Complete Decision By Motor Dealers Council of British Columbia
By 250 News
Friday, January 06, 2006 03:00 PM
Some of our readers have indicated they had some difficulty getting through the link to the complete decision in this matter, here is the complete text of the decision in the matter of Northland Motor Holdings Ltd and Northland Dodge Chrysler Ltd
Final Decision – January 4th, 2006 2
Investigations in this matter began in June of 2005. Hearings were held before me on September 29th, 2005 in Prince George and on December 21st in Burnaby British Columbia.
These two Prince George dealers are linked by common ownership. The records at the Motor Dealer Council Office indicate that both these businesses are own by Patrick Priestner of Edmonton Alberta. In attendance at the hearings and representing both licensed dealers was Brent Marshall. Mr. Marshall advised that he is the President and a part owner for both dealerships. His status however, remains unconfirmed on our records and at the Corporate and Personal Property Registries office. Also in attendance and providing evidence on behalf of the two dealerships were Bob Bullock and Terry Kirby. Neither of these two individuals claimed to have an ownership position with the company nor did they indicate that they were directly part of making the senior management decisions that are the subject matter of these hearings.
Extensive evidence was produced to show that these two companies continue to operate in ways that are not in compliance with the laws of British Columbia. Specifically,and on many, many occasions in 2005 they violated;
Motor Dealer Act
Section 3(2) - improperly advertising Dealer ownership
Section 12 - failing to properly notify MDC of changes in ownership
and corporate directors within 14 days
Section 13(1) - not correctly identifying Dealer name in advertising
Section 13(2) - not correctly pricing vehicles on display
Section 35(2) - employing unlicensed salespersons
Motor Dealer Act Regulation
Section 26.1 - repeatedly not disclosing “total asking price” on vehicles
Business Practices and Consumer Protection Act
Section 4 - Innumerable “deceptive” advertising practices,
Section 4(3)c - Improper pricing of vehicles
There are two important parts to my decision in this matter.
Firstly, the representatives from these dealerships did not deny that these two companies consistently and repeatedly contravened the legislation. In fact, they basically admitted to the evidence provided by MDC’s investigators and staff. So in that regard there is little for me to determine here except the ongoing status of Northland Dodge Chrysler Ltd. and Northland Motor Holdings Ltd. motor dealer licenses and any fines or penalties that should apply because of their conduct.
Secondly, Section 164(2) of the Business Practices and Consumer Protection Act requires me to consider several matters before I decide to impose an administrative penalty.
These are;
1. Previous enforcement actions for similar matters
2. Gravity and magnitude of the contraventions
3. Extent of the harm done to others
4. Contraventions, both repeated and continuous
5. Contraventions that were deliberate
6. Economic benefits from the contraventions
7. Efforts made to end the contraventions
All of these considerations apply in this situation. Notwithstanding Mr. Marshall’s many explanations as to why these contraventions occurred, and continue to occur after the dealership had been warned several times, and specifically because of his general attitude towards these matters, I believe a maximum penalty is in order.
Northland Dodge Chrysler Ltd. shall pay an administrative penalty of $50,000 within 30 days from the date of receiving this order.
Northland Motor Holdings Ltd. will pay an administrative penalty of $10,000 within 30 days from the date of receiving this order.
Should either of these dealerships wish to have the Registrar reconsider the above administrative penalties, as allowed under Sections 166 and 181 of the Business Practices and Consumer Protection Act, they may arrange this through Eray Karabilgin through our Burnaby office – #150 6400 Roberts Street, Burnaby BC V5G 4C9 (604 293-3525).
For reasons outlined above the licenses for both Northland Dodge Chrysler Ltd. and Northland Motor Holdings Ltd. are now subject to the following conditions;
1. Both these dealerships will, within 14 days from the date of receiving this decision, comply with the legislation in British Columbia requiring them to
properly identify their Directors and Officers in MDC’s Registry and in the Corporate and Personal Property Registries offices of British Columbia,
2. Both these dealerships will forthwith comply with the legislation in British Columbia requiring them to properly identify their dealership’s “doing
business as”(DBA) names in MDC’s Registry,
3. Both these Dealerships will also immediately begin to comply with the Advertising Guidelines published by MDC in November of 2005.
Registrar of Motor Dealers for the
Province of British Columbia
Ken Smith
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