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Motor Vehicle Dealers Act, 2002

ONTARIO REGULATION 333/08

GENERAL

Consolidation Period: From January 1, 2010 to the e-Laws currency date.

Last amendment: O. Reg. 377/09.

This is the English version of a bilingual regulation.

CONTENTS

PART I
DEFINITIONS

1.

Definitions

PART II
EXEMPTIONS

General Exemptions

2.

Exemption of certain persons from Act

2.1

Exemption of certain trades from Act

Exemptions for Certain Classes of Registrants

3.

Exemptions relating to salespersons

4.

Exemptions relating to shareholders

5.

Exemptions relating to financial enforcement powers

6.

Exemptions relating to certain reports

7.

Exemptions relating to advertising

PART III
REGISTRATION

General

8.

Name of registration

9.

Applications for registration

10.

Transitional provisions for registration

11.

Requirements for registration as a motor vehicle dealer

12.

Motor vehicle dealers trading from multiple places

13.

Requirements for registration as a salesperson

14.

Condition of registration for registered salespersons

15.

Restriction on time to reapply for registration

16.

Certificate of registration

17.

Expiry of registration

Classes of Motor Vehicle Dealers

18.

Classes of motor vehicle dealers

Authorized Activities for Classes of Motor Vehicle Dealers

19.

General dealers

20.

Brokers

21.

Wholesalers

22.

Exporters

23.

Outside Ontario dealers

24.

Lease finance dealers

25.

Fleet lessors

Disclosure of Information on Registrants and Others

27.

Information on registrants, etc.

PART IV
CONDUCT OF REGISTRANTS

General

28.

Place of business

29.

Certificates of registration

30.

Signs

31.

Notice of events to registrar

32.

Restrictions on identification numbers and labels

33.

Odometers

34.

Requirements at exempt auctions

35.

Compliance by salespersons with Code of Ethics

Trading by Motor Vehicle Dealers

36.

Advertising

37.

Maximum period for pre-approval of advertising

38.

Deposits given before contract made

39.

Contracts for sales of new motor vehicles

40.

Contracts for sales of used motor vehicles

41.

Leases

42.

Additional information in contracts of sale and leases

43.

Additional contract requirements for trade-ins

44.

Providing financing of motor vehicles

45.

Contracts relating to sales on consignment

46.

Retail sales at auctions

47.

Sale of extended warranties

48.

Sale of service plans

49.

Contracts with brokers to facilitate purchase or lease

50.

Cancellation of contracts for non-disclosure

51.

Export outside of Ontario

Motor Vehicle Dealer Records and Accounts

52.

Records of motor vehicles

53.

Records relating to trades

54.

Records of business

55.

Reporting of unavailable records

56.

Retention of records

57.

Certain records under the Highway Traffic Act

58.

Trust account

59.

Bank accounts

60.

Notification of persons with signing authority

PART V
MOTOR VEHICLE DEALERS COMPENSATION FUND

Definitions

61.

Definitions

Board

62.

Composition

63.

Quorum

64.

Conduct of affairs

65.

Compensation and expenses of members

66.

Employees and persons retained

67.

Educational expenses

Administration of Fund

68.

Composition of Fund

69.

Administration of Fund

70.

Trustee, appointment and functions

71.

Trustee’s fees and expenses

72.

Resignation and removal of Trustee

73.

Information about Fund

74.

Audits of Fund

Payments into Fund

75.

Payments into Fund

76.

Payments in default

77.

Payers have no right to Fund

78.

Ceasing to be registered

Claims

79.

Entitlement to compensation

80.

Procedure and time for claim

81.

Response of Board

82.

Determination of claims

83.

Limits on compensation

84.

Interim payment of compensation

85.

Hearing by Tribunal

86.

Publishing decisions on claims

87.

Liability of registrants to Fund

88.

Transition, claims relating to old trades

PART I
DEFINITIONS

Definitions

1. In this Regulation,

“certificate of registration” means a certificate of registration issued under section 16; (“certificat d’inscription”)

“extended warranty” means a contract whereby a person, other than a person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2 (1), agrees to provide coverage of the costs associated with the repair or replacement of components of a motor vehicle, including the labour necessary to repair or replace those components, that is in addition to a warranty supplied by law or implied by the operation of law; (“garantie supplémentaire”)

“new motor vehicle” means,

(a) a motor vehicle for which no permit has been issued under section 7 of the Highway Traffic Act or by another jurisdiction having an equivalent requirement to that section, or

(b) a motor vehicle that meets the following conditions:

(i) The first permit for the vehicle issued under section 7 of the Highway Traffic Act was issued to a purchaser or lessee who purchased or leased the vehicle, as the case may be, from a registered motor vehicle dealer.

(ii) The purchaser or lessee did not take possession of the vehicle and the vehicle remained in the possession of the dealer until a new permit for the vehicle was issued under section 7 of the Highway Traffic Act to the dealer within 14 days after the issuance of the first permit for the vehicle,

but does not include a motor vehicle that has been used in a way for which a permit would have been required under section 7 of the Highway Traffic Act; (“véhicule automobile neuf”)

“registration” means registration under the Act and “registered” has a corresponding meaning; (“inscription”, “inscrit”)

“service plan” means a contract that is sold to a purchaser or lessee of a motor vehicle by a registered motor vehicle dealer or through a registered motor vehicle dealer before the vehicle is delivered to the purchaser or the lessee, as the case may be, whereby a person, other than a person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2 (1), agrees to provide goods or services to alter or maintain the vehicle, whether the goods or services are provided before the vehicle is so delivered or afterwards; (“programme d’entretien”)

“spouse” means a person,

(a) to whom the person is married, or

(b) with whom the person is living outside marriage in a conjugal relationship, if the two persons,

(i) have cohabited for at least one year,

(ii) are together the parents of a child, or

(iii) have together entered into a cohabitation agreement under section 53 of the Family Law Act; (“conjoint”)

“used motor vehicle” means a motor vehicle that is not a new motor vehicle. (“véhicule automobile d’occasion”) O. Reg. 333/08, s. 1; O. Reg. 221/09, s. 1.

PART II
EXEMPTIONS

General Exemptions

Exemption of certain persons from Act

2. (1) The classes of persons described in each of the following paragraphs are exempt from the Act and the regulations in connection with carrying on the activities described in the paragraph:

1. A person who arranges for and conducts an auction of motor vehicles and the person’s employees and agents acting for the purpose of the auction if the conditions set out in subsection (3) are satisfied.

2. A person who buys one or more motor vehicles for the purpose of wrecking or dismantling them if, after buying them, the person wrecks or dismantles the vehicles in accordance with the Highway Traffic Act and the regulations made under it and does not trade in the vehicles.

3. A person who trades in a motor vehicle in the course of performing the person’s duties under an order of a court.

4. An assignee, a custodian, a liquidator, a receiver, a trustee or another person, if the assignee, custodian, liquidator, receiver, trustee or other person trades in a motor vehicle in the course of performing the person’s duties under the Bankruptcy and Insolvency Act (Canada), the Business Corporations Act, the Companies’ Creditors Arrangement Act (Canada), the Courts of Justice Act or the Winding-up and Restructuring Act (Canada).

5. An executor or estate trustee who trades in a motor vehicle in the course of performing the person’s duties or a person who arranges for and conducts an auction to make such a trade on behalf of an executor or estate trustee.

6. A barrister and solicitor who trades in a motor vehicle in the course of acting in his or her professional capacity.

7. A person that trades in a motor vehicle that is used or to be used by the person as sole proprietor for the purpose of carrying on the person’s business or for the personal use of the person or a member of the person’s family, but not if the person is in the business of trading in motor vehicles or repairing them.

8. A person that trades in a motor vehicle that is used or to be used by an individual who is a director, officer or employee of the person for the purpose of carrying on the person’s business or for the personal use of the individual or a member of the individual’s family, but not if the person is in the business of trading in motor vehicles or repairing them.

9. A person who trades in one or more power-assisted bicycles equipped with both a pedalling device and an auxiliary motor.

10. A person who leases a motor vehicle as lessor if,

i. the person does not own the vehicle,

ii. the lessee does not buy the vehicle at the end of the term of the lease,

iii. the lease is for a term of no more than 120 consecutive days,

iv. the lessor has filed with the registrar, upon request, a declaration stating that the lessor will not trade in the vehicle after the vehicle is no longer going to be leased, except to lease it as described in this paragraph, and

v. the lessor does not trade in the vehicle after the vehicle is no longer leased, except to lease it as described in this paragraph.

11. A receiver and manager appointed under section 21 of the Act that acts under that section.

12. A person who sells a stock of motor vehicles on behalf of their owner by means of an auction open to the public if,

i. the vehicles were owned in connection with a business of the owner of the vehicles and the sale of the vehicles is part of the sale of the assets of that business for the purposes of the business ceasing operations,

ii. the auction is held at the owner’s place of business or at another location that the person arranges and that is suitable for the auction, and

iii. the person who sells the stock of the vehicles has been retained on a temporary basis solely for the purpose of the ceasing operations mentioned in subparagraph i and does not acquire a property interest in any of the vehicles.

13. A registered charity within the meaning of subsection 248 (1) of the Income Tax Act (Canada) that acts as such.

14. A creditor, other than a registrant, who,

i. lawfully takes possession of a debtor’s motor vehicle or has a lawful lien against the vehicle, and

ii. sells the vehicle to or through a registered motor vehicle dealer or through a person who is exempt under paragraph 15.

15. A person who,

i. after a creditor, other than a registrant, has lawfully taken possession of a debtor’s motor vehicle, takes possession of the vehicle from the creditor and sells it to or through a registered motor vehicle dealer, and

ii. is not otherwise in the business of trading in or repairing motor vehicles.

16. A not-for-profit corporation that assists a person in making a decision regarding a trade in a motor vehicle if,

i. before providing the assistance, the corporation discloses to the person the amounts that the corporation charges or receives from any person in connection with providing the assistance,

ii. the corporation does not have a property interest in the vehicle,

iii. the corporation does not handle the person’s payment for the trade in the vehicle,

iv. the corporation makes reasonable efforts to ensure that no member of the corporation is a registrant,

v. no director, officer or employee of the corporation is a registrant, an insurer under an insurance policy that covers theft of the vehicle or damage to the vehicle or a person in the business of repairing motor vehicles, and

vi. the corporation files with the registrar in accordance with subsection (5),

A. a statement outlining the consideration, if any, that it has received from registrants and listing the corporation’s members, directors, officers and employees, and

B. an affidavit attesting to the information contained in the statement mentioned in sub-subparagraph A.

17. The board of trustees for the Fund, the Trustee of the Fund appointed under section 70 or a person that acts on behalf of the board of trustees for the Fund.

18. A person who trades in a motor vehicle that has a gross vehicle weight rating as defined in subsection (6) of more than 21 tonnes.

19. A person who trades in a motor vehicle that is a bus or commercial motor vehicle, as those terms are defined in the Highway Traffic Act, except if the person trades the vehicle to an individual described in section 5 of the Motor Vehicle Dealers Act, 2002.

20. An insurer, as defined in the Insurance Act, who,

i. receives a used motor vehicle after making payment under an insurance policy as a result of the vehicle having been stolen or wrecked, if,

A. the Registrar of Motor Vehicles has classified the vehicle as irreparable or salvage under section 199.1 of the Highway Traffic Act, or

B. the vehicle is registered in the name of the insurer, and

ii. sells the vehicle to or through a registered motor vehicle dealer.

21. Subject to subsection (7), a person who trades in motor vehicles that the person or a person associated with the person, as described in subsection 1 (2) of the Act, manufactures or that the person distributes as the authorized distributor of motor vehicles manufactured by another person according to a declaration that the person files with the registrar under subsection (9) stating that the person is an authorized distributor of that manufacturer.

22. A person who receives a motor vehicle from a purchaser or lessee as all or part of the consideration for supplying a motor vehicle under a trade described in paragraph 21. O. Reg. 333/08, s. 2 (1); O. Reg. 221/09, s. 2 (1)

(2) An individual to whom section 5 of the Act applies with respect to a trade described in that section or a person who arranges for and conducts an auction to make such a trade on behalf of one such individual and no other individuals at the same time is exempt from the Act and the regulations in connection with that trade. O. Reg. 333/08, s. 2 (2).

(3) The conditions mentioned in paragraph 1 of subsection (1) are the following:

1. The person arranging for and conducting the auction and the person’s employees and agents do not have a property interest in any of the motor vehicles being sold.

2. The person arranging for and conducting the auction does not allow a person to sell a motor vehicle at the auction unless the person selling the vehicle is a registered motor vehicle dealer, is exempt from registration or is the Crown.

3. The person arranging for and conducting the auction uses best efforts to ensure that, before a motor vehicle is sold at the auction, the person selling the vehicle appears, on a reasonable basis, to have complied with section 5 of Ontario Regulation 332/08 (Code of Ethics and Operation of Committees) made under the Act, whether or not that regulation applies to the person selling the vehicle.

4. If the auction is conducted so that bidders are physically present, there is a restricted area for bidding and only the following are allowed in the bidding area and only if they wear visible photo identification:

i. Registrants.

ii. The registrar, deputy registrars, the director, deputy directors, investigators appointed under subsection 18 (1) of the Act and persons designated by the registrar under subsection 15 (1) of the Act.

iii. The following persons if they attend for a purpose other than to acquire an interest in a motor vehicle:

A. Law enforcement officers.

B. Employees or agents of the person arranging for and conducting the auction if they are acting for the purpose of the auction.

C. Directors and officers of the person arranging for and conducting the auction if the person is not an individual.

D. Persons in the company of the person arranging for and conducting the auction or in the company of a director or officer of that person.

E. Employees or agents of a seller of a vehicle at the auction who attend the auction for the purpose of the sale of the vehicle by the seller.

5. If the auction is conducted so that bidders have access to the auction through electronic means, the electronic access is provided through a secure means that ensures that only registrants have the electronic access.

6. At the request of the registrar, the person arranging for and conducting the auction provides the registrar with information about any trade conducted in the auction and with access to the person’s records relating to,

i. the persons allowed in the bidding area, and

ii. the persons who are allowed to bid in the auction through electronic means.

7. The motor vehicles sold at the auction are sold only to registered motor vehicle dealers or to persons who, at the time of the sale, are located in another jurisdiction and registered in that jurisdiction as persons with equivalent status to registered motor vehicle dealers. O. Reg. 333/08, s. 2 (3); O. Reg. 221/09, s. 2 (2).

(4) The visible photo identification mentioned in paragraph 4 of subsection (3) for a person allowed in the bidding area under that subsection shall also identify whether the person is described in sub-subparagraph 4 iii D or E of that subsection, as opposed to the rest of paragraph 4 of that subsection. O. Reg. 333/08, s. 2 (4).

(5) A not-for-profit corporation that is required to file material described in subparagraph 16 vi of subsection (1) with the registrar shall file the material,

(a) no later than 180 days after the day this Regulation comes into force, in order to be exempt under paragraph 16 of that subsection for the first year after the day this Regulation comes into force; and

(b) no later than each anniversary of the day that this Regulation comes into force, in order to be exempt under paragraph 16 of that subsection for the year immediately after each such anniversary. O. Reg. 333/08, s. 2 (5).

(6) In paragraph 18 of subsection (1),

“gross vehicle weight rating” means, in respect of a motor vehicle, the total of the gross weight and the maximum permitted load of the following, as specified by the manufacturer of the vehicle:

1. The vehicle.

2. In the case of a motor vehicle designed to pull a trailer, the vehicle with the trailer. O. Reg. 333/08, s. 2 (6).

(7) The person described in paragraph 21 of subsection (1) may sell or lease a motor vehicle to a consumer within the meaning of the Consumer Protection Act, 2002 only through a motor vehicle dealer registered as a general dealer in the subclass of new and used motor vehicles. O. Reg. 333/08, s. 2 (7).

(8) A person described in paragraph 21 of subsection (1) who sells or leases a motor vehicle in contravention of subsection (7) is not exempt from the Act and the regulations in connection with that sale or lease. O. Reg. 333/08, s. 2 (8).

(9) A person who is required to file a declaration described in paragraph 21 of subsection (1) with the registrar in order to be exempt under that paragraph shall file the declaration,

(a) no later than 180 days after the day this Regulation comes into force, if the person is trading as described in that paragraph immediately before the day this Regulation comes into force; and

(b) before trading as described in that paragraph, if the person is not so trading immediately before the day this Regulation comes into force. O. Reg. 333/08, s. 2 (9).

Exemption of certain trades from Act

2.1 (1) A trade in a motor vehicle between or through a registrant and any of the following persons or entities is exempt from the Act and the regulations, except for sections 52 and 53 of this Regulation, if the purpose of the trade is to provide financing for the purchase or lease of the vehicle from the registrant by a third party:

1. A bank, or an authorized foreign bank, within the meaning of section 2 of the Bank Act (Canada).

2. A subsidiary or an affiliate, within the meaning of section 5 or 6 respectively of the Bank Act (Canada), of a bank described in paragraph 1.

3. A corporation registered under the Loan and Trust Corporations Act.

4. A credit union, as defined in the Credit Unions and Caisses Populaires Act, 1994.

5. A subsidiary of a credit union established or acquired in accordance with section 200 of the Credit Union and Caisses Populaires Act, 1994 or an affiliate of a credit union within the meaning of section 1 of that Act. O. Reg. 377/09, s. 1.

(2) A trade between the person or entity that provides the financing described in subsection (1) and the third party mentioned in that subsection is exempt from the Act and the regulations if the purpose of the trade relates to the financing. O. Reg. 377/09, s. 1.

(3) A trade by a person or entity described in any of the paragraphs 1 to 4 to subsection (1) is exempt from the Act and the regulations if the purpose of the trade is to facilitate or complete a financing transaction, howsoever the transaction is structured, whether as a bulk purchase, a securitization of assets or otherwise. O. Reg. 377/09, s. 1.

(4) A trade between a motor vehicle dealer registered as a lease finance dealer or as a fleet lessor or both and any other person or entity is exempt from the Act and the regulations, except for clause 53 (1) (k) of this Regulation, if,

(a) the purpose of the trade is to facilitate or complete a financing transaction involving the registrant, howsoever the transaction is structured, whether as a bulk purchase, a securitization of assets or otherwise; or

(b) the trade is made in connection with a financing transaction described in clause (a) and for no other purpose. O. Reg. 377/09, s. 1.

