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Lake Country Motor Sports Ltd. (#9740); John Dumaine (#103631)
Issues:On March 7 and April 11, 2018, the Registrar convened a hearing, based upon allegations by the VSA that Lake Country Motor Sports Ltd. (#9740) (“Lake Country”) and John Dumaine (#103631) (“Dumaine”) had:
- Engaged in a consignment sale in violation of restrictions on its dealer registration;
- Violated the Motor Dealer Consignment Sales Regulations; and
- Engaged in deceptive acts and practices, contrary to the Business Practices and Consumer Protection Act (“BPCPA”).
The Registrar found that Lake Country had:
- Violated the restriction on its registration, restricting it from selling consigned motor vehicles: section 4(4) of the Motor Dealer Act;
- Breached section 2 of the Motor Dealer Consignment Sales Regulation, by failing to complete and provide Nancy Scott (“Scott”) with a consignment agreement; and
- Breached section 6 of the Motor Dealer Consignment Sales Regulation, by failing to disperse the proceeds of sale as required by the Consignment Regulation.
The Registrar found that Lake Country and Dumaine had:
- Committed deceptive acts or practices in respect of this consumer transaction, contrary to section 5(1) of the BPCPA, by:
- Misrepresenting to Scott, through conduct, that Lake Country was authorized to conduct consignment sales, when it was not;
- Failing to state a material fact, by not disclosing to Scott her legal rights and Lake Country’s legal obligations in the consumer transaction, as required by the Consignment Regulation; and
- Misrepresenting to Scott that she owed Lake Country and Dumaine $22,000 for a loan on the consigned vehicle, which was untrue, and which would be deducted from the proceeds of the sale of the vehicle.
The Registrar cancelled Lake Country’s dealer registration.
The Registrar cancelled Dumaine’s salesperson licence.
The Registrar imposed an administrative penalty on Lake Country in the amount of $5,000 for its violations of the BPCPA.
The Registrar invited the VSA to make submissions on costs against Lake Country and Dumaine, in an amount to be determined at a later date, following the written submissions of the Parties.
The Registrar issued a compliance order, requiring Lake Country and John Dumaine to pay Scott $44,455.44 for her losses, due to the breach of the BPCPA.
