Licence Tribunal
Appeal d’appel en
Tribunal matière de permis
1604403 ONTARIO INC. O/A MDA FINE MOTORS CORP. AND MAGDA RASOUL
APPEAL FROM A PROPOSAL OF THE REGISTRAR UNDER
THE MOTOR VEHICLE DEALERS ACT, R.S.O. 1990, c. M.42
TO REVOKE REGISTRATION
TRIBUNAL: TERRANCE SWEENEY, Vice-Chair
APPEARANCES: JUSTIN M. JAKUBIAK, Counsel, representing the Applicants
CHRISTOPHER EZRIN, Counsel, representing the Registrar,
Motor Vehicle Dealers Act
DATES OF
HEARING: March 23 and 24, 2010 Toronto
CONSENT ORDER
On December 10, 2009, the Registrar under the Motor Vehicle Dealers Act (the
“Registrar” and the “Act”) issued a Notice of Proposal to Revoke Registration against
1604403 Ontario Inc. o/a MDA Fine Motors Corp as a motor vehicle dealer and Magda
Rasoul as a salesperson under the Act;
On March 24, 2010 the Parties entered into a Settlement Agreement (the “Settlement
Agreement”), a copy of which is attached herewith in which the Parties settled the
matter subject to the approval of this Tribunal;
AND UPON reviewing the Settlement Agreement the Tribunal is of the opinion that it is
in the public interest to make this order;
IT IS ORDERED THAT:
1. The attached Settlement Agreement is approved.
2. The registrations of 1604403 Ontario Inc. o/a MDA Fine Motors Corp. as a motor
vehicle dealer under the Act and the registration of Magda Rasoul as a salesperson
under the Act shall be and they are hereby continued.
3. The proceedings in this matter are concluded without a hearing on the basis of the
terms and conditions in the attached Settlement Agreement.
LICENCE APPEAL TRIBUNAL
_________________________
Terrance Sweeney, Vice-Chair
RELEASED: March 25, 2010
This decision may also be available on Quicklaw at a later date.
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TO: The Licence Appeal Tribunal
1 St. Clair Avenue West, Suite 1200
Toronto, ON M4V 1K6
FROM: The Registrar
Motor Vehicle Dealers Act, 2002
Ontario Motor Vehicle Industry Council
789 Don Mills Road, Suite 800
Toronto, ON M3C 1T5
AND FROM: 1604403 Ontario Inc. o/a MDA Fine Motors Corp.
190 Millway Avenue
Concord, ON L4K 3W4
AND: Magda Rasoul
Pursuant to subsection 6(2) of the Motor Vehicle Dealers Act, 2002 (the “Act”), Magda Rasoul
and 1604403 Ontario Inc. o/a MDA Fine Motors Corp (“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 based upon the following terms and conditions:
1. By initialing, Magda Rasoul confirms that she is the sole officer and director of 1604403 Ontario
Inc. o/a MDA Fine Motors Corp. and therefore has authority to bind the corporation.
2. The parties consent to resolving the proposal to revoke the registrations of the Registrants on
these terms and conditions.
3. On consent of the parties, the prior terms and conditions governing the registration of 1604403
Ontario Inc., as agreed to on May 5, 2004, are hereby removed and replaced by these terms and
conditions.
4. These terms and conditions shall be in force from the date of signing for a period of two (2) years.
Trade in motor vehicles
5. The Registrants will ensure that all personnel, agents, assignees or anyone acting on behalf of the
Registrants to trade motor vehicles shall be registered as a salesperson to the Registrants.
6. The Registrants further acknowledges that the restrictions concerning the activities of salespersons
referred to in these Terms and Conditions apply to trading on behalf of the Registrants. "Trading"
refers to buying, selling, leasing, advertising or exchanging an interest in a motor vehicle or
negotiating or inducing or attempting to induce the buying, selling, leasing or exchanging of an
interest in a motor vehicle and is not limited to the signing of contracts. This further includes
attendance at auction on behalf of the Registrants and positions commonly referred to as Sales
Manager, Finance and Insurance Manager, Branch Manager, Business Manager, General
Manager or any individual who has supervisory authority over salespersons.
7. The Registrants will not conduct any purchases with anyone who is in the business of trading motor
vehicles without first confirming that the person is registered under the Act.
8. The Registrants will ensure that all personnel, agents, assignees or anyone acting on behalf of the
Registrants are informed concerning the terms and conditions contained in this document to the
extent necessary to ensure compliance with these terms and conditions.