Exemptions for Certain Classes of Registrants

Exemptions relating to salespersons

3. (1) This section applies with respect to a motor vehicle dealer registered only as one or more of the following:

1. A lease finance dealer.

2. A fleet lessor. O. Reg. 333/08, s. 3 (1).

(2) A motor vehicle dealer described in subsection (1) is exempt from the following provisions of the Act with respect to the dealer’s activities as a dealer registered in the class, except if the dealer is registered as a lease finance dealer and is making a sale described in subclause 24 (2) (c) (i) of this Regulation:

1. Subsection 4 (3).

2. Clause 24 (1) (c). O. Reg. 333/08, s. 3 (2).

(3) A salesperson who is employed by a motor vehicle dealer described in subsection (1) is exempt from the following provisions of the Act with respect to that employment and the dealer’s activities as a dealer registered in the class, except if the salesperson is involved in a further lease described in clause 24 (2) (b.1) or a sale described in subclause 24 (2) (c) (i) of this Regulation:

1. Clause 4 (1) (b) and subsection 4 (5).

2. Subsection 24 (2). O. Reg. 333/08, s. 3 (3); O. Reg. 221/09, s. 3.

Exemptions relating to shareholders

4. A motor vehicle dealer registered only as one or more of the following is exempt from sections 7 and 13 of the Act:

1. A lease finance dealer.

2. A fleet lessor. O. Reg. 333/08, s. 4.

Exemptions relating to financial enforcement powers

5. A motor vehicle dealer registered only as one or more of the following is exempt from sections 21 and 22 of the Act:

1. A lease finance dealer.

2. A fleet lessor. O. Reg. 333/08, s. 5.

Exemptions relating to certain reports

6. (1) A motor vehicle dealer registered only as a fleet lessor is exempt from clause 24 (1) (b) of the Act and subsection 24 (4) of the Act. O. Reg. 333/08, s. 6 (1).

(2) A motor vehicle dealer registered only as a lease finance dealer is exempt from clause 24 (1) (b) of the Act. O. Reg. 333/08, s. 6 (2).

Exemptions relating to advertising

7. A motor vehicle dealer registered as one or more of the following is exempt from section 36 with respect to the dealer’s activities as a dealer registered in the class:

1. A wholesaler.

2. An exporter.

3. An outside Ontario dealer.

4. A fleet lessor. O. Reg. 333/08, s. 7.

PART III
REGISTRATION

General

Name of registration

8. The registered name of a registrant may be,

(a) the complete legal name of the registrant;

(b) one or more of the legal given names of the registrant, in the correct order, followed by the registrant’s legal surname, if the registrant is an individual; or

(c) one or more of the names registered under the Business Names Act by the registrant, if the registrant is a registered motor vehicle dealer. O. Reg. 333/08, s. 8.

Applications for registration

9. An application for registration or renewal of registration as a motor vehicle dealer or as a salesperson shall,

(a) be on a form that the registrar approves and that is completed in full; and

(b) be accompanied by the relevant fee set by the administrative authority under clause 12 (1) (b) of the Safety and Consumer Statutes Administration Act, 1996, if there is an administrative authority. O. Reg. 333/08, s. 9.

Transitional provisions for registration

10. (1) Subject to subsection (2), a person who was registered as a motor vehicle dealer under the Motor Vehicle Dealers Act immediately before the day section 12 of Schedule E to the Consumer Protection Statute Law Amendment Act, 2002 comes into force is deemed to be registered as a general dealer in the subclass of new and used motor vehicles until the person is required to renew the registration under the Motor Vehicle Dealers Act, 2002. O. Reg. 333/08, s. 10 (1).

(2) A person who was registered as a motor vehicle dealer under the Motor Vehicle Dealers Act immediately before the day section 12 of Schedule E to the Consumer Protection Statute Law Amendment Act, 2002 comes into force is deemed to be registered in the classes and subclasses that the person requests, and not as a general dealer in the subclass of new and used motor vehicles, until the person is required to renew the registration under the Motor Vehicle Dealers Act, 2002 if the person,

(a) notifies the registrar in writing no later than 30 days before the day this section comes into force that the person requests to be registered as a motor vehicle dealer in one or more of the classes of wholesaler, exporter, lease finance dealer or fleet lessor; and

(b) specifies the subclasses of fleet lessor in which the person requests registration, if the person requests registration under clause (a) as a motor vehicle dealer in the class of fleet lessor. O. Reg. 333/08, s. 10 (2).

(3) A motor vehicle dealer who, on the day this Regulation comes into force, is carrying on business as a broker as described in subsection 20 (1) is deemed to be registered as a broker until 180 days after the day this Regulation comes into force except if,

(a) the dealer has been refused registration or renewal of registration as a motor vehicle dealer or salesperson under the Motor Vehicle Dealers Act or has had such a registration suspended or revoked; or

(b) the dealer has been served with a notice of proposal under section 7 of the Motor Vehicle Dealers Act to suspend or revoke registration as a motor vehicle dealer or salesperson under that Act and the proposal has not been disposed of. O. Reg. 333/08, s. 10 (3); O. Reg. 221/09, s. 4.

(4) Subsection (5) applies to a motor vehicle dealer who,

(a) on the day this Regulation comes into force, is carrying on business as a broker as described in subsection 20 (1); and

(b) no later than 180 days after the day this Regulation comes into force, gives notice in writing to the registrar, in a form approved by the registrar, that the person requests to be registered as a broker and provides the registrar with,

(i) the dealer’s complete legal name,

(ii) the name registered by the dealer under the Business Names Act, if any,

(iii) the dealer’s business address and address for service,

(iv) the names of all directors and officers of the dealer, if the dealer is a corporation,

(v) the names of all partners of the dealer, if the dealer is a partnership, and

(vi) other information that is required in order to determine whether the person meets the requirements described in any of paragraphs 2, 3, 4 and 6 of subsection 11 (1). O. Reg. 333/08, s. 10 (4).

(5) Despite section 6 of the Act, upon receiving the notice described in clause (4) (b) from a motor vehicle dealer to whom this subsection applies, the registrar shall issue a certificate of registration as a broker to the dealer except if the dealer does not meet the requirements described in any of paragraphs 2, 3, 4 and 6 of subsection 11 (1). O. Reg. 333/08, s. 10 (5).

(6) If the registrar determines that a motor vehicle dealer to whom subsection (5) applies is not entitled to a certificate of registration as a broker under that subsection, the registrar shall send written notice of the determination to the dealer, setting out the reasons for the determination, and the deemed registration described in subsection (3) shall terminate on the third day after the date of mailing of the notice. O. Reg. 333/08, s. 10 (6).

(7) A motor vehicle dealer is deemed to be registered as an outside Ontario dealer if, on the day this Regulation comes into force,

(a) the dealer holds an out of province dealer exemption certificate issued by the administrative authority; and

(b) the dealer has not been refused registration or renewal of registration as a motor vehicle dealer under the Motor Vehicle Dealers Act and has not had such a registration suspended or revoked. O. Reg. 333/08, s. 10 (7).

(8) An individual is deemed to be registered as a salesperson if, on the day this Regulation comes into force,

(a) the individual holds an out of province salesperson exemption certificate issued by the administrative authority; and

(b) the individual has not been refused registration or renewal of registration as a salesperson under the Motor Vehicle Dealers Act and has not had such a registration suspended or revoked. O. Reg. 333/08, s. 10 (8).

Requirements for registration as a motor vehicle dealer

11. (1) The following are prescribed, for the purposes of subsections 5.1 (1) and 6 (1) of the Act, as requirements for registration or renewal of registration as a motor vehicle dealer:

1. The fee required under clause 9 (b) is paid.

2. If the applicant is an individual, the applicant is at least 18 years of age.

3. The applicant does not owe money to the Crown under the Retail Sales Tax Act or, if the applicant does owe such money, the applicant has made arrangements, acceptable to the Ministry of Finance, to pay the money.

4. Every person who is associated with the applicant as described in subsection 1 (2) of the Act also satisfies the requirements set out in paragraph 3.

5. The applicant shall ensure that every person, of whose name the applicant receives notice from the registrar under subsection (2), also satisfies the requirements set out in paragraph 3 within a reasonable time period that the registrar specifies.

6. If the applicant for registration is a registrant, a former registrant or a person registered at any time under the Motor Vehicle Dealers Act,

i. the applicant is not in default of levies or payments to the Fund and has not failed to reimburse the Fund as required under subsection 42 (6) of the Act, or

ii. if the applicant is in default or has failed to reimburse the Fund, the applicant has made arrangements with the registrar under subsection 42 (8) of the Act and has complied or is complying with those arrangements.

7. The applicant shall ensure that every person who is a former registrant or a person registered at any time under the Motor Vehicle Dealers Act and of whose name the applicant receives notice from the registrar under subsection (2) also satisfies the conditions set out in paragraph 6 within a reasonable time period that the registrar specifies.

8. For registration other than as an outside Ontario dealer, a lease finance dealer or a fleet lessor, the persons identified in subsection (3) have successfully completed the course designated by the registrar for the purposes of this paragraph.

9. For registration as an outside Ontario dealer, the applicant is registered in another jurisdiction as a person with equivalent status to a registered motor vehicle dealer. O. Reg. 333/08, s. 11 (1); O. Reg. 221/09, s. 5.

(2) Upon receiving an application for registration or renewal of registration, the registrar shall notify the applicant of the name of every person who, in the opinion of the registrar, is described in clause 6 (4) (a), (b) or (c) of the Act or shall notify the applicant that, in the opinion of the registrar, there is no person who is described in any of those clauses. O. Reg. 333/08, s. 11 (2).

(3) Paragraph 8 of subsection (1) applies to each of the following persons unless the person has been in charge of the day to day operations of a registered motor vehicle dealer since January 1, 2007 and without any break in time that amounts to two consecutive years:

1. If the applicant is an individual, the applicant and, if the applicant will not be in charge of the day to day operations of the applicant as a motor vehicle dealer, the individual who will be so in charge.

2. If the applicant is a corporation and one of the directors or officers of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, that director or officer.

3. If the applicant is a corporation and none of the directors or officers of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, at least one of the directors or officers of the applicant and the individual who will be so in charge.

4. If the applicant is a partnership and one of the partners of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, that partner.

5. If the applicant is a partnership and none of the partners of the applicant will be in charge of the day to day operations of the applicant as a motor vehicle dealer, at least one of the partners of the applicant and the individual who will be so in charge. O. Reg. 333/08, s. 11 (3).

Motor vehicle dealers trading from multiple places

12. For greater clarity, a motor vehicle dealer that trades from more than one place can be registered as only one motor vehicle dealer and, in accordance with section 28, the registration of the dealer shall list the places from which the dealer is authorized to trade. O. Reg. 333/08, s. 12.

Requirements for registration as a salesperson

13. (1) The following are prescribed, for the purposes of subsections 5.1 (1) and 6 (1) of the Act, as requirements for registration or renewal of registration as a salesperson:

1. The fee required under clause 9 (b) is paid.

2. Subject to subsection (3), the applicant meets one of the following conditions:

i. At the time of the application, the applicant has successfully completed the course designated by the registrar for the purposes of this subparagraph.

ii. The applicant was registered as a salesperson under the Motor Vehicle Dealers Act before its repeal and the application is made no more than two years after the expiry of the applicant’s most recent registration as a salesperson.

iii. The applicant was previously registered as a salesperson under the Act, the registration has expired but, at any time less than two years before the time of the current application for registration, the applicant successfully completed the course designated by the registrar for the purposes of the previous registration and the course has not changed since the applicant successfully completed it. O. Reg. 333/08, s. 13 (1); O. Reg. 221/09, s. 6.

(2) Subparagraphs 2 ii and iii of subsection (1) do not prevent the registration from being made subject to a condition requiring the taking of the course described in subparagraph i of that subsection. O. Reg. 333/08, s. 13 (2).

(3) Paragraph 2 of subsection (1) does not apply to an applicant who applies to be registered to no other motor vehicle dealer other than a motor vehicle dealer registered as an outside Ontario dealer. O. Reg. 333/08, s. 13 (3).

Condition of registration for registered salespersons

14. It is a condition of registration as a salesperson that the salesperson is employed or retained to act as a salesperson by no more than one registered motor vehicle dealer unless all the dealers give their written consent in a form approved by the registrar. O. Reg. 333/08, s. 14.

Restriction on time to reapply for registration

15. The prescribed time for the purpose of clause 12 (a) of the Act is two years. O. Reg. 333/08, s. 15.

Certificate of registration

16. (1) Upon granting or renewing a registration as a motor vehicle dealer or as a salesperson, the registrar shall issue a certificate of registration to the registrant showing the following:

1. A registered name of the registrant.

2. A registration number.

3. The expiry date for the registration.

4. If the registrant is a motor vehicle dealer, the place to which the certificate relates, except if the registrant is registered as an outside Ontario dealer, lease finance dealer or fleet lessor.

5. If the registrant is a motor vehicle dealer, the classes of registration and subclasses, if applicable.

6. If the registrant is a salesperson, a motor vehicle dealer to whom the registrant is registered. O. Reg. 333/08, s. 16 (1).

(2) In the case of a registered motor vehicle dealer, other than an outside Ontario dealer, a lease finance dealer or a fleet lessor, the registrar shall issue a certificate of registration suitable for posting under subsection 29 (1) to the dealer for each place from which the dealer is authorized to trade. O. Reg. 333/08, s. 16 (2).

(3) In the case of motor vehicle dealer registered as an outside Ontario dealer, a lease finance dealer or a fleet lessor, the registrar shall issue a certificate of registration to the dealer in the form that the registrar determines. O. Reg. 333/08, s. 16 (3).

(4) In the case of a registered motor vehicle dealer that is a sole proprietor but not an outside Ontario dealer, a lease finance dealer or a fleet lessor and in the case of a registered salesperson, the registrar shall issue an additional certificate of registration that the registrant may carry on the person. O. Reg. 333/08, s. 16 (4).

Expiry of registration

17. (1) Subject to this section, a registration as a motor vehicle dealer or as a salesperson expires on the date shown on the certificate of registration. O. Reg. 333/08, s. 17 (1).

(2) The registration of a registered salesperson expires when none of the registered motor vehicle dealers to whom the salesperson is registered employ the salesperson any longer. O. Reg. 333/08, s. 17 (2).

(3) If the registration of a registered salesperson expires under subsection (2) and, within the period described in subsection (4), the salesperson is employed by a registered motor vehicle dealer to act as a salesperson in a capacity for which the salesperson is required to be registered, the salesperson may, during that period, make an application for registration in a form that the registrar has approved for use in those circumstances. O. Reg. 333/08, s. 17 (3).

(4) The period mentioned in subsection (3) is the period that begins on the day the registration of the salesperson expires under subsection (2) and ends on the date that the previous registration of the salesperson would have expired under subsection (1) if it had not expired under subsection (2). O. Reg. 221/09, s. 7.

(5) If the registrar grants an application mentioned in subsection (3), the registration expires on the date that the previous registration of the salesperson would have expired under subsection (1) if it had not expired under subsection (2). O. Reg. 333/08, s. 17 (5).

Classes of Motor Vehicle Dealers

Classes of motor vehicle dealers

18. (1) The following classes and subclasses of motor vehicle dealers are established for the purpose of registration:

1. General dealer, consisting of the following subclasses:

i. New and used motor vehicles.

ii. Used motor vehicles.

2. Broker.

3. Wholesaler.

4. Exporter.

5. Outside Ontario dealer.

6. Lease finance dealer.

7. Fleet lessor. O. Reg. 333/08, s. 18 (1); O. Reg. 377/09, s. 2.

(2) A motor vehicle dealer, other than a dealer registered as a general dealer, broker or outside Ontario dealer, may be registered in more than one class or subclass of motor vehicle dealer. O. Reg. 333/08, s. 18 (2).

Authorized Activities for Classes of Motor Vehicle Dealers

General dealers

19. (1) A motor vehicle dealer registered as a general dealer in the subclass of new and used motor vehicles is authorized to act as a motor vehicle dealer for all trades in motor vehicles. O. Reg. 333/08, s. 19 (1).

(2) A motor vehicle dealer registered as a general dealer in the subclass of used motor vehicles shall not act as a motor vehicle dealer, other than for trades in used motor vehicles. O. Reg. 333/08, s. 19 (2).

(3) It is a condition of registration of a motor vehicle dealer registered as a general dealer that the dealer shall not be registered in more than one subclass of general dealer. O. Reg. 333/08, s. 19 (3).

Brokers

20. (1) A motor vehicle dealer registered as a broker shall not act as a motor vehicle dealer, other than,

(a) to act on behalf of a customer who is not a registrant to facilitate a trade in a motor vehicle involving the customer as a party, where the broker has no property interest in the trade and where the broker does not take or handle the funds used to pay for the trade; or

(b) to advertise with respect to the activity described in clause (a). O. Reg. 333/08, s. 20 (1).

(2) It is a condition of registration of a motor vehicle dealer registered as a broker that the dealer shall be not registered in more than one class of motor vehicle dealer and shall not be associated with any other registrant as described in subsection 1 (2) of the Act. O. Reg. 333/08, s. 20 (2).

(3) It is a condition of registration as a broker that, when the broker acts on behalf of a customer to facilitate a trade, the broker shall not,

(a) represent the interests of any person other than the customer;

(b) receive compensation from a person who is not a party to the trade; or

(c) receive compensation from more than one party to the trade. O. Reg. 333/08, s. 20 (3).

(4) A motor vehicle dealer registered as a broker shall not sell extended warranties or service plans or facilitate their sale through the broker. O. Reg. 333/08, s. 20 (4).

(5) A motor vehicle dealer registered as a broker shall not take possession of the motor vehicle that is the subject of a trade. O. Reg. 333/08, s. 20 (5).

Wholesalers

21. A motor vehicle dealer registered as a wholesaler shall not act as a motor vehicle dealer, other than,

(a) to trade in motor vehicles with other registered motor vehicle dealers;

(a.1) to purchase motor vehicles from the Crown or a person who is exempt from the Act and the regulations as a result of one of the paragraphs of subsection 2 (1); or

(b) to sell motor vehicles at an auction where,

(i) the person who arranges for and conducts the auction is exempt from the Act and the regulations as a result of paragraph 1 of subsection 2 (1), and

(ii) the sale is made to a person who, at the time of the sale, is located in another jurisdiction and registered in that jurisdiction as a person with equivalent status to a registered motor vehicle dealer. O. Reg. 333/08, s. 21; O. Reg. 221/09, s. 8.

Exporters

22. A motor vehicle dealer registered as an exporter shall not act as a motor vehicle dealer, other than to buy motor vehicles for the purpose of export outside of Ontario and to advertise with respect to such buying. O. Reg. 333/08, s. 22.

Outside Ontario dealers

23. (1) A motor vehicle dealer registered as an outside Ontario dealer shall not act as a motor vehicle dealer, other than to buy motor vehicles for the purpose of export outside of Ontario and to advertise with respect to such buying. O. Reg. 333/08, s. 23 (1).

(2) It is a condition of registration as an outside Ontario dealer that the dealer shall not have a place authorized in the dealer’s registration to which the dealer invites the public to deal with respect to motor vehicles or from which the dealer trades in motor vehicles. O. Reg. 333/08, s. 23 (2).

Lease finance dealers

24. (1) A motor vehicle dealer registered as a lease finance dealer shall not be associated, as described in subsection 1 (2) of the Act, with a motor vehicle dealer registered as a general dealer, unless the association is the result of the lease finance dealer and the general dealer both being associated with the same person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2 (1). O. Reg. 333/08, s. 24 (1).

