Appeal from a Notice of Proposal by the Registrar, Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sch. B to Revoke Registration
Between:
Riath Haydar & Signature Motor Car Inc.
Appellants
and
Registrar, Motor Vehicle Dealers Act, 2002
Respondent
CONSENT ORDER
Order made by:
Jacqueline Castel, Member
February 17, 2021
BACKGROUND
1The appellants requested a hearing before the Licence Appeal Tribunal (the “Tribunal”) to appeal the respondent’s proposal to revoke registrations.
2The parties have advised the Tribunal that they have resolved the issues in dispute and have requested that the Tribunal issue an order on consent disposing of this proceeding.
3I have considered the Minutes of Settlement, signed by both parties and filed with the Tribunal, in which the parties set out the order requested.
4Therefore, on consent of the parties, and pursuant to s. 6(2) of the Motor Vehicle Dealers Act, 2002 and s. 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, I substitute my opinion for that of the Registrar and order as follows:
REGISTRATION
5The Dealer and Registrant 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 Dealer and Registrant further agree to read all correspondence and bulletins from OMVIC as released.
6The Dealer’s registration as a motor vehicle dealer under the Act, shall be terminated as of February 15, 2021. As of February 16, 2021, the Dealer can no longer engage in the “trade” of motor vehicles, nor authorize or permit any individual and/or salesperson to act on its behalf to engage in the “trade” of motor vehicles.
7The Registrant’s salesperson registration shall be subject to these Terms and Conditions for a period of 5 years from the date of this Order.
8The Registrant shall not apply to be a registered motor vehicle dealer under the Act, for a period of 5 years from the date of this Order.
9The Registrant shall not be a partner, shareholder, director, officer, controlling mind and/or person-in-charge of a dealer for a period of 2 years from the date of this Order.
10The Registrant shall not act as a final signatory upon any contract regarding the “trade” of a motor vehicle, on behalf of a motor vehicle dealer, for a period of 2 years from the date of this Order.
11The Dealer and Registrant acknowledge and understand that "trade" refers to buying, selling, leasing, advertising or exchanging an interest in a motor vehicle or negotiating or inducing or attempting to induce the buying, selling, leasing or exchanging of an interest in a motor vehicle as defined in the MVDA and pursuant to section 36 through to and including section 51 of Ontario Regulation 333/08; and is not limited to the signing of contracts. The Registrant further acknowledges that this includes attendance at auction on behalf of a dealer and positions commonly referred to as Sales Manager, Finance and Insurance Manager, Branch Manager, Business Manager, General Manager or any individual who has supervisory authority over salespersons.
12The Registrant acknowledges and understands that pursuant to section 17(2) of Ontario Regulation 333/08, the Registrant’s registration expires once he is no longer employed as a salesperson to a registered motor vehicle dealer. Thereby, the Registrant’s salesperson registration will also expire on February 15, 2021, unless and until the Registrant submits an application to be registered as a salesperson with a new sponsoring dealer and that application is processed and approved by the Registrar.
13The Registrant shall not transfer his registration to another motor vehicle dealer, without having first obtained prior written consent of the Registrar.
14The Registrant will not act as a salesperson on behalf of any dealer other than the Registrant’s sponsoring dealer.
15The Registrant shall ensure that any and all sponsoring dealers, dealers, employers, supervisors, personnel, agents, assignees and any other individual are informed of the Terms and Conditions contained in this document to the extent necessary to ensure compliance with these Terms and Conditions. The Registrant shall forthwith inform any sponsoring dealer of these Terms and Conditions.
16The Registrant shall ensure that his registration will not be used to trade in motor vehicles where the Registrant knows, or ought to know, that trading a motor vehicle will facilitate an illegal or unethical practice.
17The Registrant will not conduct business with any person acting as a motor vehicle dealer and trading in motor vehicles without first confirming that the person is registered as a motor vehicle dealer in accordance with the MVDA.
COURSE REQUIREMENT
18The Registrant agrees to immediately enroll in the Ontario Motor Vehicle Industry Council's Automotive Certification Course (“Certification Course”) and to be responsible for all fees in relation to enrolment. The Registrant further agrees to successfully pass the Certification Course by July 9, 2021.
ACCOUNTABILITY AND FINANCIAL RESPONSIBLITY
19The Registrant acknowledges and understands that he will continue to be accountable and financially responsible, for and on behalf of the Dealer, for any and all acts and omissions of the Dealer in respect of its responsibilities under the MVDA, its Regulations, OMVIC Standards of Business Practice and OMVIC Guidelines.
20The Registrant, on behalf of the Dealer, shall promptly respond to any correspondence made by a representative of the Registrar regarding any complaints and shall exercise best efforts to resolve any complaints as may be recommended by the Registrar’s representative. This obligation continues after the Dealer is no longer registered.
21The Dealer and/or Registrant shall ensure that any consumer claim made to the Motor Vehicle Dealers Compensation Fund (the “Fund”) in relation to the Dealer, and the Fund determines entitlement to compensation of the claim pursuant to section 42 of Ontario Regulation 338/08; that the Dealer and/or Registrant shall reimburse the Fund for any monies paid in relation to the claim.
22The Dealer and/or Registrant agree to pay any outstanding judgments or court orders against the Dealer and/or Registrant without delay.
23The Dealer and/or Registrant shall comply with all federal, provincial and municipal tax obligations. The Dealer and/or Registrant shall 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.
CONVICTIONS AND PAYMENT OF RESTITUTION
24The Registrant and Dealer acknowledge and understand that on September 25, 2018, they were each convicted of engaging in an unfair practice by making a false, misleading or deceptive representation, contrary to sections 14 and 17 of the Consumer Protection Act, 2002. As such, Justice Lau ordered, in part, that the Registrant and/or Dealer shall pay restitution to the consumer in the amount of $17,343 within one year. That amount was not paid within the year.
25The Registrant and/or Dealer agreed to make two payments towards the outstanding restitution order in the name of the consumer, as follows: $10,000 by December 10, 2020 and $7,343 by January 5, 2021. This was complied with and the Registrar forwarded the payments to the consumer.
DISCLOSURE AND FALSE STATEMENTS
26The Registrant confirms that the particulars and circumstances of any findings of guilt, convictions and pending charges are substantially as disclosed to the Registrar.
27The Registrant shall provide any and all sponsoring Dealer’s with notice in writing of any findings of guilt, convictions and pending charges. The Registrant shall forthwith provide the Registrar with a copy of the notification acknowledged by the signature of the sponsoring Dealer.
28The Registrant shall provide the Registrar with full and complete disclosure in all future correspondence and on all future applications, regardless of whether or not disclosure has been made previously to the Registrar.
29The Registrant shall ensure that any statements, representations, correspondence and/or applications submitted to the Registrar, do not contain any false, misleading or deceptive information or statements. The Registrant shall exercise best efforts to ensure all information and statements are true, accurate and complete.
ACKNOWLEDGMENT AND UNDERTAKING:
30The Registrar is relying on the accuracy and completeness of all documents, statements and/or information provided by the Registrant in support of the Registrant’s application for registration.
31The documents, information or statements provided to the Registrar are true to the best of the Registrant's knowledge, and belief; and that full answer to all questions, inquiries and requests made by the Registrar in connection with the Registrant’s application have been given.
32The 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.
33Independent legal advice has been obtained or the Registrant has had the opportunity to obtain independent legal advice respecting consent to the Terms and Conditions contained in this document.
LICENCE APPEAL TRIBUNAL
Jacqueline Castel, Member
Released: February 17, 2021