9. The Registrants acknowledge and understand that their registration will not be used to trade motor
vehicles where the Registrants knows or ought to know the trading of those vehicles will facilitate
an illegal or unethical practice.
10. The Registrants agree they will not be involved with the trading of motor vehicles without the
benefit of registration.
OMVIC Transaction Fee
11. The Registrants confirm they have read the attached OMVIC Fee Notice Change and the most
current version of the Frequently Asked Questions (FAQ’s) regarding the OMVIC transaction fee.
The Registrants also confirm they understand that the transaction fee is payable on any sales or
leases to non-dealers. Without limiting the generality of the foregoing, the dealer understands the
transaction fee applies to all sales or leases to non-dealers including exports, fleet transaction and
consignments. The dealer further undertakes to provide OMVIC with documentation (upon request)
to establish that a particular transaction is exempt from the transaction fee as a dealer –to-dealer
transaction. The dealer further understands that, if he/she can not provide such as documentation
to OMVIC, he will be required to remit the transaction fee on the transaction.
Books and Records
12. The Registrants agree to maintain a garage register in accordance with the Highway Traffic Act
and will maintain all books and records as required by the Act at the Registrants’ registered
premises. The Registrants further agree to provide free access to their books and records to any
authorized representative of the Registrar.
13. The Registrants will ensure that any vehicles sold are registered in the name of the purchaser in
the records of the Ministry of Transportation before releasing the vehicle to the purchaser.
14. The Registrants will not purchase a vehicle without ensuring the vehicle is registered to the seller in
the records of the Ministry of Transportation.
15. The Registrants agree to register all vehicles purchased within 6 days in accordance with the
Highway Traffic Act.
16. The Registrants agree that, in the event their books and records are lost, stolen or destroyed in
whole or in part, they shall advise the Registrar, in writing within 5 days of discovery of the event
and shall include all relevant documentation including, but not limited to, police report, insurance
claim, affidavits etc. The Registrants further agree to make all reasonable efforts to reconstitute the
lost, stolen or damaged records.
17. The Registrants agree, prior to the removal of any records from the registered premise of the
Registrants, to obtain a receipt including the recipient’s name, address, phone number, description
of records taken, time of return and signature of recipient. The Registrants further agree to make
said receipt available to any representative of the Registrar, upon request.
18. The Registrants shall maintain books and records which accurately record the nature of
transactions involving the purchase, sale or lease of a motor vehicle. The Registrants will not be
involved in the creation of books and records which are misleading as to the nature of a transaction
involving the purchase, sale or lease of a motor vehicle.
19. Without limiting the generality of the foregoing, the Registrants agree to maintain records in
accordance with sections 52, 53, 54, 55, 56 and 57 of Ontario Regulation 333/08.
Premises
20. The Registrants acknowledge that they are responsible for complying with all applicable laws
governing their premises.
21. The Registrants agree to maintain a sign at their registered premise that is visible to the public.
22. The Registrants agree to operate exclusively from the location approved by the Registrar. The
Registrants further agree to apply for the Registrar’s approval, by way of prior written notice, of any
change in location.
23. The Registrants agree not to invite the public to deal at a place other than their approved location.
24. The Registrants will ensure that all advertisements placed by or on behalf of the Registrants will
identify the registered name and address of the location approved by the Registrar, and be in
compliance with the advertising provisions set out in Section 36 of the Regulations to the Motor
Vehicle Dealers Act 2002.
25. The Registrants will have a phone number that is publicly listed with the dealer’s registered name
and address.
DISCLOSURE
26. The Registrants agree that they are under a positive obligation to disclose in writing on the bill of
sale all material facts about the vehicles they sell or lease to customers, whether or not the
Registrants agree with the disclosure and whether or not the vehicle has been branded through the
Ministry of Transportation. “Material facts” include, but are not limited to, disclosure of salvage,
previous salvage, accidented and repaired, frame damage, theft recovery, unibody damage,
previous taxi cab, previous police car, previous daily rental, previous limo or Emergency Service
Vehicle, insurance write-off and any other material fact which, in the Registrar’s opinion, may affect
a decision to purchase or lease the vehicle. In the case of damaged vehicles, the Registrants
further agree to disclose as much detail as possible with respect to the nature and severity of the
damage in order to ensure compliance with Section 42 of the Regulations. The Registrants will
make reasonable efforts to research the history of all their vehicles prior to sale to ensure all
material facts are disclosed.
