An appeal from a Notice of Proposal to Refuse Registration under the Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sched B
Between:
127978113 Canada Inc. o/a Motor House & Muhammad Khan
Appellants
and
Registrar, Motor Vehicle Dealers Act, 2002
Respondent
CONSENT ORDER
ADJUDICATOR: Jeffery Campbell, Vice-Chair
BACKGROUND
1On September 19, 2023, the Registrar, Motor Vehicle Dealers Act, 2002, (the “Registrar”) issued a Notice of Proposal (the “NOP”) refuse the registrations of 127978113 Canada Inc. o/a Motor House (the “Appellant Motor House”) as a motor vehicle dealer and Muhammad Khan (the “Appellant Khan”) as a motor vehicle salesperson (together the “Appellants”) under the Motor Vehicle Dealers Act., 2002, S.O. 2002, c. 30, Sched B and the Regulations (the “Act”).
2The NOP is based on the grounds that the Appellant Khan’s past conduct and provision of false statements in applications for registration are inconsistent with the intention and objective of the Act, and therefore warrants the Appellant Khan’s and the Appellant Motor House’s disentitlement to registration under the Act.
3The Notice of Proposal to Refuse the registration has been appealed to the Tribunal.
4The parties advised the Tribunal that they had resolved the issues in dispute and both parties have consented to the registration of the Appellant Khan as a motor vehicle salesperson and the Appellant Motor House as a motor vehicle dealer in the wholesaler class of registration under the Act on the terms and conditions set out in Terms and Conditions between the Appellants and the Registrar signed February 26, 2024. The Terms and Conditions shall constitute Schedule A.
5Further, both parties confirmed that pursuant to section 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S 2 (the “SPPA”), both parties waive the requirements of a hearing and consent to an Order of the Tribunal to confirm the appellants’ registration on the terms and conditions set out on Schedule A. A copy of the agreements signed by all parties is attached as Schedule A to this Order.
ON CONSENT OF BOTH PARTIES, I ORDER:
6Pursuant to s. 4.1 of the SPPA and on the consent of the parties, I dispose of this proceeding without a hearing on the terms set out in the agreement signed by the Appellants and the Registrar on February 26, 2024, a copy of which is attached to this order as Schedule A, which Schedule A is incorporated and made part of this Order.
LICENCE APPEAL TRIBUNAL
Jeffery Campbell, Vice-Chair
Released: March 1, 2024
“SCHEDULE A”
TO: Licence Appeal Tribunal Tribunals Ontario 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: 127978113 Canada Inc. o/a Motor House 5557 Fudge Terrace Mississauga, ON L5M 0N3
AND FROM: Muhammad Khan 5557 Fudge Terrace Mississauga, ON L5M 0N3
Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002 (the “MVDA”), Muhammad Khan ("Khan") and 127978113 Canada Inc. o/a Motor House (“Motor House”) (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 ("Consent Order") based upon the following terms and conditions:
The Registrar agrees to register Khan as a motor vehicle salesperson under the MVDA, subject to, among other things, the MVDA, the regulations made thereunder, and these conditions of registration.
Khan will be registered as a motor vehicle salesperson for Motor House, or another motor vehicle dealer with the written approval of the Registrar.
Khan confirms that the particulars and circumstances of his bankruptcy and its discharge are substantially disclosed to the Registrar.
The Registrar agrees to register Motor House as a dealer in the wholesaler class of registration under the MVDA, subject to, among other things, the MVDA, the regulations made thereunder, and these conditions of registration.
Motor House shall not apply to change classes of registration for a period of two (2) years from the date of this Order.
Motor House shall not trade motor vehicle to the public when registered in the wholesaler class of registration.
The Registrants will not engage in any form of trade in motor vehicles prior to the date of approval of the registration.
The Registrants will ensure that all personnel, agents, assignees, employees, or anyone acting on her behalf are informed of the Terms and Conditions contained in this document to the extent necessary to ensure compliance with these Conditions.
In the event of a breach of any of the terms and conditions contained herein, the Registrar shall be permitted to rely on the contents of the Registrar’s 2023 Notice of Proposal to Refuse Registrations and Notice of Further and Other Particulars in support of any future administrative proceedings, including, without limitation, any Proposal to Refuse to Renew, Suspend or Revoke Registration.
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 will provide the Registrar with notice in writing, within five (5) days of any substantive changes to any information provided in obtaining registration, pursuant to section 31 of Ontario Regulation 333/08.
FINANCIAL RESPONSIBILITY
Motor House agrees not to receive any new sources of financing without the prior written approval of the Registrar. This does not apply where the dealer has applied on it 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 Caisse Populaires Act applies, as may be amended from time to time.
Motor House will maintain bank accounts that are compliant with section 59 of Ontario Regulation 333/08.
Motor House will ensure that all bank transactions relate exclusively to the operation or financing of the business. The Registrants agree to notify the Registrar of any change in any business banking accounts.
Motor House shall comply with all federal, provincial, and municipal tax obligations. Motor House 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 governments.
ACKNOWLEDGMENT AND UNDERTAKING:
The Registrar is relying on the accuracy and completeness of all documents, statements or information provided by the Registrants.
The Registrants acknowledge 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.
Independent legal advice has been obtained or the Registrants have had the opportunity to obtain independent legal advice respecting consent to the Terms and Conditions contained in this document.
The Conditions contained in this document shall be in force for a period of two (2) years from the date of this Consent Order, at which time the Registrants may request for the removal or amendment of said conditions.
127978113 Canada Inc. o/a Motor House
Date:
I have authority to bind the Corporation
Muhammad Khan
Date:
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Maureen Harquail, Registrar
Date: