Registrar's Decision 19-12-001

Outcome:
Affordable Auto:

• The Registrar added the following conditions to Affordable Auto’s motor dealer registration:
• Affordable Auto has implemented policies and procedures to ensure similar conduct does not happen again. To protect the public, the Registrar will verify this statement and orders Affordable Auto to submit its policies and procedures for the Registrar’s review within 30 days of the date of this decision. Should the Registrar not find the policies and procedures adequate, they will be required to re-write and re-submit.
• To mitigate the risk of Affordable Auto not advising a purchaser that the motor vehicle offered for sale is a rebuilt vehicle, the Registrar added a condition to Affordable Auto’s registration that they provide written disclosure to a consumer of the rebuilt status of any rebuilt vehicle offered for sale. Records of such disclosures must be signed by the consumer and a copy kept in the dealer records.
• The Registrar imposed an Administrative Penalty of $5,000.
• The Registrar found the Authority’s submissions and evidence for investigation costs to be reasonable and in line with cases of a similar nature. A Compliance Order will be issued requiring Affordable Auto pay the Authority’s investigation costs in the amount of $1, 311.64.

Mr. Zadeh:

• Mr. Zadeh has not fully considered many concepts that are outlined in the salesperson licensing course in operating his dealership. Mr. Zadeh must be aware of his legal obligations if he is to continue operating a motor dealership. The Registrar added a condition to the salesperson licence of Mr. Zadeh that he retake, and successfully complete, the Salesperson Certification Course within 45 days of the date of this decision, at his own cost.

Discussion – Compliance Selection

• The Registrar found that Affordable Auto was tardy in complying with the Registrar’s order made in March 2020. The Registrar noted that COVID-19 has negatively impacted commerce in the province. The fact that Affordable Auto took as long as it did to provide compensation to the consumer, can be understood given the then and now commercial climate in British Columbia for a small car dealer.
• The Registrar found that this was a first-time transgression for Affordable Auto and Mr. Zadeh.
• The Authority’s regulatory philosophy and enforcement principles speak of using progressive enforcement coupled with education to address non-compliance. Generally, a first-time transgression results in warnings, education and maybe conditions on a licence. Even so, the regulatory philosophy and enforcement principles reserve the right to “jump” to more stringent compliance options for a first-time transgression where necessary to protect the public interest.
• The Registrar considered caselaw and previous decisions where a motor dealer’s registration had been cancelled, however those facts were not applicable to Affordable Auto or Mr. Zadeh. Considering Affordable Auto’s compliance history, coupled with the steps Affordable Auto is taking to ensure its future compliance, a “jump” to cancelling Affordable Auto’s motor dealer registration and/or Mr. Zadeh’s salesperson licence would not be proportionate to the transgression.
• In considering the appropriate regulatory actions, the Registrar considered the required factors outlined in section 164(2) of the Business Practices and Consumer Protection Act. The Registrar also considered past cases, common law principles of specific and general deterrence, and that the penalty amount not be punitive in nature, but also not be considered the mere cost of doing business.

Legislation considered/referred to:

• Business Practices and Consumer Protection Act, S.B.C. 2004, c. 2
• Motor Dealer Act, R.S.B.C. 1996, c. 316
• Motor Dealer Act Regulation, B.C. Reg. 447/78, sections 21, 23, 27, 32
• Motor Vehicle Act, R.S.B.C. 1996, c. 318