Getting All the Details Right

DINI SOULIO COMMISSIONER FOR CONSUMER AND BUSINESS SERVICES

Most vehicle dealers pay special attention when it comes to filling out the correct details in a sales contract, and they usually remember to renew their licence on time, but there are some other legal requirements that might not always be front of mind for dealers. This article is a reminder about some of the other important details that dealers shouldn’t overlook.

INFORMATION ON FORMS

Certain pieces of information are required to be disclosed to potential buyers, and while it’s essential that the information is correct, it’s also important how the information is presented. The Second-hand Vehicle Dealers Regulations 2010 outline requirements for the notice that must be displayed on vehicles for sale. This includes specific requirements relating to font type, minimum font size and also that the notice does not include any printing or handwriting (other than a signature) that is not clear and legible. It is generally best if all the information on the form is typed and printed to ensure compliance with this requirement and to avoid potential confusion over any handwritten information.

ADDRESS DETAILS

Dealers generally have an excellent track record in having their licensing records updated to reflect any change to their trading address, but if there’s a change in the dealer’s residential address they sometimes fail to notify Consumer and Business Services (CBS) of this change.

Licensed dealers are reminded that they must notify CBS within 14 days if there is a change in:

• their residential address

• the name in which the dealer carries on business

• the registered corporate office (where the dealer is a company)

• the address for service of notices and important information.

Otherwise the dealer could be fined. The maximum penalty is $5,000 or an expiation fee of $315.

QUALITY SALESPEOPLE

Achieving sales and positive reviews from customers is the goal of every dealership, but enthusiasm and a strong sales record are not the only aspects that dealers should assess when hiring new sales staff. Under the Second-hand Vehicle Dealers Act 1995 a dealer cannot employ a salesperson who has been:

• convicted of an indictable offence of dishonesty

• convicted of a summary offence of dishonesty in the last 10 years

• suspended or disqualified from an occupation, trade or business in Australia.

Otherwise, a dealer could face a maximum penalty of $100,000. The salesperson also risks the same penalty.

As part of the recruitment process you can ask applicants to provide a National Police Certificate (NPC) which shows a summary of any offender history in Australia. More information about police record checks is available at www.police.sa.gov.au.

UNDERSTANDING ALL REQUIREMENTS

While some legal requirements may seem more important than others, all the requirements exist for a particular purpose. Whether that be to protect consumers, to help protect the reputation of the industry, or to enable CBS to effectively administer the legislation and be able to contact dealers promptly if any issues arise.

More information about the rights and responsibilities of vehicle dealers and their staff is available from:

• the publication ‘Motor vehicle sales & repairs - an industry guide to the Australian Consumer Law’ (visit cbs.sa.gov.au)

• legislation.sa.gov.au – see the Second-hand Vehicle Dealers Act 1995 and associated Regulations

• the Motor Trade Association (MTA) through their advisory service for members in relation to consumer law, document drafting and customer disputes.