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Motor Vehicle Dealing (Ontario)
Legal Guide
Ch.3 - Administration and Registration
(20 June 2021)- OMVIC
- Registration
(a) Registration Rules
(b) Application and Fees
(c) Registered Names
(d) Notice to Applicant of 'Associated' and 'Interested' Persons
(e) Mandatory Registration Criteria
(f) Refusals for Cause
(g) Registrar May Request Information and Verification from Applicant
(h) Voluntary Cancellation of Registration
(i) Notice and Service of Registration Decisions
(j) Hearings (Appeals)
(k) Expiration of Registration
(l) Conditions
(m) Re-applications
(n) Registrant Information Changes
(o) Financial Statements
(p) Corporate Disclosure by MV Dealers on Registration or Renewal, and Updating
(q) Certificate of Registration
(r) Posting and Availability of Certificates of Registration
(s) Posting Signs
(t) Place of Trading and Offices
(u) General Updating of Registrant Application Information
- Motor Vehicle Dealers and their Categories
(a) General
(b) General Dealers
(c) Brokers
(d) Wholesalers
(e) Exporters
(f) Outside Ontario
(g) Lease finance dealers
(h) Fleet Lessor
- Registrant and Other Prohibitions
(a) Overview
(b) Dealer Duty Over Salesperson
(c) No Removal, Alterations of Labels etc
(d) VINs
(e) Registration Certificates
(f) Falsifying information
(g) False advertising
- Public Registry
(a) Overview
(b) Limitations of Registry Information, Exceptions
(c) Contents of the Registry
1. OMVIC
The administrative authority of the MVDA is the "Ontario Motor Vehicle Industry Council" (OMVIC) [Safety and Consumer Statutes Administration Act, 1996 (SCSAA), s.3(2); SCSAA General Reg 187/09, s.3].
OMVIC shall appoint one director and two deputy-directors "for the purposes of this Act" [Act 2(1)]. OMVIC shall also appoint a Registrar and a maximum of two Deputy-Registrars [Act 3(1)]. Directors and Registrars (and their deputies) may not be cross-appointed [Act 2(2), 3(2)].
The "Minister of Consumer and Business Services or such other member of the Executive Council to whom the administration of this Act is assigned under the Executive Council Act" administers the MVDA [MVDA 1(1)].
2. Registration
(a) Basic Registration Rules
The two regulated roles under the MVDA are the 'motor vehicle dealer' ('dealer') and the 'salesperson' ('salesperson'), who must both be registered under the Act [MVDA 4(1)].
A motor vehicle dealer (a "dealer") "means a person who trades in motor vehicles, whether for the person’s own account or the account of any other person, or who holds himself, herself or itself out as trading in motor vehicles" [MVDA 1(1)]. A dealer may only carry on business in their registered name, and may only "invite the public to deal" in the place authorized in their registration [MVDA 4(2)]. Dealers may only "retain the services" of a registered salesperson [MVDA 4(3)], and dealers shall not "supply motor vehicles to another motor vehicle dealer for the purpose of trading ... unless the other motor vehicle dealer is registered in that capacity." [MVDA 4(4)].
A salesperson may not trade an motor vehicle ['MV'] on behalf of a dealer unless registered [Act 4(5)]. "It is a condition of registration as a salesperson that the salesperson is employed or retained to act as a salesperson by no more than one registered motor vehicle dealer unless all the dealers give their written consent in a form approved by the registrar" [General Reg 14], and the dealers shall notify the Registrar in writing within five days of the giving of this consent in a form approved by the Registrar [G Reg 31(1,3)].
A salesperson "means an individual who is employed by a motor vehicle dealer to trade in motor vehicles on behalf of the motor vehicle dealer", but the definition of "employ" is broader than just an 'employer-employee' relationship [MVDA 1(1)]:“employ” means to employ, appoint, authorize or otherwise arrange to have another person act on one’s behalf, including as an independent contractor; Upon the termination of employment (by a dealer) of a salesperson, the salesperson's registration expires [Reg 17(2)]. If the salesperson is still doing work that registration is required for, then they may apply for a special registration that extends them to their certificate expiration date [General Reg 17(3-5)].
(b) Application and Fees
Applications for registration must be on registrar-approved forms and be accompanied by the OMVIC-prescribed fees [Reg 9].
(c) Registered Names
The registered name of a registrant (either dealer or salesperson) may be either [Reg 8]:- "the complete legal name of the registrant";
- "one or more of the legal given names of the registrant, in the correct order, followed by the registrant’s legal surname, if the registrant is an individual", or
- "one or more of the names registered under the Business Names Act by the registrant, if the registrant is a registered motor vehicle dealer."
