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Consolidated Newfoundland Regulation 1996


CONSOLIDATED NEWFOUNDLAND REGULATION 984/96

CONSOLIDATED NEWFOUNDLAND REGULATION 984/96

Automobile Dealers Regulations
under the
Automobile Dealers Act
(O.C. 96‑273)

Under the authority of section 28 of the Automobile Dealers Act and the Subordinate Legislation Revision and Consolidation Act, the Lieutenant‑Governor in Council makes the following regulations.

REGULATIONS

Analysis


        1.   Short title

        2.   Definition

        3.   Application

        4.   Bond

        5.   Trust accounts

        6.   Records

        7.   Renewal of registration

        8.   Disclosure

        9.   Equipment removal prohibited

      10.   Contract voidable

      11.   Advertisements

      12.   Notice by registrar

      13.   Powers of registrar

      14.   Non‑application

      15.   Repeal


Short title

        1. These regulations may be cited as the Automobile Dealers Regulations.

117/78 s1

Definition

        2. In these regulations "Act" means the Automobile Dealers Act.

117/78 s2

Application

        3. (1) Application for registration as an automobile dealer under the Act shall be made to the registrar

             (a)  where the applicant is a partnership or corporation, in accordance with the form prescribed by the minister; or

             (b)  where the applicant is a sole proprietor, in accordance with the form prescribed by the minister.

             (2)  Application for registration as a salesperson under the Act shall be made to the registrar in accordance with the form prescribed by the minister.

             (3)  Application for renewal of registration shall be made in the form prescribed by the registrar.

             (4)  Registration as an automobile dealer or salesperson under the Act is valid until November 30 next following the date of issue, unless before that time it is cancelled or suspended.

95/90 s1; 126/93 s1

Bond

        4. (1) Every application for registration under the Act shall be accompanied by a bond to the Crown in the amount referred to in subsection (2) issued by a company authorized by law to carry on the business of insurance in the province and every bond shall be in the form prescribed by the minister.

             (2)  The amount of each bond required under subsection (1) is as follows:

             (a)  where the applicant is an automobile dealer with no salespersons, $10,000; and

             (b)  where the applicant is an automobile dealer with one or more salespersons, $10,000 plus $3,000 for each salesperson employed, appointed or authorized by the automobile dealer to buy or sell, or buy and sell, new or used automobiles, or both new and used automobiles, on the automobile dealer's behalf.

             (3)  The bond is forfeited and the amount of it is recoverable from the person bound by it as a debt to the Crown where

             (a)  a conviction of an offence under the Act or these regulations or of an offence involving fraud, theft or conspiracy to commit an offence involving fraud or theft under the Criminal Code has been made by a court;

             (b)  a judgment for the recovery of money arising out of a claim in respect of anything done while acting as an automobile dealer or automobile salesperson has been given; or

             (c)  a winding‑up or receiving order has been made under the Bankruptcy Act (Canada) or the Winding‑up Act (Canada),

against the person in respect of whose conduct the bond was conditioned, or if that person is a partnership, a partner of that partnership, and such conviction, judgment or order has become final.

             (4)  Every bond shall continue in force for a period of 2 years after the expiration of the period of registration to which the bond relates.

             (5)  The minister shall assign the proceeds of a bond forfeited under subsection (3) to the Registrar of the Supreme Court who shall distribute the proceeds to a person who has become a judgment creditor of the automobile dealer or salesperson, or has otherwise proved his or her claim to the registrar, in respect of a claim arising out of the buying and selling of automobiles.

             (6)  Whenever the Crown becomes a creditor of a person under the Act or these regulations, the debt may be recovered by action or other proceeding in a court of competent jurisdiction as a debt due the Crown.

             (7)  Where a bond has been forfeited under subsection (3), the registrar shall repay the balance of the proceeds remaining, less the expenses of the registrar, to the bonding company at the expiration of 2 years following the payment to the Crown of the proceeds of the bond.

171/76 ss1&2; 117/78 s5

Trust accounts

        5. (1) Every automobile dealer shall maintain a separate trust account in a chartered bank or trust company in which he or she shall deposit all money paid to him or her in trust for others in connection with his or her business and that money shall at all times be kept separate and apart from all money belonging to himself or herself and his or her business, and that money shall be disbursed in accordance with the terms of the trust.

             (2)  Where an automobile is accepted for resale by an automobile dealer on a credit note basis, and where the automobile is sold, the agreed amount of the credit note shall be deposited as set out in subsection (1) and subject to refund if requested by the credit note holder, but subject to those charges, losses and other outlays incurred by the automobile dealer in the event that the request constitutes an alteration of the terms of the trust.

