Version No. 024
Motor Car Traders Regulations 1998
S.R. No. 56/1998
Version incorporating amendments as at 2 October 2007
table of provisions
RegulationPage
1
RegulationPage
Part 1—Preliminary
1Objectives
2Authorising provision
3Commencement
4Revocation
5Definitions
6Exemptions
Part 2—Forms
7Particulars for application for licence
8Revoked
9Dealings book
10Abandonment of right to cool off
11Forms of notice to be displayed on used vehicles
12Form of notice of absence of warranty
13Form of defect notice
14Claims against Fund
15, 16Revoked
17Prescribed sign
Part 3—Fees
18Fees
19Fees for witnesses
Part 4—Conduct by Motor Car Traders
20Prescribed changes in relation to licensee
21Trader to supervise servants and agents
22Advertisements
23Amount of dealer charges to be shown
24Deposit given before tests to be returned
Part 5—Contracts and Warranties
25Prescribed conditions
26Terms relating to certain matters to be in sale agreement
27Warranties
Part 6—Miscellaneous
28Maximum payment on a claim
28AStatement verifying document to inspector
29Retention of records
30Copies of agreements etc.
31Revoked
32Infringement notices
33Inspectors' powers forms
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SCHEDULES
SCHEDULE 1—Forms
Forms 1–4—Revoked
Form 5—Dealings Book
Form 5A—Verified Statement
Form 6—Loss of Right to Cool-off
Form 7(a)—With Statutory Warranty
Form 7(b)—Not Covered by Statutory Warranty
Form 7(c)—Not Covered by Statutory Warranty
Form 8—Statement of Defects Pursuant to Section 55 of the
Motor Car Traders Act 1986 in a Used Motor Car
Offered for Sale
Form 9—Application for Claim against the Motor Car Traders' Guarantee Fund
Forms 10, 11—Revoked36
Form 12—Prescribed Sign
Form 13—Revoked
Form 14—Embargo Notice
SCHEDULE 2—Fees
SCHEDULE 3—Particulars, Terms and Conditions for Sale of Used Motor Car
SCHEDULE 4—Particulars for Sale of New Motor Car
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Endnotes
1. General Information
2. Table of Amendments
3. Explanatory Details
1
Version No. 024
Motor Car Traders Regulations 1998
S.R. No. 56/1998
Version incorporating amendments as at 2 October 2007
1
Motor Car Traders Regulations 1998
S.R. No. 56/1998
Part 1—Preliminary
1Objectives
The objectives of these Regulations are to prescribe exemptions, forms, fees, prohibited conduct, contracts, matters relating to warranties and other matters under the Motor Car Traders Act 1986.
2Authorising provision
These Regulations are made under section 90 of the Motor Car Traders Act 1986.
3Commencement
(1)These Regulations other than regulation 22(4) come into operation on the day on which section13 of the Motor Car Traders (Amendment) Act 1996 comes into operation.
(2)Regulation 22(4) comes into operation on 1 July 1998.
4Revocation
The Motor Car Traders Regulations 1987[1] are revoked.
5Definitions
(1)In these Regulations—
corporate licence means a licence held by a body corporate;
motor cycle has the same meaning as in the Road Safety Act 1986;
partnership licence means a licence held by a partnership;
publish means to make generally known by any means, including print, television, radio, cable television, film and the Internet;
Reg. 5(1)
def. of relevant financial interest inserted by S.R. No. 114/1998 reg.4.
relevant financial interest, in relation to a business, means—
(a)any share in the capital of the business; or
(b)any entitlement to receive any income derived from the business; or
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(c)any entitlement to receive any payment as a result of money advanced to the business;
Reg. 5(1)
def. of relevant position inserted by S.R. No. 114/1998 reg.4.
relevant position, in relation to a business, means the position of director, manager or other executive position or secretary, however that position is designated;
Reg. 5(1)
def. of relevant power inserted by S.R. No. 114/1998 reg.4.
relevant power, in relation to a business, means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—
(a)to participate in any directorial, managerial or executive decision in the business; or
(b)to elect or appoint any person to any relevant position in the business;
sole trader's licence means a licence held by one natural person;
the Act means the Motor Car Traders Act 1986.
(2)A reference in these Regulations to a form is a reference to a form in Schedule 1.
(3)A reference in these Regulations to a section is a reference to a section of the Act.
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Reg. 6 amendedby S.R. No. 106/2007 reg.3 (ILA s.39B(2)).
