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Toronto, March 8, 2000 - An
Ottawa car dealership has lost
its licence due to a breach of
registration terms and
conditions, sparked by a
previous owner¹s financial
dealings.
Concern over Tom Reid¹s bankrupt
car dealership initially
prompted the Ontario Motor
Vehicle Industry Council (OMVIC)
to reject Corinne Reid¹s
application to register her car
dealership.
Among Mr. Reid¹s creditors was
the Ministry of Revenue, to whom
his corporation owed over $2
million in retail sales tax.
This tax is generally considered
to be trust funds paid by a
consumer when a vehicle is
purchased, and must be forwarded
by the dealer to the Ministry of
Revenue.
In Ontario, the Motor Vehicle
Dealers Act requires all car
dealers to be registered with
OMVIC.
Ms. Reid appealed the rejection,
and OMVIC agreed to her
registration on a number of
terms and conditions. One of the
conditions was that Tom Reid not
be involved in the operation of
the dealership.
"We were very concerned,"
commented Mary Jane South, OMVIC
Deputy Registrar. "Ms. Reid¹s
company, Ottawa Car Sales, set
up business at 1722 Carling
Avenue, the very same site of
Vardi Holdings Inc., Mr. Reid¹s
dealership. She purchased the
assets and holdings of Vardi
Holdings Inc. soon after Vardi
initiated bankruptcy
proceedings."
An OMVIC inspection revealed
that unregistered salespeople
were employed at Ottawa Car
Sales, providing grounds for
licence revocation.
OMVIC, the industry’s
self-management body, regularly
inspects motor vehicle dealers
to ensure their compliance with
the Motor Vehicle Dealers Act.
“In order to maintain their
OMVIC registration, dealers must
conduct themselves with honesty,
integrity, within the law and be
financially responsible,” says
Ms. South.
Consumers who purchase vehicles
from registered dealers enjoy
the protection of the Motor
Vehicle Dealers Compensation
Fund. Under specific
circumstances, consumers may be
entitled to compensation if they
have dealt with a registered
dealer.
For more information, call OMVIC
at 416-226-4500, 1-800-943-6002
(outside Toronto), or email
registrarmvda@omvic.on.ca.
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