(2) A motor vehicle dealer registered as a lease finance dealer shall not act as a motor vehicle dealer, other than,

(a) to buy motor vehicles;

(b) to lease a motor vehicle to a lessee if,

(i) the lease is made through a motor vehicle dealer registered as a general dealer, and

(ii) the lease is for a term of at least 120 consecutive days;

(b.1) to lease to a lessee a motor vehicle previously leased to the lessee under clause (b) if the further lease is made through a motor vehicle dealer registered as a general dealer or a salesperson registered to the lease finance dealer;

(c) to sell a previously leased motor vehicle,

(i) directly to the lessee, an individual who drove the vehicle during the term of the lease or, if the lessee is a partnership, a partner of the lessee,

(ii) to any of the persons described in subclause (i) through a motor vehicle dealer registered as a general dealer,

(iii) to a registered motor vehicle dealer or to a person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2 (1), or

(iv) at an auction where,

(A) the person who arranges for and conducts the auction is exempt from the Act and the regulations as a result of paragraph 1 of subsection 2 (1), and

(B) the sale is made to a person who, at the time of the sale, is located in another jurisdiction and registered in that jurisdiction as a person with equivalent status to a registered motor vehicle dealer;

(d) to sell a motor vehicle that the lease finance dealer has repossessed to or through a registered motor vehicle dealer or at an auction where,

(i) the person who arranges for and conducts the auction is exempt from the Act and the regulations as a result of paragraph 1 of subsection 2 (1), and

(ii) the sale is made to a person who, at the time of the sale, is located in another jurisdiction and registered in that jurisdiction as a person with equivalent status to a registered motor vehicle dealer;

(e) to trade in a motor vehicle with a motor vehicle dealer who is registered as a general dealer or a person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2 (1);

(f) to trade in a motor vehicle with the purchaser if,

(i) the vehicle is the subject of a conditional sales contract originally entered into between the purchaser and a general dealer, and

(ii) the general dealer has assigned its interest under the contract to the lease finance dealer; or

(g) to advertise with respect to the activities described in any of clauses (a) to (f). O. Reg. 333/08, s. 24 (2); O. Reg. 221/09, s. 9.

Fleet lessors

25. A motor vehicle dealer registered as a fleet lessor shall not act as a motor vehicle dealer, other than,

(a) to buy motor vehicles or lease motor vehicles as a lessee;

(b) to lease a motor vehicle to a lessee who is not a consumer within the meaning of the Consumer Protection Act, 2002;

(c) to sell a previously leased motor vehicle,

(i) to the lessee,

(ii) to an individual who drove the motor vehicle during the term of the lease,

(iii) to an officer or director of the lessee, if the lessee is a corporation,

(iv) to a partner of the lessee, if the lessee is a partnership, or

(v) to a registered motor vehicle dealer or to a person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2 (1), or

(vi) at an auction where,

(A) the person who arranges for and conducts the auction is exempt from the Act and the regulations as a result of paragraph 1 of subsection 2 (1), and

(B) the sale is made to a person who, at the time of the sale, is located in another jurisdiction and registered in that jurisdiction as a person with equivalent status to a registered motor vehicle dealer; or

(d) to advertise with respect to the activities described in any of clauses (a), (b) and (c). O. Reg. 333/08, s. 25; O. Reg. 221/09, s. 10; O. Reg. 377/09, s. 3.

26. Revoked: O. Reg. 377/09, s. 4.

Disclosure of Information on Registrants and Others

Information on registrants, etc.

27. (1) The registrar shall make available to the public, by electronic or other means, the following information:

1. The complete legal name of each person registered as a motor vehicle dealer and, if the person is registered under another name, the name under which the person is registered.

2. The class or classes of the registration of the persons described in paragraph 1 and the subclasses of their registration, if applicable.

3. For each person described in paragraph 1, the business address and business telephone number of the person and the business address and business telephone number of every place from which the person is authorized to trade and the other ways, if any, of contacting the person.

4. The registered names of persons registered as salespersons and the motor vehicle dealers to whom each salesperson is registered.

5. A description of the conditions, if any, that apply to a registrant’s registration if they are applied by the registrar under section 9 of the Act or ordered by the Tribunal.

6. If a proposal by the registrar to apply conditions to a registrant’s registration has not yet been disposed of, an indication of that fact.

7. The registered names of registrants whose renewal of registration has been refused or whose registration has been revoked.

8. If a proposal by the registrar to refuse to renew a registrant’s registration has not yet been disposed of, an indication of that fact.

9. The registered names of registrants whose registration has been suspended.

10. If a proposal by the registrar to suspend a registrant’s registration has not yet been disposed of, an indication of that fact.

11. If a proposal by the registrar to revoke a registrant’s registration has not yet been disposed of, an indication of that fact.

12. For every registrant, former registrant, person registered at any time under the Motor Vehicle Dealers Act and director or officer of a registered motor vehicle dealer who is currently charged with an offence as a result of an information laid by an employee of the administrative authority, if there is an administrative authority,

i. the Act that creates the offence,

ii. a description of the charge, and

iii. the date on which the information was laid.

13. For every registrant, former registrant, person registered at any time under the Motor Vehicle Dealers Act and director or officer of a registered motor vehicle dealer who has been found guilty of an offence as a result of an information laid by an employee of the administrative authority, if there is an administrative authority,

i. the Act that creates the offence,

ii. a description of the offence, and

iii. a description of the disposition of the charge, including any sentence that was imposed and any order to pay compensation or make restitution.

14. If an order made under section 29 of the Act against a registrant is currently in effect, a copy of the order.

15. The registered name of the registrant and the contents of an order made by the discipline committee under section 17 of the Act after determining that a registrant has failed to comply with Ontario Regulation 332/08 (Code of Ethics and Operation of Committees) made under the Act if,

i the time for commencing an appeal of the order has expired and no appeal has been commenced, or

ii. an appeal of the order was commenced but has been withdrawn or abandoned.

16. The registered name of the registrant and the contents of an order made by the appeals committee under section 17 of the Act if,

i. the discipline committee has made a determination under that section that the registrant has failed to comply with Ontario Regulation 332/08 (Code of Ethics and Operation of Committees) made under the Act and the appeals committee has upheld the determination, or

ii. the appeals committee determines that the registrant has failed to comply with Ontario Regulation 332/08 (Code of Ethics and Operation of Committees) made under the Act. O. Reg. 333/08, s. 27 (1).

(2) Subject to subsection (3), if the registrar becomes aware of information respecting a registrant, a former registrant, a person registered at any time under the Motor Vehicle Dealers Act, a director or officer of a registrant or a person who is carrying on activities that require registration and if the registrar is of the opinion that the information could assist in protecting the public if the public knew of it, the registrar shall make the information available to the public by electronic or other means. O. Reg. 333/08, s. 27 (2).

(3) The registrar shall not make any information available to the public under subsection (2) if it is financial information relating to a person or the business of a person and the person could reasonably expect that the information be kept confidential. O. Reg. 333/08, s. 27 (3).

(4) In making any information available to the public under this section, the registrar shall ensure that the information does not include the name of an individual, except if,

(a) the individual is a registrant, a former registrant, a person registered at any time under the Motor Vehicle Dealers Act or a person who is required to be registered;

(b) the individual is a director or officer of a registered motor vehicle dealer;

(c) the name of the individual is otherwise available to the public in connection with the information; or

(d) the individual consents. O. Reg. 333/08, s. 27 (4).

(5) The registrar shall ensure that the information described in the following paragraphs remains available to the public for the period specified in the applicable paragraph:

1. Information described in paragraph 7 of subsection (1) about the refusal to renew a registration, for at least two years after the refusal.

2. Information described in paragraph 7 of subsection (1) about the revocation of a registration, for at least two years after the revocation.

3. Information under paragraph 9 of subsection (1) that a registrant’s registration has been suspended,

i. during the period of the suspension, if the registrar has suspended the registration under section 10 of the Act and the Tribunal has terminated the suspension, or

ii. for at least two years after the suspension has ended, in all other cases.

4. Information described in paragraph 13 of subsection (1) about a finding of guilt, for at least two years after the finding of guilt.

5. Information described in paragraph 14 of subsection (1) about an order, for at least two years after,

i. the date the registrar made the order under subsection 29 (1) of the Act, if the registrant did not appeal the order, or

ii. the date the Tribunal made its order, if the registrant appealed the order made by the registrar under subsection 29 (1) of the Act.

6. Information described in paragraph 15 or 16 of subsection (1) about an order, for at least two years after the order was made. O. Reg. 333/08, s. 27 (5).

(6) The information that this section requires the registrar to make available to the public shall not be disclosed in bulk to any person except as required by law or to a law enforcement authority. O. Reg. 333/08, s. 27 (6).

(7) Despite subsections (4) and (6), the registrar may make available to the persons who are exempt from the Act and the regulations under paragraph 1 of subsection 2 (1) the following information only for the purpose of allowing the persons to ensure that there is compliance with the conditions set out in subsection 2 (3):

1. The complete legal name of each person registered as a motor vehicle dealer and, if the person is registered under another name, the name under which the person is registered.

2. The business address, registration number and expiry date for the registration of each of the persons described in paragraph 1.

3. The complete legal name of each person registered as a salesperson, the person’s registered name if different from the legal name, the person’s registration number and the expiry date of the registration.

4. The registered names and registration numbers of the motor vehicle dealers to whom each registered salesperson is registered. O. Reg. 333/08, s. 27 (7).

PART IV
CONDUCT OF REGISTRANTS

General

Place of business

28. (1) Subject to subsection (2), the certificate of registration of a motor vehicle dealer shall list the places from which the dealer is authorized to trade. O. Reg. 333/08, s. 28 (1); O. Reg. 221/09, s. 12.

(2) The certificate of registration of a motor vehicle dealer shall not list the places from which the dealer is authorized to trade, if the dealer is registered as a lease finance dealer, a fleet lessor or both. O. Reg. 333/08, s. 28 (2); O. Reg. 221/09, s. 12.

(3) Subsections (4), (6) and (7) do not apply to a motor vehicle dealer registered only as one or more of the following:

1. An outside Ontario dealer.

2. A lease finance dealer.

3. A fleet lessor. O. Reg. 333/08, s. 28 (3).

(4) Except for advertising, a registered motor vehicle dealer other than a motor vehicle dealer registered only as a broker shall not trade except from a place authorized by the dealer’s registration. O. Reg. 333/08, s. 28 (4).

(5) A registered motor vehicle dealer is exempt from subsection (4) if the dealer,

(a) sells a motor vehicle under a consignment contract with another registered motor vehicle dealer as consignee at a place from which the consignee is authorized to trade;

(b) sells or acquires an interest in a motor vehicle at an auction of motor vehicles; or

(c) acquires an interest in a motor vehicle under a trade with another registered motor vehicle dealer, where the trade takes place at a place from which one of the dealers is authorized to trade. O. Reg. 333/08, s. 28 (5).

(6) Except in the case of a motor vehicle dealer registered only as a wholesaler or broker, each place from which a registered motor vehicle dealer is authorized to trade shall be separate from a dwelling. O. Reg. 333/08, s. 28 (6).

(7) A registered motor vehicle dealer shall maintain an office, in accordance with subsection (8), at each place from which the dealer is authorized to trade. O. Reg. 333/08, s. 28 (7).

(8) The office shall be of sufficient size to permit the secure storage of records that this Regulation requires the registered motor vehicle dealer to keep at the place. O. Reg. 333/08, s. 28 (8).

(9) It is a condition of registration as a motor vehicle dealer that the dealer comply with all municipal by-law requirements that apply to each place from which the dealer trades. O. Reg. 333/08, s. 28 (9).

Certificates of registration

29. (1) A registered motor vehicle dealer shall post, at each place from which the dealer is authorized to trade, the dealer’s certificate of registration for that place so that the public is likely to see it. O. Reg. 333/08, s. 29 (1).

(2) Subsection (1) does not apply to a motor vehicle dealer registered only as one or more of the following:

1. An outside Ontario dealer.

2. A lease finance dealer.

3. A fleet lessor. O. Reg. 333/08, s. 29 (2).

(3) A registered motor vehicle dealer who, under subsection (2), is not required to post the dealer’s certificate of registration shall,

(a) keep the certificate at,

(i) the place described in subclause 56 (2) (a) (i) if the dealer is registered as an outside Ontario dealer, or

(ii) the place from which the dealer trades in all other cases; and

(b) produce the certificate for inspection on the request of any person. O. Reg. 333/08, s. 29 (3).

(4) A registered motor vehicle dealer, other than a registered motor vehicle dealer described in subsection (2), shall,

(a) keep, at the place from which the dealer is authorized to trade, a copy of the certificate of registration for each salesperson registered to the dealer who trades from that place; and

(b) produce the copy described in clause (a) for inspection on the request of any person. O. Reg. 333/08, s. 29 (4).

(5) A registered motor vehicle dealer described in subsection (2) shall,

(a) keep, at the applicable place described in subsection 56 (2), a copy of the certificate of registration for each salesperson registered to the dealer; and

(b) produce the copy described in clause (a) for inspection on the request of any person. O. Reg. 333/08, s. 29 (5).

(6) While engaged in activities that require registration, a registrant who is an individual shall carry the certificate of registration provided by the registrar for that purpose and shall produce it for inspection on the request of any person. O. Reg. 333/08, s. 29 (6).

(7) If a motor vehicle dealer ceases to be registered or if the registration of a motor vehicle dealer is suspended,

(a) all salespersons registered to the dealer shall immediately return their certificates of registration to the registrar; and

(b) the dealer shall immediately return, to the registrar, all certificates of registration relating to the registration and all copies that the dealer has of the certificates of registration of salespersons registered to the dealer. O. Reg. 333/08, s. 29 (7).

(8) If a salesperson ceases to be registered or if the registration of a salesperson is suspended,

(a) the salesperson shall immediately return, to the registrar, his or her certificate of registration; and

(b) the motor vehicle dealer to whom the salesperson was registered shall immediately return, to the registrar, the copy that the dealer has of the certificate of registration of the salesperson. O. Reg. 333/08, s. 29 (8).

(9) If the registration of a person mentioned in subsection (7) or (8) is suspended and the suspension expires before the registration does, the registrar shall immediately after the suspension expires issue a replacement for,

(a) each certificate of registration of the person that the person returned to the registrar under the applicable one of those subsections; and

(b) each certificate of registration of each salesperson registered to the person that the salesperson returned to the registrar under clause (7) (a), if the person is a motor vehicle dealer. O. Reg. 333/08, s. 29 (9).

(10) No registrant shall alter, modify or falsify a certificate of registration or allow or assist in the altering, modifying or falsifying of a certificate of registration. O. Reg. 333/08, s. 29 (10).

(11) No registrant shall use or facilitate the use of a certificate of registration or a copy of a certificate of registration for dishonest purposes. O. Reg. 333/08, s. 29 (11).

Signs

30. (1) A registered motor vehicle dealer shall post, at each place from which the dealer trades, a sign that is clearly visible to the public, that cannot be removed except through express human effort or force majeure and that displays a registered name of the dealer. O. Reg. 333/08, s. 30 (1).

(2) Subsection (1) does not apply to a motor vehicle dealer registered only as one or more of the following:

1. An outside Ontario dealer.

2. A lease finance dealer.

3. A fleet lessor. O. Reg. 333/08, s. 30 (2).

Notice of events to registrar

31. (1) Every registrant shall, within five days after the occurrence of the event, notify the registrar in writing of,

(a) any change to the information that the registrant supplied for the purpose of obtaining registration; and

(b) the giving of the consent described in section 14. O. Reg. 333/08, s. 31 (1).

(2) A corporation that is required to provide a notice to the registrar under subsection 13 (1) of the Act shall provide the notice in a form approved by the registrar and shall identify in the notice,

(a) the person, or the persons that are associated with each other, who, as a result of the issue or transfer of equity shares of the corporation, are acquiring or accumulating beneficial ownership or control of 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation; or

(b) the person, or the persons that are associated with each other, who already beneficially own or control 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation before the issue or transfer and who, as a result of the issue or transfer of equity shares of the corporation, are increasing that percentage. O. Reg. 333/08, s. 31 (2).

(3) A person who is required to provide a notice to the registrar under subsection 24 (1) or (2) of the Act or clause 31 (1) (b) of this Regulation shall provide the notice in a form approved by the registrar. O. Reg. 333/08, s. 31 (3).

Restrictions on identification numbers and labels

32. (1) No registrant shall affix, or cause to be affixed, a vehicle identification number to a motor vehicle. O. Reg. 333/08, s. 32 (1).

(2) No registrant shall use a vehicle identification number in respect of a motor vehicle if the number does not relate to the vehicle. O. Reg. 333/08, s. 32 (2).

(3) No registrant shall facilitate the use of a vehicle identification number for dishonest purposes. O. Reg. 333/08, s. 32 (3).

(4) It is a condition of registration that a registrant not remove or alter any label or number that was affixed to a motor vehicle by any lawful authority in or outside of Canada, except if the removal or alteration is permitted by law. O. Reg. 333/08, s. 32 (4).

(5) It is a condition of registration that a registrant not trade in a motor vehicle that has affixed to it a vehicle identification number that has been obliterated, defaced or that is not easily recognizable. O. Reg. 333/08, s. 32 (5).

Odometers

33. If the odometer of a motor vehicle in the possession or control of a registrant is exchanged or repaired, the registrant shall ensure that the person doing the exchange or repair, as the case may be, holds all qualifications required by law for doing so. O. Reg. 333/08, s. 33.

Requirements at exempt auctions

34. (1) If a person who arranges for and conducts an auction of motor vehicles is exempt, under paragraph 1 of subsection 2 (1), from the Act and the regulations in connection with the auction and conducts the auction so that bidders are physically present, no registrant shall facilitate access into the bidding area by persons other than those set out in paragraph 4 of subsection 2 (3). O. Reg. 333/08, s. 34 (1).

(2) If the person who arranges for and conducts an auction of motor vehicles is exempt, under paragraph 1 of subsection 2 (1), from the Act and the regulations in connection with the auction and conducts the auction so that bidders have access to the auction through electronic means, no registrant shall permit or facilitate access to the auction through electronic means by any person who is not a registrant. O. Reg. 333/08, s. 34 (2).

Compliance by salespersons with Code of Ethics

35. A registered motor vehicle dealer is exempt from section 23 of the Act with respect to compliance with Ontario Regulation 332/08 (Code of Ethics and Operation of Committees) made under the Act by registered salespersons that the dealer employs. O. Reg. 333/08, s. 35.

Trading by Motor Vehicle Dealers

Advertising

36. (1) A registered motor vehicle dealer to whom this section applies shall ensure that any advertisement placed by the dealer complies with this section. O. Reg. 333/08, s. 36 (1).

(2) Subject to subsection (3), an advertisement that attempts to induce a trade in a motor vehicle shall include, in a clear, comprehensible and prominent manner, a registered name and the business telephone number of the motor vehicle dealer. O. Reg. 333/08, s. 36 (2).

(3) Subsection (2) does not apply to an advertisement that,

(a) indicates that it is being placed by a registered motor vehicle dealer; and

(b) is a classified advertisement in a newspaper, magazine, or similar publication, is broadcast on radio or television, is displayed on a billboard or bus board or is made through any other medium that has similar practical limitations on the amount of information that can be included in the advertisement. O. Reg. 333/08, s. 36 (3).