The Registrar shall "make available to the public the names of registrants and other information" [MVDA 40, Reg 27 (see s.4 "Public Registry", below)].
(d) Notice to Applicant of 'Associated' and 'Interested' Persons
. Associated Persons
The concept of the 'associated person' is used to determine if registrants have close relations with other people that the Registrar may wish to know about for purposes of registration.
A 'person' [under s.87 of the Legislation Act, a “person” can include a corporation] is 'associated' with another if [MVDA 1(2)]:- one person is a corporation of which the other person is an officer or director;
- one person is a partnership of which the other person is a partner;
- both persons are partners of the same partnership;
- one person is a corporation that is controlled directly or indirectly by the other person;
- both persons are corporations and one corporation is controlled directly or indirectly by the same person who controls directly or indirectly the other corporation;
- both persons are members of the same voting trust relating to shares of a corporation; or
- both persons are associated within the meaning of paragraphs 1 to 6 with the same person.
. Interested Persons and Notice to Applicant
The Registrar shall notify the applicant of 'interested persons' on receipt of an application for registration or renewal. These are people who, in the Registrar's opinion, are either 'associated' [as described above], or - in the opinion of the Registrar [MVDA 6(4), Reg 11(2)]:- the person has or may have a beneficial interest in the other person’s business;
- the person exercises or may exercise control either directly or indirectly over the other person; or
- the person has provided or may have provided financing either directly or indirectly to the other person’s business.
If there are no such people, the Registrar shall also notify the applicant of that [Reg 11(2)].
(e) Mandatory Registration Criteria
. Overview
Registrations are not transferable [Act 6(3)].
The below are the mandatory criteria for registration of dealers and salespersons, both on initial registration or renewals [Act 5.1(1)].
. Dealers
For dealers the criteria are [General Reg 11(1)]:- Fees
The fee [under Reg 9(b), see link above].
- Age
If an individual, they are 18 years of age or older.
- If Retail Sales Tax Owing
That all of the (a) applicant, (b) 'associated persons' [explained above] or (c) "interested persons" [also explained above] who the applicant has received notice of by the Registrar, "does not owe money to the Crown under the Retail Sales Tax Act" or, if they do owe such money, they have "made arrangements, acceptable to the Ministry of Finance, to pay the money" [or, the case of 'interested persons', "within a reasonable time period that the registrar specifies"] [Reg 11(1)(3-5)].
- Present or Past Registrant Status re Fund Levies or Payments
The applicant, and any 'interested person' [explained above] is neither in default of levies or payments to the Motor Vehicle Dealers Compensation Fund (the "Fund") or has not failed to reimburse such payments [MVDA 42(6)]. If they are in such default or have failed to reimburse, then the "applicant has made arrangements with the registrar" [MVDA 42(8)] and "has complied or is complying with those arrangements" [Reg 11(1)(6-7)] [or, the case of 'interested persons', "within a reasonable time period that the registrar specifies"].
- Day-to-Day Operator Shall Complete Course for Some Categories of Applicant
If the application is not for an "outside Ontario dealer, a lease finance dealer or a fleet lessor" then the 'day-to-day operator' shall [as required by Reg 11(3)] "have successfully completed the course designated by the registrar for the purposes of this paragraph" [Reg 11(1)(8), 11(3)].
- Municipal By-law Compliance
It is a condition of registration as a dealer that the applicant comply with all municipal by-law requirements that apply to each municipality from which the dealer trades [Reg 28(9)].
- Outside Ontario Dealer
Where the application is for an "outside Ontario dealer, the applicant is registered in another jurisdiction as a person with equivalent status to a registered motor vehicle dealer." [Reg 11(1)(9)].
. Salespersons
For salespersons the criteria are [Reg 13(1)]:- Fees
The fee [Reg 9(b), see link above].
- Experience or Course
The applicant has either:. at the time of the application, successfully completed the required course [OMVIC Courses] "designated by the registrar";
. was previously registered as a salesperson under the old Motor Vehicle Dealers Act (before its repeal at 01 January 2010), and "the application is made no more than two years after the expiry of the applicant’s most recent registration as a salesperson"; or
. "was previously registered as a salesperson under the MVDA, 2002, the registration has expired but, at any time less than two years before the time of the current application for registration, the applicant successfully completed the course designated by the registrar for the purposes of the previous registration and the course has not changed since the applicant successfully completed it." In any case where the applicant has not completed the required course, the Registrar may make it a condition that they take the required course [Reg 13(2)]. The above 'experience or course' requirements do not apply for applicants for registration if only for an 'outside Ontario dealer' [Reg 13(3)].
(f) Refusals for Cause
Despite meeting the mandatory criteria [under (e) above], the applicant shall be refused registration [MVDA 6(1)(a,d), 8(1)]:- if an individual:
. "having regard to the applicant’s financial position or the financial position of an interested person in respect of the applicant, the applicant cannot reasonably be expected to be financially responsible in the conduct of business";
. "the past conduct of the applicant or of an interested person in respect of the applicant affords reasonable grounds for belief that the applicant will not carry on business in accordance with law and with integrity and honesty"; or
. "the applicant or an employee or agent of the applicant makes a false statement or provides a false statement in an application for registration or for renewal of registration". - if a corporation:
. "having regard to its financial position or the financial position of an interested person in respect of the corporation, the applicant cannot reasonably be expected to be financially responsible in the conduct of its business";
. "having regard to the financial position of its officers or directors or an interested person in respect of its officers or directors, the applicant cannot reasonably be expected to be financially responsible in the conduct of its business";
. "the past conduct of its officers or directors or of an interested person in respect of its officers or directors or of an interested person in respect of the corporation affords reasonable grounds for belief that its business will not be carried on in accordance with the law and with integrity and honesty", or
. "an officer or director of the corporation makes a false statement or provides a false statement in an application for registration or for renewal of registration".
As well, the applicant shall be refused registration if [MVDA 6(1)(e-g)]:. they "or an interested person in respect of the applicant is carrying on activities that are, or will be if the applicant is registered, in contravention of this Act or the regulations, other than the code of ethics established under section 43" [see Ch.5: "Code of Ethics"];
. "the applicant is in breach of a condition of the registration"; or
. "the applicant fails to comply with a request made by the registrar" [see (g) (immediately below): "Registrar May Request Information and Verification from Applicant"; MVDA 6(1.1)]. These 'refusal for cause' provisions apply to the following applicants, unless they have "been in charge of the day to day operations of a registered motor vehicle dealer since January 1, 2007 and without any break in time that amounts to two consecutive years" [Reg 11(3)]:- if the applicant is an individual, the applicant and, if the applicant will not be in charge of the day to day operations of the applicant as a motor vehicle dealer, the individual who will be so in charge.
- If the applicant is a corporation and one of the directors or officers of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, that director or officer.
- If the applicant is a corporation and none of the directors or officers of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, at least one of the directors or officers of the applicant and the individual who will be so in charge.
- If the applicant is a partnership and one of the partners of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, that partner.
- If the applicant is a partnership and none of the partners of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, at least one of the partners of the applicant and the individual who will be so in charge.
(g) Registrar May Request Information and Verification from Applicant
The Registrar may request "in the form and within the time period specified by the registrar" [Act 6(1.1)]:. "information specified by the registrar that is relevant to the decision to be made by the registrar as to whether or not to grant the registration or renewal"; or
. "verification, by affidavit or otherwise, of any information described in clause (a) that the applicant is providing or has provided to the registrar". (h) Voluntary Cancellation of Registration
The registrar may cancel a registration upon the request in writing of the registrant [MVDA 9(7)].
(i) Notice and Service of Registration Decisions
. Overview
Several varieties of decision can result from a registration application: refusals, suspensions, revocation and the application of unconsented conditions to a registration.
As well, there are two types of 'refusal' decisions:(1) normal failure to meet criteria (MVDA 5.1), and
(2) for cause ['financial irresponsibility, past conduct, false statements'] [MVDA s.6, 8(1)]. Most of these notices of decision are a bit odd, as they give written notice of a 'proposal' to decide [MVDA 9(1)] (below).
. Non-Proposal Notices
Only when a refusal is actually made under [(1) above, for 'normal failure to meet criteria'], is a normal written notice of refusal issued [MVDA 9(1)(a)]. When this 'normal' notice of refusal is given [MVDA 5.1(2,3)] service of the notice shall include reasons and may not be given by substitute service [MVDA 37(3)].
There is no hearing (appeal) right for such 'normal' decisions, so the applicant's remedy is in judicial review [MVDA 5.1(2)].
. Proposal Notices
A 'Notice of Proposal' shall be served on the applicant [MVDA 9(3)], and "shall set out the reasons for the proposed action" [MVDA 9(2)].
The Notice of Proposal shall advise the applicant of their entitlement to a "hearing by the Tribunal if the applicant or registrant mails or delivers, within 15 days after service of the notice, a written request for a hearing to the registrar" and to the Licence Appeal Tribunal [MVDA 9(2)]. If no such request is filed then "the registrar may carry out the proposal" [MVDA 9(4)].
