This is not an official version.

POINT IN TIME

  December 16, 2004 to May 25, 2006
 

Repealed on May 26, 2006
by 2006 c13

RSNL1990 CHAPTER A-21

AUTOMOBILE DEALERS ACT

Amended:

1996 cR-10.1 s7; 1996 c35; 2004 c36 s3

CHAPTER A-21

AN ACT RESPECTING THE REGISTRATION AND REGULATION OF AUTOMOBILE DEALERS AND THE SALESPERSONS OF THOSE DEALERS

Analysis



Short title

        1. This Act may be cited as the Automobile Dealers Act.

1973 No15 s1

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Definitions

        2. In this Act

             (a)  "automobile" means, subject to the regulations, a motor vehicle, as defined in the Highway Traffic Act;

             (b)  "automobile dealer" means a person who carries on the business of buying or selling new or used automobiles whether for his or her own account or the account of another person, or who holds himself or herself out as carrying on the business of that buying or selling;

             (c)  "buy" includes acquiring by exchange or trade;

             (d)  "department" means the Department of Justice;

             (e)  "minister" means the Minister of Justice;

              (f)  "new automobile" means, subject to the regulations, an automobile other than a used automobile as defined by paragraph (k);

             (g)  "registered" means registered under this Act, and "register" and "registration" have corresponding meanings;

             (h)  "registrar" means the Registrar of Automobile Dealers referred to in section 3;

              (i)  [Rep. by 1996 c35 s1]

              (j)  "sell" includes disposing of by exchange or trade; and

             (k)  "used automobile" means, subject to the regulations, an automobile that has been driven for any purpose except

                      (i)  delivery to a dealer and servicing, and

                     (ii)  other purposes specified in the regulations.

1973 No15 s2; 1975-76 No58 s4; 1981 c4 Sch C; 1984 c41 Sch C; 1985 c11 s36; 1989 c19 Sch B; 1996 c35 s1

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Registrar

        3. (1) There shall be a Registrar of Automobile Dealers.

             (2)  The Registrar of Consumer Protection referred to in the Consumer Protection Act shall be the Registrar of Automobile Dealers.

             (3)  The Deputy Registrar of Consumer Protection appointed under the Consumer Protection Act shall be the Deputy Registrar of Automobile Dealers.

             (4)  In the absence or incapacity of the registrar or where the office of registrar is vacant, the Deputy Registrar of Automobile Dealers referred to in subsection (3) shall perform the functions and duties and may exercise the powers of the registrar.

1973 No15 s4; 1996 c35 s2

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Duties of registrar

        4. The powers, functions and duties of the registrar shall include

             (a)  performing and exercising the powers, functions and duties conferred and imposed upon him or her by this Act and the regulations;

             (b)  consulting and co-operating with the Government of Canada or of the province or of another province of Canada or a department, agency or body under the jurisdiction of the Parliament of Canada or of the Legislature of the province or of another province of Canada or with other interested persons and organizations as may be necessary or desirable for carrying out the purpose of this Act;

             (c)  investigating complaints regarding the operation of this Act or the regulations and regarding the business of buying and selling automobiles and regarding persons engaged in the business as dealers;

             (d)  undertaking, promoting or recommending measures for the development, control and direction of the business of buying and selling automobiles in the province and the protection of consumers in respect of it;

             (e)  collecting, compiling, analyzing and recording the statistical and other information relating to the business of buying and selling automobiles and relevant consumer protection that may be useful;

              (f)  preparing and publishing statistics, reports, records, bulletins, pamphlets, circulars and other means of distributing information and advice in relation to the business of buying and selling automobiles and relevant consumer protection that may be useful and in relation to other matters that the registrar considers desirable in the public interest;

             (g)  fostering, through investigation and research, knowledge of the business of buying and selling automobiles and relevant consumer protection and of the means of dealing with conditions relating to the development, control and direction of it;

             (h)  conducting studies, inquiries and surveys for the purpose of obtaining information as to who are automobile dealers in the province, concerning their methods and practices of carrying on business and keeping himself or herself informed of developments or changes in the business of buying and selling automobiles;

              (i)  subject to the approval of the Lieutenant-Governor in Council, engaging solicitors, accountants, actuaries and other professionally or technically qualified persons for the purpose of this Act;

              (j)  doing those other things or exercising those other powers that are necessary or desirable for carrying out the purpose of this Act; and

             (k)  exercising and discharging those other powers, functions and duties that the Lieutenant-Governor in Council assigns to him or her.

