Motor Car Traders Regulations 2008
i
Motor Car Traders Regulations 2008
S.R. No. 144/2008
TABLE OF PROVISIONS
Regulation Page
PART 1—PRELIMINARY 1
1 Objective 1
2 Authorising provision 1
3 Commencement 1
4 Revocation 1
5 Definitions 2
6 Exemptions 4
PART 2—FORMS 6
7 Prescribed sign 6
8 Dealings book 6
9 Declaration of eligibility of potential employees 8
10 Notice and abandonment of right to cool off 8
11 Forms of notice to be displayed on used vehicles 9
12 Form of notice of absence of warranty 11
13 Form of defect notice 11
14 Statement verifying document to inspector 11
15 Inspectors' powers forms 11
PART 3—FEES 12
16 Fees 12
PART 4—CONDUCT BY MOTOR CAR TRADERS 13
17 Prescribed changes in relation to licensee 13
18 Trader to supervise servants and agents 13
19 Advertisements 13
20 Amount of dealer charges to be shown 16
21 Deposit given before tests to be returned 17
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Regulation Page
ii
PART 5—AGREEMENTS AND WARRANTIES 18
22 Prescribed conditions 18
23 Terms relating to certain matters to be in sale agreement 18
24 Warranties 19
PART 6—MISCELLANEOUS 20
25 Maximum payment on a claim 20
26 Retention of records 20
27 Copies of agreements etc. 20
28 Infringement notices 20
__________________
SCHEDULES 21
SCHEDULE 1—Forms 21
Form 1—Prescribed Sign 21
Form 2—Dealings Book 22
Form 3—Notice to Motor Car Trader by Prospective Person
Employed in a Customer Service Capacity 24
Form 4—Cooling-off Rights and Waiving Your Cooling-off Rights 26
Form 5—With Statutory Warranty 28
Form 6—Not Covered by Statutory Warranty 30
Form 7—Not Covered by Statutory Warranty 32
Form 8—Statement of Defects Pursuant to Section 55 of the Motor
Car Traders Act 1986 in a Used Motor Car Offered for
Sale 34
Form 9—Verified Statement 35
Form 10—Embargo Notice 36
SCHEDULE 2—Fees 37
SCHEDULE 3—Particulars, Terms and Conditions for Sale of Used
Motor Car 38
SCHEDULE 4—Particulars for Sale of New Motor Car 43
SCHEDULE 5—Infringement Offences and Penalties 44
═══════════════
ENDNOTES 45
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1
STATUTORY RULES 2008
S.R. No. 144/2008
Motor Car Traders Act 1986
Motor Car Traders Regulations 2008
The Governor in Council makes the following Regulations:
Dated: 25 November 2008
Responsible Minister:
TONY ROBINSON
Minister for Consumer Affairs
RYAN HEATH
Clerk of the Executive Council
PART 1—PRELIMINARY
1 Objective
The objective of these Regulations is to prescribe
exemptions, forms, fees, prohibited conduct,
agreements, matters relating to warranties and
other matters under the Motor Car Traders Act
1986.
2 Authorising provision
These Regulations are made under section 90 of
the Motor Car Traders Act 1986.
3 Commencement
These Regulations come into operation on
1 December 2008.
4 Revocation
The Motor Car Traders Regulations 1998 1 are
revoked.
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5 Definitions
(1) In these Regulations—
motor cycle has the same meaning as in the Road
Safety Act 1986;
publish means to make generally known by any
means, including by means of print,
broadcast or electronic communication;
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
(c) any entitlement to receive any payment
as a result of money advanced to the
business;
relevant position, in relation to a business, means
the position of director, manager or other
executive position or secretary, however that
position is designated;
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;
the Act means the Motor Car Traders Act 1986;
truck has the same meaning as in the Road Safety
Act 1986.
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(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.
(4) For the purposes of these Regulations, 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 domestic 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 domestic
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
the person's own right or on behalf of
any other person), in the business of the
body corporate under which the person
is able or will be able to exercise a
significant influence over or with
respect to the management or operation
of that business; or
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(iii) holds or will hold any relevant position
(whether in the person's own right or on
behalf of any other person) in the
business of the body corporate; or
(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 domestic
partner of a director or secretary, of a
related body corporate.
6 Exemptions
(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
$4000 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.
(2) Sales at public auction of damaged motor cars,
recovered stolen motor cars and trucks are exempt
from the operation of section 50G(1)(b) of the
Act.
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(3) Sales of damaged motor cars, recovered stolen
motor cars and trucks are not exempt for the
purposes of subregulation 2 if the car or truck is
owned by the auction business or by an associated
business.
(4) James Equipment Pty Ltd ACN 120 745 851 is
exempt from the operation of the Act.
__________________
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Part 2—Forms
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PART 2—FORMS
7 Prescribed sign
A notice under section 34 must be in the form of
and contain the particulars set out in Form 1.
8 Dealings book
(1) For the purposes of section 35(1), the prescribed
form of the dealings book is Form 2.
(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 2 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 2 under the heading
"DISPOSAL DETAILS".
(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) if the motor car is acquired from a
natural person, if it contains the full
name and residential address of that
person;
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(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
(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.
(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, engine
number or the chassis number of the motor
car.
(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,
engine number or the chassis number of
the motor car; and
(b) that number is recorded in the dealings book.
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(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.
(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.
9 Declaration of eligibility of potential employees
For the purposes of section 35A(3) the prescribed
form of the notice is Form 3.
10 Notice and abandonment of right to cool off
(1) For the purposes of section 43(1B), the form
advising of the right to terminate an agreement
and acknowledging that the right to terminate an
agreement no longer applies is Form 4.
(2) Form 4 must be printed or typed in black letters
against a white background in at least 12 point
type and must contain the statements
"SUMMARY", "YOUR RIGHT TO COOL
OFF", "DETAILS OF CAR", "PENALTY IF
YOU ELECT TO COOL-OFF ON THIS CAR
PURCHASE" and "WAIVING YOUR
COOLING-OFF RIGHTS" printed or typed in red
in point type at least three times larger than the
point type otherwise appearing in the document.
(3) Form 4 must not be attached to, or incorporated
with, any other document.
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(4) Despite subregulation (2), the details to be entered
in Form 4 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.
11 Forms of notice to be displayed on used vehicles
(1) For the purposes of sections 52(1) and 52(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 5, if the motor car is subject to the
statutory warranty under section 54; or
(b) Form 6, if the motor car is not subject to the
statutory warranty under section 54.
(2) For the purposes of sections 52(1) and 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.
(3) A notice under subregulation (1) or (2)—
(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;
(b) if it contains any advertisement, must place
the advertisement within a black border and
set the advertisement out under the heading
"ADVERTISEMENT" printed or typed in
black in point type at least twice as large as
the largest point type otherwise appearing
within the border; and
(c) must not be attached to, or incorporated with,
any other document.
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(4) Form 5 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 6 and 7 must contain the statements—
(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 5, 6 and 7 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.
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(7) Despite subregulation (3)(a), the details to be
entered in items A to H in Forms 5 and 6 and
items A to I in Form 7 and the trader's licence
number, need not be printed or typed provided
that they are clearly legible.
12 Form of notice of absence of warranty
(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 6.
(2) For the purposes of section 54(2C), the form of
the notice to be attached to a motor cycle is
Form 7.
13 Form 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.
14 Statement verifying document to inspector
For the purposes of section 82AA(1B), a
prescribed statement verifying that a document
provided to an inspector is a true record of the
dealings book is to be in the form set out in
Form 9 in Schedule 1.
15 Inspectors' powers forms
The form for the embargo notice under section
82AM(1) of the 1Act is Form 10 in Schedule 1.
__________________
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Part 3—Fees
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PART 3—FEES
16 Fees
For the purposes of the Act, the fees are those set
out in Schedule 2.
__________________
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Part 4—Conduct by Motor Car Traders
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PART 4—CONDUCT BY MOTOR CAR TRADERS
17 Prescribed changes in relation to licensee
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;
(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;
(c) a licensee changes the business address or
telephone number of any premises from
which a motor car trading business is
conducted;
(d) a licensee changes the address of any
Internet site maintained by the licensee for
the purpose of the motor car trading
business.
18 Trader 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.
19 Advertisements
(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—
(a) include in the advertisement or statement the
letters "LMCT" followed by the licence
number of the motor car trader; and
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Part 4—Conduct by Motor Car Traders
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(b) if the advertisement or statement is presented
in visual form, the letters "LMCT" and the
licence number must be—
(i) printed or typed clearly and legibly;
and;
(ii) 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 5 point
type, whichever is the larger.
Penalty: 10 penalty units.
(2) If 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 the following information
in the advertisement in at least 4 point type—
(a) the cash price of the motor car followed by
the statement "not including stamp duty and
transfer fees";
(b) if the motor car is registered, the registration
number;
(c) if the motor car is unregistered—
(i) the engine number of the vehicle; or
(ii) the chassis number of the vehicle; or
(iii) the vehicle identification number; or
(iv) the registration number (if any) last
assigned to the vehicle; or
(v) if none of those numbers is reasonably
ascertainable, any other number by
which the vehicle may be identified.
Penalty: 10 penalty units.
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(3) Subregulations (2)(b) and 2(c) do not apply if the
motor car trader, servant or agent publishes or
causes to be published an advertisement on
television, movie film, radio or in any other
electronic and broadcast communication 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 the following
information in the advertisement—
(a) the cash price of the motor car;
(b) if the motor car is registered, the registration
number; or
(c) if the motor car is unregistered—
(i) the engine number of the vehicle; or
(ii) the chassis number of the vehicle; or
(iii) the vehicle identification number; or
(iv) the registration number (if any) last
assigned to the vehicle; or
(v) if none of those numbers is reasonably
ascertainable, any other number by
which the vehicle may be identified.
Penalty: 10 penalty units.
(5) Subregulations (2)(a) and (4)(a) do not apply in
relation to a used motor car being advertised for
sale by auction.
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(6) Subregulations (2)(b), 2(c), (4)(b) and 4(c)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.
(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—
(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.
(8) 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.
20 Amount of dealer charges to be shown
(1) A motor car trader (other than a manufacturer)
who includes in an advertisement a statement of
the price of a new motor car and a reference to
other amounts which a purchaser must pay, must
in respect of any dealer's charge, specify the actual
amount of the charge.
Penalty: 10 penalty units.
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(2) In subregulation (1), dealer's charge means any
amount other than the cash price of the car and an
amount which the purchaser is required by law to
pay to the State or the Commonwealth or to a
statutory authority of the State or the
Commonwealth.
21 Deposit given before tests to be returned
(1) If a person—
(a) deposits with a motor car trader money or
something of value and takes possession of a
motor car for the purpose of a driving trial or
an examination or test; and
(b) subsequently returns the motor car and does
not enter into an agreement to purchase it—
the motor car trader must refund or return the
money or valuable thing to the person
immediately on demand.
Penalty: 10 penalty units.
(2) If a purchaser—
(a) enters into a conditional agreement with a
motor car trader to purchase a motor car; and
(b) deposits with the motor car trader money or
something of value prior to a driving trial or
an examination or test; and
(c) subsequently does not continue with the
agreement—
the motor car trader must refund or return the
money or valuable thing to the purchaser
immediately on demand.
Penalty: 10 penalty units.
__________________
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Part 5—Agreements and Warranties
Motor Car Traders Regulations 2008
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PART 5—AGREEMENTS AND WARRANTIES
22 Prescribed conditions
(1) For the purposes of section 41, the prescribed
particulars, terms and conditions of an agreement
for the sale of a used motor car by a motor car
trader are set out in Schedule 3.
(2) For the purposes of section 42, the prescribed
particulars to be contained in the agreement for
the sale of a new motor car by a motor car trader
are set out in Schedule 4.
23 Terms relating to certain matters to be in sale
agreement
If a motor car trader enters into an agreement for
the sale of a used motor car and agrees as part of
the agreement—
(a) to have defects in the motor car repaired or
made good; or
(b) to supply and fit any part or accessory to the
motor car; or
(c) to register or re-register the motor car or in
any other respect to pay an amount or make
an arrangement regarding the registration,
duty or insurance relating to the motor car—
the motor car trader must ensure that the terms of
the agreement as to that matter are set out in
writing in the agreement.
Penalty: 10 penalty units.
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24 Warranties
For the purposes of section 54(4)(d), the
prescribed accessories are the following—
(a) radios;
(b) cassette players;
(c) compact disc players;
(d) telephones and in-car telephone kits;
(e) car aerials;
(f) clocks;
(g) cigarette lighters;
(h) body hardware which is not standard to the
motor car;
(i) power outlets, including cigarette lighter
sockets;
(j) tools other than jacks and wheel braces;
(k) light globes;
(l) sealed beam lights;
(m) fog lights which are not standard to the
motor car;
(n) alarms which are not standard to the motor
car;
(o) digital video disc players and video display
panels;
(p) MP3 and MP4 players and docks;
(q) global positioning systems and satellite
navigation systems;
(r) other computerised navigation systems;
(s) keyless entry systems and remote key pads
that are not standard to the motor car.
__________________
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Part 6—Miscellaneous
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PART 6—MISCELLANEOUS
25 Maximum payment on a claim
For the purposes of section 77(4), the prescribed
amount is $40 000.
26 Retention of records
For the purposes of section 83A(3), the documents
to be retained for at least 7 years are—
(a) agreement for sale of a used motor car;
(b) agreement for sale of a new motor car;
(c) agreement for exchange of motor car;
(d) extended warranty documents;
(e) police checks given to the trader by persons
employed in a customer service capacity;
(f) Forms 2, 3, 4, 5, 6, 7 and 8.
27 Copies of agreements etc.
For the purposes of section 83C(1), copies of all
documents listed in regulation 26 which are
relevant to the transaction must be given to the
person who buys, sells or exchanges a motor car,
except Form 2.
28 Infringement notices
(1) Breaches of the sections of the Act and of the
regulations listed in column 1 of the Table in
Schedule 5 are specified for the purposes of
section 82D as offences in respect of which an
infringement notice may be issued.
(2) The infringement notice penalty shown in
column 2 of the Table in Schedule 5 opposite an
offence in column 1 is the penalty prescribed for
that offence.
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SCHEDULES
SCHEDULE 1
FORMS
FORM 1
Regulation 7
Motor Car Traders Act 1986
PRESCRIBED SIGN
LICENSED MOTOR CAR TRADER or (LMCT)
(insert licensee's licence number)
__________________
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FORM 2
Regulation 8
Motor Car Traders Act 1986
DEALINGS BOOK
ACQUISITION DETAILS
Registration Number or, if
unregistered, Trader's Stock Number
Make/model
Type of vehicle
Year first registered
Built date if it appears on the vehicle
Compliance date
Vehicle identification/engine no
on Registration Label or chassis number
Date of acquisition
Odometer reading
*Name and address of person from whom vehicle acquired
*Name and address of auction business from which vehicle acquired or
received
Security interest (if any) held by
Security interest (if any) amount paid out in discharge
Date security interest paid (if any)
*Signature of person from whom vehicle acquired
*Signature of person authorised to sign on behalf of the auction business
from which vehicle acquired or received
*(delete whichever is inapplicable)
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DISPOSAL DETAILS
Sold to (name and address)
Date of delivery
Odometer reading
Roadworthiness certificate
—Certificate number
—Certificate date
Date notice of acquisition sent to
Roads Corporation
Date notice of disposal sent to
Roads Corporation
Date registration cancelled and plates returned (if applicable)
__________________
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FORM 3
Regulation 9
Motor Car Traders Act 1986
NOTICE TO MOTOR CAR TRADER BY PROSPECTIVE PERSON
EMPLOYED IN A CUSTOMER SERVICE CAPACITY
Declaration of Eligibility to be Employed in a Customer Service
Capacity
I,
(Insert name of person to be employed)
of
(Insert residential address of person to be employed)
declare that I—
(*delete whichever is not applicable)
(a) *have/*have not had a claim admitted against the Motor Car Traders'
Guarantee Fund (note: see paragraph (c) below); and
(b) *am/*am not or *was/*was not a partner or director of, or person
concerned in the management of, a partnership or body corporate that
has had a claim admitted against the Motor Car Traders' Guarantee
Fund in relation to an act or omission that occurred at a time I was a
partner or director of, or a person involved in the management of, the
partnership or body corporate (note: see paragraph (c) below); and
(c) *have/*have not obtained permission under section 29A of the Motor
Car Traders Act 1986 in relation to a claim or claims referred to in
paragraphs (a) and (b) above; and
Please specify further details of permission obtained:
(d) *have/*have not, within the last 10 years, been found guilty or
convicted of, a disqualifying or serious offence involving fraud,
dishonesty, drug trafficking or violence (whether or not a conviction
was recorded) (note: see paragraph (e) below); and
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(e) *have/*have not obtained permission under section 29B of the Motor
Car Traders Act 1986 in relation to an offence involving fraud,
dishonesty, drug trafficking or violence referred to in paragraph (d)
above; and
Please specify further details of permission obtained:
(f) *am/*am not for the time being disqualified from holding a motor car
trader's licence; and
(g) *am/*am not for the time being disqualified from being employed in
any capacity in connection with the business of a motor car trader
(regardless of whether or not motor car traders are referred to by that
name in the relevant jurisdiction)
(Signature of proposed employee making the declaration)
(Print full name)
(Date)
Note: Under section 84A of the Motor Car Traders Act 1986 it is
an offence punishable by a fine of 50 penalty units to make a
false or misleading statement or omission in this declaration.
Under section 35A of the Motor Car Traders Act 1986, a
motor car trader must receive a completed declaration from a
person before that person is employed in a customer service
capacity by the trader. Also, under section 35A, a person is
disqualified from being employed in a customer service
capacity by a motor car trader unless the person gives the
trader a police check of one of the two kinds specified in
section 35A. The police check and the Form 3 must be
retained for at least 7 years, as they are prescribed documents
under regulation 26.
__________________
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FORM 4
Regulation 10
Motor Car Traders Act 1986
COOLING-OFF RIGHTS AND WAIVING YOUR COOLING-OFF
RIGHTS
YOUR RIGHT TO COOL OFF
There is a cooling-off period for all car sales (including motorcycle sales),
except for commercial vehicles, vehicles sold to a motor car trader and any
vehicle sold to a body corporate.
The cooling-off period will terminate three clear days after the purchaser
signs the agreement for the sale of a motor car or immediately if the
purchaser during the cooling-off period and immediately before delivery
signs a waiver. Clear days do not include weekends or public holidays.
If you cool off and terminate the agreement for the sale of the car, there is
a penalty. That is, the motor car trader will keep some of your money.
The amount that the trader will keep depends on the type of sale. (Trader to
tick relevant box based on type of sale.)
The penalty for terminating a new car sale is $400 or 2 per cent of the
purchase price (whichever is greater) where this is not an off-trade
premises sale.
The penalty for terminating an "off-trade-premises" sale of a new car
is $100 or 1 per cent of the purchase price (whichever is greater).
An "off-trade-premises" sale is one in which you agree to purchase the
car while you are at home or at your workplace and you did not ask
for the agreement to be signed at your home or workplace.
The penalty for terminating a used car sale is $100 or 1 per cent of the
purchase price (whichever is greater).
DETAILS OF CAR
Make and model of motor car:
Registration No.:
If unregistered—engine number or chassis number or vehicle identification
number or registration number (if any) last assigned to the vehicle or, if none
of those numbers are reasonably ascertainable, any other number by which
the vehicle may be identified.
Selling trader:
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PENALTY IF YOU ELECT TO COOL OFF ON THIS CAR PURCHASE
The penalty that would apply if you cool off on this car sale would be
$ (Trader to enter relevant amount based on purchase price and
type of sale.)
NOTE: A copy of this form is to be given to the customer whether the
customer signs it or not, and the trader will retain a copy of the form if the
customer signs the waiver.
WAIVING YOUR COOLING-OFF RIGHTS
1. I have agreed to buy this vehicle.
2. I know that the Motor Car Traders Act 1986 gives me the right to
decide within 3 days not to go ahead with the purchase and to cancel
the sale agreement. This reference to 3 days means 3 clear days not
including Saturdays, Sundays or days that are wholly or partly
observed as Victorian public holidays.
3. I know that if I sign this form immediately before accepting delivery
of the vehicle, I WILL LOSE MY RIGHT TO CANCEL THE SALE
AGREEMENT.
Purchaser's signature: Date:
__________________
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FORM 5
Regulation 11
Motor Car Traders Act 1986
WITH STATUTORY WARRANTY
under section 54 of the Motor Car Traders Act 1986
Particulars of a Used Motor Car offered for Sale, required in accordance
with section 52(1) of the Motor Car Traders Act 1986
A. Name and business address of the current owner of the motor car.
B. If the owner of the motor car is a motor car trader or special trader—
(i) if the last owner of the motor car was neither a motor car trader
nor a special trader, the words "name and address is available
upon request"; and
(ii) if the last owner of the motor car was a motor car trader or a
special trader, the name and business address of the motor car
trader or special trader.
