Version No. 080
Motor Car Traders Act 1986
No. 104 of 1986
Version incorporating amendments as at
1 March 2016
table of provisions
Section Page
vi
Section Page
Part 1—Preliminary 1
1 Purpose 1
2 Commencement 1
3 Definitions 1
4 Nature of transactions 13
Part 2—Licences 15
Division 1—Trading in motor cars 15
7 Motor car traders to be licensed 15
7A Deemed trading in motor cars 15
Division 2—Issue of licences 16
8 Application for licence 16
9 Refund of fee if application withdrawn 18
10 Notice of changes to details in application 18
11 Notice of application 19
11A Consent to disclosure of information 19
12 Consideration of application 20
12A Provision of information for the purposes of this Act 20
13 Grant or refusal of licence 21
13A Meaning of associate in section 13 29
14 Conditions of licence 31
15 Endorsement of licence 31
15A 2 year ban on applying for licence after refusal of application 32
16 Authority to sell motor cars at public auction 32
17 Name under which licensed motor car trader may operate 33
18 Form of licence 34
19 Change in partnership 35
19A Change in directors of bodies corporate 36
20 Licensee to give notice of certain changes 36
21 Licences to be returned 37
22 Register to be kept 38
23 Annual licence fee and statement 40
24 Extension of time 41
24A Failure to comply with section 23 41
25 Display of licence 42
26 Duplicate licence 42
27 Surrender of licence 42
28 Automatic cancellation of licence on bankruptcy etc. 43
29 Automatic suspension of licence if Fund claim upheld 44
29A Person involved in Guarantee Fund claim may regain licence etc. in special circumstances 46
29B Person with criminal record may be allowed limited right to hold licence etc. 49
29C Permission to continue to hold licence despite criminal act of partner or director 50
29D Authority may impose conditions 51
Division 3—Disciplinary action 51
30 Disciplinary action 51
30A Authority may temporarily suspend insolvent etc. trader without hearing 53
31 Determination of disciplinary measures by Tribunal 54
31A Effect of suspension 56
31B Suspended and cancelled licences must be returned 57
Division 4—Miscellaneous 57
32 Application for review 57
33 Disability etc. of licensee 58
34 Prescribed sign 59
Part 3—Conduct of business 60
35 Dealings book 60
35A Prohibited employees 62
35B Transitional provision concerning existing employees 65
36 Consignment selling prohibited 65
37 Dealing with young persons 66
38 Odometer tampering 66
39 Other orders 67
40 Findings in proceedings to be evidence 67
41 Agreements for sale of used motor car 68
42 Agreement for sale of new motor car 68
42A All registered cars must be sold with a roadworthy certificate 69
43 Cooling-off period 70
43A Credit Law excluded matter 73
44 Offence 74
45 Rescission 74
47 Powers of Magistrates' Court and Tribunal 75
48 Cancellation of security interest by motor car trader 78
49 Notification of Director by credit provider 78
50 Proceeds of sale or disposal to be held on trust 79
50A Offence to aid or abet an unlicensed trader 80
50B Right to sue providers of motor cars to unlicensed traders 82
Part 3A—Sale of motor cars by auction 83
50C Definitions 83
50D Dummy bidding prohibited 83
50E Offences by auctioneers relating to bidding 84
50F Offence to procure dummy bid 84
50G Permissible vendor bids 84
50H Offence to falsely acknowledge bid 85
50I Contrary conditions are void 85
50J Auctioneer to keep records 85
Part 4—Sale of used motor cars 87
51 Definitions 87
52 Particulars to be displayed 87
54 Obligations of motor car trader 90
55 Excluded defects 93
56 Special conditions to be void 94
Part 5—Motor Car Traders Claims Committee and Guarantee Fund 95
Division 1—Motor Car Traders Claims Committee 95
57 Motor Car Traders Claims Committee 95
58 Terms and conditions of appointment 95
59 Allowances 96
60 Resignation and termination 96
61 Deputy Chairperson 97
62 Secretary to the Committee 98
63 Determination not invalid by reason of vacancy, etc. 98
66 Constitution of Committee 99
67 Determination of questions before the Committee 99
68 Committee may require information from parties to a claim 99
69 Director, police and public authorities to produce information to Committee 100
70 Procedure of Committee 100
71 Reasons for determination 101
72 Secretary may take legal proceedings on behalf of Committee 101