117/78 s6

Records

        6. (1) Every automobile dealer shall keep separate records of all automobiles purchased or otherwise acquired by and sold or otherwise disposed of by him or her in a manner that will permit those automobiles to be readily identified.

             (2)  Every automobile dealer shall enter in the records referred to in subsection (1) the following information:

             (a)  in the case of an automobile purchased or acquired by the automobile dealer

                      (i)  the name and address of the person from whom the automobile was purchased or acquired,

                     (ii)  the date on which the automobile was purchased or acquired, and

                    (iii)  the price paid for the automobile, and in the case of exchange of another automobile as part consideration, the allowance made; and

             (b)  in the case of an automobile sold or disposed of by the automobile dealer

                      (i)  the name and address of the acquirer,

                     (ii)  a full and accurate description of the automobile, including the model year, serial number and body type,

                    (iii)  the conditions of sale and disposal, including the price and terms or method of payment of it,

                    (iv)  whether another automobile is accepted for whole or part consideration, a full and accurate description of that automobile, including model year, serial number, body type and amount of consideration, and

                     (v)  the name of the salesperson who sold or disposed of the automobile.

24/76 s2; 117/78 s7

Renewal of registration

        7. An automobile dealer shall attach to every application for renewal of registration the following information:

             (a)  a certified statement of trust money on deposit on March 31 in the calendar year next immediately preceding the termination of the current registration period; and

             (b)  a certified statement of the names and addresses of persons from whom trust money was received and the amounts received from each person and the individual amounts due to each beneficiary who shall be named.

95/90 s2

Disclosure

        8. An automobile dealer shall, before accepting a part of the price of a new or used automobile, disclose to the purchaser of that automobile the following information:

             (a)  the make, model and model year;

             (b)  the price allowed for an automobile exchanged;

             (c)  if a used automobile, upon request by the purchaser, the name and address of the previous owner;

             (d)  in the case of a new automobile, the price list of extra equipment sold to the purchaser or installed by the automobile dealer;

             (e)  an itemized list of charges made in excess of the sale price, including interest and credit and accident insurance, where applicable;

              (f)  an account of service and repairs effected or replacements made in excess of $150 resulting from accidents or damages while that automobile was in control or possession of the automobile dealer;

             (g)  the discount given; and

             (h)  the total sale price.

24/76 s3; 117/78 s9

Equipment removal prohibited

        9. An automobile dealer shall not remove any equipment or a part from a new automobile and replace it with any equipment or a part of inferior quality without disclosing in writing full details of all changes to a potential purchaser before sale.

117/78 s10

Contract voidable

     10. A purchase or sales contract of a new or used automobile from or to an automobile dealer is voidable at the instance of the purchaser or seller where the automobile dealer or salesperson of the automobile dealer is not registered under the Act at the time the purchaser entered into the contract.

117/78 s11

Advertisements

     11. Every printed advertisement placed by an automobile dealer or by any person employed by or acting for an automobile dealer for the sale of a new or used automobile shall contain the automobile dealer's name, location of his or her place of business, the make, model and model year of the automobile.

24/76 s4; 117/78 s12

Notice by registrar

     12. Before

             (a)  refusing to register an automobile dealer or salesperson;

             (b)  cancelling the registration of an automobile dealer or salesperson; or

             (c)  suspending the registration of an automobile dealer or salesperson,

the registrar shall notify the automobile dealer or salesperson by registered mail giving the automobile dealer or salesperson reasonable notice and shall fix a time and place for a hearing if requested by the automobile dealer or salesperson.

117/78 s13

Powers of registrar

     13. The registrar has power to conduct an inquiry into the operation of the Act or these regulations, and into a charge or complaint that a person has contravened a provision of the Act or these regulations, or has made a false statement in a form, return, account or statement required to be completed or made under the Act or these regulations, or into another matter arising in the administration of the Act or these regulations, and the person holding that inquiry shall have the powers that are or may be conferred upon a commissioner by or under the Public Inquiries Act, including the power to take evidence under oath.

117/78 s14

Non‑application

     14. These regulations do not apply to automobile dealers and salespersons of automobile dealers trading only in motor graders, snowplows, tractors and other motor operated automobiles used solely for industrial or commercial purposes.

117/78 s15

Repeal

      15. The Automobile Dealers Regulations, Newfoundland Regulation 117/78, are repealed.