(j) Hearings (Appeals)
. Appeals of Proposal Notices to the LAT
"If a hearing is requested, the Tribunal shall hold the hearing and may by order direct the registrar to carry out the registrar’s proposal or substitute its opinion for that of the registrar and the Tribunal may attach conditions to its order or to a registration" [MVDA 9(5)]. "The registrar, the applicant or registrant and such other persons as the Tribunal may specify are parties to the proceedings under this section" [MVDA 9(6)].
Service of such a request may be done personally, by registered mail (service deemed third day after mailing) or the LAT "may order any other method of service" [MVDA 11]
. Further Appeals to the Divisional Court
A further appeal lies to the Divisional Court [Licence Appeal Tribunal Act, 1999 ("LAT"), s.11], but the Tribunal may grant a stay of it's own order for purposes of that further appeal [MVDA 9(9)].
(k) Expiration of Registration
Normally, the registration expires on the date shown on the certificate [Reg 17(1)].
But when renewals of registrations are applied for (with the fee being paid), then the registration continues until a decision is made on the renewal [MVDA 9(8)].
When a Proposal Notice is issued, and a hearing is requested [under MVDA 9(2)], the Registrar may by order temporarily suspend the registration [MVDA 10(1)]. Such order is effective immediately for 15 days - subject to extension by the Tribunal until the hearing is concluded, if a hearing is commenced within this 15-day period [MVDA 10(2-3)].
If the "conduct of the registrant has delayed the commencement of the hearing" the Tribunal may extend the temporary suspension order "until the hearing commences" and then "once the hearing commences, until the hearing is concluded" [MVDA 10(4)].
(l) Conditions
A registration is subject to such conditions as are [MVDA 6(2)]:- consented to by the applicant or registrant,
- applied by the registrar under MVDA 9 [refusal notice] [MVDA 8(2)],
- ordered by the Tribunal, or
- prescribed by regulation.
(m) Re-applications
After a refusal of an application or a renewal, or after a revocation, the person may re-apply for registration only after two years [Reg 15], and when "new or other evidence is available or it is clear that material circumstances have changed." [MVDA 12].
(n) Registrant Information Changes
Motor vehicle dealers shall, within five days of the event, notify the Registrar in writing of [MVDA 24(1), Reg 31(3)]:- any change in address for service;
- in the case of a corporation or partnership, any change in the officers or directors; and
- the date of commencement, termination and the reason for the termination of any employed salesperson.
Salsepersons shall, within five days of the event, notify the Registrar in writing of [MVDA 24(2), Reg 31(3)]:- any change in address for service; and
- the date of commencement, termination and the reason for the termination of their employment by any motor vehicle dealer.
When such notice is given by mail it shall be deemed to have been given at the date of mailing, otherwise when received [Act 24(3)].
(o) Financial Statements
When required by the Registrar, motor vehicle dealers shall "file a financial statement, certified by a person licensed under the Public Accounting Act, 2004, showing the matters specified by the registrar and signed by the motor vehicle dealer in the case of a sole proprietorship or by an officer of the motor vehicle dealer where the motor vehicle dealer is a partnership or corporation" [MVDA 24(4)]. Filings of such financial statements are confidential [MVDA 24(5)].
(p) Corporate Disclosure by MV Dealers on Registration or Renewal, and Updating
When it registers or renews it's registration, a corporate motor vehicle dealer shall disclose to the Registrar [MVDA 7(1)]:- each person that beneficially owns or controls 10 per cent or more of the equity shares issued and outstanding; and
- persons that are associated with each other and that together beneficially own or control 10 per cent or more of the equity shares issued and outstanding.
For the meaning of 'associated', see "(d) Notice to Applicant of 'Associated' and 'Interested' Persons", above.
"In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purposes of this section, the total number shall be calculated as the total number of all shares beneficially owned or controlled, but each share that carries the right to more than one vote shall be calculated as the number of shares equalling the total number of votes carried" [MVDA 7(2)].
The motor vehicle dealer shall also "notify the registrar in writing within 30 days after the issue or transfer of any equity shares of the corporation, if the issue or transfer results in [MVDA 13(1-3)]:- any person, or any persons that are associated with each other, acquiring or accumulating beneficial ownership or control of 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation; or
- an increase in the percentage of issued and outstanding equity shares of the corporation beneficially owned or controlled by any person, or any persons who are associated with each other, where the person or the associated persons already beneficially owned or controlled 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation before the issue or transfer."
