Registrar's Decision

Compliance > Registrar’s Decisions > Registrar’s Decision 12-022

Registrar's Decision 12-022

File Number: 12-022

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: JENNIFER NAPLES

Licensee/Unlicensed person:

RIVER CITY AUTO SALES LTD., PHILLIP RUSSELL and LARRY AKINS

Issues:

The consumer purchased a 2003 Kia Rio from River City Auto Sales Ltd. (“River City”).
The consumer claimed River City sold an unsafe vehicle due to mechanical issues
arising soon after purchase.
River City did its own inspection of the Kia prior to transferring it to the consumer but the inspection was not detailed and the person who did the inspection was not a licensed mechanic, was still learning and unsupervised.
Prior to the purchase, an inspection was completed by another dealer and during that inspection several concerns were identified and they decided not to keep the vehicle in their inventory and sold the vehicle through ADESA Auction.
At the Hearing the consumer, for the first time, admitted being in an accident with the vehicle a month after purchase and before the vehicle was inspected by her mechanic.
The Consumer also, for the first time, admitted not transferring ownership of the vehicle until 3 months after purchase. Also for the first time, the consumer admitted to changingthe ICBC/Transfer Tax form by
checking off the out of province declaration which was River City’s to make.
It was unclear from the mechanical concerns raised by the prior dealer that the vehicle was unsafe.

Issues:

River City has rebutted the allegation that it represented the vehicle as safe when it was not. It has met its burden of proof under the BPCPA. No compliance order was issued.
The Registrar makes no comment as to the consumer’s rights under the Sale of Goods Act.
River City has a condition on their registration to ensure every vehicle it is offering for sale meets the requirements of the Motor Vehicle Act. River City must show proof of a proper inspection by a qualified technician to all consumers prior to the consumer agreeing to purchase a motor vehicle.
If in the future, River City fails to research the prior history of motor vehicles and ensure they comply with the Motor Vehicle Act, River City risks the loss of its registration.