6Exemptions
(1)The following classes of sales are exempt from the operation of the Act—
(a)the sale at a public auction of a motor car owned or used by a council within the meaning of the Local Government Act 1989;
(b)the sale at a public auction of a motor car owned by the executor or administrator of the estate of a deceased person;
(c)the sale at a public auction of a motor car—
(i)that at the time of the auction is damaged, if the reasonable cost to repair the damage would be more than $3000 or exceed the value of the motor car; and
(ii)that is owned by a person who carries on the business of insuring motor cars if the motor car is sold in the course of that business.
Reg. 6(2) insertedby S.R. No. 106/2007 reg.3.
(2)James Equipment Pty Ltd ACN 120 745 851 is exempt from theoperation of the Act.
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Part 2—Forms
Reg. 7 substitutedby S.R. No. 125/2003 reg.5.
7Particulars for application for licence
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For the purposes of section 8(5)(g) of the Act, the prescribed matters are—
(a)the telephone numbers of any premises from which a motor car trading business is to be conducted; and
(b)if the applicant is a corporation, the date of appointment of each director; and
(c)if the applicant is a partnership, the date each member of the partnership became a partner.
Reg. 8 revokedby S.R. No. 125/2003 reg.6.
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9Dealings book
(1)For the purposes of section 35(1), the prescribed form of the dealings book is Form 5.
(2)For the purposes of section 35(2)(a)—
(a)the prescribed matters required to be entered in the dealings book at the time of purchase or acquisition by way of exchange of a used motor car or at the time of receiving a used motor car into custody or possession for the purpose of sale or exchange are set out in Form 5 under the heading "ACQUISITION DETAILS";
(b)the prescribed matters required to be entered in the dealings book at the time of sale or disposal by way of exchange of a used motor car are set out in Form 5 under the heading "DISPOSAL DETAILS".
Reg. 9(3) substitutedby S.R. No. 148/2006 reg.4(1).
(3)For the purposes of section 35(8)(a)—
(a)a paper document identifies, in relation to the motor car specified in that document, the name and address of the person from whom the motor car is acquired—
(i)ifthe motor car is acquired from a natural person, if it contains the full name and residential address of that person;
(ii)if the motor car is acquired from a business, if it contains the name, address of the principal place of business and the Australian Business Number of that business;or
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(b)if a used motor car is acquired at auction, a paper document identifies,in relation to the motor car specified in that document, the name and address of the auctioneer if it contains the name, address of the principal place of business and the Australian Business Number of the auction business.
Reg. 9(4) substitutedby S.R. No. 148/2006 reg.4(2).
(4)For the purposes of subregulation (3), a motor car is specified in a paper document if it records—
(a)the registration number of the motor car; or
(b)the trader's stock number; or
(c)the vehicle identification number or engine number of the motor car.
Reg. 9(5) insertedby S.R. No. 148/2006 reg.4(2).
(5)For the purposes of section 35(8)(b), the dealings book identifies a paper document in relation to a transaction in the prescribed manner if—
(a)the paper document records—
(i)the registration number of the motor car; or
(ii)the trader's stock number; or
(iii)the vehicle identification number or engine number of the motor car; and
(b)that number is recorded in the dealings book.
Reg. 9(6) insertedby S.R. No. 148/2006 reg.4(2).
(6)For the purposes of sections 35(8)(a) and 35(9)(b), a paper document is signed as prescribed—
(a)if the motor car is acquired from a natural person, if it is signed by that person;
(b)if the motor car is acquired from a business, if it is signed by a person authorised to sign on behalf of that business;
(c)if the motor car is acquired at auction, if it is signed by a person authorised to sign on behalf of the auction business.
Reg. 9(7) insertedby S.R. No. 148/2006 reg.4(2).
(7)In this regulation auction business, in relation to a used motor car, means the business selling, or offering to sell, the motor car by auction in the course of its business.
10Abandonment of right to cool off
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(1)For the purposes of section 43(2), the form acknowledging that the right to terminate an agreement no longer applies is Form 6.
(2)Form 6 must be printed or typed in black letters against a white background in at least 12 point type and must contain the statements "LOSS OF RIGHT TO COOL OFF" and "I WILL LOSE MY RIGHT TO CANCEL THE SALE AGREEMENT" printed or typed in red in point type at least three times larger than the point type otherwise appearing in the document.
(3)Form 6 must not be attached to, or incorporated with, any other document.
Reg. 10(4) amended by S.R. No. 114/1998 reg.5.
(4)Despite subregulation (2), the details to be entered in Form 6 regarding the make, model, registration, engine or other identifying number of the vehicle, the identity of the selling trader and the date that the purchaser signed the form, need not be printed or typed provided that they are clearly legible.