1973 No15 s5; 1996 c35 s3

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Inquiries by registrar

        5. For the purpose of carrying out his or her powers, functions and duties under this Act, the registrar has the powers, privileges and immunities that are or may be conferred upon a commissioner under thePublic Inquiries Act, including the power to take evidence under oath or affirmation and the registrar is considered to be an "investigating body" for the purpose of the Public Investigation Evidence Act.

1973 No15 s6

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Advisory committees

        6. (1) The minister may establish the advisory committees that he or she considers necessary or desirable and appoint the members of them and the members of those committees are entitled to be paid reasonable travelling and living expenses from and to their ordinary places of residence in the course of their duties.

             (2)  The Lieutenant-Governor in Council may authorize the payment of an allowance or remuneration to some or all of the members of an advisory committee.

1973 No15 s7

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Payments

        7. Payments required to be made by or on behalf of the Crown in carrying out this Act or the regulations shall be paid by the Minister of Finance, on the request of the minister, out of the Consolidated Revenue Fund of the province.

1973 No15 s8

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Registration

        8. (1) A person shall not

             (a)  carry on business as an automobile dealer in the province unless he or she is registered under this Act; or

             (b)  [Rep. by 1996 c35 s4]

and the registration is still existing.

             (2)  A person shall not publish either directly or indirectly a statement or representation that he or she is registered under this Act.

             (3)  A registered automobile dealer shall not carry on business in a name other than the name in which that dealer is registered or invite the public to deal at a place other than that authorized by the registration.

             (4)  [Rep. by 1996 c35 s4]

             (5)  The registration of an automobile dealer is not transferable.

1973 No15 s9; 1996 c35 s4

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Rep. by 1996 c35 s5

        9. [Rep. by 1996 c35 s5]

1996 c35 s5

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Rep. by 1996 c35 s5

      10. [Rep. by 1996 c35 s5]

1996 c35 s5

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Registration

      11. (1) Subject to the regulations, an applicant for registration as an automobile dealer is entitled to be granted that registration except where

             (a)  his or her financial responsibility or record of past conduct is such that it would not be in the public interest for the registration to be granted;

             (b)  where the applicant is a corporation, its financial responsibility or the record of past conduct of the corporation or its officers or directors is such that it would not be in the public interest for the registration to be granted; or

             (c)  the applicant is or proposes to be in contravention of this Act or the regulations.

             (2)  A registration is subject to the terms, conditions and restrictions that are consented to by the applicant, imposed by the registrar or prescribed by the regulations.

             (3)  The registrar may by written notice to a registered automobile dealer add to, remove or alter a term, condition or restriction to which the registration is subject.

             (4)  A registered automobile dealer shall comply with the terms, conditions and restrictions to which his or her registration is subject.

             (5)  The acts of any individual either in the automobile dealer's employ, acting on behalf of the automobile dealer, or under the authority of the automobile dealer, are considered to be not only his or her acts but also the acts of the dealer.

1973 No15 s12; 1996 c35 s11

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Application for registration

      12. (1) A person shall apply for registration as an automobile dealer upon a form provided by the registrar and shall send along with the application form the fees prescribed by the regulations.

             (2)  A registration remains in effect subject to the filing of annual reports and payment of an annual fee as prescribed by the minister until it is withdrawn by the registered person or is suspended or cancelled under the Act.

             (3)  The registrar shall not refuse to grant registration to an automobile dealer or cancel or suspend the registration of an automobile dealer without giving the dealer an opportunity to be heard.

1973 No15 s13; 1996 c35 s7

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Place of business of dealer

      13. Registration as an automobile dealer shall not be granted unless the applicant maintains in the province a place of business satisfactory to the registrar from which he or she conducts his or her business or a portion of his or her business as an automobile dealer.

