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This is a Bill, not an Act. For current law, see the Acts databases.


SECOND-HAND VEHICLE DEALERS (COOLING-OFF RIGHTS) AMENDMENT BILL 2009

South Australia

Second-hand Vehicle Dealers (Cooling-off Rights) Amendment Bill 2009

A BILL FOR

An Act to amend the Second-hand Vehicle Dealers Act 1995; and to make a consequential amendment to the Magistrates Court Act 1991.


Contents

Part 1—Preliminary
1 Short title
2 Commencement
3 Amendment provisions

Part 2—Amendment of Second-hand Vehicle Dealers Act 1995
4 Amendment of section 3—Interpretation
5 Insertion of section 3A
3A Close associates
6 Amendment of section 4—Application of Act
7 Amendment of section 7—Dealers to be licensed
8 Amendment of section 13—Incorporated dealer's business to be properly managed and supervised
9 Insertion of section 13A
13A Salespersons
10 Amendment of section 14—Registration of dealer's business premises
11 Insertion of heading to Part 3 Division 1 Subdivision 1
12 Amendment of section 15—Application of Division
13 Insertion of heading to Part 3 Division 1 Subdivision 2
14 Amendment of section 16—Notices to be displayed
15 Amendment of section 17—Form of contract
16 Amendment of section 18—Notices to be provided to purchasers of second-hand vehicles
17 Insertion of Part 3 Division 1 Subdivision 3

Subdivision 3—Cooling-off
18A Interpretation
18B Cooling-off
18C Legal title to vehicle remains with dealer during cooling-off period
18D Trade-in vehicles
18E Option to purchase vehicle subject to contract for sale
18 Amendment of section 20—Notices to be displayed in case of auction
19 Amendment of section 21—Notices to be provided to purchasers of second-hand vehicles
20 Amendment of section 22—Trade auctions
21 Amendment of section 26—Interpretation
22 Amendment of section 27—Cause for disciplinary action
23 Amendment of section 31—Disciplinary action
24 Amendment of section 32—Contravention of orders
25 Amendment of section 33—No waiver of rights
26 Amendment of section 34—Interference with odometers prohibited
27 Amendment of section 41—False or misleading information
28 Amendment of section 42—Name in which dealer may carry on business
29 Amendment of section 50—Evidence
30 Amendment of section 53—Regulations
31 Amendment of Schedule 3—Second-Hand Vehicles Compensation Fund

Schedule 1—Related amendment

Part 1—Amendment of Magistrates Court Act 1991
1 Amendment of section 3—Interpretation


The Parliament of South Australia enacts as follows:

Part 1—Preliminary

1—Short title

This Act may be cited as the Second-hand Vehicle Dealers (Cooling-off Rights) Amendment Act 2009.

2—Commencement

This Act will come into operation on a day to be fixed by proclamation.

3—Amendment provisions

In this Act, a provision under a heading referring to the amendment of a specified Act amends the Act so specified.

Part 2—Amendment of Second-hand Vehicle Dealers Act 1995

4—Amendment of section 3—Interpretation

(1) Section 3, after the definition of authorised officer insert:

business day means a day other than a Sunday or other public holiday;

close associate—see section 3A;

(2) Section 3, definition of credit contract—delete the definition and substitute:

cooling-off period, in relation to a contract for the sale of a second-hand vehicle, means the period commencing when the contract is made and concluding at the end of the second clear business day after the day on which the contract is made;

(3) Section 3, definition of dealer—before "selling" insert:

buying or

(4) Section 3—after the definition of model designation insert:

offer for sale—an offer for sale includes exposure for sale, an invitation to treat and the publishing, or authorising the publication, of an advertisement;

(5) Section 3, after the definition of registered premises insert:

salesperson means a person who, for or on behalf of a dealer—

(a) buys or sells second-hand vehicles; or

(b) induces or attempts to induce, or negotiates with a view to inducing, a person to buy or sell a second-hand vehicle; or

(c) performs a function of a kind prescribed by regulation for the purposes of this paragraph;

(6) Section 3, definition of sell—delete "includes sell on behalf of another person and" and substitute:

includes exchange, and sell on behalf of another person; and

5—Insertion of section 3A

After section 3 insert:

3A—Close associates

(1) 2 persons are close associates if—

(a) 1 is a spouse, domestic partner, parent, brother, sister or child of the other; or

