Seedjan Auto Sales Corporation and Khan Sawdagar Sulaiman-Khail v. Registrar, Motor Vehicle Dealers Act, 2002, 2022 CanLII 23448

Citation: Sawdagar Sulaiman-Khail, Seedjan Auto o/a Seedjan Auto Sales Corporation and v. Registrar, Motor Vehicle Dealers Act, 2002, 2022 ONLAT 13054/MVDA

Date: 2022-03-22

Appeal from a Proposal of the Registrar under the Motor Vehicle Dealers Act, 2002 S.O. 2002, c. 30, Sch. B, to revoke registrations.

Between:

Seedjan Auto Sales Corporation and Khan Sawdagar Sulaiman-Khail Appellants

and

Registrar, Motor Vehicle Dealers Act, 2002 Respondent

CONSENT ORDER

Order Made by: Theresa McGee, Vice-Chair Date of Order: March 22, 2022

BACKGROUND

1This is an appeal from a Notice of Proposal issued by the Registrar pursuant to the Motor Vehicle Dealers Act, 2002 (“the Act”), to apply conditions to the registration of Seedjan Auto Sales Corporation as a motor vehicle dealer and the registration of Khan Sawdagar Sulaiman-Khail as a motor vehicle salesperson under the Act.

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 s. 6(2) 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 Appellant and the Registrar, the Tribunal, pursuant to the Motor Vehicles Dealers Act, 2002, directs and orders that the Appellants shall be bound by the terms of the consent agreement signed and executed by all of the parties.

5The signed agreement is appended as Schedule “A” to this Order.

6The hearing scheduled for this matter is vacated.

7This Tribunal file is now closed.

LICENCE APPEAL TRIBUNAL

Theresa McGee, Vice-Chair

Released: March 22, 2022

“Schedule A”

TO: Licence Appeal Tribunal Tribunals Ontario General Services 15 Grosvenor Street, Ground Floor Toronto, ON M7A 2G6

FROM: The Registrar Motor Vehicle Dealers Act, 2002 Ontario Motor Vehicle Industry Council 65 Overlea Blvd., Suite 300 Toronto, ON M4H 1P1

AND FROM: Seedjan Auto Sales Corporation c/o Justin Jakubiak Fogler, Rubinoff LLP 3000 – 77 King Street West Toronto, ON M5K 1G8

AND FROM: Khan Sawdagar Sulaiman-Khail c/o Justin Jakubiak Fogler, Rubinoff LLP 3000 – 77 King Street West Toronto, ON M5K 1G8

Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002 (“MVDA”), Seedjan Auto Sales Corporation (the “Dealer”) and Khan Sawdagar Sulaiman-Khail (“Khail”) (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 requirement of a hearing and consent to an Order of the Licence Appeal Tribunal based upon the following conditions:

REGISTRATION

1. Subject to these conditions, the Dealer agrees to be registered as a dealer in the wholesale class of registration and shall not apply to change classes of registration for a period of two (2) years from the date of this Order.

2. The Registrants will comply with all requirements of the MVDA; 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. They further agree to read all correspondence and bulletins from OMVIC as released.

BOOKS AND RECORDS

3. The Dealer shall maintain all books and records at its registered premises in accordance with the MVDA and pursuant to section 52 through to, and including, section 60 of Ontario Regulation 333/08.

4. The Dealer shall maintain records for vehicle repairs, trades and its business operations pursuant to sections 52, 53 and 54 of Ontario Regulation 333/08.

5. The Dealer shall maintain books and records which accurately record the true nature of transactions involving its trades of motor vehicles. The Registrants shall 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.

6. The Dealer shall not withhold any documents or records requested by an authorized representative of the Registrar, and shall give access to them in a timely manner.

DISCLOSURE

7. The Registrants shall 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.

8. The Dealer shall clearly and truthfully disclose all material facts about the motor vehicles it offer for purchase to its customers. The Dealer further agrees that notwithstanding whether or not the Dealer considers a fact to be material, the Dealer shall comply with this disclosure obligation. The Dealer further agrees to disclose all material facts on the Bill of Sale, in writing. The Dealer shall ensure that it complies with the disclosure obligation 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 Dealer further agrees to disclose as much detail as reasonably possible regarding the nature and severity of the damage. The Dealer undertakes to conduct a reasonable amount of research into the history of all motor vehicles under trade to ensure all material facts are disclosed.

9. The Registrants shall comply in a timely manner with all requests made by the Registrar in relation to any actual or suspected failure to comply with its disclosure obligations.

OMVIC TRANSACTION FEE

10. The Dealer agrees to provide documentation, when requested by the Registrar, to establish that a particular transaction is exempt from the transaction fee. The Dealer will be required to remit the transaction fee on the transaction if the requested documentation is not submitted.

11. The Dealer acknowledges its failure to report 55 vehicle transactions to the Registrar from previous reporting periods. It agrees to declare and remit payment of the outstanding associated fees owing to the Registrar within 30 days from the date of this Order.

CONSUMER “BUY BACKS”

12. The Dealer agrees to repurchase Consumer A’s vehicle (2016 Honda CRV) for $15,000 within 30 days of the date of this Order.

13. The Dealer agrees to repurchase Consumer C’s vehicle (2016 Hyundai Genesis) for $13,000 within 30 days of the date of this Order.

14. Each repurchase is conditional on a visual inspection of the vehicle conducted by a representative of the Dealer and confirmation that there has been no significant material change in the vehicle’s condition since it was sold by the Dealer to the consumer. Said confirmation will not be unreasonably withheld by the Dealer. In the case of a dispute between any of the parties regarding this clause, the matter shall be referred to OMVIC for mediation by it or a third party appointed by it for this purpose. Any costs associated with the use of a mediator other than OMVIC shall be borne by the Dealer.

OMVIC AUTOMOTIVE CERTIFICATION COURSE

15. Khail agrees to successfully complete the OMVIC Automotive Certification Course, offered at the Automotive Business School of Canada at Georgian College within six months from the date of this Order and at his own expense.

OTHER

16. Khail agrees that he is responsible for ensuring that the Dealer complies with these conditions and its obligations under the MVDA, in addition to ensuring his own compliance with these conditions and the MVDA.

17. The Registrants agree to provide truthful information on any and all applications for registration, and in response to any requests for information from the Registrar or his representatives.

18. The Registrants agree to use their best efforts to prevent error, misrepresentation, fraud or any unethical practice in respect of a trade in a motor vehicle.

19. The Registrants agree to pay any outstanding judgments or court orders against them without delay.

ACKNOWLEDGMENT AND UNDERTAKING:

20. The Registrar is relying on the accuracy and completeness of all documents, statements or information provided by the Registrants.

21. 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 conditions.

Khail acknowledges that he has reviewed these conditions on behalf of the Dealer, and by signing and initialling, acknowledges that he understands their significance and agrees to abide by them. He also acknowledges that he had opportunity to seek independent legal counsel prior to agreeing to these condition