1973 No15 s14; 1996 c35 s8

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Address for service

      14. (1) An applicant for registration shall state in the application an address for service in the province and a notice or order or other document given or served under this Act or the regulations shall be considered to be sufficiently given or served if delivered or sent by registered mail to the person at the address for service stated in the application, unless that person has notified the registrar in writing of a change of address for service under section 15, in which case the notice or order or other document shall be sufficiently given or served if delivered or sent by registered mail to the person at the latest address for service of which the registrar has been notified.

             (2)  Where a notice or order or other document referred to in subsection (1) is sent by registered mail, it is considered to be served on the 3rd day after the day it is deposited in the post office by the sender.

1973 No15 s15; 1996 c35 s9

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Notification to registrar

      15. (1) A registered automobile dealer shall, within 5 days after the event, notify the registrar in writing of

             (a)  a change in his or her address for service;

             (b)  a change in the officers in the case of a corporation or of the members in the case of a partnership;

             (c)  [Rep. by 1996 c35 s10]; and

             (d)  in the case of a corporation, a change in the ownership of its shares.

             (2)  [Rep. by 1996 c35 s10]

1973 No15 s16; 1996 c35 s10

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Suspension or cancellation

      16. (1) The registrar may suspend or cancel the registration of a person upon a ground on which he or she might have refused to grant registration under section 11 or where he or she is satisfied that the person

             (a)  has violated this Act or the regulations or has failed to comply with a term, condition or restriction to which his or her registration is subject;

             (b)  has made a material misstatement in the application for registration or in the information or material submitted by him or her to the registrar under section 17;

             (c)  has been guilty of misrepresentation, fraud or dishonesty; or

             (d)  has demonstrated his or her incompetency or untrustworthiness to carry on the business of an automobile dealer.

             (2)  [Rep. by 1996 c35 s11]

1973 No15 s17; 1996 c35 s11

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Further information

      17. The registrar may require further information or material to be submitted within a specified time by an applicant for registration or a registered person and may require verification by affidavit or otherwise of information or material then or previously submitted.

1973 No15 s18; 1996 c35 s12

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Inactive automobile dealers

      18. (1) Where the registrar believes that a registered automobile dealer is not carrying on business in the province, he or she may send to that dealer a registered letter inquiring whether the dealer is carrying on business in the province and stating that if an answer to the letter is not received within 1 month from the date of the letter the registration of the dealer will be cancelled and a notice of cancellation will be published in the Gazette.

             (2)  Where the registrar either receives an answer from the dealer concerned to the effect that he or she is not carrying on business as a dealer or does not within 1 month after sending the letter receive an answer to it, the registrar may cancel the registration of that dealer and publish notice of the cancellation in the Gazette.

             (3)  The registrar may cancel the registration of an automobile dealer when he or she is satisfied that that dealer has died.

             (4)  The registrar may strike off the register the name of an automobile dealer that is a corporation where he or she is satisfied that the corporation has been dissolved or has been struck off the register under the Corporations Act.

             (5)  The registrar may strike off the register the name of an automobile dealer who has become bankrupt.

1973 No15 s19; 1986 c12 Sch; 1996 c35 s13

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False advertising

      19. Where, in the opinion of the registrar, a person registered under this Act is making false, misleading or deceptive statements relating to a matter within the ambit of this Act or otherwise relating to the buying or selling of automobiles in an advertisement, circular, pamphlet or similar material, he or she may order the immediate cessation of the use of the material.

1973 No15 s20

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Investigation by registrar

      20. (1) The registrar, or a person authorized by him or her in writing, in this section referred to as an "investigator", may investigate and inquire into a matter the investigation of which the registrar considers expedient for the administration of this Act.

             (2)  An investigator may at reasonable times enter a business premises where it is reasonably necessary to determine whether this Act and the regulations are being and have been complied with, and may demand the production of and inspect the books, documents, papers, correspondence and records of the person in respect of whom the investigation is being made, including an automobile dealer or a person who the investigator has reasonable grounds to believe is carrying on the business of an automobile dealer and a person occupying or in charge of the premises shall answer questions pertaining to those matters and shall produce for inspection and the making of copies or extracts the books, documents, correspondence or records that the investigator may demand.

             (3)  When an action or proceeding is taken against an investigator or a person appointed to make an investigation under section 22 for anything done by him or her under this Act or the regulations and the court before which the action or proceeding is taken is satisfied that there was probable cause for the action of that investigator or person and that it was not malicious, a verdict or judgment shall not be given against the investigator or person for more than $0.05 damages or for costs in the action.