(b) they are members of the same household; or

(c) they are in partnership; or

(d) they are joint venturers; or

(e) they are related bodies corporate; or

(f) 1 is a body corporate and the other is a director, manager, secretary or public officer of the body corporate; or

(g) 1 is a body corporate (other than a public company whose shares are quoted on a prescribed financial market) and the other is a shareholder in the body corporate; or

(h) 1 is a body corporate whose shares are quoted on a prescribed financial market and the other is a substantial shareholder (within the meaning of the Corporations Act 2001 of the Commonwealth) in the body corporate; or

(i) 1 has a right to participate (otherwise than as a shareholder in a body corporate) in income or profits derived from a business conducted by the other; or

(j) 1 is in a position to exercise control or significant influence over the conduct of the other.

(2) For the purposes of subsection (1)—

domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not;

prescribed financial market means a prescribed financial market within the meaning of section 9 of the Corporations Act 2001 of the Commonwealth;

spouse—a person is the spouse of another if they are legally married.

6—Amendment of section 4—Application of Act

Section 4(2)—delete "Section 17 does" and substitute:

Section 17 and Part 3 Division 1 Subdivision 3 do

7—Amendment of section 7—Dealers to be licensed

(1) Section 7(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $100 000.

(2) Section 7(2)(b)—delete "selling" and substitute:

buying or selling

8—Amendment of section 13—Incorporated dealer's business to be properly managed and supervised

Section 13, penalty provision—delete the penalty provision and substitute:

Maximum penalty: $100 000.

9—Insertion of section 13A

After section 13 insert:

13A—Salespersons

(1) A dealer must not employ a person as a salesperson unless the person—

(a) has not—

(i) been convicted of an indictable offence of dishonesty; or

(ii) during the period of 10 years preceding the employment, been convicted of a summary offence of dishonesty; and

(b) is not suspended or disqualified from practising or carrying on an occupation, trade or business under a law of this State, the Commonwealth, another State or a Territory of the Commonwealth.

Maximum penalty: $100 000.

(2) A person must not act as a salesperson unless the person—

(a) has not—

(i) been convicted of an indictable offence of dishonesty; or

(ii) during the period of 10 years preceding the employment, been convicted of a summary offence of dishonesty; and

(b) is not suspended or disqualified from practising or carrying on an occupation, trade or business under a law of this State, the Commonwealth, another State or a Territory of the Commonwealth.

Maximum penalty: $100 000.

(3) For the purposes of subsection (2), a person acts as a salesperson if the person—

(a) is or remains in the service of a dealer as a salesperson; or

(b) holds himself or herself out as a salesperson; or

(c) otherwise acts as a salesperson.

(4) A provision of this section that provides that a person must not be employed or act as a salesperson if the person is convicted, disqualified or suspended applies to a person who is employed as a salesperson, or who is acting as a salesperson, immediately before the commencement of this section only if the person is convicted, disqualified or suspended after the commencement.

10—Amendment of section 14—Registration of dealer's business premises

(1) Section 14(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

(2) Section 14(5), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

11—Insertion of heading to Part 3 Division 1 Subdivision 1

Part 3 Division 1—before section 15 insert:

Subdivision 1—Application of Division

12—Amendment of section 15—Application of Division

(1) Section 15(1)—after "This Division" insert:

, other than section 18E,

(2) Section 15(2)—delete "Except as provided in section 17, this Division" and substitute:

This Division, other than sections 17 and 18E,

13—Insertion of heading to Part 3 Division 1 Subdivision 2

Part 3 Division 1—after section 15 insert:

Subdivision 2—Notices and form of contract

14—Amendment of section 16—Notices to be displayed

(1) Section 16(1)—delete "or expose"

(2) Section 16(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

(3) Section 16(3)(b)—delete "or exposing"

(4) Section 16(3)(c)—delete "or exposing"

(5) Section 16(3)(f)—delete "or exposed"

(6) Section 16(5), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

(7) Section 16(6), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

(8) Section 16(7), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $2 500.

