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Toronto, June 11, 2003 -
Registration under the Motor
Vehicle Dealers Act (MVDA) has
been suspended for a London-area
car dealership, Sterling Auto
Sales Ltd., and its officers and
directors, Mohammed Assaf and
Monir Assaf.
Under the MVDA – a public
protection statute – all motor
vehicle dealers and salespeople
in Ontario must be registered
with the Ontario Motor Vehicle
Industry Council and carry on
business in accordance with the
law and with honesty and
integrity. In addition to the
MVDA, all registrants must also
adhere to OMVIC’s Standards of
Business Practice.
To ensure compliance with the
Act, OMVIC routinely inspects
all of Ontario’s 9,000
dealerships. In the course of a
routine inspection, it was
discovered Sterling Auto failed
to disclose material facts to
consumers on a number of
occasions. A number of instances
were considered which involved a
failure to disclose the true
condition of vehicles or failing
to inform consumers about
discrepancies in odometer
readings. Another issue was the
failure to properly maintain
books and records.
“Material facts – facts which
could alter the consumer’s mind
about purchasing the vehicle –
must be included on a bill of
sale,” explains Mary Jane South,
OMVIC’s Deputy Registrar.
“Dealers are obligated to take
reasonable steps to determine
the true distance travelled,
whether it has liens against it
and finally, any material
information relating to the
vehicle's condition or previous
use. Failing to provide this
information to a consumer in
writing is a serious breach of
the terms of registration.”
As a result of their actions,
OMVIC issued a Proposal to
Revoke the registrations of
Sterling Auto, Mohammed Assaf
and Monir Assaf. Following a
hearing before the Licence
Appeal Tribunal, which hears
such matters, the Tribunal
ordered the registrations of
Sterling Auto and the Assafs be
suspended for a six-month
period. The dealership is
located at 55 Southdale Road
East. The suspensions remain in
effect until November 28, 2003.
When making a motor vehicle
purchase, South recommends
consumers keep the following in
mind:
- All dealers and salespeople in
Ontario must be registered. To
verify registration, visit
www.omvic.on.ca or call
1-800-943-6002.
If you believe
someone is in the business of
buying, selling or leasing
vehicles and is not registered
with OMVIC, you should contact
OMVIC.
- OMVIC provides a free mediation
service between consumers and
dealers. To speak with a
mediator, call OMVIC at
1-800-943-6002.
- Under certain circumstances,
purchases made through a
registered dealer are protected
by a dealer-funded compensation
plan.
Consumers who purchase
vehicles through private sales
are not protected through this
plan and cannot apply to it.
- Curbsiders pose as private
individuals, but are actually in
the business of illegally
selling vehicles. In most cases
the vehicles are stolen,
odometer-tampered or have liens
against them. If you do decide
to buy privately, ensure the
seller provides a Used Vehicle
Information Package, and
consider having the vehicle
checked by an independent
mechanic you trust.
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