1973 No15 s21; 1985 c11 s36; 1996 c35 s14

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Investigation of complaints

      21. (1) Where the registrar receives a complaint in respect of an automobile dealer and so requests in writing, the automobile dealer shall provide the registrar with the information respecting the matter complained of that the registrar requires.

             (2)  The request under subsection (1) shall indicate the nature of the inquiry involved.

1973 No15 s22

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Investigation

      22. (1) Where, upon a statement made under oath or affirmation, it appears probable to the registrar that a person has

             (a)  contravened this Act or the regulations; or

             (b)  committed an offence, under the Criminal Code or under the law of this or another jurisdiction, that is relevant to his or her fitness for registration under this Act,

the registrar may by order appoint 1 or more persons to make an investigation to ascertain whether the contravention of the Act or regulations or the commission of the offence has occurred and the person appointed shall report the result of his or her investigation to the registrar.

             (2)  Notwithstanding subsection (1), the minister may by order appoint 1 or more persons to make an investigation into a matter to which this Act applies and the person appointed shall report the result of his or her investigation to the minister.

             (3)  Where the registrar believes on reasonable grounds that a person has contravened this Act or regulations or committed an offence referred to in paragraph (1)(b), a person appointed to make the investigation ordered under this section may with a warrant issued under subsection (4) at a reasonable time enter upon the business premises and may investigate, inquire into and examine the affairs of the person in respect of whom the investigation is being made and into books, documents, correspondence and records in relation to the person and into property, assets or things owned, acquired or alienated in whole or in part by the person or by a person acting on behalf of or as agent for that person.

             (4)  A Provincial Court judge who is satisfied by information upon oath or affirmation that there are reasonable grounds for believing that there is on a business premises anything that there are reasonable grounds to believe will give evidence with respect to the contravention or offence referred to in subsection (1) may issue a warrant authorizing an investigator named in the warrant to enter and search those premises and to make the inquiries and copies of books, documents, correspondence and records that are considered necessary, subject to the conditions that may be specified in the warrant.

             (5)  The owner or person in charge of the premises referred to in this section and a person found there shall give an investigator reasonable help to enable the inspector to carry out his or her duties and functions under this section and shall provide the information that the investigator may reasonably require.

             (6)  A copy made as provided in subsection (4) and purporting to be certified by the person making the investigation is admissible in evidence in an action, proceeding or prosecution as, in the absence of evidence to the contrary, evidence of the original document or record.

             (7)  The minister may appoint an expert to examine documents, records, properties and matters of a person whose affairs are being investigated under this Act.

             (8)  A person, without the consent of the minister, shall not disclose, except to his or her counsel, the registrar or the minister, information or evidence obtained in the course of an investigation made under this section or the name of a witness examined or sought to be examined in the investigation.

1973 No15 s23; 1985 c11 s36; 2004 c36 s3

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Report

      23. Where, upon the report of an investigation made under subsection 22(1), it appears to the registrar that a person may have

             (a)  contravened this Act or the regulations; or

             (b)  committed an offence, under the Criminal Code or under the law of this or another jurisdiction, that is relevant to his or her fitness for registration under this Act, the registrar shall send a complete report of the investigation, including the report made to him or her, a transcript of evidence and material in the possession of the registrar relating to it, to the minister.

1973 No15 s24

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Order of registrar

      24. (1) The registrar may

             (a)  after an investigation of a person has been ordered under section 22; or

             (b)  where criminal proceedings or proceedings in respect of a contravention of an Act or regulation are about to be or have been instituted against a person that in the opinion of the registrar are connected with or arise out of the business in respect of which the person is registered or required to be registered,

in writing or by telegram, direct a person having on deposit or under his or her control or for safekeeping assets or trust funds of the person referred to in paragraph (a) or (b) to hold the assets or trust funds or direct the person referred to in paragraph (a) or (b) to refrain from withdrawing the assets or trust funds from another person having them on deposit, under control or for safekeeping or to hold the assets or trust funds of clients, customers or others in his or her possession or control in trust for an interim receiver, custodian, trustee, receiver or liquidator appointed under an Act of Canada or of the province or until the registrar revokes the direction or consents to release a particular asset or trust fund from the direction, but, in the case of a bank, loan or trust company, the direction only applies to those offices, branches or agencies named in the direction.