C. If the motor car is equipped with an odometer, the distance travelled
by the motor car entered by the motor car trader in the dealings book
when the trader acquired the motor car or received custody or
possession of the motor car for the purpose of sale (as the case may
be).
D. Except in the case of a motor car offered or displayed for sale at a
public auction, the cash price of the motor car, a statement that the
cash price does not include transfer fee or stamp duty and a statement
of whether the car is sold with registration or without registration.
E. Built date if it appears on the motor car:
Compliance date:
Year first registered:
F. The model designation (if any) of the motor car.
G. Registration number (if any) of the motor car.
H. Engine number or the serial number on the Registration Label of the
motor car.
Signature of motor car trader:
LMCT No.:
Signature of Purchaser:
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AFFIX TO RIGHT SIDE WINDOW (Rear where applicable)
(NOTE: On the sale of the motor car the purchaser must sign and be given a
copy of this form under sections 52(6) and 83C(1) of the Motor Car
Traders Act 1986 and regulation 28 of the Motor Car Traders Regulations
2008).
IMPORTANT INFORMATION
Buying a used car from a licensed trader
1. This car is NOT MORE THAN 10 years old AND has been driven
LESS THAN 160 000 km, so it is automatically covered by Statutory
Warranty under section 54 of the Motor Car Traders Act 1986 for
the first 3 months or 5000 km after delivery, whichever occurs first.
2. For most used cars, there is a 3 day cooling off period commencing
the day after signing the sale agreement. This reference to 3 days
means 3 clear days not including Saturdays, Sundays or days that are
wholly or partly observed as Victorian public holidays. If a purchaser
decides to cancel the sale agreement, the purchaser must notify the
licensed trader in writing, before the close of business on the third
day. The licensed trader can withhold 1% of the purchase price or
$100, whichever is greater. The cooling off period applies to all used
cars except commercial vehicles, used cars bought at public auction
and vehicles sold to a body corporate.
__________________
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FORM 6
Regulations 11 and 12
Motor Car Traders Act 1986
NOT COVERED BY STATUTORY WARRANTY
under section 54 of the Motor Car Traders Act 1986
Particulars of a Used Motor Car offered for Sale, required in accordance
with section 52(1) of the Motor Car Traders Act 1986
A. Name and business address of the current owner of the motor car.
B. If the owner of the motor car is a motor car trader or special trader—
(i) if the last owner of the motor car was neither a motor car trader
nor a special trader, the words "name and address is available
upon request"; and
(ii) if the last owner of the motor car was a motor car trader or a
special trader, the name and business address of the motor car
trader or special trader.
C. If the motor car is equipped with an odometer, the distance travelled
by the motor car entered by the motor car trader in the dealings book
when the trader acquired the motor car or received custody or
possession of the motor car for the purpose of sale (as the case may
be).
D. Except in the case of a motor car offered or displayed for sale at a
public auction, the cash price of the motor car , a statement that the
cash price does not include transfer fee or stamp duty and a statement
of whether the car is sold with registration or without registration.
E. Built date if it appears on the motor car:
Compliance date:
Year first registered:
F. The model designation (if any) of the motor car.
G. Registration number (if any) of the motor car.
H. Engine no or the serial no on the Registration Label of the motor car.
Signature of motor car trader:
LMCT No.:
Signature of Purchaser:
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AFFIX TO RIGHT SIDE WINDOW (Rear where applicable)
(NOTE: On the sale of the motor car the purchaser must sign and be given a
copy of this form under sections 52(6) and 83C(1) of the Motor Car
Traders Act 1986 and regulation 28 of the Motor Car Traders Regulations
2008).
IMPORTANT INFORMATION
Buying a used car from a licensed trader
1. This car is NOT covered by a Statutory Warranty under section 54 of
the Motor Car Traders Act 1986. The trader has no duty under the
Motor Car Traders Act 1986 to repair or make good any defects
after delivery. The trader may have obligations under other
legislation.
2. Vehicles NOT covered by the Statutory Warranty under section 54 of
the Motor Car Traders Act 1986:
y used cars which are MORE THAN 10 years old OR which have
been driven 160 000 km OR MORE;
y motorcycles;
y commercial vehicles;
y cars bought at public auction.
3. Licensed traders may offer a warranty on vehicles which are not
covered by the Statutory Warranty under section 54 of the Motor Car
Traders Act 1986.
4. For most used cars there is a 3 day cooling off period commencing
the day after signing the sale agreement. This reference to 3 days
means 3 clear days not including Saturdays, Sundays or days that are
wholly or partly observed as Victorian public holidays. If a purchaser
decides to cancel the sale agreement, the purchaser must notify the
licensed trader in writing, before the close of business on the third
day. The licensed trader can withhold 1% of the purchase price or
$100, whichever is greater. The cooling off period applies to all used
cars except commercial vehicles, used cars bought at public auction
and vehicles sold to a body corporate.
