Registrar's Decision

Registrar's Decision 13-11-001

File Number: 13-11-001

In the matter of THE MOTOR DEALER ACT R.S.B.C. 1996 C.316

Complainant: Jesse MacDougall

Licensee/Unlicensed person:



  • A hearing was called due to an allegation that 2258756 Ontario Ltd. dba Auto/One Leasing LP (“Auto/One”) represented to Jesse MacDougall (the “Consumer”) that he was receiving an extended warranty that he had paid for, when he did not.
  • The allegations also allege that this conduct was done by Ralph Schonwetter, Cecelia Denegri-Jette along with Whitney McElroy.
  • Whitney McElroy negotiated the price of the BMW and the warranty with the Consumer. Whitney McElroy then sold the BMW, with the extended warranty, to Auto/One. Auto/One leased the BMW to the Consumer.
  • It was found that the premium for the extended warranty was not paid to the warranty company, Global Warranty.
  • It was further found that the BMW sold to the Consumer would not qualify for an extended warranty as it was a rebuilt vehicle. All parties, including the Consumer, knew that the BMW was a rebuilt vehicle before the transaction occurred.
  • Auto/One claimed they were not the dealer in this transaction, but that they only financed the deal by leasing the BMW to the Consumer.


  • By leasing the BMW to the Consumer for purposes that were primarily personal, family or household use, Auto/One was the motor dealer in this transaction.
  • Auto/One and Mr. Schonwetter made a negligent misrepresentation to the Consumer by indicating he was purchasing a valid warranty when he did not. They made no effort to confirm with Global that Global would honour a warranty on a rebuilt vehicle. It is common knowledge within the industry that rebuilt vehicles are generally denied warranty coverage. Global warranty and its warranty programs are also well known within the industry.
  • Auto/One and Mr. Schonwetter are jointly and severely liable to refund the Consumer the $1,999 plus taxes he paid for the warranty.
  • Auto/One is required to implement a policy and procedure of verifying with the warranty company, the validity of any warranty being offered on rebuilt vehicles.
  • The Registrar found that Whitney McElroy misled Auto/One and Mr. Schonwetter but that Auto/One and Mr. Schonwetter could have taken steps to verify the validity of the warranty. The Registrar found in these circumstances, no administrative penalty was necessary to ensure future compliance.
  • Ms. Denegri-Jette must successfully complete the Salesperson Certification Course within 60 days of the date of the decision, at her own cost. Whitney McElroy is prohibited from being licensed as a salesperson or registered as a motor dealer in the future.

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