VSA

Registrar's Decision

Registrar's Decision 19-07-002

File Number: 19-07-002

In the matter of Motor Dealer Act, R.S.B.C. 1996, C. 316

Complainant: Stephen Pham, Binh Xoung Pham and Vehicle Sales Authority of BC

Licensee/Unlicensed person:
Super Sale Auto Ltd. (#40285) and Navid Khoshbakht (#202467)

Issues:

  • Stephen Pham and Binh Xoung Pham co-purchased a 2006 Mazda RX8 (the “Madza”) from Super Sale Auto (DL # 40285) (“Super Sale”). The purchase agreement for the Mazda was dated for November 26, 2017.
  • Stephen Pham and Binh Xoung Pham filed a complaint with the VSA on March 9, 2018.
  • The allegations are that Super Sale and its owner Mr. Khoshbakht:
  1. sold a vehicle that was “not suitable for transportation” and allowed the Mazda to be registered, insured and driven off the dealer lot,
  2. breached the November 29, 2016 Undertaking by failing to provide inspection reports which was a condition of its Undertaking,
  3. sold the Mazda to Stephen Pham who was a minor at the time,
  4. represented the Mazda as inspected by their own mechanics with no issues on several occasions, but failed to produce documented evidence of such inspections,
  5. breached the Motor Vehicle Act (“MVA”) and the November 29, 2016 Undertaking by selling motor vehicles that were “not suitable for transportation”.
  • The consumer sought to cancel the transaction and return the Mazda and compensation for out-of-pocket expenses to fix issues with the Mazda after making the purchase.

Outcome:

  • The Registrar dismissed the allegations of Super Sale breaching the MVA by selling a vehicle that was unsuitable for transportation. There was no evidence that the Mazda was actually unsuitable for transportation.
  • The Registrar dismissed the allegation that dealer sold the vehicle to a minor. The law does not prohibit all such sales to minors and the purchase agreement is in the name of the main complainant and his parent or guardian as co-purchasers, meeting the requirements of the Motor Vehicle Act.
  • The Registrar found that Super Sale committed a deceptive act of practice in respect of a consumer transaction contrary to the Business Practices and Consumer Protection Act (“BPCPA”), by selling and representing on a purchase agreement that the Mazda was not suitable for transportation, which is inconsistent with Super Sale’s general representation that is sells quality used cars.
  • The Registrar found that Super Sale failed to provide the requested inspection report during the investigation process, which is a breach of both the Motor Dealer Act (“MDA) and its November 29, 2016 Undertaking.
  • The Registrar found that Super Sale breached the November 29, 2016 Undertaking by failing to comply with the condition to produce inspection records on the Undertaking, and by breaching the BPCPA and the MDA.
  • The Registrar imposed a suspension of four (4) months on the dealer registration of Super Sale. This suspension will last beyond the term of Super Sale’s current motor dealer registration, which expires in April 2020, and Super Sale will have to apply for renewal of its registration after the term of the suspension is complete. Whether renewal will be granted and on conditions, if any, will be determined on the facts that exist at the time any such application is received.
  • The Registrar found that Navid Khoshbakht’s oversight and direction of Super Sale has led to cases of misconduct and a lack of cooperation with the VSA; therefore, the Registrar found that in order to protect the public interest:
  1. Navid Khoshbakht’s salesperson licence be placed under suspension for a period of four (4) months, commencing the date of this decision.
  2. The following conditions be added to Navid Khoshbakht’s salesperson licence:
    a. Navid Khoshbakht is to retake and successfully complete the Salesperson Certification Course at his own expense before the period of the suspension ends,
    b. Navid Khoshbakht may not act in a management role, oversee or be a guiding mind of a registered motor dealer for a period of 12 months from the date of this decision,
    c. Navid Khoshbakht shall have all consumer transactions that he participates in reviewed and approved by a manager at any dealership in which he is employed, for a period of 12 months from the date of this decision,
    d. Navid Khoshbakht must advise any dealership that he is employed with of these conditions.
  • The Registrar found that the inspection report, submitted by the consumer, from International Auto Service is clear that the Mazda’s brakes and radiator need replacing. Evidence by way of an audio recording, submitted by the consumer, confirms that the consumer was made aware of the required repairs prior to taking possession of the Mazda.
  • The Registrar found a disconnect between the conduct and the claims and remedy sought by the consumer. Therefore, the Registrar found that the consumer was not entitled to a remedy due to the following reasons:
  1. The inspection report from International Auto Service clearly outlined that the Mazda’s brakes and radiator needed repairs and was known to the consumer prior to their taking possession of the Mazda.
  2. The consumer requested an engine diagnosis 60 days and some 763 km after the consumer possessed the vehicle. This suggests there were no apparent issues with the engine, at the time of purchase. There was no evidence that the dealer misled the consumer about the Mazda’s suitability or fitness at the time of the sale.
  3. The consumer misdiagnosed the check engine light and purchased a gas cap to remedy the issue – that is not linked to the alleged misrepresentation by Super Sale.
  4. The consumer received a discount on the selling price of the vehicle, with a total discount of $1,988.00 on condition the consumer accept the Mazda as “not suitable for transportation”. The costs the consumer submitted for reimbursement totaled $1,022.42, which is less than the discount the consumer received.
  5. The consumer may have a claim under other legislation the Registrar does not administer and should seek legal advice.

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