15—Amendment of section 17—Form of contract

(1) Section 17(1)(d)—after subparagraph (ii) insert:

(iia) if the contract is subject to a cooling-off period—

(A) when the cooling-off period will expire; and

(B) prescribed information about the rights and obligations of the parties to the sale under Subdivision 3; and

(2) Section 17(3), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

(3) Section 17(4), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

(4) Section 17(5), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

(5) Section 17(6), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

16—Amendment of section 18—Notices to be provided to purchasers of second-hand vehicles

Section 18, penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

17—Insertion of Part 3 Division 1 Subdivision 3

Part 3 Division 1—after section 18 insert:

Subdivision 3—Cooling-off

18A—Interpretation

In this Subdivision—

approved form means a form approved by the Commissioner.

18B—Cooling-off

(1) This section applies to a contract entered into by a dealer after the commencement of this section for the sale of a second-hand vehicle to a natural person, other than a contract for the sale of a vehicle of a prescribed class or the sale of a vehicle in prescribed circumstances.

(2) Subject to this section, a purchaser under a contract to which this section applies may, by giving the dealer written notice before the expiration of the cooling-off period of the purchaser's intention not to be bound by the contract, rescind the contract.

(3) The notice may be given—

(a) by giving it to the dealer personally; or

(b) by posting it by registered post to the dealer's address for service (in which case the notice is taken to have been given when the notice is posted); or

(c) by leaving it for the dealer at the dealer's address for service with a person apparently responsible to the dealer; or

(d) by transmitting it by fax or email to a fax number or email address provided by the dealer (in which case the notice is taken to have been given at the time of transmission).

(4) If in legal proceedings the question arises whether a notice has been given in accordance with this section, the burden of proving the giving of the notice lies on the purchaser.

(5) A dealer, or a person acting on behalf of a dealer, may not demand or require the purchaser of a second-hand vehicle under a contract to which this section applies to make a payment in respect of the sale before the expiration of the cooling-off period, other than payment of a deposit towards the contract price of the vehicle that does not exceed 2% of that price or $100, whichever is the lesser.

Maximum penalty: $5 000.

(6) If a contract is rescinded under this section, the purchaser is entitled to the return of money paid under the contract, but the dealer may retain money paid by the purchaser by way of deposit.

(7) In proceedings for an offence against subsection (5), if it is proved that the defendant received money from the purchaser, it will be presumed, in the absence of proof to the contrary, that the defendant demanded or required the payment of that money.

(8) If the purchaser of a second-hand vehicle under a contract to which this section applies enters into a contract for the provision of credit (a credit contract) in connection with the purchase, the following provisions apply:

(a) if the contract for the purchase of the vehicle is rescinded under this section—the credit contract is void and any associated mortgage or other security taken by the credit provider is discharged;

(b) if the contract for the purchase of the vehicle is not rescinded—the credit contract does not take effect until—

(i) the purchaser waives his or her right to a cooling-off period in relation to the contract for the purchase of the vehicle in accordance with section 33; or

(ii) if the right to a cooling-off period is not waived— the expiration of the cooling-off period.

18C—Legal title to vehicle remains with dealer during cooling-off period

Subject to an agreement in the approved form between a dealer and a purchaser under a contract for the sale of a second-hand vehicle to which section 18B applies, the following provisions apply in respect of the contract:

(a) legal title to the vehicle does not pass from the dealer to the purchaser until the expiration of the cooling-off period in relation to the contract;

(b) the dealer is entitled to retain possession of the vehicle during the cooling-off period;

(c) the dealer must allow the purchaser, or a person nominated by the purchaser, reasonable access to the vehicle during the cooling-off period for the purpose of test driving or inspecting the vehicle;

(d) neither the dealer nor the purchaser, nor a person acting on behalf of the dealer or the purchaser, may drive the vehicle more than 100 kilometres during the cooling-off period;

(e) the dealer must ensure during the cooling-off period that the vehicle—

(i) is roadworthy; and

(ii) is insured against loss or damage; and

(iii) is registered, or bears trade plates, and is insured in accordance with the requirements of the Motor Vehicles Act 1959.

18D—Trade-in vehicles

(1) If in connection with a contract to which section 18B applies, legal title to a vehicle owned by the purchaser is to pass to the dealer by way of trade-in (the trade-in vehicle), the following provisions apply:

(a) the purchaser is to retain possession of the trade-in vehicle during the cooling-off period;

(b) details of the condition of the trade-in vehicle at the commencement of the cooling-off period must be recorded in the approved form, which must be signed by the dealer and the purchaser;

(c) legal title to the trade-in vehicle does not pass to the dealer until the expiration of the cooling-off period.