(4) Despite clause 4 (2) (b) of the Act, an advertisement placed by a motor vehicle dealer registered as a lease finance dealer who trades through one or more registered general dealers may invite the public to deal with the lease finance dealer at the place from which any of the general dealers is authorized to trade. O. Reg. 333/08, s. 36 (4).

(5) If any of the following is true of a motor vehicle, an advertisement that attempts to induce a trade in the specific vehicle shall indicate, in a clear, comprehensible and prominent manner, that the vehicle was previously,

(a) leased on a daily basis, unless the vehicle was subsequently owned by a person who was not a registered motor vehicle dealer;

(b) used as a police cruiser or used to provide emergency services; or

(c) used as a taxi or limousine. O. Reg. 333/08, s. 36 (5).

(6) If an advertisement that attempts to induce a trade in a specific motor vehicle discloses the model year of the vehicle and the model year so disclosed is the current model year or the immediately previous model year, the advertisement shall indicate, in a clear, comprehensible and prominent manner, that the vehicle is a used motor vehicle, if that is true of the vehicle. O. Reg. 333/08, s. 36 (6).

(7) If an advertisement indicates the price of a motor vehicle, the price shall be set out in a clear, comprehensible and prominent manner and shall be set out as the total of,

(a) the amount that a buyer would be required to pay for the vehicle; and

(b) subject to subsections (9) and (10), all other charges related to the trade in the vehicle, including, if any, charges for freight, charges for inspection before delivery of the vehicle, fees, levies and taxes. O. Reg. 333/08, s. 36 (7).

(8) If an advertisement that indicates a price for a motor vehicle is placed jointly by two or more registered motor vehicle dealers, the advertisement shall state that the price for the vehicle in an actual trade may be less than the price set out in the advertisement. O. Reg. 333/08, s. 36 (8).

(9) Subject to subsection (10), if an advertisement that indicates a price for a motor vehicle is placed jointly by two or more registered motor vehicle dealers and if an amount of a charge mentioned in clause (7) (b) varies as between the dealers, the advertisement shall indicate, in a clear, comprehensible and prominent manner,

(a) that a buyer of the vehicle may be requested to pay that amount in addition to the price indicated in the advertisement; and

(b) what the charge is for. O. Reg. 333/08, s. 36 (9).

(10) Clause (7) (b) and subsection (9) do not apply to amounts under the Retail Sales Tax Act or to the federal goods and services tax if the advertisement indicates, in a clear, comprehensible and prominent manner, that those amounts are not included in the price indicated in the advertisement. O. Reg. 333/08, s. 36 (10).

(11) If an advertisement that indicates a price for a motor vehicle is placed jointly by two or more registered motor vehicle dealers, each of the dealers shall ensure that the advertisement complies with subsections (7), (8), (9) and (10). O. Reg. 333/08, s. 36 (11).

(12) An advertisement that advertises a motor vehicle for sale shall not indicate the price of the vehicle unless the vehicle is available from the registered motor vehicle dealer at that price during the time to which the advertisement applies. O. Reg. 333/08, s. 36 (12).

(13) If an advertisement indicates the price of a motor vehicle and if there are a limited number of vehicles available at that price, the advertisement shall indicate, in a clear, comprehensible and prominent manner, the number of vehicles available. O. Reg. 333/08, s. 36 (13).

(14) An advertisement that indicates that an extended warranty is included with the purchase of a motor vehicle shall indicate, in a clear, comprehensible and prominent manner, the term of the warranty and the maximum individual claim limits, if any, for the warranty. O. Reg. 333/08, s. 36 (14).

Maximum period for pre-approval of advertising

37. (1) For the purposes of subsection 29 (5) of the Act, a two-year period is prescribed. O. Reg. 333/08, s. 37 (1).

(2) The prescribed period begins,

(a) upon the expiry of the time for requesting a hearing by the Tribunal, if the registrant does not appeal an order of the registrar made under subsection 29 (1) of the Act;

(b) when the Tribunal upholds the order or variation of it, if the Tribunal upholds the order or a variation of it. O. Reg. 333/08, s. 37 (2).

Deposits given before contract made

38. If a customer who is not a registered motor vehicle dealer gives a registered motor vehicle dealer a deposit or a motor vehicle as a trade-in before entering into a contract for the purchase or lease of a motor vehicle, then requests the return of the deposit or the vehicle being traded-in before entering into the contract, the dealer shall immediately return the deposit or the vehicle being traded-in, as the case may be, to the customer, even if,

(a) the dealer is not the dealer who sells or leases the vehicle being sold or leased to the customer; or

(b) the customer does not enter into a contract for the purchase or lease of a motor vehicle. O. Reg. 333/08, s. 38.

Contracts for sales of new motor vehicles

39. (1) Before entering into a contract to sell a new motor vehicle to a purchaser who is not a registered motor vehicle dealer, a registered motor vehicle dealer shall ensure that the person providing financing for the purchase has provided to the purchaser the information that must be disclosed in any initial disclosure statement required under section 79 of the Consumer Protection Act, 2002 with respect to the financing if,

(a) the purchaser is a consumer within the meaning of that Act; and

(b) the dealer is providing the financing or the application for the financing to the purchaser. O. Reg. 333/08, s. 39 (1).

(2) A registered motor vehicle dealer shall ensure that any contract that the dealer enters into to sell a new motor vehicle to a purchaser who is not another registered motor vehicle dealer includes, in a clear, comprehensible and prominent manner, the following:

1. The name and address of the purchaser.

2. A registered name and the registration number of the dealer that entered into the contract, together with the legal name of the dealer if it is different from the registered name.

3. The business address of the place at which the dealer entered into the contract.

4. If the contract is made through a motor vehicle dealer registered as a general dealer in the subclass of new and used motor vehicles, the registered name and registration number of that dealer, together with the legal name of that dealer if it is different from the registered name.

5. If a registered salesperson is acting on behalf of the dealer respecting the sale, the registered name and registration number of the salesperson.

6. The date of the sale.

7. The date that the vehicle is to be delivered or a manner for determining that date.

8. The colour of the vehicle.

9. The vehicle identification number of the vehicle, if known.

10. The body type of the vehicle.

11. The manufacturer’s suggested retail price for the vehicle, excluding the price described in paragraph 12.

12. An itemized list of the manufacturer’s suggested retail price of all extra equipment and options that, under the contract, will be sold to the purchaser in connection with the vehicle or installed on the vehicle at the time of the sale.

13. The total manufacturer’s suggested retail price for the vehicle, being the total of the price described in paragraphs 11 and 12.

14. An itemized list of the charges that the purchaser is required to pay under the contract to conclude the transaction, including charges for freight, charges for inspection before delivery of the vehicle, fees and levies.

15. An itemized list of items or inducements, including guarantees or extended warranties, service plans or rights under sales policies if the dealer has agreed to provide the items or inducements to the purchaser and there is no extra charge to the purchaser for them beyond the total sale price of the motor vehicle under the contract, and the list shall show a fair and accurate description and the retail value, if any, of each of the items or inducements.

16. The total sale price under the contract, including the charges described in paragraph 14.

17. The down payment or deposit, if any, paid by the purchaser.

18. The balance that the purchaser will be required to pay under the contract.

19. An itemized list of all other charges that the purchaser will be required to pay in connection with the vehicle at the time of delivery but that are not required under the contract, such as taxes.

20. A statement that the dealer has complied with subsection (1), if that subsection applies to the dealer with respect to the contract.

21. If the dealer or the salespersons registered to the dealer have received or will receive, from any source other than the dealer, a commission, remuneration or any other incentive for providing the application for financing for the purchase to the purchaser, a statement to that effect that is initialled by the purchaser.

22. The information required to be included under section 42.

23. If there is a trade-in of another motor vehicle under the contract, anything required to be included under section 43.

24. On the same page of the contract as the purchaser’s signature and next to it, a statement in accordance with subsection (3) in 12 point bold font, except for the heading which shall be in 14 point bold font.

25. A statement in accordance with subsections (4) and (5) in 12 point bold font, except for the heading which shall be in 14 point bold font.

26. A statement in accordance with subsection (6) or (7), as the case may be, in 12 point bold font, except for the heading which shall be in 14 point bold font.

27. A statement by the purchaser of all particular facts, if any, respecting the vehicle that the purchaser considers material to the purchase. O. Reg. 333/08, s. 39 (2); O. Reg. 221/09, s. 13.

(3) The statement mentioned in paragraph 24 of subsection (2) is as follows:

Sales Final

Please review the entire contract, including all attached statements, before signing. This contract is final and binding once you have signed it unless the motor vehicle dealer has failed to comply with certain legal obligations.

O. Reg. 333/08, s. 39 (3).

(4) The statement mentioned in paragraph 25 of subsection (2) is as follows:

Important Information Respecting Motor Vehicle Sales

In case of any concerns with this sale, you should first contact your motor vehicle dealer. If concerns persist, you may contact the Ontario Motor Vehicle Industry Council as the administrative authority designated for administering the Motor Vehicle Dealers Act, 2002.

You may be eligible for compensation from the Motor Vehicle Dealers Compensation Fund if you suffer a financial loss from this trade and if your dealer is unable or unwilling to make good on the loss.

You may have additional rights at law.

O. Reg. 333/08, s. 39 (4).

(5) If there is an administrative authority, the statement mentioned in paragraph 25 of subsection (2) shall also include,

(a) contact information for the authority including its website address and telephone number, including any toll free number the authority has; and

(b) at the end of the statement, the trade mark of the authority, if any. O. Reg. 333/08, s. 39 (5).

(6) If the Canadian Motor Vehicle Arbitration Plan is available for disputes concerning the motor vehicle, the statement mentioned in paragraph 26 of subsection (2) shall be as follows:

Canadian Motor Vehicle Arbitration Plan

The Canadian Motor Vehicle Arbitration Plan may be available to resolve disputes concerning alleged manufacturer’s defects or implementation of the manufacturer’s new motor vehicle warranty.

O. Reg. 333/08, s. 39 (6).

(7) If the Canadian Motor Vehicle Arbitration Plan is not available for disputes concerning the motor vehicle, the statement mentioned in paragraph 26 of subsection (2) shall be as follows:

Canadian Motor Vehicle Arbitration Plan Not Available

The manufacturer of this vehicle is not a participant in the Canadian Motor Vehicle Arbitration Plan. Therefore, the program under that Plan is not available to resolve disputes concerning alleged manufacturer’s defects or implementation of the manufacturer’s new motor vehicle warranty.

O. Reg. 333/08, s. 39 (7).

(8) The registered motor vehicle dealer shall ensure that there is a separate contract under subsection (2) for each motor vehicle that the dealer sells. O. Reg. 333/08, s. 39 (8).

(9) The registered motor vehicle dealer shall ensure that each contract mentioned in subsection (2) into which the dealer enters includes, in a clear, comprehensible and prominent manner, all restrictions, limitations and conditions imposed on the purchaser under the contract. O. Reg. 333/08, s. 39 (9).

(10) For each contract mentioned in subsection (2) into which the registered motor vehicle dealer enters, the dealer shall ensure that,

(a) the contract is signed by the parties;

(b) if a registered salesperson is acting on behalf of the dealer respecting the sale, the contract is signed by the salesperson; and

(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 39 (10).

(11) If a contract under this section is made through a motor vehicle dealer registered as a general dealer in the subclass of new and used motor vehicles, the dealer shall not facilitate a contract that does not comply with this section. O. Reg. 333/08, s. 39 (11).

Contracts for sales of used motor vehicles

40. (1) Before entering into a contract to sell a used motor vehicle to a purchaser who is not a registered motor vehicle dealer, a registered motor vehicle dealer shall ensure that the person providing financing for the purchase has provided to the purchaser the information that must be disclosed in any initial disclosure statement required under section 79 of the Consumer Protection Act, 2002 with respect to the financing if,

(a) the purchaser is a consumer within the meaning of that Act; and

(b) the dealer is providing the financing or the application for the financing to the purchaser. O. Reg. 333/08, s. 40 (1).

(2) A registered motor vehicle dealer shall ensure that any contract that the dealer enters into to sell a used motor vehicle to a purchaser who is not another registered motor vehicle dealer includes, in a clear, comprehensible and prominent manner, the following:

1. The matters required under paragraphs 1 to 3, 5 to 10, 14 to 19 and 21 to 27 of subsection 39 (2).

1.1 If the contract is made through a motor vehicle dealer registered as a general dealer, the registered name and registration number of that dealer, together with the legal name of that dealer if it is different from the registered name.

2. A statement that the dealer has complied with subsection (1), if that subsection applies to the dealer with respect to the contract.

3. An itemized list of all repairs, if any, that, under the contract, the dealer has made to the vehicle or will make to the vehicle and the cost of any such repairs that are to be paid by the purchaser.

4. If a current safety standards certificate under the Highway Traffic Act has been issued for the vehicle, that certificate and a statement in accordance with subsection (5) in 12 point bold font, except for the heading which shall be in 14 point bold font.

5. If the dealer is selling the vehicle on an as-is basis, a statement in accordance with subsection (6) in 12 point bold font, except for the heading which shall be in 14 point bold font, where the purchaser initials the statement. O. Reg. 333/08, s. 40 (2); O. Reg. 221/09, s. 14; O. Reg. 377/09, s. 5.

(3) No registered motor vehicle dealer shall sell a used motor vehicle on an as-is basis to a purchaser who is not a registered motor vehicle dealer if a current safety standards certificate under the Highway Traffic Act has been issued for the vehicle. O. Reg. 333/08, s. 40 (3).

(4) Despite paragraph 1 of subsection (2), the statement mentioned in paragraph 26 of subsection 39 (2) is required only if the model year of the motor vehicle is the current model year or one of the four preceding model years and the vehicle has been driven for less than 160,000 kilometres. O. Reg. 333/08, s. 40 (4).

(5) The statement mentioned in paragraph 4 of subsection (2) is as follows:

Safety Standards Certificate

A safety standards certificate is only an indication that the motor vehicle met certain basic standards of vehicle safety on the date of inspection.

O. Reg. 333/08, s. 40 (5).

(6) The statement mentioned in paragraph 5 of subsection (2) is as follows:

Vehicle sold “as-is”

The motor vehicle sold under this contract is being sold “as-is” and is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser’s expense. It may not be possible to register the vehicle to be driven in its current condition.

O. Reg. 333/08, s. 40 (6).

(7) The registered motor vehicle dealer shall ensure that there is a separate contract under subsection (2) for each motor vehicle that the dealer sells. O. Reg. 333/08, s. 40 (7).

(8) The registered motor vehicle dealer shall ensure that each contract mentioned in subsection (2) into which the dealer enters includes, in a clear, comprehensible and prominent manner, all restrictions, limitations and conditions imposed on the purchaser under the contract. O. Reg. 333/08, s. 40 (8).

(9) For each contract mentioned in subsection (2) into which the registered motor vehicle dealer enters, the dealer shall ensure that,

(a) the contract is signed by the parties;

(b) if a registered salesperson is acting on behalf of the dealer respecting the sale, the contract is signed by the salesperson; and

(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 40 (9).

(10) If a contract under this section is made through a motor vehicle dealer registered as a general dealer, the general dealer shall not facilitate a contract that does not comply with this section. O. Reg. 333/08, s. 40 (10).

Leases

41. (1) A registered motor vehicle dealer, other than a fleet lessor, that enters into a contract to lease a motor vehicle to a lessee who is not another registered motor vehicle dealer shall ensure that the contract includes, in a clear, comprehensible and prominent manner, the following:

1. If the lessee is a consumer within the meaning of the Consumer Protection Act, 2002 and Part VIII of that Act applies to the contract,

i. the information that the disclosure statement for the lease is required to disclose under subsection 89 (2) of the Consumer Protection Act, 2002, and

ii. an itemized list of the items included in the lease value of the vehicle, which value is included in the information mentioned in subparagraph i.

2. The name and address of the lessee.

3. A registered name and the registration number of the dealer that entered into the contract, together with the legal name of the dealer if it is different from the registered name.

4. The business address of the place at which the dealer entered into the contract.

5. If the contract is made through a motor vehicle dealer registered as a general dealer, a registered name and the registration number of that dealer, together with the legal name of that dealer if it is different from the registered name.

6. If a registered salesperson is acting on behalf of the dealer respecting the contract, the registered name and registration number of the salesperson.

7. The colour of the vehicle.

8. The vehicle identification number of the vehicle, if known.

9. The body type of the vehicle.

10. If the vehicle is subject to a service plan, a statement to that effect.

11. The information required to be included under section 42.

12. If there is a trade-in of another motor vehicle under the contract, anything required to be included under section 43.

13. A statement in accordance with subsections (2) and (3) in 12 point bold font, except for the heading which shall be in 14 point bold font.

14. A statement in accordance with subsection (4) or (5), as the case may be, in 12 point bold font, except for the heading which shall be in 14 point bold font.

15. If a current safety standards certificate under the Highway Traffic Act is provided for the vehicle, a statement in accordance with subsection (6) in 12 point bold font, except for the heading which shall be in 14 point bold font.

16. A statement by the lessee of all particular facts, if any, respecting the vehicle that the lessee considers material to the contract. O. Reg. 333/08, s. 41 (1).

(2) The statement mentioned in paragraph 13 of subsection (1) is as follows:

Important Information Respecting Motor Vehicles Leases

In case of any concerns with this lease, you should first contact your motor vehicle dealer. If concerns persist, you may contact the Ontario Motor Vehicle Industry Council as the administrative authority designated for administering the Motor Vehicle Dealers Act, 2002.

You may be eligible for compensation from the Motor Vehicle Dealers Compensation Fund if you suffer a financial loss from this trade and if your motor vehicle dealer is unable or unwilling to make good on the loss.

You may have additional rights at law.

O. Reg. 333/08, s. 41 (2).

(3) If there is an administrative authority, the statement mentioned in paragraph 13 of subsection (1) shall also include,

(a) contact information for the authority including its website, address and telephone number, including any toll free number the authority has; and

(b) at the end of the statement, the trade mark of the authority, if any. O. Reg. 333/08, s. 41 (3).

(4) If the Canadian Motor Vehicle Arbitration Plan is available for disputes concerning the motor vehicle, the statement mentioned in paragraph 14 of subsection (1) shall be as follows:

Canadian Motor Vehicle Arbitration Plan

The Canadian Motor Vehicle Arbitration Plan may be available to resolve disputes concerning alleged manufacturer’s defects or implementation of the manufacturer’s new motor vehicle warranty.

O. Reg. 333/08, s. 41 (4).

(5) If the Canadian Motor Vehicle Arbitration Plan is not available for disputes concerning the motor vehicle, the statement mentioned in paragraph 14 of subsection (1) shall be as follows:

Canadian Motor Vehicle Arbitration Plan Not Available

The manufacturer of this vehicle is not a participant in the Canadian Motor Vehicle Arbitration Plan. Therefore, the program under that Plan is not available to resolve disputes concerning alleged manufacturer’s defects or implementation of the manufacturer’s new motor vehicle warranty.