__________________
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FORM 7
Regulations 11 and 12
Motor Car Traders Act 1986
NOT COVERED BY STATUTORY WARRANTY
under section 54 of the Motor Car Traders Act 1986
Particulars of a Used Motor Cycle offered for Sale, required in
accordance with section 52(1) of the Motor Car Traders Act 1986
A. Name and business address of the current owner of the motor cycle.
B. If the owner of the motor cycle is a motor car trader or special
trader—
(i) if the last owner of the motor cycle was neither a motor car
trader nor a special trader, the words "name and address is
available upon request"; and
(ii) if the last owner of the motor cycle was a motor car trader or a
special trader, the name and business address of the motor car
trader or special trader.
C. If the motor cycle is equipped with an odometer, the distance travelled
by the motor cycle entered by the motor car trader in the dealings
book when the trader acquired the motor cycle or received custody or
possession of the motor cycle for the purpose of sale (as the case may
be).
D. Except in the case of a motor cycle offered or displayed for sale at a
public auction, the cash price of the motor cycle, a statement that the
cash price does not include transfer fee or stamp duty and a statement
of whether the motor cycle is sold with registration or without
registration.
E. Built date if it appears on the motor cycle:
Compliance date:
Year first registered:
F. The model designation (if any) of the motor cycle.
G. Registration number (if any) of the motor cycle.
H. Vehicle frame number.
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I. Engine number or the serial number on the Registration Label of the
motor cycle.
Signature of motor car trader:
LMCT No.:
Signature of Purchaser:
AFFIX TO HANDLE BARS
(NOTE: On the sale of the motor cycle the purchaser must sign and be given
a copy of this form under sections 52(6) and 83C(1) of the Motor Car
Traders Act 1986 and Regulation 28 of the Motor Car Traders Regulations
2008).
IMPORTANT INFORMATION
Buying a used motor cycle from a licensed trader
1. This motorcycle is NOT covered by a Statutory Warranty under
section 54 of the Motor Car Traders Act 1986. The trader has no
duty under the Motor Car Traders Act 1986 to repair or make good
any defects after delivery. The trader may have obligations under
other legislation.
2. Vehicles NOT covered by the Statutory Warranty under section 54 of
the Motor Car Traders Act 1986:
y used cars which are MORE THAN 10 years old OR which have
been driven 160 000 km OR MORE;
y motorcycles;
y commercial vehicles;
y cars bought at public auction.
3. Licensed traders may offer a warranty on vehicles which are not
covered by the Statutory Warranty under section 54 of the Motor Car
Traders Act 1986.
4. For most motor cycles there is a 3 day cooling off period
commencing the day after signing the sale agreement. This reference
to 3 days means 3 clear days not including Saturdays, Sundays or days
that are wholly or partly observed as Victorian public holidays. If a
purchaser decides to cancel the sale agreement, the purchaser must
notify the licensed trader in writing, before the close of business on
the third day. The licensed trader can withhold 1% of the purchase
price or $100, whichever is greater. The cooling off period does not
apply to motor cycles bought at public auctions.
__________________
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FORM 8
Regulation 13
Motor Car Traders Act 1986
STATEMENT OF DEFECTS PURSUANT TO SECTION 55 OF THE
MOTOR CAR TRADERS ACT 1986 IN A USED MOTOR CAR
OFFERED FOR SALE
Make and model of motor car:
Registration number (if applicable):
Engine number or serial number
on Certificate of registration:
Trading name and LMCT No.:
Description of Defect Estimate of Fair Cost of Repairing or Making Good
Any items listed on this notice are NOT subject to Statutory Warranty under
section 54 of the Motor Car Traders Act 1986.
Signature of purchaser Signature of motor car trader
Licence or LMCT No.:
Notes:
This notice will only have effect if—
(a) at all material times it has been attached to the motor car; and
(b) at or before the time of sale a copy of the notice has been signed by
the purchaser; and
(c) upon the sale a true copy of the notice as so signed has been delivered
to the purchaser for retention by that purchaser; and
(d) the estimate by the motor car trader of the fair cost of repairing or
making good the defect is reasonable.
__________________
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FORM 9
Regulation 14
Motor Car Traders Act 1986
VERIFIED STATEMENT
To: Inspector (specify Inspector's name):
I, (insert name) in relation to (insert name and address of principal
place of business/former business), (insert licence number/former
licence number) verify that the document produced to you on (insert
date) in accordance with section 82AA of the Motor Car Traders
Act 1986 is a true record of the dealings book as at the date of this
statement.
Note: Section 82AA of the Act provides that an inspector may require
a licensed motor car trader or a specified person to produce
certain documents and it is the person required to produce
those documents that must make the verified statement.
Section 82AA(2) defines a "specified person" to mean, in
relation to the business of a licensed motor car trader—
(a) a person whose licence has been surrendered or cancelled
within the last 3 years; or
(b) a person who is a director or officer of a corporation which
is a licensed motor car trader; or
(c) if the licence of a corporation has been surrendered or
cancelled within the last 3 years, a person who was a
director or officer of the corporation at the time the licence
was surrendered or cancelled; or
(d) a person who under section 33 of the Act is carrying on the
business of a licensed motor car trader.
__________________
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FORM 10
Regulation 15
EMBARGO NOTICE
Motor Car Traders Act 1986
Section 82AM
1. The item described below has been embargoed under section 82AM of
the Motor Car Traders Act 1986.
2. Section 82AM(2) provides that a person who knows that an embargo
notice relates to a thing and who—
(a) sells; or
(b) leases; or
(c) without the written consent of the inspector who issued the
embargo notice, moves; or
(d) transfers; or
(e) otherwise deals with—
the thing or any part of the thing is guilty of an offence and liable to a
penalty not exceeding 50 penalty units.