(2) If during the cooling-off period the trade-in vehicle is damaged—

(a) the dealer may, by written notice in the approved form given personally to the purchaser, rescind the contract to which section 18B applies and any contract made in connection with that contract; and

(b) if the contract to which section 18B applies is so rescinded—any contract entered into by the purchaser for the provision of credit in connection with that contract is void and any associated mortgage or other security taken by the credit provider is discharged.

18E—Option to purchase vehicle subject to contract for sale

(1) A dealer must not, during the cooling-off period in relation to a contract for the sale of a second-hand vehicle—

(a) sell or offer for sale the vehicle or an interest in the vehicle other than an option to purchase the vehicle if the contract for the sale of the vehicle is rescinded; or

(b) offer for sale more than 1 option to purchase the vehicle.

Maximum penalty: $20 000.

(2) A dealer proposing to grant an option to a person to purchase a second-hand vehicle during the cooling-off period in relation to a contract for the sale of the vehicle—

(a) may require the person to pay a deposit towards the proposed contract price of the vehicle that does not exceed 2% of that price or $100, whichever is the lesser; and

(b) must provide the person with a notice in the approved form—

(i) advising that the vehicle is subject to a contract for sale and the person will only be entitled to purchase the vehicle if the contract is rescinded; and

(ii) containing other prescribed information.

Maximum penalty: $5 000.

(3) The holder of an option to purchase a second-hand vehicle subject to a contract for sale is entitled to a refund of any deposit paid in order to secure the option if, and only if, the contract for sale is not rescinded.

18—Amendment of section 20—Notices to be displayed in case of auction

(1) Section 20(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

(2) Section 20(3), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

(3) Section 20(5), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

(4) Section 20(6), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $2 500.

19—Amendment of section 21—Notices to be provided to purchasers of second-hand vehicles

Section 21, penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

20—Amendment of section 22—Trade auctions

(1) Section 22(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

(2) Section 22(2), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

21—Amendment of section 26—Interpretation

Section 26—after the definition of director insert:

salesperson includes a former salesperson.

22—Amendment of section 27—Cause for disciplinary action

Section 27—after subsection (1) insert:

(1a) There is proper cause for disciplinary action against a salesperson if the salesperson has acted unlawfully, improperly, negligently or unfairly in the course of acting as a salesperson.

23—Amendment of section 31—Disciplinary action

Section 31(1)(b)—delete "$20 000" and substitute:

$100 000

24—Amendment of section 32—Contravention of orders

(1) Section 32(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $175 000 or imprisonment for 1 year.

(2) Section 32(2), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $175 000 or imprisonment for 1 year.

25—Amendment of section 33—No waiver of rights

(1) Section 33(3), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $20 000

(2) Section 33(4), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $20 000

(3) Section 33(5), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $20 000

(4) Section 33—after subsection (5) insert:

(5a) A dealer must not induce or attempt to induce, or make a representation or negotiate with a view to inducing, a prospective purchaser of a second-hand vehicle to waive his or her right under section 18B to rescind a contract for the sale of the vehicle.

Maximum penalty: $20 000.

(5b) If a dealer is found guilty of an offence against subsection (5a), a person who has suffered loss or damage as a result of the offence may apply to the Magistrates Court for an order that the dealer compensate the person for the loss or damage.

(5c) The regulations may require a person or body prescribed by the regulations to report to the Minister, in accordance with requirements specified in the regulations, on the extent to which rights in general, or particular rights, conferred by this Act have been waived under subsection (2).

26—Amendment of section 34—Interference with odometers prohibited

Section 34(1), penalty provision—delete the penalty provision and substitute:

Maximum penalty: $10 000.

27—Amendment of section 41—False or misleading information

Section 41, penalty provision—delete the penalty provision and substitute:

Maximum penalty:

(a) if the person made the statement knowing that it was false or misleading—$25 000;

(b) in any other case—$5 000.

28—Amendment of section 42—Name in which dealer may carry on business

Section 42, penalty provision—delete the penalty provision and substitute:

Maximum penalty: $5 000.

Expiation fee: $315.

