Registrar's Decision

Compliance > Registrar’s Decisions > Registrar’s Decision 10-009

Registrar's Decision 10-009

File Number: 10-009 =

In the matter of THE MOTOR DEALER ACT R.S.B.C.1996 C.316
and THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT S.B.C. 2004 c.2

Complainant: REGISTRAR

Licensee/Unlicensed person:

LCB AUTOS LTD.

Issues:

New applicant for motor dealer registration sought authorization to sell on consignment.
Authority staff were concerned with the application for registration for three reasons:
Lack of experience by the motor dealer and its directing mind (less than three years);
Under funding and financial backing of the motor dealership; and
The business plan was dependent on consignment sales.
Hearing was called at the request of the applicant to review consignment sales authorization.

Outcome:

The Registrar explained the law regarding licensing decisions and its policy rationale regarding consignment sales.
The motor dealer was too dependent on consignment sales from too narrow a source.
The motor dealer lacked the necessary experience in running a motor dealership.
The motor dealer lacked financial backing to independently obtain inventory and weather the ebb and flow of used car sales.
The Registrar found it was not in the public interest to authorize LCB to conduct consignment sales.
The motor dealer was free to resubmit a business plan without consignment sales and cautioned that it would still need to address its under-funding.