Such notice shall be in a form approved by the Registrar and shall identify either [Reg 31(2)]:- "the person, or the persons that are associated with each other, who, as a result of the issue or transfer of equity shares of the corporation, are acquiring or accumulating beneficial ownership or control of 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation"; or
- "the person, or the persons that are associated with each other, who already beneficially own or control 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation before the issue or transfer and who, as a result of the issue or transfer of equity shares of the corporation, are increasing that percentage".
(q) Certificate of Registration
Upon registration, the Registrar shall issue a 'certificate of registration' showing the following [Reg 16(1)]:- the registered name of the registrant;
- the registration number;
- the expiry date for the registration;
- if the registrant is a motor vehicle dealer, the place to which the certificate relates, except if the registrant is registered as an outside Ontario dealer, lease finance dealer or fleet lessor;
The Registrar shall issue a certificate suitable for posting for each place from which the dealer is authorized to trade [Reg 16(2)]. Also in this case, if the registrant is a sole proprietor "the registrar shall issue an additional certificate of registration that the registrant may carry on the person" [Reg 16(4)].
- if the registrant is a motor vehicle dealer, the classes of registration and subclasses, if applicable;
- if the registrant is a salesperson, a motor vehicle dealer to whom the registrant is registered.
In the case of registration of a salesperson, the Registrar shall issue an "additional certificate of registration that the registrant may carry on the person" [General Reg 16(4)].
When a registration ends or is suspended, certificates (and copies held by other registrants) are to be returned to the Registrar [Reg 29(7,8)]. If a suspension ends the Registrar shall re-issue certificates for the balance of their terms [Reg 29(9)].
(r) Posting and Availability of Certificates of Registration
. All Individual Registrants
While engaged in activities that require registration, a registrant (both dealers and salespersons) who is an individual shall carry the certificate of registration and shall produce it for inspection on the request of any person. [Reg 29(6)].
. Posting Dealers
All categories of dealer [except "Outside Ontario, Lease Finance and Fleet Lessor Dealers", next below] shall post, at each place from which the dealer is authorized to trade, their certificate of registration for that place so that the public is likely to see it [Reg 29(1,2)].
Such dealers shall keep, at the place from which the dealer is authorized to trade, a copy of the certificate for each salesperson registered to the dealer who trades from that place - and produce the copy for inspection on the request of any person [Reg 29(4)].
. Non-posting Dealers: Outside Ontario, Lease Finance and Fleet Lessor Dealers
Lease finance and fleet lessor dealers shall keep the certificate "at the place from which the dealer trades", and outside Ontario dealers shall keep them at "any place, other than a dwelling, chosen by the dealer and approved by the registrar" [Reg 56(2)(a)(i)]. All non-posting dealers shall "produce the certificate for inspection on the request of any person" [Reg 29(3)].
Non-posting dealers shall keep, "any place, other than a dwelling, chosen by the dealer and approved by the registrar" [Reg 56(2)], a copy of the certificate for each salesperson registered to the dealer who trades from that place - and produce the copy for inspection on the request of any person [Reg 29(5)].
(s) Posting Signs
Dealers (except dealers who are only 'outside Ontario, lease finance and fleet lessor' dealers, or some combination of them) "shall post, at each place from which the dealer trades, a sign that is clearly visible to the public, that cannot be removed except through express human effort or force majeure and that displays a registered name of the dealer" [Reg 30(1,2)].
(t) Place of Trading and Offices
. Places of Trading
Dealers shall not trade except from a place authorized by the dealer’s registration [Reg 28(4)], with the following exceptions:- advertising is allowed [Reg 28(4)];
- brokers [Reg 28(4)];
- dealers registered only as an outside Ontario dealer, a lease finance dealer and a fleet lessor [Reg 28(3)];
- selling under a consignment contract with another dealer as consignee at a place from which the consignee is authorized to trade [Reg 28(5)];
- selling or acquiring an interest in a motor vehicle at an auction of motor vehicles [Reg 28(5)]; or
- acquiring an interest in a motor vehicle under a trade with another dealer, at a place where one of the dealers is authorized to trade [Reg 28(5)].
. Offices
A dealer shall maintain an office "of sufficient size to permit the secure storage of records that this Regulation requires the dealer to keep at the place" at each place from which the dealer is authorized to trade [Reg 28(7,8)].
Except in the case of a wholesaler or broker, each place from which a dealer is authorized to trade shall be separate from a dwelling [Reg 28(6)].
These office requirements do not apply when the dealer is only an outside Ontario dealer, a lease finance dealer or a fleet lessor [Reg 28(3)].
