealer under the MVDA.
The Registrants will ensure that bank account transactions relate exclusively to the operation or financing of their business. The Registrants agree to notify the Registrar of any change in any business banking accounts.
Both Registrants will ensure that where any consumer claim is made to the Motor Vehicle Dealers Compensation Fund (the “Fund”) in relation to either Registrant, and where the Fund determines entitlement to compensation of the claim, the Registrants will reimburse the Fund pursuant to the requirements of Part VIII of the MVDA and Section 87 of Regulation 338/08.
The Registrants agree to fully comply with and pay any outstanding judgments, all administrative penalties (including but not limited to any and all fines ordered by Discipline Committee under the MVDA and/or its applicable Regulations) or court orders against the Registrant without delay.
The Registrants will comply with all federal, provincial and municipal tax obligations. The Registrant will ensure all required filings are current and submitted with required payments. All taxes collected are deemed to be trust funds and will not be used for any other purpose other than remittances to the federal, provincial and municipal government.
Registrants will provide the Registrar with notice in writing, within five (5) days, of any future statements of claim, judgements or bankruptcy proceedings involving the Registrants.
The Registrants will not offer or sell any in-house guarantees, warranties or service plans.
The Registrants will ensure that where they take on the obligation to pay out a lien on any vehicle, they pay out the full amount due immediately and without any delay.
OMVIC Transaction Fee
The Registrants understand that the transaction fee is payable on any sales or leases to non-dealer registrants, including sales or leases in exports, fleet transactions and consignments.
The Registrants undertake to provide OMVIC with documentation, when requested by the Registrar, to establish that a particular transaction is exempt from the transaction fee. The Registrants further understand that if requested documentation is not provided to OMVIC, the Registrants will be required to remit the transaction fee on the transaction.
Acknowledgement and Undertaking:
The Registrar is relying on the accuracy and completeness of all documents, statements or information provided by the Registrants in support of the Registrants continued registration.
The documents, information or statements provided to the Registrar are true to the best of the Registrants knowledge, and belief. Full answers to all questions, inquiries and requests made by the Registrar in connection with the Registrant’s application, have been given.
The Registrar may take further administrative action, including a proposal to suspend or revoke registration, arising from any matters that have occurred or may occur related to honesty and integrity, financial responsibility or compliance with these terms and conditions.
Signed in the City of Hamilton this 10th day of December 2014.
Chris Hader (signature)
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Date:
Carl Compton