3. Section 82AM(3) provides that it is a defence to a prosecution for
such an offence to prove that the thing or part of the thing was moved
for the purpose of protecting and preserving it.
4. Section 82AM(4) provides that despite anything in any other Act, a
sale, lease, transfer or other dealing with a thing in contravention of
that section is void.
Description of embargoed item—
This notice has been—
served on (name)
affixed to the item described above
Signature of inspector:
Name of inspector:
Telephone number: Date: Time:
__________________
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SCHEDULE 2
FEES
Regulation 16
Item Section of Act Type of Fee
1 8(3) Application fee 63⋅84 fee units
2 13(10) First annual licence fee 114⋅03 fee units
3 23(1) Subsequent annual licence fee 115⋅19 fee units
4 29(A), 29(B)
or 29(C)
Permission application 79⋅85 fee units
4 22(3) Inspection or copying or
inspection and copying of the
register (per page)
0⋅52 fee units
5 24(1) Late fee on application for
extension of time
0⋅0 fee units
6 24A(1) Late payment or lodgement fee 1⋅18 fee units
7 26 Duplicate licence 0⋅0 fee units
__________________
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SCHEDULE 3
Regulation 22(1)
PARTICULARS, TERMS AND CONDITIONS FOR SALE OF
USED MOTOR CAR
A. Particulars
(1) The name of the motor car trader or, if an employee of the motor
car trader negotiated the agreement on behalf of the motor car
trader, the name of the employee.
(2) A description of the motor car sufficient to identify it.
(3) Whichever of the following is applicable—
(a) if the motor car is registered, the registration number; or
(b) if the motor car is unregistered, the vehicle's engine number
or chassis number or the vehicle identification number or
the registration number (if any) last assigned to the vehicle
or, if none of those numbers is reasonably ascertainable,
any other number by which the vehicle may be identified.
(4) The price and any other charges to be paid and the time and
manner in which the price and any other charges are to be paid
and, where a motor car or other goods are to be accepted as part
payment of the price or other charges, the amount agreed to be
represented by the motor car or other goods.
(5) The amounts to be paid by the motor car trader or the purchaser to
Roads Corporation for transfer fees and duties, and if applicable an
amount to be paid by the motor car trader or the purchaser to
Roads Corporation for registration.
(6) The distance travelled by the motor car as recorded on the
instrument or device installed in the motor car for recording the
distance travelled by the motor car either when the purchaser signs
the agreement or at any earlier time at which the purchaser takes
delivery of the motor car.
(7) Whether or not the motor car trader believes the distance so
recorded to be true.
(8) The licence number of the motor car trader.
(9) The serial number of the agreement.
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B. Terms and conditions
Subject to finance
1. (1) Where this agreement is subject to the purchaser obtaining finance,
the agreement is conditional upon the purchaser obtaining finance
approval—
(a) within the time stated in this agreement;
(b) of the amount stated in this agreement;
(c) from the credit provider named in this agreement (or from a
similar type of credit provider);
(d) for the type of finance stated in this agreement;
(e) upon reasonable terms and conditions in the circumstances.
(2) The purchaser agrees to take all reasonable steps towards obtaining
finance approval.
(3) If the purchaser does not obtain finance approval then either the
purchaser or the seller may terminate this agreement by giving
notice to the other party.
Transfer to credit provider
2. Where requested by the purchaser the seller shall transfer title to
the purchase vehicle to the purchaser's credit provider upon
payment of the total purchase price to the seller.
Delays in delivery
3. (1) The seller shall make every reasonable effort to make the purchase
vehicle available for delivery on or before the delivery date stated
in this agreement. Where delivery is delayed more than 14 days
the purchaser may terminate this agreement by notifying the seller
in writing, unless the delay is caused by the purchaser.
(2) The purchaser shall take delivery of the purchase vehicle within
7 days of being notified by the seller that the vehicle is ready for
delivery. If the purchaser fails to take delivery within this time the
seller may terminate the agreement by notice in writing.
Trade-in conditions
4. (1) Where the purchase involves a trade-in vehicle then the amount
allowed for the trade-in (net trade-in allowance) shall be deducted
from the total purchase price. The net trade-in allowance will be
the amount allowed on the trade-in vehicle less any amount to be
paid by the seller to discharge the interest of any other person in
the vehicle.
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(2) The trade-in vehicle must be delivered to the seller no later than
the date of delivery of the purchase vehicle. If the trade-in vehicle
is delivered after this date or is not in substantially the same
condition as at the date of this agreement then the net trade-in
allowance may be adjusted by an amount equal to the change in
the fair market value of the trade-in vehicle between the date of
this agreement and the date of delivery to the seller.
(3) The purchaser's interest in the trade-in vehicle shall pass to the
seller—
(a) when the purchaser accepts delivery of the purchase
vehicle; or
(b) when the purchaser has delivered the trade-in vehicle to the
seller and the seller has paid the net trade-in allowance to
the purchaser or acknowledged in writing that this amount
has been credited towards the total purchase price—
whichever first occurs.
(4) The seller shall not, without the prior written consent of the
purchaser, sell or agree to sell the trade-in vehicle before delivery
of the purchase vehicle to the purchaser.