O. Reg. 333/08, s. 41 (5).

(6) The statement mentioned in paragraph 15 of subsection (1) is as follows:

Safety Standards Certificate

A safety standards certificate is only an indication that the motor vehicle met certain basic standards of vehicle safety on the date of inspection.

O. Reg. 333/08, s. 41 (6).

(7) The registered motor vehicle dealer shall ensure that there is a separate contract under subsection (1) for each motor vehicle that the dealer leases. O. Reg. 333/08, s. 41 (7).

(8) The registered motor vehicle dealer shall ensure that each contract mentioned in subsection (1) into which the dealer enters includes, in a clear, comprehensible and prominent manner, all restrictions, limitations and conditions imposed on the lessee under the contract. O. Reg. 333/08, s. 41 (8).

(9) For each contract mentioned in subsection (1) into which the registered motor vehicle dealer enters, the dealer shall ensure that,

(a) the contract is signed by the parties;

(b) if a registered salesperson is acting on behalf of the dealer respecting the lease, the contract is signed by the salesperson;

(c) the lessee receives a copy of the contract immediately after signing it; and

(d) if the motor vehicle being leased is a used vehicle, the lessee receives a copy of a current safety standards certificate for the vehicle along with the contract. O. Reg. 333/08, s. 41 (9).

(10) If a contract under this section is made through a motor vehicle dealer registered as a general dealer, the general dealer shall not facilitate a contract that does not comply with this section. O. Reg. 333/08, s. 41 (10).

Additional information in contracts of sale and leases

42. For the purposes of section 30 (1) of the Act, the information mentioned in paragraph 22 of subsection 39 (2) and paragraph 11 of subsection 41 (1) of this Regulation is the following:

1. If the motor vehicle is a new motor vehicle and the contract for the sale or the lease of the vehicle identifies a specific motor vehicle, the maximum distance that will be shown on the odometer of the vehicle when it is delivered to the purchaser or the lessee, as the case may be.

2. If the motor vehicle is a new motor vehicle and the contract for the sale or the lease of the vehicle does not identify a specific motor vehicle,

i. the maximum distance that will be shown on the odometer of the vehicle when it is delivered to the purchaser or the lessee, as the case may be, or

ii. a statement initialled by the purchaser or the lessee, as the case may be, that nothing is specified in the contract in respect of the maximum distance that will be shown on the odometer of the vehicle when it is delivered to the purchaser or the lessee.

3. If the motor vehicle is a used motor vehicle, the total distance that it has been driven if the registered motor vehicle dealer can determine the distance.

4. If the motor vehicle is a used motor vehicle and the registered motor vehicle dealer cannot determine the total distance that the vehicle has been driven but can determine the distance that the vehicle has been driven as of some past date, a statement of that distance and date, together with a statement that the total distance that the vehicle has been driven is believed to be higher than that distance.

5. If the motor vehicle is a used motor vehicle and the registered motor vehicle dealer can determine neither the total distance that the vehicle has been driven, nor the distance that the vehicle has been driven as of some past date, a statement that the total distance that the vehicle has been driven is unknown and may be substantially higher than the reading shown on the odometer.

6. If the motor vehicle’s odometer is broken or faulty, has been replaced, has been rolled back or is in miles, a statement to that effect.

7. If any of the following is true of the motor vehicle, a statement to the effect that the vehicle was previously,

i. leased on a daily basis, unless the vehicle was subsequently owned by a person who was not registered as a motor vehicle dealer under the Motor Vehicle Dealers Act or the Motor Vehicle Dealers Act, 2002,

ii. used as a police cruiser or used to provide emergency services, or

iii. used as a taxi or limousine.

8. If the motor vehicle has sustained any damage caused by fire, a statement to that effect.

9. If the motor vehicle has sustained any damage caused by immersion in liquid that has penetrated to the level of at least the interior floorboards, a statement to that effect.

10. If there has been structural damage to the motor vehicle or any repairs, replacements or alterations to the structure of the vehicle, a statement to that effect.

11. If the motor vehicle is equipped with an anti-lock braking system that is not operational, a statement to that effect.

12. If any of the motor vehicle’s airbags are missing or are not operational, a statement to that effect.

13. If the motor vehicle requires repair in any of the following, a statement to that effect:

i. the engine, transmission or power train,

ii. the subframe or suspension,

iii. computer equipment,

iv. the electrical system,

v. the fuel operating system, or

vi. the air conditioning.

14. If the motor vehicle is materially different from the original or advertised production specifications, a statement to that effect.

15. If the motor vehicle has two or more adjacent panels that are not bumper panels and that have been replaced, a statement to that effect.

16. The trim level of the motor vehicle.

17. The make, model and model year of the motor vehicle.

18. If any badge or other indication on the motor vehicle relates to a different model than the model of the vehicle, a statement to that effect.

19. If the total costs of repairs to fix the damage caused to the motor vehicle by an incident exceed $3,000, a statement to that effect and if the registered motor vehicle dealer knew the total costs, a statement of the total costs.

20. If the manufacturer’s warranty on the motor vehicle was cancelled, a statement to that effect.

21. If the motor vehicle was declared by an insurer to be a total loss, regardless of whether the vehicle was classified as irreparable or as salvage under section 199.1 of the Highway Traffic Act, a statement to that effect.

22. If the motor vehicle previously received treatment in a jurisdiction other than Ontario that was equivalent to having had a permit issued under section 7 of the Highway Traffic Act or having been traded in Ontario, a statement to that effect and a statement of which jurisdictions, except if one or more permits have been issued for the vehicle under section 7 of that Act to cover at least the seven previous consecutive years.

23. If the motor vehicle has been classified, under section 199.1 of the Highway Traffic Act, as irreparable, salvage or rebuilt, a statement as to how it was last classified.

24. If the motor vehicle had been recovered after being reported stolen, a statement to that effect.

25. Any other fact about the motor vehicle that, if disclosed, could reasonably be expected to influence the decision of a reasonable purchaser or lessee to buy or lease the vehicle on the terms of the purchase or lease. O. Reg. 333/08, s. 42; O. Reg. 221/09, s. 15.

Additional contract requirements for trade-ins

43. (1) Subsection (2) applies if,

(a) a registered motor vehicle dealer enters into a contract to sell or lease a motor vehicle to a purchaser or lessee who is not another registered motor vehicle dealer; and

(b) the purchaser or lessee trades in another motor vehicle to the dealer under the sale or lease contract or to another registered motor vehicle dealer under a separate contract. O. Reg. 333/08, s. 43 (1).

(2) If the selling or leasing dealer described in clause (1) (a) receives the motor vehicle being traded in, the dealer shall ensure that the sale or lease contract includes, in a clear, comprehensible and prominent manner, the information set out in subsection (4) with respect to the vehicle being traded in. O. Reg. 333/08, s. 43 (2).

(3) If another registered motor vehicle dealer receives the motor vehicle being traded in under a separate contract, as described in clause (1) (b), the dealer shall ensure that the contract for the trade-in of the vehicle includes, in a clear, comprehensible and prominent manner, the information set out in subsection (4) with respect to the vehicle. O. Reg. 333/08, s. 43 (3).

(4) The information mentioned in subsection (2) or (3) is the following:

1. The name and address of the owner of the motor vehicle.

2. For the registered motor vehicle dealer involved in the trade-in described in clause (1) (b) who is not the selling or leasing dealer described in clause (1) (a),

i. a registered name and the registration number of the dealer, together with the legal name of the dealer if it is different from the registered name, and

ii. if a registered salesperson is acting on behalf of the dealer respecting the trade-in, the registered name and registration number of the salesperson.

3. The date that the motor vehicle is to be traded in, if known, or a manner of determining the date, if the date is not known.

4. The make, model, trim level and model year of the motor vehicle.

5. The colour of the motor vehicle.

6. The vehicle identification number of the motor vehicle.

7. The body type of the motor vehicle.

8. The credit for the motor vehicle being traded in, if the selling or leasing dealer described in clause (1) (a) receives the motor vehicle being traded in.

9. The amount paid for the motor vehicle being traded in by the registered motor vehicle dealer, if another registered motor vehicle dealer receives the vehicle under a separate contract, as described in clause (1) (b).

10. A statement obtained from the person trading in the motor vehicle with respect to the information required to be included under section 42.

11. The motor vehicle’s recorded odometer reading.

12. Revoked: O. Reg. 221/09, s. 16.

13. If the registered motor vehicle dealer receiving the motor vehicle being traded in agrees under the contract for the trade-in to pay any outstanding loan on the vehicle or any outstanding bill for the repair or storage of the vehicle, a statement to that effect. O. Reg. 333/08, s. 43 (4); O. Reg. 221/09, s. 16.

(5) If a sale or lease contract mentioned in subsection (2) or a contract for a trade-in mentioned in subsection (3) provides for the trade-in of more than one motor vehicle, the registered motor vehicle dealer described in the applicable subsection shall ensure that the matters required under subsection (4) are shown separately for each vehicle. O. Reg. 333/08, s. 43 (5).

Providing financing of motor vehicles

44. If a registered motor vehicle dealer enters into a contract for the sale of a motor vehicle with a purchaser who is not a registered motor vehicle dealer and provides financing for the purchase or the application for the financing to the purchaser, the selling dealer shall use best efforts to ensure that the terms of the credit agreement between the purchaser and the person providing the financing do not vary from the information that person has provided to the purchaser under subsection 39 (1) or 40 (1), as applicable. O. Reg. 333/08, s. 44.

Contracts relating to sales on consignment

45. (1) A registered motor vehicle dealer shall not enter into a consignment contract for the sale of a motor vehicle, whether or not the consignor is a registered motor vehicle dealer, unless the contract is in writing. O. Reg. 333/08, s. 45 (1).

(2) A registered motor vehicle dealer shall sign a consignment contract for the sale of a motor vehicle to which the dealer is a party. O. Reg. 333/08, s. 45 (2).

(3) A registered motor vehicle dealer shall not enter into a consignment contract for the sale of a motor vehicle unless the other party to the contract also signs it. O. Reg. 333/08, s. 45 (3).

(4) A registered motor vehicle dealer who enters into a consignment contract for the sale of a motor vehicle with a consignor who is an individual exempt from registration as a result of section 5 of the Act shall ensure that the contract includes, in a clear, comprehensible and prominent manner, the following:

1. The name and address of the consignor.

2. The business name, a registered name and the registration number of the dealer, together with the legal name of the dealer if it is different from the registered name.

3. The make, model, trim level and model year of the vehicle.

4. The colour of the vehicle.

5. The vehicle identification number of the vehicle.

6. The body type of the vehicle.

7. If the vehicle is a used motor vehicle, the total distance that the vehicle has been driven if the dealer can determine the distance.

8. If the vehicle is a used motor vehicle and the dealer cannot determine the total distance that the vehicle has been driven but can determine the distance that the vehicle has been driven as of some past date, a statement of that distance and date, together with a statement that the total distance that the vehicle has been driven is believed to be higher than that distance.

9. If the vehicle is a used motor vehicle and the dealer can determine neither the total distance that the motor vehicle has been driven, nor the distance that the vehicle has been driven as of some past date, a statement that the total distance that the vehicle has been driven is unknown and may be substantially higher than the reading shown on the odometer.

10. The total amount that the dealer will charge the consignor on the sale of the vehicle, whether as a fixed amount or as a commission share of the total amount payable by the purchaser on the sale of the vehicle, and an itemized list of all components of those charges.

11. An estimate of the selling price of the vehicle and a minimum selling price of the vehicle.

12. The term of the contract and, if applicable, how the parties can extend it or a statement that the parties cannot extend it.

13. If the contract can be terminated before it is set to expire, the conditions respecting such early termination of the contract, including the fees, if any, payable for early termination. O. Reg. 333/08, s. 45 (4).

(5) The registered motor vehicle dealer shall ensure that each contract mentioned in subsection (4) into which the dealer enters includes, in a clear, comprehensible and prominent manner, all restrictions, limitations, conditions and other obligations imposed on the consignor under the contract. O. Reg. 333/08, s. 45 (5).

(6) For each contract mentioned in subsection (4) into which the registered motor vehicle dealer enters, the dealer shall,

(a) ensure that, if a registered salesperson is acting on behalf of the dealer, the contract is signed by the salesperson;

(b) ensure that the consignor receives a copy of the contract immediately after signing it; and

(c) use best efforts to obtain from the consignor a copy of the used vehicle information package described in section 11.1 of the Highway Traffic Act, if required. O. Reg. 333/08, s. 45 (6).

(7) When the motor vehicle is offered for sale, the registered motor vehicle dealer shall ensure it is clearly indicated, in a manner in which it is likely to be noticed, that the vehicle is being sold on a consignment basis. O. Reg. 333/08, s. 45 (7).

(8) The registered motor vehicle dealer shall use best efforts to ensure that the consignor and the purchaser of the motor vehicle promptly receive a copy of the sales contract. O. Reg. 333/08, s. 45 (8).

Retail sales at auctions

46. A motor vehicle dealer registered as a general dealer who arranges for the sale of one or more motor vehicles at an auction conducted by that dealer shall ensure that,

(a) no person sells a motor vehicle at the auction unless,

(i) the person is a registered motor vehicle dealer, is exempt from the Act and the regulations or is the Crown, and

(ii) the dealer clearly discloses on whose behalf the vehicle is being sold, if it is not being sold on the dealer’s behalf; and

(b) before a motor vehicle is sold at the auction, the person selling the vehicle appears, on a reasonable basis, to have complied with section 5 of Ontario Regulation 332/08 (Code of Ethics and Operation of Committees) made under the Act, whether or not that regulation applies to the person selling the vehicle. O. Reg. 221/09, s. 17.

Sale of extended warranties

47. (1) A registered motor vehicle dealer shall not sell an extended warranty to a purchaser or lessee of a motor vehicle who is not another registered motor vehicle dealer or facilitate the sale of an extended warranty to that purchaser or lessee through the dealer where the dealer is not selling the warranty unless,

(a) the performance of the warranty is insured by an insurer licensed under the Insurance Act; or

(b) the seller of the warranty has provided security to the Fund for extended warranties that it supplies, where the security is in the form of an irrevocable letter of credit in the following amounts,

(i) $100,000, if the seller of the warranty is the dealer who sold or leased the vehicle to the purchaser or lessee, as the case may be, or

(ii) $500,000, in any other case. O. Reg. 333/08, s. 47 (1).

(2) A registered motor vehicle dealer who forwards an application for an extended warranty by a purchaser or lessee of a motor vehicle to the seller of the warranty is deemed to facilitate the sale of the warranty for the purposes of subsection (1). O. Reg. 333/08, s. 47 (2).

(3) If the registered motor vehicle dealer is not the seller of the extended warranty, the dealer is liable for the amount, not covered by the security mentioned in subclause (1) (b) (ii), of any claim under the warranty that cannot be settled because the seller of the warranty is no longer in business. O. Reg. 333/08, s. 47 (3).

(4) A registered motor vehicle dealer that sells an extended warranty for a motor vehicle to a purchaser or lessee of the vehicle who is not another registered motor vehicle dealer shall ensure that the contract for the warranty includes, in a clear, comprehensible and prominent manner, the following information:

1. The name and address of the purchaser of the warranty.

2. The name and address of the warranty holder, if the purchaser is not the warranty holder.

3. The business address, a registered name and the registration number of the dealer that entered into the contract, together with the legal name of the dealer if it is different from the registered name.

4. The registered name and registration number of the salesperson, if any, who is acting on behalf of the dealer.

5. All restrictions, limitations and conditions imposed by the seller of the warranty under the warranty.

6. A statement as to whether or not the warranty is insured and, if it is insured, the name and address of the insurer.

7. The make, model and model year of the vehicle.

8. The vehicle identification number of the vehicle.

9. The total sale price of the vehicle, if the vehicle is being sold.

10. The lease value of the vehicle determined in accordance with clause (a) of the definition of “lease value of the leased goods” in subsection 72 (1) of Ontario Regulation 17/05 (General) made under the Consumer Protection Act, 2002 if the vehicle is being leased and if,

i. Part VIII of that Act applies to the lease, or

ii. Part VIII of that Act does not apply to the lease by reason only of the fact that the purchaser of the warranty is not a consumer as defined in that Act.

11. A description of the components of the vehicle covered by the warranty that is sufficient to identify them with certainty and, if the warranty is related to the manufacturer’s warranty, a description for the components that indicates how the warranty extends the manufacturer’s warranty.

12. The commencement date and end date of the warranty, expressed by way of calendar date, kilometres that the vehicle has been driven or a combination of both.

13. The maximum individual claim limits, if any, under the warranty.

14. The maximum total liability, if any, of the seller of the warranty under the warranty.

15. The amount of the deductible, if any, for claims under the warranty.

16. The sale price of the warranty, including an itemized list of all fees or costs that must be paid at the time of purchase or afterwards.

17. The obligations of the warranty holder under both the warranty and the manufacturer’s warranty, if applicable.

18. Whether or not the warranty is transferable to another owner or lessee of the vehicle and the amount of any fee for that transfer. O. Reg. 333/08, s. 47 (4).

(5) For each contract for an extended warranty mentioned in subsection (4) into which the registered motor vehicle dealer enters, the dealer shall ensure that,

(a) the contract is signed by the parties;

(b) if a registered salesperson is acting on behalf of the dealer, the salesperson signs next to the indication on the contract of the information described in paragraph 4 of subsection (4); and

(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 47 (5).

(6) A registered motor vehicle dealer shall not facilitate the sale of an extended warranty through the dealer to a purchaser or lessee of a motor vehicle who is not a registered motor vehicle dealer unless the contract for the warranty includes, in a clear, comprehensible and prominent manner,

(a) the information required by subsection (4), except for paragraphs 3 and 4;

(b) the name and address of the seller of the warranty;

(c) a registered name and the registration number of the dealer who facilitated the sale of the contract, together with the legal name of that dealer if it is different from the registered name; and

(d) the registered name and registration number of the salesperson, if any, who is acting on behalf of the dealer who facilitated the sale of the contract. O. Reg. 333/08, s. 47 (6).

(7) If a registered motor vehicle dealer facilitates the sale of an extended warranty through the dealer to a purchaser or lessee of a motor vehicle who is not a registered motor vehicle dealer, the dealer shall,

(a) use best efforts to ensure that the contract for the warranty meets the requirements set out in clauses (5) (a) and (c);

(b) ensure that,

(i) the dealer signs next to the indication, on the contract for the warranty, of the information described in clause (6) (c), and

(ii) if a registered salesperson is acting on behalf of the dealer, the salesperson signs next to the indication, on the contract for the warranty, of the information described in clause (6) (d); and

(c) within seven days after the parties enter into the contract for the warranty, provide the seller of the warranty with,

(i) all documents detailing the contract that the dealer has in its possession,

(ii) all payments that the dealer has received from the purchaser, and

(iii) a statement that accurately describes the condition of the motor vehicle and the distance the motor vehicle has been driven, if the dealer has such a statement in its possession. O. Reg. 333/08, s. 47 (7).