27. The Registrants agree that they will not represent any charges or fees on a bill sale as being
required by law (e.g. tax, registration fee, certification), unless said charges or fees are legally
required.
28. The Registrants agree that they are under a positive obligation to disclose in writing on the bill of
sale, the distance traveled of motor vehicles sold or leased in accordance with the Motor Vehicle
Dealers Act, 2002 and its Regulations.
29. The Registrants will not, directly or indirectly, allow the odometer reading on any motor vehicle
purchased sold or leased to be altered in any way. In case of a repair of a broken odometer, the
Registrants shall record and maintain in the reconditioning record as defined by the Act, the
reading in miles or kilometres that was on the odometer, prior to the exchange or repair.
30. The Registrants agree to accept full responsibility for the quality of any repairs or alterations to a
motor vehicle, which were completed by the Registrants’ personnel, agents, assignees or affiliated
repair facilities.
31. Without limiting the generality of the foregoing, the Registrants will ensure that all trades in motor
vehicle are completed in accordance with sections 39, 40, 41, 42 and 43 of Ontario Regulation
333/08, where applicable, and that any dealer-to-dealer trades meet the disclosure requirements
set out in section 4 of the Code of Ethics.
Financial Responsibility
32. The Registrants will comply with all aspects of the Retail Sales Tax Act with regards to filing and
ensuring all tax collections are accurately reported and remitted to the Minister of Finance, when
due. The Registrants acknowledge that all taxes collected are deemed to be trust funds and will not
be used for any other purpose other than remittance to the Minister of Finance.
33. The Registrants agrees to provide the Registrar with written notice of any new sources of financing
or guarantors for the dealership within 5 days of having arranged for or received the financing,
whichever comes first. This does not apply where the Registrants has applied on his 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 Caisses
Popularies Act, as amended from time to time, applies.
34. The Registrants agree to maintain bank accounts in accordance with section 59 of Ontario
Regulation 333/08.
35. The Registrants agree to maintain a trust account in respect of any deposits made in excess of
$10,000.00 or any funds in relation to motor vehicles sold on consignment.
36. The Registrants further agree that they shall maintain the trust account in accordance with section
58 of Ontario Regulation 333/08 under the Motor Vehicle Dealers Act, 2002.
37. The Registrants agree to provide written confirmation to the Registrar that a trust account has been
established in the Dealer’s name at its financial/banking institution within 5 days of establishing
same.
Other
38. The Registrants agree that, if they receive a consumer complaint which they are unable to resolve,
they will notify the Registrar in writing within 10 days.
39. The Registrants will immediately enroll in the Ontario Motor Vehicle Industry Council’s Automotive
Certification Course and provide proof of successful completion of same on or before July 30, 2010.
40. The Registrants will ensure that any person responsible for the day-to-day operations of the
dealership will enrol in the Automotive Certification Course within 60 days of employment and will
provide proof of the successful completion of the course within 120 days of employment.
41. Madga Rasoul acknowledges that she has taken the time to carefully review these terms and
conditions, and, by signing and initialling, acknowledges that she understands their significance
and agrees to abide by them.
42. The Registrants understand that the Registrar is relying on the accuracy and completeness of all
documents, statements or information provided by the Registrants. The Registrants confirm that all
documents, information or statements provided to the Registrar are true to the best of the
Registrants’ knowledge and belief and that the Registrants have given full answers to all questions
and requests made by the Registrar in connection with the Registrants’ registration.
43. The Registrants acknowledge that the Registrar may take further administrative action, including a
proposal to revoke registration, arising from any matters that have occurred or may occur related to
honesty and integrity or financial position.
44. The Registrants acknowledge that they have obtained or had the opportunity to obtain independent
legal advice with respect to their consent to the terms and conditions set out herein.
45. The Registrants hereby consent to an Order of the Licence Appeal Tribunal including the Terms
and Conditions set out herein
Signed in the City of _________________ this _____ day of _______________ 20_____.
Magda Rasoul (please print)
(Signature) I have authority to bind the dealership.
These Terms and Conditions are accepted by the Registrar, Motor Vehicle Dealers Act, 2002.
Date:
Carl Compton
Registrar
Source:
http://www.lat.gov.on.ca/ Appeal Decisions 2009 March
