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Registrar's Decision

Registrar's Decision 12-029

File Number: 12-029

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: Gregory Saunders

Licensee/Unlicensed person:

NANAIMO CHRYSLER LTD., MICHAEL KARL LAX, ELWOOD TREVOR FOSTER and DOUGLAS JAMES GREEN

Issues:

  • A hearing was called due to allegations that Nanaimo Chrysler, Elwood Trevor Foster, Douglas James Green and Michael Karl Lax breached the Business Practices and Consumer Protection Act S.B.C. 2004 c. 2 (the “BPCPA”).
  • On February 20, 2012 the consumer purchased a 2012 Jeep Compass (the “Jeep”) trading in his 1998 Dodge RAM 1500 (the “Trade-in”).
  • It was alleged that the Respondents failed to advise the consumer that the Jeep he purchased was subject to a consumer cash incentive of $1,750 provided by the manufacturer.
  • This case was heard along with the complaint of Mary Sovereign, Investigation File No. 12-70282.

Outcome:

  • Based on all of the evidence, the Registrar finds that on a balance of probabilities, Mr. Foster and Nanaimo Chrysler represented to the consumer that he was receiving $4,100 for the Trade-in.
  • The Registrar also finds on a balance of probabilities that the consumer was not told he was receiving the consumer cash incentive of $1,750 as part of the Trade-in.
  • By mixing in a consumer cash incentive with the actual value of the Trade-in and not advising the Consumer of that fact, a dealer deprives the consumer of making an informed decision of entering into the agreement. How is a consumer to know what value he is getting for the vehicle he is selling to the dealer if its value is mixed in with a manufacturer’s incentive, the amount of which is unknown to the consumer.
  • The Registrar finds the consumer is entitled to the $1,750 consumer cash incentive as he was not advised of the incentive. This amount would have reduced the selling price of the Jeep and therefore the taxes payable.
  • The consumer is also entitled to that lost tax benefit which at the time was 12% HST. The consumer is entitled to damages in the amount of $1,960 ($1,750 x 1.12).
  • Nanaimo Chrysler and Mr. Foster have not met the burden of proof placed upon them by the BPCPA.
  • The Registrar does not find that Mr. Douglas Green committed a deceptive act or practice as alleged.
  • No finding is made in relation to Michael Lax’s conduct.
  • Nanaimo Chrysler and Elwood Foster have breached the BPCPA and a compliance order will be issued.
  • Nanaimo Chrysler and Elwood Foster are ordered to pay the consumer $1,960.
  • Nanaimo Chrysler and Elwood Foster are ordered to pay $1,710.38 being the Registrar’s investigation and hearing costs in this matter.
  • No administrative penalty is levied in this matter.

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