73 Protection for things done under this Part 102
Division 2—The Fund 102
74 Motor Car Traders' Guarantee Fund 102
75 Duties and powers of Treasurer 103
Division 3—Claims 104
76 Determination of claims 104
77 Admittance or refusal of claim 109
77A Committee may postpone its determination 110
78 No further claim in respect of same matter 111
79 Application for review 111
80 Subrogation where claims allowed 112
81 Deferred payment 112
Part 5A—Enforcement provisions 113
Division 1—General 113
82 Production of identity card 113
82A Documents available for inspection 113
82AA Specified persons to produce documents and answer questions 114
82AB Third parties to produce documents and answer questions relating to trader's business 116
82AC Ministers, police, and public authorities to produce information to inspectors 116
82AD Certain other specified persons or bodies to produce information 117
82AE Powers on production of documents 118
82AF Order requiring supply of information and answers to questions 119
82AG Entry or search with consent 119
82AH Entry without consent or warrant 122
82AI Search warrants 124
82AJ Announcement before entry 125
82AK Details of warrant to be given to occupier 126
82AL Seizure of things not mentioned in the warrant 126
82AM Embargo notice 127
82AN Copies of seized documents 128
82AO Retention and return of seized documents or things 128
82AP Magistrates' Court may extend 3 month period 128
82AQ Requirement to assist inspector during entry 129
82AR Refusal or failure to comply with requirement 129
82AS Protection against self-incrimination 130
82AT Offence to give false or misleading information 130
82ATA Powers of court if requirement to produce information not complied with 130
82AU Application of provisions relating to inspections 131
82AV Service of documents 131
82AW Confidentiality 132
82AX Production of information to Authority 133
82AY Rule against self-incrimination does not apply 133
82B Verification of details supplied to the Authority 133
82C Extended time for prosecutions 133
82CA Who may bring proceedings for offences? 134
Division 2—Infringement notices 134
82D Power to serve a notice 134
82E Form of notice 135
82H Further proceedings concerning infringement notices 135
Division 3—Application of Fair Trading Act 1999 136
82I Application of Australian Consumer Law and Fair Trading Act2012 136
Part 6—Miscellaneous 138
83 Failure to disclose 138
83A Retention of documents 138
83B Offence to destroy documents required by the Act 139
83C Motor car traders must supply copies of agreementsetc. 139
83D Complaints concerning motor car trader are privileged 139
84 Offence to place certain advertisements 140
84A False or misleading statements 140
84B Production of records 142
85 Corporations 142
85A Simplified procedure concerning proof that person traded in motor cars 143
86 Service of notices 144
86A Extension of time 145
87 Certificates 145
87A Waiver or refund of fees 145
88 Contracting out prohibited 146
88A Agreement not illegal etc. by reason of offence 146
88B Agreement voidable if section 37, 38, 41 or 42 breached 147
89 Other rights and remedies 148
89A Delegation by Director 148
90 Regulations 148
Part 8—Transitional provisions and consequential amendments 152
120 Subrogation 152
121 Transitional—Motor Car Traders Amendment Act2008 152
122 Further transitional—Motor Car Traders Amendment Act2008 152
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Endnotes 154
1 General information 154
2 Table of Amendments 156
3 Amendments Not in Operation 162
4 Explanatory details 165
vi
Version No. 080
Motor Car Traders Act 1986
No. 104 of 1986
Version incorporating amendments as at
1 March 2016
2
Part 1—Preliminary
Motor Car Traders Act 1986
No. 104 of 1986
The Parliament of Victoria enacts as follows:
Part 1—Preliminary
S. 1 amendedby No. 4/2008 s.4.
1 Purpose
The purpose of this Act is to provide for the regulation of motor car traders and to ensure that licensing is carried out efficiently and equitably and that the rights of those who deal with motor car traders are adequately protected.
2 Commencement
This Act comes into operation on a day or days to be proclaimed.
3 Definitions
(1) In this Act—
S. 3(1) def. of Authority substituted by No. 52/1998 s.140(a).
Authority means the Business Licensing Authority established under the Business Licensing Authority Act 1998;
