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Registrar’s Decision 14-02-002

File Number: 14-12-002

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: Motor Vehicle Sales Authority and Mike Bunyak

Licensee/Unlicensed person:

Darryl’s Best Buys Auto Sales Ltd. (DL #11019), and Darrin Joseph Cotnam (SP #119247)

Issues:

The hearings were called to review the following allegations against the Darryl’s Best Buys Auto Sales Ltd. and Darrin Joseph Cotnam:

The Dealer failed to properly declare the Ford was an ex-lease vehicle,
The Dealer sold the vehicle with unsafe tires,
The Dealer charged Mr. Bunyak $140 for a transmission flush which was never completed,
The Dealer failed to provide the extra key and two key fobs it had represented came with the Ford,
The Dealer sold the Ford with a transmission leak from the “main seal,”
The Dealer failed to provide a full tank of gas as represented by Darrin Cotnam, and
The Dealer declared on the purchase agreement the incorrect odometer reading.

Outcome:

FINDINGS:

The following were the Registrar’s findings on the allegations

Darrin Cotnam and the Dealer misrepresented the ex-lease status of the Ford, being a material fact, on the purchase agreement and they created an ambiguity about the ex-lease history of the Ford by making a contradictory declaration on the APV9T Transfer/Tax Form. There was no evidence that the consumer suffered a loss due to this misrepresentation.
Darrin Cotnam and the Dealer represented that the Ford would have a full tank of gas if purchased by the consumer when that was not the case. The proven loss to the consumer was $110.
Darrin Cotnam and the Dealer misrepresented the mileage of the Ford on the purchase agreement and the APV9T Transfer/Tax Form. There is no evidence that the consumer relied on this misrepresentation in deciding to purchase the Ford or that he has suffered any damages as a result.

The rest of the allegations were dismissed as unproven.

COMPLIANCE ORDER:

In order to protect the public interest, ensure the Dealer’s future compliance and remedy the breaches of the BPCPA noted above, the following compliance order was made by the Registrar:

Darryl’s Best Buys Auto Sales Ltd. and Darrin Joseph Cotnam are to abide by the Business Practices and Consumer Protection Act,
Darryl’s Best Buys Auto Sales Ltd. and Darrin Joseph Cotnam are to refrain from making misrepresentations to consumers during a consumer transaction,
Darryl’s Best Buys Auto Sales Ltd. and Darrin Joseph Cotnam are to disclose all material facts to consumers, and not try and hide materials facts,
Darryl’s Best Buys Auto Sales Ltd. and Darrin Joseph Cotnam are joint and severally to pay to the consumer the sum of $110 for the tank of gas for the Ford,
Darryl’s Best Buys Auto Sales Ltd. is to ensure it has two years of complete business records regarding the sale of motor vehicles at its business premises as required by section 11 of the Motor Dealer Act and section 20 of the Motor Dealer Act Regulation, and to produce those records to the Registrar or his delegate when directed and within the time directed,
Darrin Joseph Cotnam is to retake and successfully complete the Salesperson Certification Course at his own cost within 90 days of this compliance order being issued, or before any renewal of his salesperson licence, and
Darryl’s Best Buys Auto Sales Ltd. and Darrin Joseph Cotnam are joint and severally liable to pay the VSA’s investigation and hearing costs in the amount of $3167.68. The full amount of $4,252.35 was reduced by the Registrar by 30% to reflect that some of the consumer’s claims were unproven.

ADMINISTRATIVE PENALTIES:

The Registrar considered administrative penalties for the breaches of the BPCPA in order to deter future similar conduct and as a means to ensure future compliance. The Registrar’s assessment of the proper administrative penalties payable includes the following:

Deliberately misrepresenting the ex-lease status (a material fact) of the Ford
Darryl’s Best Buys $2,500 : Cotnam $250
Negligently misrepresenting the consumer transaction included a full tank of gas for the Ford
Darryl’s Best Buys $250 : Cotnam $25
Negligently misrepresenting the odometer reading (a material fact) on the purchase agreement and APV9T Transfer/Tax Form
Darryl’s Best Buys $1,000 : Cotnam $100

Total of Administrative Penalties: Darryl’s Best Buys $3,750 : Cotnam $375

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Registrar's Decision

Registrar’s Decision 14-02-002

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