Sale of service plans

48. (1) A registered motor vehicle dealer that sells a service plan to a purchaser or lessee of a motor vehicle who is not another registered motor vehicle dealer shall ensure that the contract for the plan includes, in a clear, comprehensible and prominent manner, the information set out in subsection (2). O. Reg. 333/08, s. 48 (1).

(2) The information mentioned in subsection (1) is the following:

1. The name and address of the purchaser of the service plan.

2. The name and address of the beneficiary of the service plan, if the purchaser is not the beneficiary.

3. The business address, a registered name and the registration number of the dealer that entered into the contract, together with the legal name of the dealer if it is different from the registered name.

4. The registered name and registration number of the salesperson, if any, who is acting on behalf of the dealer.

5. All restrictions, limitations and conditions imposed by the seller of the service plan under the service plan.

6. A statement as to whether or not the service plan is insured and, if it is insured, the name and address of the insurer.

7. The make, model and model year of the vehicle.

8. The vehicle identification number of the vehicle.

9. A list of the goods and services provided under the service plan and a specific description for each item listed.

10. The commencement date and end date of the service plan, expressed by way of calendar date, kilometres that the vehicle has been driven or a combination of both.

11. The amount of the deductible, if any, for goods and services provided under the service plan.

12. The sale price of the service plan including an itemized list of all fees or costs that the must be paid at the time of purchase and during the term of the service plan.

13. The obligations, if any, of the beneficiary of the service plan.

14. The locations at which the vehicle can be serviced under the service plan.

15. Whether or not the service plan is transferable to another owner or lessee of the vehicle and the amount of any fee for that transfer. O. Reg. 333/08, s. 48 (2).

(3) For each contract for a service plan mentioned in subsection (1) into which the registered motor vehicle dealer enters, the dealer shall ensure that,

(a) the contract is signed by the parties;

(b) if a registered salesperson is acting on behalf of the dealer, the salesperson signs next to the indication on the contract of the information described in paragraph 4 of subsection (2); and

(c) the purchaser receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 48 (3).

(4) A registered motor vehicle dealer shall not facilitate the sale of a service plan through the dealer to a purchaser or lessee of a motor vehicle who is not a registered motor vehicle dealer unless the contract for the plan includes, in a clear, comprehensible and prominent manner,

(a) the information required by subsection (2), except for paragraphs 3 and 4;

(b) the name and address of the seller of the plan;

(c) a registered name and the registration number of the dealer who facilitated the sale of the contract, together with the legal name of that dealer if it is different from the registered name; and

(d) the registered name and registration number of the salesperson, if any, who is acting on behalf of the dealer who facilitated the sale of the contract. O. Reg. 333/08, s. 48 (4).

(5) A registered motor vehicle dealer who forwards an application for a service plan by a purchaser or lessee of a motor vehicle to the seller of the plan is deemed to facilitate the sale of the plan for the purposes of subsection (4). O. Reg. 333/08, s. 48 (5).

(6) If a registered motor vehicle dealer facilitates the sale of a service plan through the dealer to a purchaser or lessee of a motor vehicle who is not a registered motor vehicle dealer, the dealer shall,

(a) use best efforts to ensure that the contract for the plan meets the requirements set out in clauses (3) (a) and (c);

(b) ensure that,

(i) the dealer signs next to the indication, on the contract for the plan, of the information described in clause (4) (c), and

(ii) if a registered salesperson is acting on behalf of the dealer, the salesperson signs next to the indication, on the contract for the plan, of the information described in clause (4) (d); and

(c) within seven days after the parties enter into the contract for the plan, provide the seller of the plan with,

(i) all documents detailing the contract that the dealer has in its possession, and

(ii) all payments that the dealer has received from the purchaser. O. Reg. 333/08, s. 48 (6).

Contracts with brokers to facilitate purchase or lease

49. (1) A motor vehicle dealer registered as a broker shall ensure that any contract that the broker enters into to facilitate a trade in a motor vehicle on behalf of a customer who is not a registered motor vehicle dealer includes, in a clear, comprehensible and prominent manner, the following:

1. The name and address of the customer.

2. A registered name and the registration number of the broker, together with the legal name of the broker if it is different from the registered name.

3. The business telephone number of the broker and the other ways, if any, that the customer can contact the broker.

4. Anything the customer has specified with respect to the vehicle or an explicit statement that the customer has not specified anything with respect to the vehicle if that is the case.

5. If the customer is prepared to trade in a motor vehicle in connection with the trade, a description of the motor vehicle to be traded in and the minimum amount for the trade-in that is acceptable to the customer.

6. An itemized list of the charges, if any, that the customer will be required to pay the broker, including any taxes on those charges.

7. The total charges, if any, payable by the customer to the broker, including taxes, and the terms and method of payment.

8. If the broker will receive compensation from any person other than the customer, a statement of that fact and the name of the person from whom the broker will receive compensation.

9. The duration of the contract and any terms relating to the early termination of the contract.

10. The date the contract is entered into.

11. A statement in accordance with subsection (2) in 12 point bold font.

12. A statement, if applicable, in accordance with subsection (3) in 12 point bold font. O. Reg. 333/08, s. 49 (1).

(2) The statement mentioned in paragraph 11 of subsection (1) is as follows:

Any payment for the purchase or lease of a motor vehicle should be made directly to the seller or lessor, as the case may be. A broker is prohibited from taking or handling funds that are used to pay for the purchase or lease.

A broker is not authorized to make promises on behalf of any person. O. Reg. 333/08, s. 49 (2).

(3) If there is an administrative authority, the statement mentioned in paragraph 12 of subsection (1) shall also include,

(a) the name of the authority and contact information for the authority including its website address and telephone number, including any toll free number the authority has; and

(b) at the end of the statement, the trade mark of the authority, if any. O. Reg. 333/08, s. 49 (3).

(4) The registered broker shall ensure that each contract mentioned in subsection (1) into which the broker enters includes, in a clear, comprehensible and prominent manner, all restrictions, limitations and conditions imposed on the customer under the contract. O. Reg. 333/08, s. 49 (4).

(5) For each contract mentioned in subsection (1) into which the registered broker enters, the broker shall ensure that,

(a) the contract is signed by the parties;

(b) any statement and names required under paragraph 8 of subsection (1) are initialled by the customer;

(c) if a statement required under paragraph 11 or 12 of subsection (1) is not on the first page of the contract, the statement is initialled by the customer; and

(d) the customer receives a copy of the contract immediately after signing it. O. Reg. 333/08, s. 49 (5).

Cancellation of contracts for non-disclosure

50. (1) For the purposes of section 30 (2) of the Act, if a registered motor vehicle dealer entered into a contract under which another person, who was not a registered motor vehicle dealer, purchased or leased a motor vehicle from the dealer, the person may cancel the contract if,

(a) the dealer has not accurately disclosed, in the contract, the information required under any of paragraphs 3, 7, 17 and 23 of section 42;

(b) the dealer, in the contract, made the statements described in paragraph 4 of section 42 but could have made the statement described in paragraph 3 of that section;

(c) the dealer, in the contract, made the statements described in paragraph 4 of section 42 but the statement of the distance that the vehicle has been driven as of some past date is inaccurate; or

(d) the dealer, in the contract, made the statement described in paragraph 5 of section 42 but could have made the statements described in paragraph 3 or 4 of that section. O. Reg. 333/08, s. 50 (1).

(2) A person may cancel a contract under subsection (1) even if the registered motor vehicle dealer did not know the information that the dealer was required to disclose under that subsection or honestly believed it to be accurate, regardless of the steps taken by the dealer to ascertain or verify the information. O. Reg. 333/08, s. 50 (2).

(3) A person who is not a registered motor vehicle dealer, who leases a motor vehicle from a registered motor vehicle dealer and who, during or after the end of the term of the lease, enters into a contract with the dealer to purchase the vehicle is not entitled to cancel the contract of purchase under subsection (1). O. Reg. 333/08, s. 50 (3).

(4) A disclosure of a distance required under paragraph 3 or 4 of section 42 shall be deemed to be accurate if it is within the lesser of 5 per cent or 1,000 kilometres of the correct distance required to be disclosed. O. Reg. 333/08, s. 50 (4).

(5) A person may not cancel a contract under subsection (1) more than 90 days after actually receiving the motor vehicle. O. Reg. 333/08, s. 50 (5).

(6) To cancel a contract under subsection (1), a person shall give a notice of cancellation to the registered motor vehicle dealer in accordance with the following:

1. The notice must be in writing.

2. The notice may be expressed in any way, as long as it indicates the intention of the person to cancel the contract.

3. The notice may be given by delivering or sending the notice, by a method allowed under subsection 37 (1) of the Act, to the address of the dealer set out in the contract being cancelled.

4. If the person did not receive a copy of the contract or the address of the dealer was not set out in the contract, the notice may be given by delivering or sending the notice, by a method allowed under subsection 37 (1) of the Act, to,

i. an address of the dealer on record with the Government of Ontario or the Government of Canada,

ii. an address of the dealer known by the person giving the notice, or

iii. if there is an administrative authority, an address of the dealer on file with the authority. O. Reg. 333/08, s. 50 (6).

(7) If a notice of cancellation is given other than by personal service, the notice shall be deemed to be given when sent. O. Reg. 333/08, s. 50 (7).

(8) If a person gives a notice of cancellation under subsection (6), the registered motor vehicle dealer shall make reasonable efforts to reach, within 20 days after the notice is given, an agreement with the person as to a time and place to meet for the person to return the motor vehicle and for the dealer to refund the payments described in clause (10) (b). O. Reg. 333/08, s. 50 (8).

(9) The meeting mentioned in subsection (8) shall not take place later than 30 days after the notice of cancellation is given. O. Reg. 333/08, s. 50 (9).

(10) If an agreement is reached under subsection (8),

(a) the person who gave the notice of cancellation of the contract shall return the motor vehicle to the registered motor vehicle dealer at the agreed time and place or at a subsequent time that is no later than 15 days after the originally agreed time; and

(b) the registered motor vehicle dealer shall immediately refund to the person who gave the notice of cancellation of the contract any payment made under,

(i) the contract, or

(ii) any contract for an extended warranty or a service plan for the vehicle, whether the dealer sold the warranty or the service plan, as the case may be, to the person or facilitated the sale of it to the person through the dealer. O. Reg. 333/08, s. 50 (10).

(11) If no agreement is reached under subsection (8) within the time period specified in that subsection,

(a) the person who gave the notice of cancellation of the contract shall return the motor vehicle to the registered motor vehicle dealer at a time that is on or after 21 days after giving the notice and no later than 30 days after giving the notice; and

(b) the registered motor vehicle dealer shall immediately refund to the person who gave the notice of cancellation of the contract any payment described in clause (10) (b). O. Reg. 333/08, s. 50 (11).

(12) The registered motor vehicle dealer is deemed to consent to a return of the motor vehicle under clause (10) (a) or (11) (a). O. Reg. 333/08, s. 50 (12).

(13) A person who gives a notice of cancellation under subsection (6) shall take reasonable care of the motor vehicle from the time of receiving the vehicle until returning it to the registered motor vehicle dealer. O. Reg. 333/08, s. 50 (13).

(14) If a person gives a notice of cancellation under subsection (6) for a contract for a motor vehicle and complies with clause (10) (a) or (11) (a), then at the time of compliance the notice operates,

(a) to cancel, as if they never existed,

(i) the contract,

(ii) any contract for an extended warranty or a service plan for the vehicle, whether the registered motor vehicle dealer sold the warranty or the service plan, as the case may be, to the person or facilitated the sale of it to the person through the dealer,

(iii) all guarantees given in respect of money payable under the contract, and

(iv) any of the following obligations if the registered motor vehicle dealer arranged for them or facilitated them and they relate to the purchase or lease of the vehicle: security interests, credit agreements and other payment instruments, including promissory notes; and

(b) to transfer to the dealer the obligations described in subclauses (a) (iii) and (iv) of the person arising in respect of money payable under the contract. O. Reg. 377/09, s. 6.

(14.1) If a contract has been cancelled under this section and the registered motor vehicle dealer arranged for or facilitated financing for the contract under an agreement between the dealer and the person providing the financing, the dealer shall promptly provide notice of the cancellation to that person. O. Reg. 377/09, s. 6.

(14.2) Nothing in this section affects the rights and obligations of parties to an agreement that a registered motor vehicle dealer has entered into for the purpose of arranging for or facilitating financing of any contracts that are cancelled under this section. O. Reg. 377/09, s. 6.

(15) Despite subsection (14), a registered motor vehicle dealer is not required to return a motor vehicle that was traded in in connection with the contract but the dealer shall refund, under clause (10) (b) or (11) (b), the amount paid for that vehicle or the credit, as applicable, for that vehicle. O. Reg. 333/08, s. 50 (15).

(16) If a person gives a notice of cancellation under subsection (6) and the registered motor vehicle dealer does not refund to the person the amounts that the dealer is required to refund under clause (10) (b) or (11) (b), as applicable, the person may commence an action against the dealer in a court of competent jurisdiction. O. Reg. 333/08, s. 50 (16).

(17) In the action, oral evidence respecting the trade or the cancellation of the contract is admissible despite the existence of a written contract and despite the fact that the evidence pertains to a representation in respect of a term, condition or undertaking that is or is not provided for in the written contract. O. Reg. 333/08, s. 50 (17).

Export outside of Ontario

51. No registered motor vehicle dealer shall export a motor vehicle outside of Ontario unless the dealer has taken ownership of the vehicle before exporting it. O. Reg. 333/08, s. 51.

Motor Vehicle Dealer Records and Accounts

Records of motor vehicles

52. (1) A registered motor vehicle dealer shall maintain a record of every motor vehicle that comes into the dealer’s possession for the purpose of a trade in the vehicle. O. Reg. 333/08, s. 52 (1).

(2) The record required under subsection (1) for a motor vehicle shall include,

(a) the vehicle identification number of the vehicle;

(b) a copy of any safety standards certificate under the Highway Traffic Act provided to the registered motor vehicle dealer for the vehicle;

(c) the results of any inspection of the vehicle under the Highway Traffic Act provided to the registered motor vehicle dealer;

(d) if the registered motor vehicle dealer causes work to be done on the vehicle, including any repair or reconditioning, the full and accurate particulars of the work, the sources of any parts used for the work, the cost of the work and the name of the person doing the work;

(e) if the odometer of the vehicle is exchanged or repaired,

(i) a record of the reading, according to the distance established by the odometer, that was on the odometer both before and after the exchange or repair, and

(ii) the name of the person who did the exchange or repair;

(f) if subsection 11 (2) of the Highway Traffic Act applies to the dealer, a record that the dealer has complied with that subsection; and

(g) a record that the registered motor vehicle dealer has complied with subsection 60 (1) of the Highway Traffic Act if that subsection applies to the dealer. O. Reg. 333/08, s. 52 (2).

(3) Clauses (2) (b), (c) and (d) do not apply to a motor vehicle dealer registered as an outside Ontario dealer. O. Reg. 333/08, s. 52 (3).

Records relating to trades

53. (1) A registered motor vehicle dealer shall maintain records of,

(a) each consignment contract that the dealer enters into with respect to a motor vehicle;

(b) each sale to a purchaser of a motor vehicle that is the subject of a consignment contract, whether the dealer is the consignor or the consignee;

(c) each agreement that the dealer enters into with a customer with respect to a motor vehicle, if the dealer is registered as a broker;

(d) for each trade in a motor vehicle made by the dealer where a motor vehicle dealer registered as a broker has facilitated the trade, an indication of that fact;

(e) each sale by the dealer of a motor vehicle to a purchaser, including sales made through a motor vehicle dealer registered as a general dealer;

(f) each lease of a motor vehicle by the dealer to a lessee, including leases made through a motor vehicle dealer registered as a general dealer;

(g) each sale or lease of a motor vehicle that is facilitated through the dealer, if the dealer is motor vehicle dealer registered as a general dealer;

(h) each purchase of a motor vehicle by the dealer, including as a trade-in;

(i) each sale of an extended warranty or a service plan for a motor vehicle, where the sale is made by the dealer or is facilitated through the dealer;

(j) for each trade in a motor vehicle by the dealer, the method and amount of payment to or by the dealer, including commissions, and the records shall include copies of cheques, receipts or other evidence of receipt of payments; and

(k) for each trade in a motor vehicle made by the dealer, where the trade is a trade described in subsection 2.1 (3) and the dealer registered as a lease finance dealer or as a fleet lessor or both,

(i) the name of the person or entity mentioned in that subsection,

(ii) the date of the trade and the vehicle identification number of the vehicle, and

(iii) all documents or portions of them evidencing the trade. O. Reg. 333/08, s. 53 (1); O. Reg. 377/09, s. 7.

(2) Clauses (1) (f) and (j) do not apply to a motor vehicle dealer registered only as a fleet lessor. O. Reg. 333/08, s. 53 (2).

(3) The records mentioned in clauses (1) (b) to (g) shall include correspondence, worksheets and other documents, if any, showing cost breakdowns relating to the trades described in those clauses. O. Reg. 333/08, s. 53 (3).

(4) A registered motor vehicle dealer who is required to maintain the records mentioned in clause (1) (a), (b), (c), (e), (f), (h) or (i) shall maintain copies of every one of those contracts or agreements, as the case may be. O. Reg. 333/08, s. 53 (4).

Records of business

54. (1) A registered motor vehicle dealer shall maintain records respecting the dealer’s business including,

(a) names of the employees of the dealer, the positions that they hold, the dates of their employment, how much they are paid and proof of payment;

(b) a list of the persons who are associated with the dealer as described in subsection 1 (2) of the Act and the way in which they are associated;

(c) records of any financing of the business, including any security interests granted by the dealer and loan agreements and credit arrangements made by the dealer; and

(d) records for each account required under section 59. O. Reg. 333/08, s. 54 (1).

(2) This section does not apply to a motor vehicle dealer registered only as one or more of the following:

1. A lease finance dealer.

2. A fleet lessor. O. Reg. 333/08, s. 54 (2).

Reporting of unavailable records

55. If a record required under section 52, 53 or 54 becomes unavailable by reason of force majeure, the registered motor vehicle dealer shall advise the registrar in writing within five days and specify the nature of the force majeure. O. Reg. 333/08, s. 55.

Retention of records

56. (1) A registered motor vehicle dealer shall retain a record required under section 52, 53 or 54 for at least six years after,

(a) in the case of a record required under section 52 or 53, the date of the consignment contract or trade made by the dealer for the motor vehicle to which the record relates; or

(b) in the case of a record required under section 54, the date that the record is made. O. Reg. 333/08, s. 56 (1).

(2) A registered motor vehicle dealer shall keep a record retained under subsection (1) at,

(a) any place, other than a dwelling, chosen by the dealer and approved by the registrar, if the dealer,

(i) is registered as an outside Ontario dealer, lease finance dealer, fleet lessor or a combination of those classes, or

(ii) is registered as a broker or wholesaler and, in fact, trades only from a dwelling; or

(b) one of the following places in all other cases:

(i) any place, other than a dwelling, from which the dealer is authorized to trade,

(ii) any place, other than a dwelling, chosen by the dealer and approved by the registrar. O. Reg. 333/08, s. 56 (2).

