The Citizen, 1988-05-18, Page 22PAGE 20. THE CITIZEN, WEDNESDAY, MAY 18, 1988.
Horsepower ’88
There are strict rules on who can sell cars
The Motor Vehicle Dealers Act,
which regulates dealers and sales
men, is designed to protect the
consumer and requires the car
retailers to abide by a number of
laws that are specific to them.
There are about 6,900 dealers in
Ontario and each one must be
registered under the act. Registra
tion is not automatic. An applica
tion may be turned down.
The more common reasons for
refusal are a shaky financial
background and/or a criminal
past. From April, 1987, to the
beginning of December, 1987, 33
applicants or registrations were
either refused or revoked.
Advanced
system revises
manufacturing
General Motors is revising its
worldwide manufacturing opera
tions through its newly instituted
GM Production System. The pur
pose of this system is to establish a
common manufacturing program
forGM’s numerous operations
throughout the world, thus reduc
ing costs and boosting productivi
ty-
The program is designed to alter
activities in nearly all areas of
vehicles production, including me
thods of engineering, vehicle
design, marketing, material con
trol, plant arrangements, supplier
agreements and labor relations. It
also simplifies “bureaucratic’’
procedures among salaried per
sonnel and streamlines the on-line
workers’ tasks, accomplished in
large part by listening to the
workers who actually do the jobs.
An end result to GM’s Produc
tion System is increased produc
tivity by effectively tapping the
potential of both hourly and
salaried GM employees. The
system also aids in greater quality
with significant cost reductions.
What kind of provisions are
included in the act to protect the
consumer? False advertising is
one.
If the registrar of motor vehicles
believes “on reasonable and pro
bable grounds that a motor vehicle
dealer is making false, misleading
or deceptive statements in any
advertisement, circular, pamphlet
..." he may order a stop to the
advertisement.
Odometer tampering is another
matter dealt with by the act. The
only time a repairer is entitled to
adjust or alter an odometer is for a
bona fide exchange or repair.
If a repair or exchange is done on
an odometer, the repairer is
required to record in a recondition
ing history the reading in miles or
kilometres that was found on the
vehicle prior to its repair. If
someone is caught tampering with
an odometer, they are prosecuted
under the Criminal Code, obvious
ly a serious charge.
A key consumer protection
component of the Motor Vehicle
Dealers Act is the compensation
fund. Every motor vehicle dealer is
required to contribute $300 to the
plan at the time of registration. If
the book value of the fund should
fall below $1.5 million, the motor
vehicle dealers will be required to
top up the fund by the necessary
amount.
What can the compensation
fund do for you? If can refund
money to you if your predicament
falls within one of the situations
described in the legislation. One
important point to keep in mind is
thatitonly protects you for upto
$10,000. Anotherkeyisthatthe
claim against the fund must be a
claim for monetary loss “arising
out of a transaction involving a
trade in a motor vehicle.”
Let’s look at some examples of
when you might be able to collect
from the fund. If you have
successfully sued your dealer and
have not been able to collect, this
would be one opportunity to take
advantage of the fund.
Another example would be
where your dealer was convicted of
an offence for fraud, theft or false
pretences as a result of your
transaction and you have a liqui
dated amount (the legal term
meaning that there is no issue on
how much is owing). The only issue
is liability. You could make an
application, which would include
evidence of the conviction and the
liquidated amount.
Some other permissible claims
include: where the dealer has
become bankrupt or the business is
being wound up and the claim is for
aliquidatedamount, where you
have made a deposit or downpay-
mentforanundelivered car and
you have not received it and the
dealer, without legal excuse, has
refused to make the payment.
The final situation would be
where you have paid for an
extended warranty or service plan
and there is no insurer of it, “and
the terms of the warranty or plan
has not expired and the claim is for
a non-earned premium or for a
repair under the warranty or
plan.’’
In order to make a claim against
the fund, you are required to give
written notice of your claim to the
registrarwithin two years of the
participant’s (i.e. dealer) refusal or
failure to pay.
If your claim arose before July 1,
1986, (the date when the fund was
established), then you’re not
entitled to make a claim against the
fund. By December, 1987, there
had been two successful claims
against the fund.
What should you do if you
believe you have a claim? You
might contact the compensation
fund officer for the Motor Vehicle
Dealers Act.
If you have a complaint about
your motor vehicle dealer, you can
contact the Consumer Services
Bureau at the Ministry of Consum
er and Commercial Relations. A
consu mer services officer will try to
resolve the dispute on your behalf.
The compensation fund officer is
at the Ministry of Consumer and
Commercial Relations, 555 Yonge
St., Toronto. Phone (416) 963-
0411. The Consumer Services
Beureau is located in the same
building. The phone number is
963-0321.
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