VSA

Registrar's Decision

Registrar's Decision 20-12-015

HEARING FILE NUMBER: 20-12-015

IN THE MATTER OF THE MOTOR DEALER ACT, R.S.B.C. 1996 C.316AND THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT, S.B.C. 2004, C.2

DATE OF DECISION: July 27, 2021

COMPLAINANT: Vehicle Sales Authority of BC (the “Authority”)

LICENSEE/UNLICENSED PERSON: Lenux Auto Sales & Service Ltd. (Motor Dealer Registration #40604, Expired) and Hassan (Dario) Dariosh Zahedian (Salesperson Licence #204804) (“Respondents”)

INTRODUCTION:

On March 26, 2021 the Registrar rendered a Decision on the liability portion of this case which involved the Respondents being involved in two separate consumer complaints. The first complaint involved a 2010 Mercedes ML350, the second, a 2007 Volkswagen EOS Sport Convertible.

In his Decision the Registrar found that the Respondent, Lenux Auto, failed to make the required statutory declarations in both the Mercedes and Volkswagen transactions and is in breach of section 23(b)(ii) of the Motor Dealer Act Regulation. Lenux Auto also breached section 5(1) of the Business Practices and Consumer Protection Act by misrepresenting both the Mercedes and Volkswagen’s damage history to the consumers.

However, due to its expired Motor Dealer Registration, it was out of the jurisdiction of the Registrar to take regulatory action against Lenux Auto as there is no license to regulate or risk of harm to mitigate.

In the Registrar’s March 26, 2021 Decision, he found that given the limited liability found against Hassan Dariosh Zahedian, he ordered both the Authority and Mr. Zahedian to provide additional submissions to address compliance selection and costs.

ISSUES:

The Authority submitted the following in further support of their position against Hassan Dariosh Zahedian:

  1. Hassan Dariosh Zahedian entered an undertaking in November of 2018 with the Registrar and that he admitted to having manufactured a stock number for a vehicle that was not in stock. The Undertaking required Mr. Zahedian to retake and pass the Salesperson Certification Course and pay an administrative penalty of $3,000 (the “2018 Undertaking”)
  2. That less than five months after entering the 2018 Undertaking, Mr. Zahedian was involved in these two consumer transactions
  3. That the $3,000 administrative penalty from the 2018 Undertaking has not deterred Mr. Zahedian from being non-compliant

The Authority recommended that:

  1. Hassan Dariosh Zahedian be suspended for 2-years.
  2. Hassan Dariosh Zahedian be issued a $10,000 administrative penalty for breaching section 33(2)(a) of the Motor Dealer Act Regulation.
  3. Hassan Dariosh Zahedian be issued a $6,000 administrative penalty for breaching the 2018 Undertaking.
  4. Hassan Dariosh Zahedian take and pass an ethics course from a certified BC Post-Secondary institution within 12 months from the decision of the Registrar.
  5. Hassan Dariosh Zahedian be prohibited from working in the business office of a dealership for 5 years; and
  6. Hassan Dariosh Zahedian be prohibited from being in a management position for at least 5 years.
    The Authority claimed investigation costs in the amount of $3,652.66.

The Authority’s submissions include details of how this amount was arrived at as well as providing an invoice for consideration. The amount of costs reflects the investigation costs for both investigations.

OUTCOME

The Registrar Ordered that:

  1. The salesperson licence of Hassan (Dario) Dariosh Zahedian is cancelled effective of this decisions date.
  2. Hassan (Dario) Dariosh Zahedian is prohibited from re-applying for a licence under the Motor Dealer Act for a period of two years starting as of this decisions date; and
  3. Hassan (Dario) Dariosh Zahedian must pay $1,826.33 in investigation costs payable to the Motor Vehicle Sales Authority of British Columbia within 30 days of this decisions date.

The costs requested in this case are $3,652.66 and are in relation to both investigations and complaints. The Registrar found Hassan Dariosh Zahedian breached the Code of Conduct in relation to only one of those investigations, the Bybel complaint. Therefore, the cost liability to Mr. Zahedian should at most only be 50% of the $3,652.66, or $1,826.33.

LEGISLATION CITED

Motor Dealer Act, RSBC 1996, c. 316

Business Practices and Consumer Protection Act, SBC, 2004, c. 2

Motor Dealer Act Regulation , BC Reg. 447/78

CASES CITED

  • Best Import Auto Ltd. v Motor Dealer Council of British Columbia, 2018 BCSC 834 (BC Supreme Court)
  • Cartaway Resources Corp. (Re), 2004 SCC 26 (CanLII), [2004] 1 SCR 672 (Supreme Court of Canada)
  • Fryer v. Motor Vehicle Sales Authority of British Columbia, 2015 BCSC 279 (BC Supreme Court)
  • Guindon v. Canada, 2015 SCC 41 (CanLII), [2015] 3 SCR 3 (Supreme Court of Canada)
  • Hogan v. British Columbia Securities Commission, 2005 BCCA 53 (BC Court of Appeal)
  • Independent Investigations Office of British Columbia v Vancouver (City) Police Department, 2018 BCSC 1804 (BC Supreme Court)
  • Independent Investigations Office of British Columbia v. Vancouver (City) Police Department, 2020 BCCA 4 (BC Court of Appeal)
  • Pacific International et al v. B.C. Securities Commission 2002 BCCA 421 (BC Court of Appeal)
  • Partin et al v. Carmel Custom Contracting Ltd. & Jason Coburn (July 6, 2018, File 18-03-001, Registrar)
  • Pham et al v. Super Sale Auto Ltd. et. al (August 12, 2020, File 19-07-002, Registrar)
  • Re: A Vancouver Auto Ltd. & Shahram Moghaddam (April 3, 2017, File 17-02- 002, Registrar)
  • Re: Anita L. Prince (unlicensed) (June 4, 2020, File Number 20-02-11, Registrar)
  • Re: Barnes Wheaton (North Surrey) Chevrolet Buick GMC Ltd. et al (April 16, 2020, File 19-07-004, Registrar)
  • Re: Bob Shokohi & Best Import Auto Ltd. (October 12, 2018, File 18-06-005, Registrar)
  • Re: Elisabeth Kovacs (October 25, 2017, File 17-09-001, Registrar)
  • Re: Justin Plosz (October 22, 2019, File 19-05-004, Registrar)
  • Webster et al. v. Pioneer Garage Ltd. et al (April 27, 2018, File 17-07- 002, Registrar)