Court File and Parties
Appeal from a Proposal of the Registrar under the Motor Vehicle Dealers Act, R.S.O. 2002, c. 30, Sch. B, to Suspend Registration
Between:
7135149 CANADA INC. o/a AUTOLAND and Danny Badr Appellants
and
Registrar, Motor Vehicle Dealers Act, 2020 Respondent
CONSENT ORDER
Order Made By: Avvy Go, Member Date of Order: December 18, 2020
Background
1The appellants requested a hearing by the Tribunal regarding the Registrar’s Notice of Proposal dated August 25, 2020. The Registrar proposes to suspend the registration of 7135149 CANADA INC. o/a AUTOLAND as a motor vehicle dealer and suspend the registration of Danny Badr as a motor vehicle salesperson under the Act. The decision is made pursuant to section 9 of the Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Schedule B (the “Act”). The Registrar asserts that the suspension is warranted under ss. 6(1)(d)(iii) of the Act based on the appellant Badr’s past conduct and the objective of the Act that requires registrants to be financially responsible in the conduct of business and that they carry on business in accordance with the law and with integrity and honesty.
2The parties attended a case conference on October 28, 2020. The parties were unable to resolve the issues in dispute and a second case conference was scheduled for either November 26, 2020.
3On or about November 23 , 2020, the parties submitted to the Tribunal a signed agreement indicating that, in accordance with s. 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, they waive the requirements of a hearing and consent to an Order of the Licence Appeal Tribunal based on the agreed-to terms and conditions. In light of this request, the parties also requested for the Case Conference scheduled for November 26, 2020 to be vacated.
4Pursuant to the signed agreement, the parties agreed to the following terms and conditions:
Registration:
a) The appellants shall 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 appellants further agree to read all correspondence and bulletins from OMVIC as released.
b) The appellants shall ensure that all personnel, agents, assignees or anyone acting on behalf of the appellants are informed of the Terms and Conditions contained in this document to the extent necessary to ensure compliance with these Terms and Conditions.
c) The appellants shall promptly comply with any reasonable requests for information and/or documentation, made by or on behalf of the Registrar, in the form and within the time period specified. If the appellants are unable to do so, it/he will promptly notify the Registrar, in writing, and provide a fulsome explanation for the delay and/or non-compliance.
Books and Records:
d) The appellant 7135149 Canada Inc. o/a Autoland shall maintain all books and records at the registered premises in accordance with the MVDA and pursuant to section 52 through to and including section 60 of Ontario Regulation 333/08.
e) The appellants shall maintain books and records, which accurately record the true nature of transactions involving the trade of a motor vehicle. The appellants will not be involved in the creation of books and records, which are false or misleading as to the true nature of a transaction involving the trade of a motor vehicle.
f) The appellants shall provide free access to books and records to an authorized representative of the Registrar, as part of an inspection, in accordance with section 15 of the MVDA. The appellants shall produce any document or record reasonably required, within the form and time period specified, as requested during the course of an inspection.
g) If the appellant 7135149 Canada Inc. o/a Autoland facilitates the sale of an extended warranty, the appellant shall ensure all documents, payments, and required statements are provided to the seller of the warranty within seven days, as required pursuant to s. 47(7) of Ontario Regulation 333/08.
h) The appellant 7135149 Canada Inc. o/a Autoland shall maintain all required records relating to motor vehicles that come into its possession, all motor vehicle trades, and records respecting the Dealer’s business activities, pursuant to sections 52, 53 and 54 of Ontario Regulation 333/08. The appellant 7135149 Canada Inc. o/a Autoland shall ensure that it retains these records for a period of 6 years, as required, pursuant to section 56 of Ontario Regulation 333/08.
i) The appellant 7135149 Canada Inc. o/a Autoland shall undertake that in the event their books and records are lost, stolen or destroyed in whole or in part, the Registrar will be advised, in writing, within 5 days of the event pursuant to section 55 of Ontario Regulation 333/08; and will include all relevant documentation. The appellant 7135149 Canada Inc. o/a Autoland further agrees to make all reasonable efforts to reconstitute the lost, stolen or damaged records.
j) The appellant 7135149 Canada Inc. o/a Autoland shall obtain a receipt prior to the removal of any records by a government or professional agency, or any other person or entity, from the registered premise. Such receipt will include the recipient's name, address, telephone number, description of records taken, the time of return and signature of recipient. The appellant 7135149 Canada Inc. o/a Autoland undertakes to provide the receipt to OMVIC when requested by the Registrar.
Financial Responsibility:
k) The appellant 7135149 Canada Inc. o/a Autoland shall maintain bank accounts that are compliant with section 59 of Ontario Regulation 333/08.
l) The appellants shall comply with all federal, provincial and municipal tax obligations. The appellants 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.
5Furthermore, the appellant acknowledged as follows:
a. The appellants acknowledged that the Registrar is relying on the accuracy and completeness of all documents, statements or information provided by him in support of his registration under the Motor Vehicle Dealers Act, 2002.
b. The appellants acknowledged that the documents, information or statements provided to the Registrar in support of registration are true to the best of his knowledge and belief; and that full answer to all questions, inquiries and requests made by the Registrar in connection with the appellants’ registration have been given.
c. The appellants acknowledged that 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.
d. The appellants acknowledged that independent legal advice has been obtained or the appellants have had the opportunity to obtain independent legal advice respecting consent to the terms and conditions contained in this document.
ORDER
6Pursuant to s. 4.1 of the SPPA and s. 9(5) of the Act, and on the consent of the parties, I dispose of this proceeding without a hearing
7The appellant’s request for a hearing before this Tribunal is withdrawn, and the Tribunal will close the file.
8The case conference scheduled for November 26, 2020 has been vacated.
Avvy Go, Member
Released: December 18th, 2020