29—Amendment of section 50—Evidence

Section 50(1)—delete subsection (1) and substitute:

(1) For the purposes of this Act—

(a) if a person buys or offers to buy, or sells or offers for sale, at least 4 second-hand vehicles during a period of 12 months, the person will, in the absence of proof to the contrary, be presumed to have been a dealer during that period; and

(b) if a person and 1 other person who is a close associate of the person buy or offer to buy, or sell or offer for sale, an aggregate of at least 6 second-hand vehicles during a period of 12 months, the person and that close associate will, in the absence of proof to the contrary, both be presumed to have been dealers during that period; and

(c) if the registration of a second-hand vehicle is transferred from 1 person to another—

(i) the transferor will be presumed, in the absence of proof to the contrary, to have sold the vehicle to the transferee; and

(ii) the transferee will be presumed, in the absence of proof to the contrary, to have bought the vehicle from the transferor.

30—Amendment of section 53—Regulations

(1) Section 53(2)(a)—after "licensed dealers" insert:

or salespersons

(2) Section 53(2)(f)—delete "$2 500" and substitute:

$5 000

(3) Section 53(2)(g)—delete "$210" and substitute:

$315

31—Amendment of Schedule 3—Second-Hand Vehicles Compensation Fund

(1) Schedule 3, clause 2(1)—delete "subclause (2), if the Magistrates Court" and substitute:

this Schedule, if the Commissioner

(2) Schedule 3, clause 2(1)(d)—delete "person" and substitute:

claimant

(3) Schedule 3, clause 2(1)(e)—delete "person" and substitute:

claimant

(4) Schedule 3, clause 2(1)—delete "Court may authorise payment of compensation to that person" and substitute:

Commissioner may authorise payment of compensation to the claimant

(5) Schedule 3, clause 2(2)—delete "This clause" and substitute:

This Schedule

(6) Schedule 3, clause 2(2)(b)—delete "person making the claim" and substitute:

claimant

(7) Schedule 3, clause 2—after subclause (2) insert:

(3) A claim for compensation under this Schedule must be made to the Commissioner in a manner and form determined by the Commissioner.

(4) The personal representative of a claimant (including a deceased claimant) is entitled to make the claim on behalf of the claimant or the claimant's estate.

(5) The Commissioner may require a person making a claim—

(a) to furnish further information specified by the Commissioner; or

(b) to verify, by statutory declaration, information furnished for the purposes of making or establishing a claim.

(6) The Commissioner must, on receipt of a claim for compensation—

(a) give the claimant and the dealer concerned written notice of the claim; and

(b) allow the claimant and the dealer a reasonable opportunity to appear before the Commissioner personally or by representative to make submissions as to the claim.

(7) The Commissioner must, on making a determination on a claim, give the claimant and the dealer written notice of the determination.

(8) Schedule 3—after clause 2 insert:

2A—Appeal against Commissioner's determination

(1) The claimant or the dealer may, within 3 months after receiving notice of the Commissioner's determination, appeal to the District Court against the determination.

(2) If an appeal is not instituted within the time allowed, the claimant's entitlement to compensation is finally determined for the purposes of this Schedule.

2B—Determination, evidence and burden of proof

(1) In determining a claim for compensation under this Schedule, any possible reduction to which the claimant's entitlement may be subject because of insufficiency of the Fund must be disregarded.

(2) Any fact to be proved by a claimant under this Schedule is sufficiently proved if it is proved on the balance of probabilities.

(9) Schedule 3, clause 3(2)—delete subclause (2) and substitute:

(2) The following amounts will be paid out of the Fund:

(a) an amount authorised under this Schedule;

(b) expenses incurred in administering the Fund (including expenses incurred in insuring the Fund against possible claims);

(c) the costs of investigating compliance with this Act or possible misconduct of dealers or salespersons;

(d) the costs of conciliating disputes under section 24;

(e) the costs of disciplinary proceedings under Part 5;

(f) the costs of prosecutions for offences against this Act;

(g) any amounts, approved by the Minister, to be paid towards the cost of prescribed educational programs conducted for the benefit of dealers, salespersons or members of the public;

(h) any amount required to be paid into the Consolidated Account under subclause (4).

(10) Schedule 3, clause 5(1)—delete "by the Magistrates Court" and substitute:

under this Schedule

Schedule 1—Related amendment

Part 1—Amendment of Magistrates Court Act 1991

1—Amendment of section 3—Interpretation

Section 3(1), definition of minor statutory proceeding, (b)—after "Part 4" insert:

or section 33

 


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