             (2)  A person to whom a direction is made under subsection (1) shall comply with the direction.

             (3)  Subsection (1) does not apply where the person referred to in paragraph (1)(a) or (b) files with the registrar

             (a)  a personal bond accompanied by collateral security;

             (b)  a bond of a guarantee company approved for the purposes by the Lieutenant-Governor in Council; or

             (c)  a bond of a guarantor, other than a guarantee company, accompanied by collateral security

in the form, terms and amount that the registrar determines.

             (4)  A person in receipt of a direction given under subsection (1), if in doubt as to the application of the direction to assets or trust funds, or in case of a claim being made to them by a person not named in the direction, may apply to a judge of the Trial Division who may direct the disposition of the assets or trust funds and may make the order as to costs that seems just.

1973 No15 s25

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Financial statements

      25. An automobile dealer shall, when required by the registrar, file a financial statement showing the matters specified by the registrar and signed by the automobile dealer and certified by a person licensed under the Public Accountancy Act.

1973 No15 s26

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Service

      26. (1) A notice, order or other document required to be given or served under this Act or the regulations is sufficiently given or served if delivered personally or sent by registered mail addressed to the person to whom delivery or service is required to be made at the latest address for service appearing on the records of the department.

             (2)  Where service is made by registered mail the service shall be considered to be made on the 3rd day after the day of mailing.

1973 No15 s27

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Restraining orders

      27. (1) Where it appears to the registrar that a person is not complying with this Act, the regulations or an order or direction made under this Act or under the regulations, notwithstanding the imposition of a penalty in respect of the non-compliance and in addition to other rights he or she may have, the registrar may apply to a judge of the Trial Division for an order directing the person to comply with the provision and upon the application the judge may make the order that the judge thinks appropriate.

             (2)  An appeal lies to the Court of Appeal from an order made under subsection (1).

1973 No15 s28; 1986 c42 Sch A & Sch B

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Regulations

      28. The Lieutenant-Governor in Council may make regulations

             (a)  [Rep. by 1996 cR-10.1 s7]

             (b)  governing applications for registration and prescribing terms and conditions, subject to cancellation or suspension, of registration;

             (c)  [Rep. by 1996 cR-10.1 s7]

             (d)  requiring registered automobile dealers or a class of them to be bonded in the form and terms and with the collateral security that is prescribed by the minister and providing for the forfeiture of bonds and the disposition of the proceeds;

             (e)  respecting the suspension or cancellation of registration;

              (f)  requiring and governing the maintenance of trust accounts by automobile dealers or a class of automobile dealers and prescribing the money that shall be held in trust and the terms and conditions for it;

             (g)  requiring and governing the books, accounts and records that shall be kept by automobile dealers or a class of automobile dealers;

             (h)  requiring automobile dealers, or a class of those dealers, to make returns and provide information to the registrar;

              (i)  prescribing the information that automobile dealers, or a class of dealers, shall disclose respecting the history of a class of automobiles;

              (j)  prohibiting prescribed alterations of used automobiles, or a class of used automobiles, or of a part of those automobiles or class of them and requiring disclosure of prescribed alterations not prohibited;

             (k)  governing contracts for the sale and purchase of automobiles or a class of automobiles;

              (l)  [Rep. by 1996 cR-10.1 s7]

            (m)  requiring information required to be provided or contained in a form or return to be verified by affidavit;

             (n)  [Rep. by 1996 cR-10.1 s7]

             (o)  [Rep. by 1996 cR-10.1 s7]

             (p)  [Rep. by 1996 cR-10.1 s7]

             (q)  specifying purposes for the purpose of subparagraph 2(k)(ii);

              (r)  regulating forms of advertising by automobile dealers, or a class of automobile dealers, relating to the buying or selling of automobiles or a class of automobiles;

             (s)  providing for the holding of inquiries into the operation of this Act and into a charge or complaint that a person has contravened this Act or the regulations, or has made a false statement in a form, return, account or statement required to be completed or made under this Act or the regulations, or into another matter arising in the administration of this Act and providing that the person holding the inquiry shall have any or all of the powers that are or may be conferred upon a commissioner under the Public Inquiries Act, including the power to take evidence under oath or affirmation; and

              (t)  generally, to give effect to the purpose of this Act.