S. 3(1) def. of Chairperson inserted by No. 6/1989 s.12(a), substituted by Nos 52/1998 s.140(b), 12/2015 s. 11.
Chairperson means the Chairperson of the Committee and includes the Deputy Chairperson when exercising the powers and performing the functions of the Chairperson pursuant to section 61(5);
collateral credit agreement means an agreement—
(a) for the provision of finance for the purposes of the sale of a motor car; and
(b) that is arranged or procured by the vendor, or a motor car trader who acted on behalf of the vendor in the making of the sale;
S. 3(1) def. of commercial vehicle substituted by No. 74/1996 s.3(1)(a).
commercial vehicle means—
(a) in relation to a motor car that was manufactured in, or imported into, Australia on or after 1 July 1988, a car—
(i) that is of a type that is classified as a goods carrying vehicle by the Department of Transport of the Commonwealth (or by any successor of that Department); and
(ii) that has a vehicle category code of MD, ME, NA, NB or NC (or any other code specified by the regulations for the purposes of this definition) stamped on its compliance plate (regardless of whether that code appears by itself or in combination with one or more numbers);
(b) in relation to a motor car that was manufactured in, or imported into, Australia before 1 July 1988, a car constructed or adapted solely or mainly for—
(i) the carriage of goods; or
(ii) the carriage of more than 10passengers; or
(iii) industrial or agricultural use—
and includes a car with a carrying capacity of 1200 kg or more, but does not include a car of a type commonly called a panel van, a station wagon or a utility;
S. 3(1) def. of Committee amended by No. 4/2008 s.5(1).
Committee means the Motor Car Traders Claims Committee established under section 57;
S. 3(1) def. of Consumer Act
inserted by No. 35/2000 s.47(a), amendedby No.21/2012 s.239(Sch.6 item28.1).
Consumer Act has the same meaning as it has in the Australian Consumer Law and Fair Trading Act 2012;
S. 3(1) def. of Credit Tribunal inserted by No. 4/1989 s.8(4)(a), repealed by No. 52/1998 s.140(c).
* * * * *
S. 3(1) def. of Deputy Chairperson inserted by No. 6/1989 s.12(b), repealed by No. 52/1998 s.140(d).
* * * * *
S. 3(1) def. of determination insertedby No. 6/1989 s.12(b).
determination in relation to the Authority or the Committee includes order, direction, decision or declaration;
S. 3(1) def. of director inserted by No. 74/1996 s.3(1)(b), amended by No.44/2001 s.3(Sch. item84.1(a)).
director, in relation to a body corporate, has the same meaning as in section 9 of the Corporations Act;
S. 3(1) def. of Director substituted by Nos 52/1998 s.140(e), 17/1999 s.10(a), amendedby No.21/2012 s.239(Sch.6 item28.2).
Director means the Director within the meaning of the Australian Consumer Law and Fair Trading Act 2012;
S. 3(1) def. of domestic partner inserted by No.27/2001 s.8(Sch. 6 item 3.1), substituted by No. 12/2008 s.73(1)(Sch. 1 item 41.1).
domestic partner of a person means—
(a) a person who is in a registered relationship with the person; or
(b) an adult person to whom the person is not married but with whom the person is in a relationship as a couple where one or each of them provides personal or financial commitment and support of a domestic nature for the material benefit of the other, irrespective of their genders and whether or not they are living under the same roof, but does not include a person who provides domestic support and personal care to the person—
(i) for fee or reward; or
(ii) on behalf of another person or an organisation (including a government or government agency, a body corporate or a charitable or benevolent organisation);
exempt vehicle means a vehicle of a kind for the time being declared by proclamation of the Governor in Council under subsection (2) to be an exempt vehicle for the purposes of this Act;
S. 3(1) def. of externally-administered body corporate inserted by No. 101/1998 s.8(1)(a) (as amended by No. 74/2000 s.3(Sch. 1 item 70)), amended by No.44/2001 s.3(Sch. item84.1(a)).
externally-administered body corporate has the same meaning as in the Corporations Act;
finance lease means a finance lease within the meaning of subsection (4);
S. 3(1) def. of financial institution inserted by No. 17/1999 s.10(b).
financial institution means—
(a) an authorised deposit-taking institution within the meaning of the Banking Act1959 of the Commonwealth; or
(b) a body approved by the Governor in Council by order published in the Government Gazette;
financier means a person whose ordinary business is not that of buying selling or exchanging motor cars, but who carries on that business for one or more of the following purposes—
(a) selling motor cars on instalment terms;
(b) letting or hiring motor cars under hire-purchase agreements;
(c) taking or enforcing securities over motor cars;
(d) letting or hiring motor cars with or without granting any right to purchase them;
(e) disposing of motor cars acquired by the person in connection with any of the purposes referred to in paragraph (a), (b), (c) or (d);
Fund means the Motor Car Traders' Guarantee Fund established under section 74;
hire-purchase agreement in relation to a motor car, includes a letting of the motor car with an option to purchase and an agreement for the purchase of a motor car by instalments (whether the agreement describes the instalments as rent or hire or otherwise), but does not include an agreement under which the property in the motor car passes at the time of the agreement or at any time before delivery of the motor car;