(u) General Updating of Registrant Application Information
This provision, that seems to relate to any of s.2(b,e,g,n,o,p) above - all of which require "information that the registrant supplied for the purpose of obtaining registration" - requires written notification to the Registrar of any change within five days in such information [Reg 31(1)].
3. Motor Vehicle Dealers and their Categories
(a) General
There are several classes and sub-classes of motor vehicle dealers ("dealers"), including [Reg 18(1)]:- general dealer, consisting of the the two sub-classes of 'new and used motor vehicles' and 'used motor vehicles';
- broker;
- wholesaler;
- exporter;
- outside Ontario dealer;
- lease finance dealer;
- fleet lessor.
Motor vehicle dealers, other than "a general dealer, broker or outside Ontario dealer" may be registered "in more than one class or subclass" [Reg 18(2)]. Dealers may only be registered once despite the different locations that they trade from, but the locations must be listed in their registrations [Reg 12].
(b) General Dealers
Technically, there are two sub-classes of general dealer, one for 'new and used motor vehicles' and one for 'used motor vehicles' - and a dealer shall not have registrations for both sub-classes at the same time [Reg 19(3)].
The 'general dealer' category is really a 'universal' registration, as it authorizes the dealer "for all trades in motor vehicles" [Reg 19(1)], though the "used motor vehicle" general dealer is limited to trades only in used motor vehicles [Reg 19(2)].
(c) Brokers
'Brokers' act as agents for a non-registrant to facilitate a customer buying or selling a motor vehicle. They have "no property interest in the trade", nor do they "take or handle the funds used to pay for the trade". Broker activities can include advertising their services [Reg 20(1)].
'Brokers' may not be registered in any other motor vehicle dealer categories, and they may not be 'associated' with any other registrant [Reg 20(2)] [see s.2(d), above re 'associated persons'].
Brokers must only serve the interests of their customers, and so a broker may not [Reg 20(3)]:- represent the interests of any person other than the customer;
- receive compensation from a person who is not a party to the trade; or
- receive compensation from more than one party to the trade.
Neither shall a broker "sell extended warranties or service plans or facilitate their sale through the broker" [Reg 20(4)], or "take possession of the motor vehicle" [Reg 20(5)].
(d) Wholesalers
'Wholesalers' may only [Reg 21]:- trade in motor vehicles with other registered motor vehicle dealers;
- purchase motor vehicles from the Crown or a person who is 'generally exempt' from the MVDA [the wording is: "who is exempt from the Act and the regulations as a result of one of the paragraphs of subsection 2(1)"] (see Ch.2, s.1: "Full Exemptions");
and
- sell motor vehicles at an auction where,
. the auctioneer is 'generally exempt' from the MVDA (as above), and
. the purchaser is located in another jurisdiction and they have the "equivalent status to a registered motor vehicle dealer" there.
(e) Exporters
An 'exporter' motor vehicle dealer registrant may only "buy motor vehicles for the purpose of export outside of Ontario and to advertise with respect to such buying" [Reg 22]. "No dealer shall export a motor vehicle outside of Ontario unless the dealer has taken ownership of the vehicle" [Reg 51].
(f) Outside Ontario
An 'outside Ontario' motor vehicle dealer may only "buy motor vehicles for the purpose of export outside of Ontario and to advertise with respect to such buying" [Reg 23(1)]. These dealers "shall not have a place authorized in the dealer’s registration to which the dealer invites the public to deal with respect to motor vehicles OR from which the dealer trades in motor vehicles" [Reg 23(2)].
(g) Lease Finance Dealers
Lease finance dealers have a three-way association [see s.2(d), above re 'associated persons'] with a general dealer, and an MVDA-declared and MVDA-exempt manufacturer (or their authorized distributors) [Reg 24(1), 2(1)21, 2(7,9)]. The exempt manufacturer (or their authorized distributor) may only sell or lease a motor vehicle to a consumer within the meaning of the Consumer Protection Act, 2002 through (or facilitated by) a general dealer (new and used).
A lease finance dealer may only [Reg 24(2)]:- buy motor vehicles;
- lease motor vehicles through (facilitated by) a general dealer for a term of at least 120 days;
- lease a prior-leased motor vehicle through (facilitated by) a general dealer or a "salesperson registered to the lease finance dealer";
- sell a prior-leased motor vehicle, either:
. directly to the lessee or through (facilitated by) a general dealer, an individual who drove the vehicle during the term of the lease or, if the lessee is a partnership, a partner of the lessee,
. to a dealer or an MVDA-exempt declared manufacturer (or their authorized distributors), or
. at an auction where, the auctioneer is generally MVDA-exempt [under Reg 2(1)1] and the sale is made to a non-Ontario registered motor vehicle dealer; - sell a re-possessed motor vehicle that was re-possessed to or through a dealer, or at an auction where, the auctioneer:
. is generally MVDA-exempt [under Reg 2(1)1], and
. the sale is made to a non-Ontario registered motor vehicle dealer;
- trade in a motor vehicle with a general dealer or a manufacturer (or their authorized distributor);
- to trade in a motor vehicle with the purchaser if:
. the vehicle is the subject of a conditional sales contract originally entered into between the purchaser and a general dealer, and
. the general dealer has assigned its interest under the contract to the lease finance dealer.