11Forms of notice to be displayed on used vehicles
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(1)For the purposes of section52(1) and section52(2)(g), the notice to be attached to a used motor car (other than a motor cycle) which is offered or displayed for sale must be in the form of and contain the particulars set out in—
(a)Form 7(a), if the motor car is subject to the statutory warranty under section 54; or
(b)Form 7(b), if the motor car is not subject to the statutory warranty under section 54.
(2)For the purposes of section 52(1) and section 52(2)(g), the notice to be attached to a used motor car that is a motor cycle which is offered or displayed for sale must be in the form of and contain the particulars set out in Form 7(c).
(3)A notice under subregulation (1) or (2)—
Reg. 11(3)(a) amended by S.R. No. 114/1998 reg.6.
(a)must be printed or typed in black against a white background clearly and legibly and in point type no smaller than 7 point type; and
(b)must not be attached to, or incorporated with, any other document.
(4)Form 7(a) must—
(a)contain the statement "WITH STATUTORY WARRANTY" printed or typed in red in point type at least twice the size of the point type otherwise appearing in the document, apart from the statement referred to in paragraph (b); and
(b)contain the statement "under section 54 of the Motor Car Traders Act 1986" printed or typed in point type at least one and a half times the size of the point type otherwise appearing in the document apart from the statement referred to in paragraph (a).
(5)Forms 7(b) and 7(c) must contain the statements—
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(a)"NOT COVERED", where first occurring, printed or typed in red in point type at least twice the size of the point type otherwise appearing in the document, apart from the statements referred to in paragraph (b); and
(b)"BY STATUTORY WARRANTY" and "under section 54 of the Motor Car Traders Act 1986" printed or typed in red in point type at least one and a half times the point type otherwise appearing in the document, apart from the statement referred to in paragraph (a).
(6)The final section of text in Forms 7(a), 7(b) and7(c) titled "IMPORTANT INFORMATION" may be printed or typed on the rear of the notice, and if this is done, the words "IMPORTANT INFORMATION OVERLEAF" must appear on the front of the notice.
(7)Despite subregulation 3(a), the details to be entered in items A to H in Forms 7(a) and 7(b) and items A to I in Form 7(c) and the trader's licence number, need not be printed or typed provided that they are clearly legible.
12Form of notice of absence of warranty
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(1)For the purposes of section 54(2C), the form of the notice to be attached to a motor car other than a motor cycle is Form 7(b).
(2)For the purposes of section 54(2C), the form of the notice to be attached to a motor cycle is Form7(c).
13Form of defect notice
For the purposes of section 55, the form of a notice relating to a defect in a used motor car is Form 8.
Reg. 14 substitutedby S.R. No. 125/2003 reg.7.
14Claims against Fund
The form required by these Regulations for the purposes of section 76(3) is Form 9.
Reg. 15 revokedby S.R. No. 125/2003 reg.8.
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Reg. 16 revokedby S.R. No. 125/2003 reg.9.
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17Prescribed sign
A notice under section 34 must be in the form of and contain the particulars set out in Form 12.
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Part 3—Fees
18Fees
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For the purposes of the Act, the fees are those set out in Schedule 2.
19Fees for witnesses
A person summoned to appear before the Committee or the Authority under section 68(4) or section 104(5) is entitled to the expenses set for witnesses under Appendix A of the County Court Rules of Procedure in Civil Proceedings 1989.
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Part 4—Conduct by Motor Car Traders
20Prescribed changes in relation to licensee
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For the purposes of section 20, it is a prescribed change if—
(a)a licensee ceases to carry on business as a motor car trader under a name authorised under a licence;
Reg. 20(b) substitutedby S.R. No. 125/2003 reg.10.
(b)a licensee commences carrying on business as a motor car trader under a name or names in addition to or in substitution for the name of the licensee;
Reg. 20(c) insertedby S.R. No. 125/2003 reg.10.
(c)a licensee changes the business address or telephone number of any premises from which a motor car trading business is conducted;
Reg. 20(d) insertedby S.R. No. 125/2003 reg.10.
(d)a licensee changes the address of any Internet site maintained by the licensee for the purpose of the motor car trading business.
21Trader to supervise servants and agents
A motor car trader must supervise and control each servant and agent of the trader, so as to ensure that the provisions of the Act and these Regulations are complied with.
Penalty:10 penalty units.
22Advertisements
Reg. 22(1) amended by S.R. No. 114/1998
reg. 7(1).
