Registrar's Decision

Registrar's Decision 19-12-003

File Number: 19-12-003

In the matter of Motor Dealer Act, R.S.B.C. 1996, C. 316
and Salesperson Licensing Regulation, B.C. Reg. 202/2017

Complainant: Vehicle Sales Authority of BC

Licensee/Unlicensed person:
Federation Auto Ltd. (Proposed Dealer Registration #41215), Alaa Daloussi (#211544)


  • Federation Auto Ltd. (“Federation”) applied to be registered as a motor dealer.
  • It is alleged that Federation’s owner and dealer principal, Alaa Daloussi’s (# 211544) past conduct as a motor dealer in Manitoba poses a concern to the public interest.
  • It is alleged that Alaa Daloussi failed to make truthful declarations about his past conduct and court cases in Manitoba on the application for dealer registration, which is grounds to consider the applicant ungovernable.
  • It is alleged that Alaa Daloussi advertised vehicles that were not suitable for transportation in Manitoba and allowed them to be test driven, which is a violation of Manitoba and British Columbia law.
  • It is alleged that Alaa Daloussi operated a dealership without having the required dealer permit in Manitoba, known as “curbing” in British Columbia, and it is an offence to do so.
  • The Authority submits that the amalgamation of the aforementioned concerns suggests that Mr. Daloussi will not act with honesty and integrity, will not act in accordance with the law, and is willing to withhold information from his regulator making governing him doubtful.
  • The Authority proposes that Federation’s application for registration be refused and conditions be placed on Alaa Daloussi’s salesperson licence.
  • Key factual and legal findings:
  • Manitoba Public Insurance (“MPI”), who licenses motor dealers in that province, confirms it had several complaints filed against Alaa Daloussi’s dealership and noted several concerns with the dealership’s operations.
  • Alaa Daloussi did not deny the Manitoba selling process in his application; however, he submits that he would have subject vehicles inspected and repaired to have the MPI order on the vehicle removed. Selling vehicles that are not suitable for transportation would also be a breach of British Columbia legislation and the duties of a motor dealer in this province.
  • Alaa Daloussi submits that he won all cases filed against him in Manitoba, a review of said cases shows that is incorrect.
  • The court cases filed against Alaa Daloussi in Manitoba note that he was found to have misrepresented finance and lease agreements, as well as applying excessive late payment fees. In British Columbia, such conduct would be a contravention of the Business Practices and Consumer Protection Act (“BPCPA”), which prohibits unconscionable acts, including excessive charges.
  • In the application materials to register Federation, is a copy of Mr. Daloussi’s temporary work permit, which expires on January 7, 2020 and one of its conditions says Mr. Daloussi is to leave Canada by January 7, 2020. Based on this evidence Federation’s principal and sole declared salesperson is not authorized to work in Canada.


The manner in which Daloussi operated a dealership in Manitoba, operating without the required dealer permit in Manitoba, and failing to make truthful declarations regarding past conduct to the Authority, the dealer applicant shows a disregard for obeying the law and indicates the dealership will not operate in accordance with the law, with honesty and with integrity

As a result, the Registrar made the following orders to address the non-compliance:

  • The Registrar refused to register Federation Auto Ltd. as a motor dealer.
  • The Registrar suspended Alaa Daloussi’s salesperson licence on condition that he provides the appropriate documentation to show he is legally entitled to work in Canada.

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

Cases considered/referred to:

  • A Vancouver Auto Ltd. & Moghaddam (April 3, 2017, Hearing File 17-02-002)
  • Best Import Auto Ltd. et al. (Hearing file 17-08-002, Registrar, November 28, 2017
  • Best Import Auto Ltd. v Motor Dealer Council of British Columbia, 2018 BCSC 834 (BC Supreme Court)
  • Best Import Auto Ltd. et al. (October 12, 2018, Hearing File 18-06-005)
  • Crown Auto Body and Auto Sales Ltd. v. Motor Vehicle Sales Authority of British Columbia, 2014 BCSC 894 (BC Supreme Court)
  • F.H. v. McDougall, [2008] 3 SCR 41, 2008 SCC 53 (Supreme Court of Canada)
  • Fryer v. Motor Vehicle Sales Authority of British Columbia, 2015 BCSC 279 (BC Supreme Court)
  • Key Track Auto Sales & Detailing Ltd. (May 11, 2010, Hearing File 10-013, Registrar)
  • Knapp v. Crown Auto Body and Auto Sales Ltd. et. al (September 21, 2009, File 08-70578, Registrar)
  • Mafcan Motors Ltd & Cheema (July 2, 2010, Files 10-017 and 10-018, Registrar)
  • N.W. Auto Depot Ltd. (September 4, 2018, File 18-06-003, Registrar)
  • Parkwood Auto Sales Ltd. et al (August 6, 2010, File 07-70285, Registrar – licensing decision)
  • Peter Fryer (December 13, 2013, File 13-11-005, Registrar)
  • Prestige Toys Ltd. v. Ontario (Registrar, Motor Vehicle Dealers Act) 2009 CarswellOnt 4743 (Ont. SCJ(Div. Ct))
  • Registrar, Motor Vehicle Dealers Act v. Vernon, 2016 ONSC 304 (Ont. S.C., Div. Crt)
  • Roxas v. Daloussi Auto Ltd., Alaa Daloussi Certificate of Decision at Hearing dated May 9, 2019 (File SC19-01-36607, Manitoba Queens Bench)
  • Wild Grizzly Transport Ltd. & Zampieri & Aiken (Hearing File 18-10-001, December 28, 2018, Registrar)

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