Registrar's Decision 07-70255

• Registrar Ken Smith found Ocean Park Ford committed an unconscionable act and issued a compliance order and administrative penalty.
• The finding was that the 92 year old consumer was confused about the return of one vehicle, bought only a few days prior, and the purchase of a second vehicle.
• The evidence at the first hearing indicated Ocean Park Ford profited some $7,500.
• Ocean Park Ford asked for a reconsideration of that decision and provided new evidence showing no such profit and that it did not take advantage of the consumer.
• The consumer’s son maintained that Ocean Park Ford made a mistake only and did not do anything intentionally wrong.

• In law there is a difference between a mistake as to the essential terms or facts of a contract and unconscionability.
• A mistake is not unconscionable conduct unless it can be shown one party knew of the other’s mistake, took advantage of the mistake and the transaction was substantially unfair.
• A court may rectify (judicially amend) or rescind (judicially cancel) a contract where one or both parties have made a mistake about the essential terms or facts of a contract.
• The Registrar’s jurisdiction is over deceptive and unconscionable acts. If there is only a mistake about the essential terms or facts of a contract; the parties need to seek the assistance of the courts.
• The new evidence (accounting entries and written and oral submissions by both parties) when viewed with the previous evidence, showed that there was no excessive profit in favour of Ocean Park Ford, nor did Ocean Park Ford place any pressure on the consumer. Therefore, the necessary legal elements of an unconscionable act where not present. It was therefore appropriate that the compliance order and notice of penalty issued by Registrar Smith be canceled. 

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