(1)A motor car trader, or a servant or agent of the trader, who publishes or causes to be published an advertisement or statement in relation to the trader's business of trading in motor cars must include in the advertisement or statement the letters "LMCT" followed by the licence number of the motor car trader and where the advertisement or statement is presented in visual form, the letters "LMCT" and the licence number must be printed or typed clearly and legibly and, except where comprised within a business logo of the trader appearing in the advertisement or statement, in point type no smaller than the smallest point type otherwise appearing in the advertisement or statement or 5point type, whichever is the larger.
Penalty:10 penalty units.
(2)Where a motor car trader, or a servant or agent of the trader, publishes or causes to be published an advertisement offering a used motor car for sale, the person must include in the advertisement—
(a)the cash price of the motor car; and
(b)whichever of the following is applicable—
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(i)if the motor car is registered, the registration number; or
Reg. 22(2) (b)(ii) substituted by S.R. No. 114/1998
reg. 7(2).
(ii)if the motor car is unregistered—
(A)the engine number of the vehicle; or
(B)the chassis number of the vehicle; or
(C)the vehicle identification number; or
(D)the registration number (if any) last assigned to the vehicle; or
(E)if none of those numbers are reasonably ascertainable, any other number by which the vehicle may be identified.
Penalty:10 penalty units.
(3)Subregulation (2)(b) does not apply if the motor car trader, servant or agent publishes or causes to be published an advertisement on television, movie film or radio offering for sale a batch of six or more used motor cars of the same model.
(4)If a person (other than a motor car trader or a servant or an agent of a motor car trader) publishes or causes to be published an advertisement offering a used motor car for sale in a newspaper generally circulating in the whole or any part of Victoria or in a motor car specialist magazine generally circulating in the whole of Victoria, the person must include in the advertisement—
(a)the cash price of the motor car; and
(b)whichever of the following is applicable—
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(i)if the motor car is registered, the registration number; or
Reg. 22(4) (b)(ii) substituted by S.R. No. 114/1998
reg. 7(2).
(ii)if the motor car is unregistered—
(A)the engine number of the vehicle; or
(B)the chassis number of the vehicle; or
(C)the vehicle identification number; or
(D)the registration number (if any) last assigned to the vehicle; or
(E)if none of those numbers are reasonably ascertainable, any other number by which the vehicle may be identified.
Penalty:10 penalty units.
Reg. 22(5) inserted by S.R. No. 114/1998
reg. 7(3).
(5)Subregulations (2)(a) and (4)(a) do not apply in relation to a used motor car being advertised for sale by auction.
Reg. 22(6) inserted by S.R. No. 114/1998
reg. 7(3).
(6)Subregulations (2)(b) and (4)(b) do not apply in relation to a used motor car being advertised for sale by auction if the details required by those paragraphs are provided in writing on request to persons attending the auction.
Reg. 22(7) inserted by S.R. No. 114/1998
reg. 7(3).
(7)A used motor car is not to be regarded as being advertised for sale by auction for the purposes of subregulation (5) or (6) if—
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(a)the motor car is owned by the auction business or by an associated business; or
(b)the motor car is available for purchase before the auction.
Reg. 22(8) inserted by S.R. No. 114/1998
reg. 7(3).
(8)For the purposes of subregulation (7)(a) businesses are associated if—
(a)they are carried on by the same person; or
(b)one business is carried on by a person and the other business is carried on by a person who is—
(i)a spouse or defacto partner of that person; or
(ii)a business partner of that person; or
(iii)directly receiving any income derived from the business carried on by the other; or
(c)one business is carried on by a body corporate and the other business is carried on by a person who—
(i)is a director or secretary of the body corporate or a spouse or defacto partner of such a director or secretary; or
(ii)holds or will hold any relevant financial interest, or is or will be entitled to exercise any relevant power (whether in his or her own right or on behalf of any other person), in the business of the body corporate and thereby is able or will be able to exercise a significant influence over or with respect to the management or operation of that business; or
(iii)holds or will hold any relevant position (whether in his or her own right or on behalf of any other person) in the business of the body corporate; or
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Reg.22(8)
(c)(iv) amendedby S.R. No. 62/2001 reg.4(Sch. item 11).
(iv)is a related body corporate within the meaning of section 9 of the Corporations Act or a director or secretary, or a spouse or defacto partner of a director or secretary, of a related body corporate.
Reg. 22(9) inserted by S.R. No. 114/1998
reg. 7(3).
(9)In this regulation—
auction means—
(a)public auction; or
(b)an auction at which only licensed motor car traders or persons acting on their behalf may bid;
auction business, in relation to a used motor car, means the business selling, or offering to sell, the motor car by auction in the course of its business.