FILE NUMBER: 10-009

HEARING DATE: March 24, 2010

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

COMPLAINANT: REGISTRAR

MOTOR DEALER and/or SALESPERSON: LCB AUTOS LTD. (Dealer #31026)

ISSUE:

• New applicant for motor dealer registration sought authorization to sell on consignment.
• Authority staff were concerned with the application for registration for three reasons:
  • Lack of experience by the motor dealer and its directing mind (less than three years);
  • Under funding and financial backing of the motor dealership; and
  • The business plan was dependent on consignment sales.
• Hearing was called at the request of the applicant to review consignment sales authorization.

OUTCOME:

• The Registrar explained the law regarding licensing decisions and its policy rationale regarding consignment sales.
• The motor dealer was too dependent on consignment sales from too narrow a source.
• The motor dealer lacked the necessary experience in running a motor dealership.
• The motor dealer lacked financial backing to independently obtain inventory and weather the ebb and flow of used car sales.
• The Registrar found it was not in the public interest to authorize LCB to conduct consignment sales.
• The motor dealer was free to resubmit a business plan without consignment sales and cautioned that it would still need to address its under-funding.

COMPLETE DECISION: File 10-009 Hearing Decision File LCB AUTOS LTD. April 1, 2010

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