Difference between revisions of "Motor Dealer Act (11:VII)"

The MDA Regulations set out requirements concerning representations made by a motor dealer when offering motor vehicles for sale.  A motor dealer is required to disclose to a prospective buyer whether the motor vehicle was previously used as a taxi, police or emergency vehicle, or for organized racing.  In the case of a new motor vehicle, the motor dealer must disclose whether the vehicle has sustained damage that required repairs worth more than 20 percent of the asking price.  In the case of a used vehicle, the dealer must disclose whether the vehicle has sustained damages requiring repairs of more than $2,000.  The motor dealer is also required to disclose whether a vehicle has previously been used as a lease or rental vehicle and whether a used motor vehicle has been brought into the province specifically for the purposes of sale.

Section 34 of the ''MDA'' prohibits any person from disconnecting or tampering with an odometer. It is also an offence to drive or operate a motor vehicle with a disconnected odometer. Furthermore, it is an offence for any person to alter, disconnect, or replace a motor vehicle’s odometer with the intent to mislead a prospective purchaser about the distance travelled by the motor vehicle. Odometer tampering can  significantly increase the apparent sale value of a motor vehicle and, therefore, the consumer should be wary of representations of low mileage. The MDA sets out regulatory responses to odometer tampering. The consumer who suffers loss as a result of odometer tampering has a contractual remedy and may be able to present a claim to the Motor Dealer Customer Compensation Fund Board.