A lease finance dealer may advertise any of the above activities [Reg 24(2)(g)].
(h) Fleet Lessor
A fleet lessor may only [Reg 25]:- buy motor vehicles or lease motor vehicles as a lessee;
- lease a motor vehicle to a commercial lessee [who is not a consumer within the meaning of the Consumer Protection Act, 2002]; or
- sell a previously leased motor vehicle:
. to the lessee,
. to an individual who drove the motor vehicle during the term of the lease,
. to an officer or director of the lessee, if the lessee is a corporation,
. to a partner of the lessee, if the lessee is a partnership, or
. to a dealer or a manufacturer (or their authorized distributor), or
. at an auction where, the auctioneer is generally MVDA-exempt [under Reg 2(1)1] and the sale is made to a non-Ontario registered motor vehicle dealer.
A lease finance dealer may advertise any of the above activities [Reg 25(d)].
4. Registrant and Other Prohibitions
(a) Overview
There are several MVDA prohibitions that apply to dealers and salespeople ('registrants'), and some to anyone for that matters. These can be used either in legal argument in civil and administrative procedures, and also in offence prosecutions [see Ch.9: "Enforcement and Offences"].
(b) Dealer Duty Over Salesperson
A dealer shall ensure that a salesperson employed by the dealer "is carrying out his or her duties in compliance with this Act and the regulations" [MVDA 23]. 'Employ' here means more than an employer-employee relationship - "employ means to employ, appoint, authorize or otherwise arrange to have another person act on one’s behalf, including as an independent contractor" [MVDA 1(1)].
(c) No Removal, Alterations of Labels etc
"It is a condition of registration that a registrant not remove or alter any label or number that was affixed to a motor vehicle by any lawful authority in or outside of Canada, except if the removal or alteration is permitted by law" [MVDA 32(4)].
(d) VINs
"It is a condition of registration that a registrant not trade in a motor vehicle that has affixed to it a vehicle identification number that has been obliterated, defaced or that is not easily recognizable" [MVDA 32(5)].
"No registrant shall affix, or cause to be affixed, a vehicle identification number to a motor vehicle" [Reg 32(1)].
"No registrant shall use a vehicle identification number in respect of a motor vehicle if the number does not relate to the vehicle" [Reg 32(2)].
"No registrant shall facilitate the use of a vehicle identification number for dishonest purposes" [Reg 32(3)].
(e) Registration Certificates
"No registrant shall alter, modify or falsify a certificate of registration or allow or assist in the altering, modifying or falsifying of a certificate of registration" [Reg 29(10)].
"No registrant shall use or facilitate the use of a certificate of registration or a copy of a certificate of registration for dishonest purposes" [Reg 29(11)].
(f) Falsifying information
"No registrant shall falsify, assist in falsifying or induce or counsel another person to falsify or assist in falsifying any information or document relating to a trade in motor vehicles" [MVDA 26].
"No registrant shall furnish, assist in furnishing or induce or counsel another person to furnish or assist in furnishing any false or deceptive information or documents relating to a trade in a motor vehicle" [MVDA 27].
(g) False advertising
"No registrant shall make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to trading in motor vehicles" [MVDA 28].
5. Public Registry
(a) Overview
The Act requires the registrant information [set out in (b), below] to be made publically available "by electronic or other means". [SS: I couldn't find this on the OMVIC website].
The Act also requires the Registrar to post additional information in the Registry about registrants, past registrants, "or a person who is carrying on activities that require registration" - "if the registrar is of the opinion that the information could assist in protecting the public if the public knew of it" [Reg 27(2)]. This 'additional information' shall not include "financial information relating to a person or the business of a person and the person could reasonably expect that the information be kept confidential" [Reg 27(3)].
(b) Limitations of Registry Information, Exceptions
As well, names of individuals shall not be included in the Registry unless [Reg 27(4)]:- the individual is a registrant, a former registrant, a person registered at any time under the (prior) Motor Vehicle Dealers Act or a person who is required to be registered;
- the individual is a director or officer of a dealer;
- the name of the individual is otherwise available to the public in connection with the information; or
- the individual consents.
