An appeal from a Notice of Proposal by the Registrar, Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sch. B. – to Refuse a Registration
Between:
Venus Fine Cars Inc.
Venus Fine Cars Inc. o/a VFC Auto Group
The Auto Toy Store Corp.
Saeed Derakhshani
Masoud Derakhshani
Appellants
and
Registrar, Motor Vehicle Dealers Act, 2002
Respondent
CONSENT ORDER
ADJUDICATOR:
D. Gregory Flude, Vice-Chair
APPEARANCES:
For the Appellant:
Symon Zucker, Counsel
For the Respondent:
Vlad Bosis, Counsel
Heard in writing
OVERVIEW
1Venus Fine Cars Inc., Venus Fine Cars Inc. o/a VFC Auto Group, The Auto Toy Store Corp. (“Corporate Appellants”), Saeed Derakhshani and Masoud Derakhshani (collectively the “Appellants”) have appealed a Notice of Proposal to revoke their registrations dated February 28, 2022 (“Proposal”) issued by the Registrar, Motor Vehicle Dealers Act, 2002 (the “Registrar”).
2The parties have advised the Tribunal that they were able to agree upon a settlement of all outstanding issues in this matter and have requested that the terms of settlement be incorporated into a Consent Order disposing of this proceeding.
3The parties apply under ss. 6(2) and 9(5) of the Act and s. 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22 for an order of the Tribunal to dispose of this matter without a hearing.
ORDER AND DIRECTION
4Accordingly, on the consent of the parties and upon having reviewed the agreement signed by the Appellants and the Registrar, filed, the Tribunal directs and orders the Registrar not to carry out the Proposal. With respect to the Corporate Appellants, the Tribunal directs the Registrar to register them on the terms of the consent agreement signed and executed by all of the parties.
5The terms are appended to this Order as Schedule “A” and form part of this Order.
6The hearing scheduled for this matter is vacated.
7This Tribunal file is now closed.
Licence Appeal Tribunal
____________________
D. Gregory Flude, Vice-Chair
Released: November 02, 2022
SCHEDULE “A”
LICENCE APPEAL TRIBUNAL
IN THE MATTER OF the Motor Vehicle Dealers Act, 2002, S.O. 2002, Chapter 30, Schedule B and Regulations, as amended
BETWEEN:
Venus Fine Cars Inc.
Venus Fine Cars Inc. o/a VFC Auto Group
The Auto Toy Store Corp.
Saeed Derakhshani
Masoud Derakhshani
Appellants
-and-
REGISTRAR, MOTOR VEHICLE DEALERS ACT, 2002
Respondent
TO: Licence Appeal Tribunal Safety, Licencing Appeals & Standards Tribunals Ontario (SLASTO) PO Box 250 Toronto, ON M7A 1N3
FROM: The Registrar Motor Vehicle Dealers Act, 2002 OMVIC 65 Overlea Blvd., Suite 300 Toronto, ON M4H 1P1 (Respondent)
AND FROM: Venus Fine Cars Inc. Venus Fine Cars Inc. o/a VFC Auto Group The Auto Toy Store Corp. Saeed Derakhshani Masoud Derakhshani (Appellants)
Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002, the Appellants 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 for a hearing and consent to an Order of the Licence Appeal Tribunal based upon the following conditions of registration of Venus Fine Cars Inc., Venus Fine Cars Inc. o/a VFC Auto Group and The Auto Toy Store Corp. (the “Dealers”).
The Dealers shall comply with all requirements of the Motor Vehicle Dealers Act, 2002 (the “MVDA”) and Ontario Regulation 333/08, the Code of Ethics in Ontario Regulation 332/08, and the Ontario Motor Vehicle Industry Council (“OMVIC”) Standards of Business Practice, 2010, as may be amended from time to time.
The Dealers shall maintain all books and records at their registered premises in accordance with the MVDA and pursuant to section 52 through to and including section 60 of Ontario Regulation 333/08.
The Dealers shall provide free access to its books and records to an authorized representative of the Registrar in accordance with section 15 of the MVDA.
In the event the books and records are lost, stolen or destroyed in whole or in part, the Dealers shall accordingly advise the Registrar in writing, within 5 days of the event and shall provide all relevant documentation. The documentation will include, but is not limited to, police reports, insurance claims and affidavits.
The Dealers shall ensure that all outstanding encumbrances registered on the vehicles having been traded in to the Dealers are discharged within 10 business days of the trade-in date. The Dealers shall ensure that prior to selling or leasing a motor vehicle to a customer, the vehicle is free of any liens or encumbrances and the customer is free to enjoy quiet possession and use of the vehicle in accordance with section 13 of the Sale of Goods Act and section 9 of the Consumer Protection Act.
The Dealers shall not trade in motor vehicles on a consignment basis.
The Dealers shall not take deposits greater than $10,000.
Each Dealer shall provide an irrevocable Letter of Credit in the amount of $30,000 each within 30 business days of the date this Consent Order is issued by the Tribunal.
The irrevocable Letters of Credit shall be provided to the Motor Vehicle Dealers Compensation Fund (the “Fund”). The purpose of the Letter of Credit is to satisfy any consumer claims to the Fund made against the Dealers. In addition, if a Dealer ceases to operate the Registrar is entitled to hold the funds for a minimum of two years based on the same purpose as above.
The Dealers shall provide a replacement Letter of Credit within 30 days, upon written demand by the Registrar, for the purpose of replacing any partial or full drawings made of the above-mentioned $30,000.
If the Dealers do not have any claims from any consumers made to the Fund, in the term of two years from the date of submitting the Letters of Credit, they may submit a written request for the release of the Letter of Credit and the request will be reviewed by the Registrar at that time. The release will be subject to the Registrar’s approval which shall not be unreasonably withheld.
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 the MVDA, Ontario Regulation 333/08, Ontario Regulation 332/08 or these Conditions.
Signed in the City of Toronto, this day of October 2022.
Venus Fine Cars Inc. (signature)
Per:
Venus Fine Cars Inc. o/a VFC Auto Group. (signature)
Per:
The Auto Toy Store Corp. (signature)
Per:
Saeed Derakhshani (signature)
Masoud Derakhshani (signature)
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Signed in the City of Toronto, this 31 day of October 2022.
Maureen Harquail