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The term “as-is” is often inserted into a bill
of sale to protect an automotive business
selling a used vehicle against claims made
respecting the condition of the vehicle. A
person buying a vehicle in an “as-is” condition
is led to believe they are waiving any claims
they may have in the event the vehicle being
purchased is defective. The use of
such a provision does not relieve an automotive
business from its obligations to consumers
under the Fair Trading Act. An
automotive business must at all times take care
to ensure that it does not commit an unfair
practice in the course of selling a used
vehicle, whether in an “as-is” condition or
not.
Potentially Unfair Practices
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An automotive business sells a vehicle,
which it knows does not comply with the
requirements of the Vehicle Equipment
Regulation but
fails to disclose its knowledge of the
condition of the vehicle to the purchaser.
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An automotive business
sells a vehicle, which it knows or ought to
know, is unsafe for driving to a person
knowing the person has purchased the vehicle
for transportation purposes.
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An automotive business
sells a vehicle, which it knows, or ought to
know has a substantial defect to a person
knowing the person has purchased the vehicle
for transportation purposes.
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An automotive business
sells a vehicle, which it knows, or ought to
know cannot be registered for use in Alberta
to a person knowing the person has purchased
the vehicle for transportation purpose.
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An automotive business
sells a vehicle, which it knows, or ought to
know has had its odometer altered.
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An automotive business
seriously misrepresents the condition of the
vehicle during the course of selling the
vehicle. |
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Preferred Practices
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An automotive business should not sell a
vehicle, which it knows does not comply
with the requirements of the Vehicle
Equipment Regulation unless it fully
discloses its knowledge of the condition of
the vehicle to the purchaser. The price
charged for the vehicle must be reasonable
given to condition of the vehicle.
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Section 15(1) of the Motor Vehicle
Inspection Regulation states that
a dealer in used motor vehicles
shall, before entering into a contract to sell a used motor vehicle,
give to the buyer a used motor vehicle certificate of mechanical
fitness that contains the following:
(a) a statement identifying the type
of motor vehicle as a truck, motor
cycle, bus, van, light truck, automobile or other type of motor
vehicle;
(b) a statement showing the make,
model, year, vehicle identification
number, odometer reading in kilometres
or miles, licence plate number and
province of registration of the vehicle;
(c) the name and address of the dealer
selling the vehicle and the name of
the person who issued the certificate;
(d) a statement that the certificate expires 14 days after the
date on which it was issued;
(e) a statement certifying that at the time of sale the motor
vehicle
(i) complies with the Vehicle Equipment Regulation (AR 322/2002),
or
(ii) does not comply with the Vehicle Equipment Regulation (AR
322/2002) and containing a description
of the items of equipment that are missing or do not comply with
the Vehicle Equipment Regulation (AR 322/2002);the signature of
the person who issued the certificate; the date the certificate
was issued.
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Section 15(2) of the Motor Vehicle
Inspection Regulation states that a
dealer in used vehicles Subsection
(1) does not apply to a used motor vehicle sold by a dealer
(a) to another dealer, or
(b) to a person or partnership engaged in the business of repairing, dismantling
or wrecking motor vehicles. |
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Call AMVIC’s Investigations & Enforcement Team
@ 1-877-979-8100
or in Edmonton 466-1140, if
you have any questions about this tip sheet.
For more information on the term “as-is” and
the obligations of an automotive business under
the Fair Trading Act, please seek
independent legal advice. |