I JUST RECEIVED MY FIRST back-toschool flyer and immediately felt a pit in my stomach. Growing up, I always hated back-to-school flyers and the sight of corn fields (especially in August when the stalks got high!) It was as if the mere sight of corn or flyers would bring the start of school, and the end of summer freedom, closer.
Although it's been quite a few years since I was last in school, August still fills me with a bit of melancholy. That said, I have always found that taking a moment to take stock and ensuring that I was prepared for what lay ahead was always a great salve to the August blues. I hope that this article
I hope that this article helps you this back-to-school season; Fall is a great time to remind you and your team of the little things that are crucial to your dealer's long-term success, and its compliance with the law.
Legal Liability
Owning a business can mean many things – pride, purpose, and profits! However, it can also entail the not so great aspects of entrepreneurship, namely liability and costs. With risk comes reward, right? While often true, the savviest business people know how to maximize their reward, while minimizing risk.
Competition, customers, regulators and even your own dealership can pose a risk to your profits. Sometimes the simplest solution is the best solution – remain compliant. Sounds easy enough, but with everyday tasks and endeavours it can be all too easy get caught up in the whirlwind of making deals and to brush off the more tedious aspects of running a business.
Know Your Rights!
The Motor Vehicle Dealers Act (MVDA) is a broad statute which imposes a long list of obligations upon dealers and salespersons and provides OMVIC with very broad powers – including the right to carry out an inspection of your dealership to ensure compliance with the MVDA.
During an inspection, an OMVIC inspector has the right to:
- Access and inspect the dealer's premises, vehicles, books and records;
- Remove records to make copies; and
- Make inquiries regarding any complaint about the dealer's conduct.
Obviously, and guilt or innocence aside, anyone facing an OMVIC inspection is going to feel apprehensive and will likely have many questions and concerns. It is therefore incredibly important that you either know your rights, or have a trusted advisor to turn to for guidance.
Whatever you do, don't go it alone and DO NOT lose your temper and take it out on the OMVIC inspector (they are just doing their job!). A dealer I know took this approach and ended up with a Notice of Proposal to Revoke the licences of both himself and his dealership.
Complete Forms on Time and Accurately!
Taking steps to maintain your registration is crucial and can have disastrous consequences if done incorrectly, or not on time. Many dealerships, while great at completing the paperwork for customers, such as Bills of Sale, may not be as good at completing its own paperwork to OMVIC. Incorrect paperwork, or its late submittal, can lead to big headaches.
Too often, I have seen salespeople suffer significantly because they have failed to renew their licence on time. A best practice is for dealers to record and monitor expiry dates of all salespeople to ensure renewal applications are submitted on time. It is a mistake to think being a few days late in filing a renewal application is not a big deal. I have seen more than one salesperson be without work for many months as a result of a late filing, and a subsequent Proposal to Refuse Registration being issued by the Registrar.
to ensure renewal applications are submitted on time. It is a mistake to think being a few days late in filing a renewal application is not a big deal. I have seen more than one salesperson be without work for many months as a result of a late filing, and a subsequent Proposal to Refuse Registration being issued by the Registrar.
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