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Carmel Custom Contracting Ltd, dba Mill Bay Motors (#40282), Jason William Coburn (#106135)
Issues:On April 5, 2018, the Registrar convened a hearing, based upon allegations by the VSA that Carmel Custom Contracting Ltd, Dba Mill Bay Motors (#40282) (“Mill Bay”) and Jason William Coburn (#106135) (“Coburn”) 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 Mill Bay had:
- Violated the restriction on its registration, restricting it from selling consigned motor vehicles: section 4(4) of the Motor Dealer Act; and
- Breached sections 2 and 6 of the Motor Dealer Consignment Sales Regulation, by:
- Failing to complete and provide the Consumers with a consignment agreement; and
- Not depositing the proceeds of sale into Mill Bay’s trust account, not paying the proceeds within the legislated time frame, and by allowing the proceeds of sale to be used for a purpose not authorized by the Consignment Regulation.
The Registrar found that Mill Bay and Coburn had:
- Committed deceptive acts or practices in respect of this consumer transaction, contrary to section 5(1) of the BPCPA, by:
- Misrepresenting to the Consumers, through conduct, that Mill Bay was authorized to conduct consignment sales, when it was not;
- Failing to state a material fact to the Consumers, being that Mill Bay was restricted from selling motor vehicles on consignment;
- Failing to state a material fact, by not disclosing to the Consumer’s their legal rights and Mill Bay’s legal obligations in the consumer transaction, as required by the Consignment Regulation; and
- Misrepresenting the payment of the proceeds of sale and the status of that payment.
The Registrar found that no protective Compliance Order was required, as the motor dealer registration and salesperson licence of Jason Coburn had expired.
Outcome:The Registrar imposed a 5-year ban on Coburn’s ability to reapply for a salesperson’s licence.
The Registrar imposed an administrative penalty on Mill Bay in the amount of $5,000 for its violations of the BPCPA.
The Registrar invited the VSA to make submissions on costs against Mill Bay and Coburn, in an amount to be determined at a later date, following the written submissions of the Parties.
