File Number: 18-01-004
In the matter of Motor Dealer Act, R.S.B.C. 1996, c. 316
and Business Practice and Consumer Protection Act S.B.C. 2004, c.2
Complainant: Vehicle Sales Authority of BC and Nancy Scott
Licensee/Unlicensed person:
Lake Country Motor Sports Ltd. (#9740); John Dumaine (#103631)
Issues:
On March 7 and April 11, 2018, the Registrar convened a hearing, based upon allegations by the VSA that Lake Country Motor Sports Ltd. (#9740) (“Lake Country”) and John Dumaine (#103631) (“Dumaine”) had:
– Engaged in a consignment sale in violation of restrictions on its dealer registration;
– Violated the Motor Dealer Consignment Sales Regulations; and
– Engaged in deceptive acts and practices, contrary to the Business Practices and Consumer Protection Act (“BPCPA”).
The Registrar found that Lake Country had:
– Violated the restriction on its registration, restricting it from selling consigned motor vehicles: section 4(4) of the Motor Dealer Act;
– Breached section 2 of the Motor Dealer Consignment Sales Regulation, by failing to complete and provide Nancy Scott (“Scott”) with a consignment agreement; and
– Breached section 6 of the Motor Dealer Consignment Sales Regulation, by failing to disperse the proceeds of sale as required by the Consignment Regulation.
The Registrar found that Lake Country and Dumaine had:
– Committed deceptive acts or practices in respect of this consumer transaction, contrary to section 5(1) of the BPCPA, by:
– Misrepresenting to Scott, through conduct, that Lake Country was authorized to conduct consignment sales, when it was not;
– Failing to state a material fact, by not disclosing to Scott her legal rights and Lake Country’s legal obligations in the consumer transaction, as required by the Consignment Regulation; and
– Misrepresenting to Scott that she owed Lake Country and Dumaine $22,000 for a loan on the consigned vehicle, which was untrue, and which would be deducted from the proceeds of the sale of the vehicle.
Outcome:
The Registrar cancelled Lake Country’s dealer registration.
The Registrar cancelled Dumaine’s salesperson licence.
The Registrar imposed an administrative penalty on Lake Country in the amount of $5,000 for its violations of the BPCPA.
The Registrar invited the VSA to make submissions on costs against Lake Country and Dumaine, in an amount to be determined at a later date, following the written submissions of the Parties.
The Registrar issued a compliance order, requiring Lake Country and John Dumaine to pay Scott $44,455.44 for her losses, due to the breach of the BPCPA.