(3) The registrar may approve a place for the purposes of clause (2) (a) or subclause (2) (b) (ii) if the person in charge of the place agrees in writing to provide the registrar or a person designated in writing by the registrar with access to the place for the purposes of conducting an inspection under section 15 of the Act during normal business hours for the place. O. Reg. 333/08, s. 56 (3).

(4) A registered motor vehicle dealer who keeps the records retained under subsection (1) at a place described in subclause (2) (b) (i) shall notify the registrar,

(a) within six months after the day this Regulation comes into force, of the place or places at which the dealer keeps the records, if the dealer is registered as a motor vehicle dealer under the Motor Vehicle Dealers Act immediately before the day section 12 of Schedule E to the Consumer Protection Statute Law Amendment Act, 2002 comes into force;

(b) of the place or places at which the dealer will keep the records, before keeping the records at any such place, if the dealer is not a registered motor vehicle dealer as described in clause (a); and

(c) which records are kept at which place. O. Reg. 333/08, s. 56 (4).

Certain records under the Highway Traffic Act

57. (1) Section 55 applies to the records that a registered motor vehicle dealer is required to keep under subsection 60 (1) of the Highway Traffic Act and section 4 of Regulation 595 of the Revised Regulations of Ontario, 1990 (Garage Licences) made under that Act. O. Reg. 333/08, s. 57 (1).

(2) The registered motor vehicle dealer shall retain a record that the dealer is required to keep under subsection 60 (1) of the Highway Traffic Act for at least six years after the date of the contract under which the dealer buys, sells, or otherwise trades in the motor vehicles to which the record relates. O. Reg. 333/08, s. 57 (2).

(3) The registered motor vehicle dealer shall retain a record that the dealer is required to keep under section 4 of Regulation 595 of the Revised Regulations of Ontario, 1990 (Garage Licences) made under the Highway Traffic Act for at least six years after the date that the record is made. O. Reg. 333/08, s. 57 (3).

Trust account

58. (1) A motor vehicle dealer registered only as one or more of the following is exempt from section 25 of the Act and this section:

1. A broker.

2. A wholesaler.

3. An exporter.

4. An outside Ontario dealer.

5. A lease finance dealer.

6. A fleet lessor. O. Reg. 333/08, s. 58 (1).

(2) A registered motor vehicle dealer who receives no money that the dealer is required to hold in trust under subsection (4) or (5) is exempt from clause 25 (a) of the Act. O. Reg. 333/08, s. 58 (2).

(3) The following conditions are prescribed for the purposes of clause 25 (a) of the Act:

1. The trust account shall be known as the Motor Vehicle Dealers Act, 2002 Trust Account in English and compte en fiducie prévu par la Loi de 2002 sur le commerce des véhicules automobiles in French.

2. The trust account shall be a pooled account, unless the registered motor vehicle dealer obtains the registrar’s prior written consent.

3. A registered motor vehicle dealer shall file with the registrar,

i. within five days of making an agreement with a financial institution to establish a trust account, a copy of the agreement, and

ii. within five days of making changes to the agreement with the financial institution that established the trust account, a copy of the changes to the agreement or a copy of a new agreement noting the changes.

4. A registered motor vehicle dealer who has a trust account required under section 25 of the Act on the day this Regulation comes into force shall file with the registrar, within 90 days after that day, a copy of the agreement with the financial institution that established the account. O. Reg. 333/08, s. 58 (3).

(4) For the purposes of clause 25 (b) of the Act, if a registered motor vehicle dealer receives, from a purchaser towards the purchase of a motor vehicle, a deposit that is greater than $10,000, the dealer shall hold the entire deposit in trust until the purchase is concluded. O. Reg. 333/08, s. 58 (4).

(5) For the purposes of clause 25 (b) of the Act, if a registered motor vehicle dealer receives amounts from a purchaser towards the purchase of a motor vehicle being sold on consignment and if subsection 45 (4) of this Regulation applies to the sale, the dealer shall hold the amounts in trust until the purchase is concluded. O. Reg. 333/08, s. 58 (5).

(6) A registered motor vehicle dealer shall not deposit into the trust account any money other than the money that subsections (4) and (5) require the dealer to hold in the account. O. Reg. 333/08, s. 58 (6).

(7) A registered motor vehicle dealer shall maintain a record, in a form that the registrar provides, of,

(a) all money that the dealer receives and that the dealer is required to hold in trust, including an indication of the reason for which the dealer is required to hold it in trust, an identification of the contract to which the money relates, the name of the person from whom the money was received and the amount, the method and the time of receiving the money; and

(b) all money withdrawn from the dealer’s trust account, including an indication of the reason for which the dealer is withdrawing the money, an identification of the contract to which the money relates, the name of the person to whom the money was paid and the amount, the method and the time of making the payment. O. Reg. 333/08, s. 58 (7).

(8) A registered motor vehicle dealer shall prepare a monthly trust reconciliation statement for the dealer’s trust account within 30 days after receiving the statement for the account that the financial institution in which the account is held issues for the immediately preceding month, except if,

(a) there is a zero balance in the trust account at both the beginning and end of the month to which the statement relates; and

(b) there was no activity in the trust account during the month to which the statement relates. O. Reg. 333/08, s. 58 (8).

(9) A registered motor vehicle dealer shall ensure that a monthly trust reconciliation statement identifies the money held in trust for each person and reconciles the monthly trust liability to the balance in the trust account as of the date of the reconciliation. O. Reg. 333/08, s. 58 (9).

(10) The registered motor vehicle dealer shall ensure that one of the following persons who has signing authority over the trust account reviews each monthly trust reconciliation statement and acknowledges it by signing and dating it:

1. If the dealer is an individual, the dealer or an individual in charge of the day to day operations of the dealer.

2. If the dealer is a partnership, an individual partner or an individual in charge of the day to day operations of the dealer.

3. If the dealer is a corporation, an officer or director of the corporation or an individual in charge of the day to day operations of the dealer. O. Reg. 333/08, s. 58 (10).

(11) A registered motor vehicle dealer who determines that there is a shortfall in the trust account shall immediately deposit sufficient funds into the account to eliminate the shortfall. O. Reg. 333/08, s. 58 (11).

(12) No person shall post the registered motor vehicle dealer’s trust account as collateral. O. Reg. 333/08, s. 58 (12).

(13) Section 55, clause 56 (1) (b) and subsections 56 (2), (3) and (4) apply to the records, including the monthly trust reconciliation statements, that this section requires the registered motor vehicle dealer to maintain. O. Reg. 333/08, s. 58 (13).

Bank accounts

59. (1) A registered motor vehicle dealer who is not an outside Ontario dealer, lease finance dealer or fleet lessor shall maintain one or more non-trust accounts. O. Reg. 333/08, s. 59 (1).

(2) A registered motor vehicle dealer described in subsection (1) shall ensure that each non-trust account,

(a) is located in,

(i) a bank, or an authorized foreign bank, within the meaning of section 2 of the Bank Act (Canada),

(ii) a loan or trust corporation, or

(iii) a credit union, as defined in the Credit Unions and Caisses Populaires Act, 1994; and

(b) is in the legal name of the registered motor vehicle dealer and indicates, if it is different, a registered name of the dealer. O. Reg. 333/08, s. 59 (2).

(3) A registered motor vehicle dealer described in subsection (1) shall ensure that,

(a) all amounts that the dealer receives in connection with a trade in a motor vehicle are deposited in a non-trust account mentioned in subsection (2) unless the dealer is required to deposit the amounts into the trust account required under section 25 of the Act; and

(b) all amounts that the dealer pays in connection with a trade in a motor vehicle are paid from a non-trust account mentioned in subsection (2) or the trust account required under section 25 of the Act. O. Reg. 333/08, s. 59 (3).

Notification of persons with signing authority

60. (1) Upon being registered as a motor vehicle dealer, a motor vehicle dealer, other than a dealer registered as a fleet lessor, shall notify the registrar, in a form that the registrar provides, of the names of the persons who have any one or more of the following:

1. The authority to sign financial documents relating to a trade in a motor vehicle on behalf of the dealer.

2. The authority to bind the dealer with respect to financial and other obligations regarding the operations of the dealer.

3. Signing authority over accounts that section 58 or 59 requires the dealer to maintain. O. Reg. 333/08, s. 60 (1).

(2) Despite subsection (1), a motor vehicle dealer who, under section 41 of the Act, is deemed to be registered as a motor vehicle dealer on the day the Act comes into force and who is required to notify the registrar under subsection (1) shall do so within 90 days of that day. O. Reg. 333/08, s. 60 (2).

(3) If there is any change in the information required to be in the notification that subsection (1) requires a registered motor vehicle dealer to provide to the registrar, the dealer shall notify the registrar of the change within five days of the change, in a form that the registrar provides. O. Reg. 333/08, s. 60 (3).

PART V
MOTOR VEHICLE DEALERS COMPENSATION FUND

Definitions

Definitions

61. In this Part,

“Board” means the board of trustees for the Fund; (“conseil”)

“Trustee” means the Trustee appointed under section 70. (“fiduciaire”) O. Reg. 333/08, s. 61.

Board

Composition

62. (1) The Board shall consist of nine members. O. Reg. 333/08, s. 62 (1).

(2) If there is an administrative authority, the Minister shall appoint three of the members of the Board and the board of the authority shall appoint the rest. O. Reg. 333/08, s. 62 (2).

(3) The Minister and, if there is an administrative authority, the board of the authority shall appoint members of the Board so that, as close as possible,

(a) half of the members are representatives of consumer interests but are not,

(i) registrants,

(ii) shareholders, officers, directors or employees of a registrant, a former registrant or a person registered at any time under the Motor Vehicle Dealers Act, or

(iii) officers, directors or employees of a trade association that represents registrants or the interests of registrants; and

(b) half of the members are representatives of the interests of registrants and are registrants or officers or directors of a registrant. O. Reg. 333/08, s. 62 (3).

Quorum

63. (1) A majority of the Board constitutes a quorum. O. Reg. 333/08, s. 63 (1).

(2) A member who is disqualified from participating with respect to a matter shall not be counted in determining whether or not a quorum of members is present when that matter is considered. O. Reg. 333/08, s. 63 (2).

(3) A member of the Board is disqualified from participating and shall not participate in any deliberation or decision of the Board with respect to any claim for compensation from the Fund under this Regulation relating to a registered motor vehicle dealer if,

(a) the member is the dealer or an officer or director of the dealer;

(b) the member has a financial interest in the dealer;

(c) the member is associated with the dealer as described in subsection 1 (2) of the Act; or

(d) the member has a conflict of interest. O. Reg. 333/08, s. 63 (3).

Conduct of affairs

64. (1) The Board shall designate one of its members as chair and another as vice-chair. O. Reg. 333/08, s. 64 (1).

(2) The Board may pass by-laws with respect to the conduct of its affairs. O. Reg. 333/08, s. 64 (2).

(3) The Board shall record its meetings by minutes. O. Reg. 333/08, s. 64 (3).

Compensation and expenses of members

65. (1) A member of the Board is entitled to be paid compensation, from the Fund, for acting as a member and to be reimbursed, from the Fund, for reasonable expenses. O. Reg. 333/08, s. 65 (1).

(2) The amount of compensation a member is entitled to under subsection (1) shall be determined by the board of the administrative authority if there is an administrative authority. O. Reg. 333/08, s. 65 (2).

Employees and persons retained

66. (1) The Board may employ or retain the services of the persons, including counsel, accountants, appraisers or other experts or advisers, that it reasonably requires to assist in the efficient administration and resolution of claims for compensation from the Fund under this Regulation and the discharge of the Board’s duties. O. Reg. 333/08, s. 66 (1).

(2) If the Board employs or retains the services of a person under subsection (1),

(a) the Board shall not be responsible for any act or omission of the person, if the person is a professional; and

(b) the fees and expenses that the Board incurs in employing or retaining the services of the person shall be paid from the Fund. O. Reg. 333/08, s. 66 (2).

Educational expenses

67. (1) The Board may incur reasonable expenses for,

(a) promoting public awareness of the Fund and provisions of the Act and this Regulation relating to the protection of payments made by customers in respect of a trade in motor vehicles; and

(b) providing information to the public on the procedure for making a claim for compensation from the Fund under this Regulation. O. Reg. 333/08, s. 67 (1).

(2) The Board is entitled to have its reasonable expenses described in subsection (1) paid from the Fund. O. Reg. 333/08, s. 67 (2).

Administration of Fund

Composition of Fund

68. The Fund shall consist of,

(a) all money received by the Trustee from any source under this Part; and

(b) all income on the money mentioned in clause (a), including any rights or benefits occurring from the investment of the money or any property obtained from the investment of the money. O. Reg. 333/08, s. 68.

Administration of Fund

69. (1) The Trustee shall hold the Fund in trust for the benefit of those holders of claims for compensation from the Fund under this Regulation that the Board approves in accordance with this Part. O. Reg. 333/08, s. 69 (1).

(2) With the assistance of the Trustee, the Board shall ensure that the Fund is dealt with and distributed in accordance with this Part. O. Reg. 333/08, s. 69 (2).

(3) With the assistance of the Trustee, the Board shall ensure that the Fund is administered in a fiscally responsible manner and in accordance with an investment policy that requires the Board, in respect of investment decisions, to act in a reasonably prudent manner. O. Reg. 333/08, s. 69 (3).

(4) The investment policy may provide that the Fund may be invested, consistent with the policy, in investments in which a trust corporation may invest under the Loan and Trust Corporations Act. O. Reg. 333/08, s. 69 (4).

(5) The Board and the Trustee shall not be required to give any bond or other security for the performance of their duties and, except if the loss results from their own fraud, negligence or wilful misconduct, shall not be responsible for any loss in the property of the Fund of whatsoever character, including a loss resulting from,

(a) the making of any investments;

(b) the retention in good faith for any length of time of securities or other property of whatsoever character purchased or acquired, even if the securities or property are not income producing; or

(c) any mistake in judgment made in good faith. O. Reg. 333/08, s. 69 (5).

(6) The Trustee shall ensure that any payment from the Fund is deducted first from the income of the Fund and, in the event of any deficiency, from the capital of the Fund. O. Reg. 333/08, s. 69 (6).

(7) No person or body, including the Board and the Trustee, shall make a payment from the Fund to satisfy or settle any claim, judgment or other court order against the Board or the Trustee resulting from the fraud, negligence or wilful misconduct of the Board or the Trustee, as the case may be, or authorize that such a payment be made. O. Reg. 333/08, s. 69 (7).

Trustee, appointment and functions

70. (1) Subject to subsections (2) and (4), the Board shall appoint, as Trustee to assist the Board in administering the Fund, a trust corporation as defined in section 1 of the Loan and Trust Corporations Act that is authorized to do business in Ontario. O. Reg. 333/08, s. 70 (1).

(2) The Trustee appointed under Regulation 801 of the Revised Regulations of Ontario, 1990 (General) made under the Motor Vehicle Dealers Act immediately before the day section 89 of this Regulation comes into force shall continue as the Trustee under this Regulation until it is replaced. O. Reg. 333/08, s. 70 (2).

(3) Subject to subsection (4), the Board shall enter into an agreement with the Trustee in respect of the Trustee’s duties under this Part that is not inconsistent with this Part. O. Reg. 333/08, s. 70 (3).

(4) The Board shall not appoint the Trustee or enter into an agreement under subsection (3) unless the director approves the appointment or the agreement, as the case may be. O. Reg. 333/08, s. 70 (4).

(5) The Trustee shall receive amounts payable to the Fund and assist the Board in administering the Fund in accordance with the agreement between the Board and the Trustee mentioned in subsection (3). O. Reg. 333/08, s. 70 (5).

(6) The Trustee may act upon any written resolution, certificate, statement, instrument, opinion, report, notice, request, consent, letter or other document that it believes on reasonable grounds to be genuine and to have been signed, sent or delivered by or on behalf of the proper parties. O. Reg. 333/08, s. 70 (6).

(7) The Trustee shall ensure that its books and records clearly identify all property of the Fund that it holds, regardless of the form of the holding, including investments and securities. O. Reg. 333/08, s. 70 (7).

(8) The Trustee shall retain its books and records for seven years or whatever additional period of time that is required by another law. O. Reg. 333/08, s. 70 (8).

(9) The Trustee shall provide the Board with,

(a) all information, records and documents in its possession with respect to the administration of the Fund that the Board may reasonably request; and

(b) financial statements, certified by a person licensed under the Public Accounting Act, 2004, with respect to the administration of the Fund that the Board requires. O. Reg. 333/08, s. 70 (9).

(10) The Trustee may employ or retain the services of the persons, including counsel, accountants, appraisers or other experts or advisers, that it reasonably requires for the purpose of discharging its duties under this Part. O. Reg. 333/08, s. 70 (10).

(11) If the Trustee employs or retains the services of a person under subsection (10) who is a professional, the Trustee shall not be responsible for any act or omission of the person. O. Reg. 333/08, s. 70 (11).

Trustee’s fees and expenses

71. (1) The Trustee’s fee for performing its duties under this Part shall be paid from the Fund and shall be in the amount that the director, the Board and the Trustee mutually agree on, or if they do not agree, the amount that the director determines. O. Reg. 333/08, s. 71 (1).

(2) In addition to the fee mentioned in subsection (1), the Trustee is entitled to be reimbursed from the Fund for the following if the Board approves the amount of the reimbursement:

1. All expenses that the Trustee reasonably incurs in performing its duties under this Part.

2. The fees and expenses that the Trustee incurs in employing or retaining the services of persons under subsection 70 (10). O. Reg. 333/08, s. 71 (2).

Resignation and removal of Trustee

72. (1) The Trustee may resign as Trustee by giving 90 days notice in writing to the Board and to the director. O. Reg. 333/08, s. 72 (1).

(2) The Board, with the approval of the director, may remove the Trustee on giving 90 days notice in writing to the Trustee. O. Reg. 333/08, s. 72 (2).

(3) Upon the resignation or removal of the Trustee or if the Trustee is at any time unable to act, the Board shall, subject to subsection (4), appoint, as a successor Trustee, a trust corporation as defined in section 1 of the Loan and Trust Corporations Act that is authorized to do business in Ontario. O. Reg. 333/08, s. 72 (3); O. Reg. 221/09, s. 18.

(4) The Board shall not appoint a successor Trustee under subsection (3) unless the director approves the appointment. O. Reg. 333/08, s. 72 (4).

(5) Upon accepting the appointment, the successor Trustee shall have vested in it, without further act or formality, all the rights and powers given under this Part to the predecessor Trustee. O. Reg. 333/08, s. 72 (5).

(6) At the written request of the Board, the predecessor Trustee shall,

(a) execute and deliver an instrument in writing transferring to the successor Trustee all the rights, powers and property of the Fund that the predecessor Trustee has; and

(b) do all other acts or things necessary or desirable for the vesting of the property of the Fund in the successor Trustee. O. Reg. 333/08, s. 72 (6).