1973 No15 s29; 1996 cR-10.1 s7; 1996 c35 s15

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Offence

      29. (1) A

             (a)  person who contravenes this Act or the regulations or an order or direction given under this Act or the regulations, or makes a false statement in an application, form, return, account, record, statement, instrument or other document made under this Act or the regulations or under an order or direction given under this Act or the regulations; and

             (b)  director or officer of a corporation who knowingly concurs in a contravention of this Act or the regulations or an order or direction given under this Act or the regulations or in the making of a false statement in an application, form, return, account, record, statement, instrument or other document made under this Act or the regulations or under an order or direction given under this Act or the regulations

is guilty of an offence and liable on summary conviction to a fine of not more than $2,000 and, in default of payment of a fine or in addition to a fine, to imprisonment for a period not exceeding 6 months.

             (2)  Notwithstanding subsection (1), where a corporation is convicted of an offence under subsection (1), it is liable to a fine of not more than $25,000.

1973 No15 s30

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Act may not be waived

      30. This Act applies notwithstanding an agreement or waiver to the contrary.

1973 No15 s31

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Rights of sellers or purchasers

      31. The rights of a seller or purchaser of an automobile under this Act are in addition to rights of the seller or purchaser under another Act or by the operation of law and nothing in this Act shall be construed to derogate from those rights.

1973 No15 s32

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Limitation

      32. Notwithstanding another Act, a prosecution under this Act or the regulations may and shall be started within 3 years from the date on which the offence is alleged to have been committed.

1973 No15 s33

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Evidence

      33. A statement as to

             (a)  the registration or non-registration of a person;

             (b)  the filing or non-filing of a document or material required or permitted to be filed with the registrar;

             (c)  the time when the facts upon which the proceedings are based first came to the knowledge of the registrar; or

             (d)  another matter concerning the registration, non-registration, filing or non-filing or to a person, document or material

purporting to be certified by the registrar is, without proof of the office or signature of the registrar, receivable in evidence as, in the absence of evidence to the contrary, proof of facts stated in it in an action, proceeding or prosecution.

1973 No15 s34

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Evidence of carrying on business

      34. Where, in a prosecution under this Act, it is alleged that the accused carried on business as an automobile dealer without being registered under this Act, evidence of 1 transaction is, in the absence of evidence to the contrary, evidence that the accused carried on the business.

1973 No15 s35; 1996 c35 s16

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Appeal

      35. (1) A person dissatisfied with a decision, order or direction of the registrar may appeal from it to a judge of the Trial Division.

             (2)  Where a person proposes to appeal under subsection (1), he or she shall, within 30 days after notice to him or her of the decision, order or direction of the registrar from which he or she proposes to appeal, serve on the registrar a written notice of his or her intention to appeal.

             (3)  A notice of appeal served under subsection (2) shall be signed by the appellant or by his or her solicitor or agent, and, in the notice, the grounds of the appeal shall be set out and the appellant shall file a copy of the notice in the office of the Registrar of the Supreme Court.

1973 No15 s36; 1974 No57 s38; 1986 c42 Sch A

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Appointment of day of hearing

      36. (1) The appellant shall, not less than 14 days before the hearing of the appeal, serve upon the registrar a written notice of the day appointed for the hearing.

             (2)  The judge shall hear the appeal and the evidence brought forward before him or her by the appellant and the Crown in a summary manner and shall decide the matter of the appeal and he or she may confirm, vary or set aside the decision, order or direction or may order further inquiry by the registrar into the facts of the case.

             (3)  The registrar shall produce before the judge on the hearing of the appeal all papers and documents in his or her possession affecting the matter of the appeal.

             (4)  The costs of the appeal are in the discretion of the judge and he or she may make an order respecting them in favour of or against the Crown and may fix the amount and the Crown is bound by the order.

1973 No15 s37

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Act to prevail

      37. Where another Act or regulations made under that Act conflict with this Act or the regulations or an order or direction given under this Act or the regulations, this Act and the regulations and an order or direction given under this Act or the regulations shall prevail.

1973 No15 s38