Registry information shall not be made available 'in bulk', except "as required by law or to a law enforcement authority" [Reg 27(6)].
These two limitations [Reg 27(4,6), above] are themselves exempted (ie. disclosure is allowed) as follows for persons who are 'generally-exempt' from the Act (above) [Reg 27(7)], for the purpose of allowing the persons to ensure that there is compliance with the exempt auctions provisions [under Reg 2(3)]:- the complete legal name of each person registered as a dealer and, if the person is registered under another name, the name under which the person is registered;
- the business address, registration number and expiry date for the registration of each of the persons above;
- the complete legal name of each person registered as a salesperson, the person’s registered name if different from the legal name, the person’s registration number and the expiry date of the registration;
- the registered names and registration numbers of the dealers to whom each registered salesperson is registered.
(c) Contents of the Registry
The registrar shall make available to the public the following information [Reg 27(1)]:- 1. Names
The complete legal name of each person registered as a motor vehicle dealer and, if the person is registered under another name, that name.
- 2. Classes
The class or sub-class of the registration of the persons set out in 1.
- 3. Contact Information
The business address and business phone number of the persons set out in 1, and the same for every place from which the person is authorized to trade and the other ways, if any, of contacting the person.
- 4. Salespersons
The registered names of persons registered as salespersons and the motor vehicle dealers to whom each salesperson is registered.
- 5. Conditions of Registration
A description of the conditions, if any, that apply to a registrant’s registration if they are applied by the registrar [under s.9 MVDA] or ordered by the Tribunal;
- 6. Pending Conditions
If a proposal by the registrar [under s.9 MVDA] to apply conditions to a registrant’s registration has not yet been disposed of, that fact.
- 7. Refusals of Renewals and Revocations
The registered names of registrants whose renewal of registration has been refused or whose registration has been revoked. This information shall be maintained in the Registry for at lease two years after the refusal to renew or revocation [Reg 27(5)].
- 8. Pending Refusal to Renew
If a proposal by the registrar to refuse to renew a registrant’s registration has not yet been disposed of, that fact.
- 9. Suspensions
The registered names of registrants whose registration has been suspended. This information shall be maintained in the Registry for at lease two years after the suspension is over, or immediately if the Tribunal ends it [Reg 27(5)].
- 10. Pending Suspensions
If a proposal by the registrar to suspend a registrant’s registration has not yet been disposed of, that fact.
- 11. Pending Revocations
If a proposal by the registrar to revoke a registrant’s registration has not yet been disposed of, that fact.
- 12. Pending Offences (POA Charges)
For every registrant, former registrant, person registered at any time under the Motor Vehicle Dealers Act and director or officer of a registered motor vehicle dealer who is currently charged with an offence as a result of an information laid by an employee of OMVIC:i. the Act that creates the offence,
ii. a description of the charge, and
iii. the date on which the information was laid. - 13. Offence Convictions
For every registrant, former registrant, person registered at any time under the Motor Vehicle Dealers Act and director or officer of a registered motor vehicle dealer who has been found guilty of an offence as a result of an information laid by an employee of OMVIC:i. the Act that creates the offence,
ii. a description of the offence, and
iii. a description of the disposition of the charge, including any sentence that was imposed and any order to pay compensation or make restitution. This information shall be maintained in the Registry for at lease two years after the conviction [Reg 27(5)].
- 14. False Advertising Orders
If an false advertising order made [under s.29 Act] against a registrant is currently in effect, a copy of the order. This information shall be maintained in the Registry for at lease two years after the registrar's order, or - in the case of an appeal - two years after the Tribunal made it's order [Reg 27(5)].
- 15. Final Discipline Committee (Code) Orders
The registered name of the registrant and the contents of an order made by the discipline committee [under s.17 Act] after determining that a registrant has failed to comply with the 'Code of Ethics and Operation of Committees' [the 'Code'], if:i. the time for commencing an appeal of the order has expired and no appeal has been commenced, or
ii. an appeal of the order was commenced but has been withdrawn or abandoned. This information shall be maintained in the Registry for at lease two years after the order was made [Reg 27(5)].
- Final Discipline Appeals Committee Orders
16. The registered name of the registrant and the contents of an order made by the appeals committee [under s.17 Act] if:i. the discipline committee has made a determination that the registrant has failed to comply with the Code and the appeals committee has upheld the determination, or
ii. the appeals committee determines that the registrant has failed to comply with the Code. This information shall be maintained in the Registry for at lease two years after the order was made [Reg 27(5)].
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