(7) The predecessor Trustee shall give the director and the Board a written account of its activities as Trustee in respect of the Fund for the entire period during which it was the Trustee in respect of the Fund or, if the Trustee provided certified financial statements under clause 70 (9) (b), for period since the end of the most recent period covered by those statements. O. Reg. 333/08, s. 72 (7).

Information about Fund

73. (1) The following may require the Board to provide specified information, books, records or documents respecting the affairs of the Fund:

1. The director.

2. If there is an administrative authority, the board of the authority. O. Reg. 333/08, s. 73 (1).

(2) The Board shall comply with a requirement under subsection (1). O. Reg. 333/08, s. 73 (2).

Audits of Fund

74. (1) If there is an administrative authority, the board of the authority may direct that the affairs of the Fund be audited. O. Reg. 333/08, s. 74 (1).

(2) At the request of the auditor performing an audit, the Board and the Trustee shall assist the auditor and shall provide all books, records and other information that are required in connection with the audit. O. Reg. 333/08, s. 74 (2).

Payments into Fund

Payments into Fund

75. (1) The payments required under this section are prescribed as payments imposed on the specified registrants for the purposes of subsection 42 (3) of the Act, subject to any different payments set under clause 12 (1) (c) of the Safety and Consumer Statutes Administration Act, 1996. O. Reg. 333/08, s. 75 (1).

(2) If an application for registration as a motor vehicle dealer in the class of general dealer, broker or lease finance dealer that is not a renewal of registration is granted, the dealer shall pay,

(a) $300 to the Fund for each place from which the dealer is authorized to trade if the dealer is registered in the class of general dealer or broker; or

(b) $300 to the Fund, if the dealer is registered in the class of lease finance dealer. O. Reg. 333/08, s. 75 (2).

(3) If a motor vehicle dealer registered in the class of general dealer or broker adds a place to the list of places from which the dealer is authorized to trade, the dealer shall forthwith pay $300 to the Fund for the added place. O. Reg. 333/08, s. 75 (3).

(4) If the Board determines that the value of the amounts in the Fund is, or is anticipated to be, less than $3,000,000 the Board may declare how much the shortfall is or is anticipated to be. O. Reg. 333/08, s. 75 (4).

(5) If the Board declares that there is a shortfall in the Fund, then for each motor vehicle dealer who is registered in a class for which the dealer is required to make a payment to the Fund at the time of registration, the Board shall,

(a) calculate an amount equal to the shortfall declared by the Board divided by the number of motor vehicle dealers registered at the time of the declaration, subject to subsection (5.1); and

(b) give notice in writing, at the dealer’s address for service, to the dealer stating,

(i) how much the Board declares the shortfall is or is anticipated to be,

(ii) the amount described in clause (a), and

(iii) the fact that the dealer is required to pay the amount described in clause (a) within 60 days of receiving the notice. O. Reg. 333/08, s. 75 (5); O. Reg. 377/09, s. 8 (1, 2).

(5.1) For the purposes of clause (5) (a), a motor vehicle dealer registered in the class of general dealer or broker that is authorized to trade from more than one place shall be counted as the number of registered motor vehicle dealers equal to the number of places from which the dealer is authorized to trade. O. Reg. 377/09, s. 8 (3).

(6) Subsection 37 (3) of the Act does not apply to a notice given under subsection (5). O. Reg. 333/08, s. 75 (6).

(7) A registered motor vehicle dealer who receives a notice under subsection (5) shall pay the amount stated in the notice to the Fund within 60 days of receiving the notice. O. Reg. 333/08, s. 75 (7).

Payments in default

76. (1) If a motor vehicle dealer registered as a general dealer, broker or lease finance dealer defaults in making a required payment to the Fund, the Board may give a notice in writing of the default to the dealer. O. Reg. 333/08, s. 76 (1).

(2) Subsection 37 (3) of the Act does not apply to a notice given under subsection (1). O. Reg. 333/08, s. 76 (2).

(3) If the registered motor vehicle dealer is still in default 21 days after receiving the notice under subsection (1), then in addition to being liable for the amount in default, the dealer is liable to the Fund for,

(a) a penalty of 10 per cent of the amount in default, except if the default is due to insolvency, bankruptcy or a voluntary or compulsory winding-up of the dealer; and

(b) interest on the amount in default at the postjudgment interest rate under section 127 of the Courts of Justice Act calculated from the day that is 21 days after the day the notice under subsection (1) was served. O. Reg. 333/08, s. 76 (3).

Payers have no right to Fund

77. For greater certainty, no payment to the Fund gives a registered motor vehicle dealer or a motor vehicle dealer formerly registered under the Act or the Motor Vehicle Dealers Act a right to any money or property in the Fund. O. Reg. 333/08, s. 77.

Ceasing to be registered

78. Upon ceasing to be registered in the class of general dealer, broker or lease finance dealer, a motor vehicle dealer shall provide the Board with,

(a) details in writing of every liability or obligation of the dealer that the dealer knows of that could give rise to an entitlement to compensation from the Fund, including unsettled claims against the dealer; and

(b) an explanation in writing of the arrangements, if any, the dealer has made to satisfy any of the liabilities and obligations of the dealer described in clause (a). O. Reg. 333/08, s. 78.

Claims

Entitlement to compensation

79. (1) A customer of a registered motor vehicle dealer is entitled to compensation from the Fund in respect of a claim for a pecuniary loss if,

(a) the claim arose from a trade in a motor vehicle between the customer and the dealer;

(b) the claim meets the requirements set out in a paragraph of subsection (3);

(c) at the time of the trade, the dealer was a registrant;

(d) the customer was acting in the trade as a consumer within the meaning of the Consumer Protection Act, 2002; and

(e) the customer has given the dealer, in accordance with section 37 of the Act, a written notice of demand for payment of the claim and the dealer has refused to pay the claim or is unable to do so. O. Reg. 333/08, s. 79 (1).

(2) Subsection 37 (3) of the Act does not apply to a notice given under clause 79 (1) (e) of this Regulation. O. Reg. 333/08, s. 79 (2).

(3) The requirements for a claim mentioned in clause (1) (b) are the following:

1. The claim arose from an act or omission of the registered motor vehicle dealer that was the subject of a proposal under clause 9 (1) (a) or (b) of the Act to suspend, revoke or refuse to renew the registration of the dealer and,

i. the dealer did not request a hearing by the Tribunal, or

ii. the dealer requested a hearing by the Tribunal and the Tribunal ordered the registrar to suspend, revoke or refuse to renew the registration of the dealer.

2. The claim arose from a trade in connection with which the registered motor vehicle dealer has been convicted of an offence.

3. The trade from which the claim arose was a purchase or lease of a motor vehicle from the registered motor vehicle dealer. A law enforcement authority has seized the vehicle and indicated that it will not be returned to the purchaser or the lessee.

4. The trade from which the claim arose was a purchase or lease of a motor vehicle from the registered motor vehicle dealer. A creditor, other than a creditor of the customer, has legally seized the vehicle and indicated that it will not be returned to the purchaser or the lessee.

5. The trade from which the claim arose was a purchase or lease of a motor vehicle from the registered motor vehicle dealer. The claim does not exceed the total sale price of the vehicle at the time of the purchase, if the claim arose from a purchase of the vehicle, or the lease value of the vehicle included in the information mentioned in subparagraph 1 i of subsection 41 (1) at the time of the lease, if the claim arose from a lease of the vehicle. The claim is for a deficiency that the dealer has refused to remedy. The deficiency is something that,

i. the vehicle does not have and the customer had indicated was material to the trade for the vehicle to have, or

ii. the vehicle has and the customer had indicated was material to the trade for the vehicle not to have.

6. The claim is for the return of a deposit or other payment by the customer under a contract for the purchase or lease of a motor vehicle from the registered motor vehicle dealer. The dealer has not delivered to the customer, within the time period required by the contract, the vehicle or an alternative motor vehicle that is acceptable to the customer. The customer has made a demand for a refund of the deposit or payment. The dealer has refused without legal justification to make the refund or is unable to make the refund by reason of bankruptcy or insolvency.

7. The claim relates to an extended warranty that was sold by the registered motor vehicle dealer or facilitated through the dealer. The claim is for,

i. the return of all payments made by the customer under the warranty that were unearned because the dealer has not complied with clause 47 (7) (c),

ii. subject to subsection (5), the cost of repairs or replacement that should have been, but were not, provided under the warranty, if the dealer was the seller of the warranty, or

iii. the amount for which the dealer is liable under subsection 47 (3), if the dealer was not the seller of the warranty.

8. The claim relates to a service plan that was sold by the registered motor vehicle dealer or facilitated through the dealer. The claim is for,

i. the return of all payments made by the customer under the service plan that were unearned because the dealer has not complied with clause 48 (6) (c), or

ii. the cost of goods or services that should have been, but were not, provided under the service plan, if the dealer was the seller of the plan.

9. The claim is for a refund owed to a customer under clause 50 (10) (b) or (11) (b) if the customer is entitled to a refund under the applicable clause.

10. The amount of the claim is the subject of a judgment or an order made by a court for the payment of compensation or the making of restitution by the registered motor vehicle dealer to the customer. The judgment or order has become final by reason of the expiration of the time for appeal or of having been confirmed by the highest court to which an appeal may be taken.

11. The claim is for a liquidated amount that the registered motor vehicle dealer owes to the customer. The dealer has become a bankrupt or a winding-up order has been made or a receiver appointed in respect of the business of the dealer under the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or the Winding-up and Restructuring Act (Canada). O. Reg. 333/08, s. 79 (3); O. Reg. 221/09, s. 19 (1).

(4) Despite subsection (1), a customer is not entitled to compensation from the Fund if,

(a) the customer is related, by blood or adoption, to the registered motor vehicle dealer against whom a claim is made or to a director or officer of the dealer;

(b) the customer is a spouse of the registered motor vehicle dealer against whom a claim is made or a spouse of a director or officer of the dealer;

(c) the customer is associated, as described in subsection 1 (2) of the Act, with the registered motor vehicle dealer against whom a claim is made;

(d) the customer was complicit in illegal conduct relating to the trade;

(e) the customer misrepresents the nature of the claim or provides false or misleading evidence in support of the claim; or

(f) the customer made a previous claim for compensation from the Fund based on the same facts or substantially the same facts. O. Reg. 333/08, s. 79 (4).

(5) If the Board determines that a customer of a registered motor vehicle dealer is entitled to compensation from the Fund in respect of a claim described in subparagraph 7 ii of subsection (3), the Board may direct the Trustee, in addition to paying the compensation, to pay the customer the amount of the premiums that the customer is required to make under the extended warranty that is unearned at the time that the customer makes the claim. O. Reg. 221/09, s. 19 (2).

(6) If the Board directs the Trustee to pay the additional payment described in subsection (5) from the Fund, the customer is not entitled to compensation from the Fund for any further claims described in subparagraph 7 ii of subsection (3). O. Reg. 221/09, s. 19 (2).

Procedure and time for claim

80. (1) To make a claim for compensation from the Fund, a customer shall give written notice of the claim to the registrar within two years after the claim first meets the requirements set out in the relevant paragraph of subsection 79 (3). O. Reg. 333/08, s. 80 (1).

(2) If the Board considers it proper to do so, the Board may extend the time for making a claim for compensation. O. Reg. 333/08, s. 80 (2).

(3) The notice of the claim shall contain full particulars of the claim and full particulars of any partial payment or recovery that the customer has received or is entitled to receive in respect of the claim and shall be accompanied by all documents and other information that the Board requires to determine whether or not the customer is entitled to compensation from the Fund. O. Reg. 333/08, s. 80 (3).

(4) On receiving a notice of a claim and the accompanying documents and information, the registrar shall forward them to the Board. O. Reg. 333/08, s. 80 (4).

Response of Board

81. (1) The Board may request that the customer making a claim for compensation from the Fund provide documents or other information in addition to those that accompany the claim and may require that the additional documents or information be in the form of an affidavit or be supported by an affidavit. O. Reg. 333/08, s. 81 (1).

(2) The Board may request that a customer agree in writing to subrogate the Fund to any and all rights and remedies to which the customer is entitled in respect of payment of a claim for compensation from the Fund. O. Reg. 333/08, s. 81 (2).

(3) If the customer does not provide the additional documents or other information mentioned in subsection (1) or agree to the subrogation described in subsection (2) within one year after receiving the request under the applicable subsection, the claim shall be deemed to be abandoned, unless the Board is satisfied that it would not be fair to do so. O. Reg. 333/08, s. 81 (3).

(4) A customer whose claim is deemed to be abandoned shall not in any way revive the abandoned claim. O. Reg. 333/08, s. 81 (4).

Determination of claims

82. (1) The Board shall determine the eligibility of a claim for compensation from the Fund and the amount of the compensation payable and shall advise the Trustee of its determination. O. Reg. 333/08, s. 82 (1).

(2) The Trustee shall pay the compensation determined by the Board, subject to this section and section 83. O. Reg. 333/08, s. 82 (2).

(3) Before a customer is paid compensation from the Fund in respect of a claim, the Board may require that the customer,

(a) obtain a judgment in respect of the claim, cause an execution to be issued under it, cause levies to be made under it and examine the judgment debtors;

(b) exhaust any other legal remedies, in addition to those described in clause (a), available to the customer in respect of the claim; or

(c) bring an action against any person against whom the customer might reasonably be considered as having a cause of action in respect of the claim. O. Reg. 333/08, s. 82 (3).

Limits on compensation

83. (1) No person or body, including the Board and the Trustee, shall pay compensation from the Fund to a customer in respect of a claim if the amount of the compensation exceeds the amount that the customer would be entitled to from the registered motor vehicle dealer against whom the claim is made. O. Reg. 333/08, s. 83 (1).

(2) No person or body, including the Board and the Trustee, shall pay compensation from the Fund for interest unless a court has awarded the interest. O. Reg. 333/08, s. 83 (2).

(3) No person or body, including the Board and the Trustee, shall pay compensation from the Fund for an award of punitive damages by a court or for interest that relates to the award of punitive damages. O. Reg. 333/08, s. 83 (3).

(4) No person or body, including the Board and the Trustee, shall pay compensation from the Fund for costs unless a court has awarded the costs and the amount of the awarded costs relates to a disbursement or fee actually paid by the customer. O. Reg. 333/08, s. 83 (4).

(5) No person or body, including the Board and the Trustee, shall pay compensation from the Fund to a customer in respect of a claim if the total compensation, including compensation under section 84, exceeds $45,000. O. Reg. 333/08, s. 83 (5).

(6) For the purposes of subsection (5), the total compensation does not include any compensation paid for costs or interest awarded by a court. O. Reg. 333/08, s. 83 (6).

Interim payment of compensation

84. (1) If it appears to the Board that a customer is entitled to compensation from the Fund and that an immediate payment is necessary to alleviate undue inconvenience to the customer, the Board, with the concurrence of the director, may determine that the customer is eligible to receive an amount from the Fund immediately to alleviate the inconvenience. O. Reg. 333/08, s. 84 (1).

(2) If a quorum of the Board is not available, any two members of the Board may exercise the power described in subsection (1) with the concurrence of the director. O. Reg. 333/08, s. 84 (2).

(3) If the Board makes the determination described in subsection (1), it shall advise the Trustee of its determination and the Trustee shall pay the compensation determined by the Board. O. Reg. 333/08, s. 84 (3).

(4) Any amount paid by the Trustee under subsection (3) is an advance on, and shall be deducted from, any amount paid under subsection 82 (2). O. Reg. 333/08, s. 84 (4).

Hearing by Tribunal

85. (1) If the Board determines that a customer is not entitled to compensation from the Fund in respect of a claim or any part of it, the Board shall serve notice of its decision, together with written reasons, on the customer. O. Reg. 333/08, s. 85 (1).

(2) The customer is entitled to a hearing by the Tribunal if, within 15 days after being served with notice, the customer serves a written notice requesting a hearing on the registrar and the Tribunal. O. Reg. 333/08, s. 85 (2).

(3) The notice under subsection (1) shall inform the customer of the right to a hearing by the Tribunal and the manner and time within which to request the hearing. O. Reg. 333/08, s. 85 (3).

(4) If the customer does not request a hearing, the determination of the Board becomes final. O. Reg. 333/08, s. 85 (4).

(5) If the customer requests a hearing, the Tribunal shall appoint a time for and hold the hearing. O. Reg. 333/08, s. 85 (5).

(6) The customer, the Board and the other persons, if any, that the Tribunal specifies are parties to the hearing. O. Reg. 333/08, s. 85 (6).

(7) After the hearing, the Tribunal may,

(a) subject to subsection 82 (3) and section 83, allow the claim, in whole or in part, and direct the Trustee to pay the amount allowed from the Fund; or

(b) refuse to allow the claim. O. Reg. 333/08, s. 85 (7).

(8) For greater certainty, this section does not apply to a determination by the Board not to pay an amount under section 84. O. Reg. 333/08, s. 85 (8).

Publishing decisions on claims

86. (1) For the purposes of subsection 42 (7) of the Act, the Board shall make the following information available to the public with respect to the claims for payment of compensation from the Fund that were received in each year, based on the year that the Board determines, on or after the day this subsection comes into force:

1. The total number of claims that were allowed in whole or in part and the total number that were denied.

2. The total number of claims that were received but on which the Board has not made a determination.

3. A summary of each claim described in paragraph 1 that includes,

i. the registered name of the registered motor vehicle dealer against whom the claim was made, if the claim has been allowed in whole or in part,

ii. the amount claimed, and

iii. if the claim was allowed in whole or in part and an amount was paid, the amount paid and the requirement, set out in a paragraph of subsection 79 (3), that the claim met. O. Reg. 333/08, s. 86 (1).

(2) The Board shall publish the information described in subsection (1) by electronic means and shall update the information at least four times a year. O. Reg. 333/08, s. 86 (2).

(3) The Board shall not publish, under this section, any personal information about an individual who is not a registered motor vehicle dealer without the individual’s prior consent. O. Reg. 333/08, s. 86 (3).

Liability of registrants to Fund

87. A registered motor vehicle dealer is required to reimburse the Fund for a claim paid to a customer of the dealer if,

(a) the claim arose from a trade in connection with which a court convicted the dealer of an offence and ordered the dealer to pay compensation or make restitution to the customer;

(b) the claim is described in paragraph 10 of subsection 79 (3);

(c) the dealer is insolvent; or

(d) the dealer has become a bankrupt or a winding-up order has been made or a receiver appointed in respect of the business of the dealer under the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or the Winding-up and Restructuring Act (Canada). O. Reg. 333/08, s. 87.

Transition, claims relating to old trades

88. A claim arising from a trade in a motor vehicle that takes place before the day this Regulation comes into force, whether the claim is made before or after the day this Regulation comes into force, shall be determined in accordance with Regulation 801 of the Revised Regulations of Ontario, 1990 (General) made under the Motor Vehicle Dealers Act, as that regulation read immediately before the day section 89 of this Regulation comes into force, including, for greater certainty, the procedures applicable under that Regulation 801. O. Reg. 333/08, s. 88.

89. Omitted (revokes other Regulations). O. Reg. 333/08, s. 89.

90. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 333/08, s. 90.

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