(5) Where the amount allowed on the trade-in vehicle has been
reduced by an amount to be paid by the seller to discharge the
interest of any other person in the vehicle, the seller will pay this
amount to the other person within 28 days of delivery of the trade-
in vehicle to the seller.
Termination
5. (1) Where this agreement is lawfully terminated by the seller due to a
breach of this agreement by the purchaser then—
(a) the purchaser shall forfeit the amount stated in this
agreement to the seller provided that amount does not
exceed 5 per cent of the total purchase price;
(b) where an amount has been paid towards the purchase price
and that amount exceeds the forfeitable amount then the
seller shall—
(i) refund to the purchaser so much of the amount paid
that exceeds the forfeitable amount; and
(ii) return any trade-in vehicle to the purchaser; and
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(c) where an amount has been paid towards the purchase price
and that amount does not provide the seller with the
forfeitable amount and a trade-in vehicle has been delivered
to the seller then the trade-in vehicle may be forfeited to the
seller and the purchaser credited with the net trade-in
allowance. If this amount and any other amount paid by the
purchaser exceeds the forfeitable amount then the excess
shall be refunded to the purchaser.
(2) Where this agreement is lawfully terminated by the purchaser due
to a breach of this agreement by the seller then the seller shall—
(a) refund to the purchaser all money paid by or on behalf of
the purchaser; and
(b) return any trade-in vehicle to the purchaser.
(3) Where this agreement is lawfully terminated by either the
purchaser or the seller due to clause l or for any reason other than a
breach of this agreement then the seller shall—
(a) refund to the purchaser all money paid by or on behalf of
the purchaser; and
(b) return any trade-in vehicle to the purchaser.
(4) Where this agreement provides for the seller to return any trade-in
vehicle to the purchaser but the seller has, with the prior written
consent of the purchaser, sold or agreed to sell the trade-in vehicle
then this agreement will be complied with if the seller pays to the
purchaser—
(a) an amount equal to the net trade-in allowance; or
(b) where the purchaser and seller have agreed on a value as
the fair market value of the trade-in vehicle-that agreed
value less any trade-in payout made or to be made by the
seller.
(5) Where the seller returns any trade-in vehicle to the purchaser and
the seller has carried out repairs on the vehicle with the consent of
the purchaser then the seller shall be entitled to an amount equal to
the reasonable cost of those repairs.
(6) Where either the purchaser or seller wishes to terminate this
agreement in accordance with this clause they must give written
notice to the other party of the decision to terminate.
(7) Nothing in this clause affects the rights and duties conferred by
section 43 of the Motor Car Traders Act 1986 or regulation 11
of the Motor Car Traders Regulations 2008.
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Non exclusion of statutory warranties and other rights
6. The benefits conferred by this agreement and by the seller's
warranty, if any, are in addition to all other rights and remedies in
respect of the purchase vehicle which the purchaser has under the
Trade Practices Act 1974 and any other Commonwealth, State and
Territory laws.
Note: The parties to this agreement may include other conditions if those
conditions do not reduce the rights given to either party by or
under the Motor Car Traders Act 1986.
__________________
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SCHEDULE 4
Regulation 22(2)
PARTICULARS FOR SALE OF NEW MOTOR CAR
Particulars
(1) The name of the motor car trader or, if an employee of the motor car
trader negotiated the agreement on behalf of the motor car trader, the
name of the employee.
(2) A description of the motor car sufficient to identify it.
(3) The engine number of the motor car (if known).
(4) The price and any other charges to be paid and the time and manner in
which the price and any other charges are to be paid and, where a
motor car or other goods are to be accepted as part payment of the
price or other charges, the amount agreed to be represented by the
motor car or other goods.
(5) Where a motor car is to be accepted as part payment of the price or
other charges and where the amount allowed on this trade-in vehicle
has been reduced by an amount to be paid by the trader to discharge
the interest of any other person in the vehicle, the number of days after
delivery of the trade-in vehicle to the trader within which the trader
will pay this amount to the other person.
(5) The licence number of the motor car trader.
(6) The serial number of the agreement.
__________________
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SCHEDULE 5
Regulation 28
INFRINGEMENT OFFENCES AND PENALTIES
Column 1 Column 2
BREACH PENALTY UNITS
section 20(1) 0⋅5
section 25(2) 1
section 27(3) 1
section 31B(1) 2⋅5
section 34 1
section 35(1) 5
section 35(2) 5
section 35A(3) 5
section 41(2)(b) 2
section 42(2)(a) 2
section 42(2)(b) 2
section 42A(1) 5
section 43(1B) 1
section 44 2
section 50J 1
section 52(1) 1
section 52(6) 1
section 83A(1) 2
section 83A(3) 2
regulation 20(1) 1
regulation 21(1) 1
regulation 21(2) 1
═══════════════
Sch. 5
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Motor Car Traders Regulations 2008
S.R. No. 144/2008
45
ENDNOTES
1 Reg. 4: S.R. No. 56/1998. Reprinted to S.R. No. 125/2003, extended to
25 May 2009 by S.R. No. 35/2008.
——
Fee Units
These Regulations provide for fees by reference to fee units within the
meaning of the Monetary Units Act 2004.
The amount of the fee is to be calculated, in accordance with section 7 of that
Act, by multiplying the number of fee units applicable by the value of a fee
unit.
The value of a fee unit for the financial year commencing 1 July 2008 is
$11.35. The amount of the calculated fee may be rounded to the nearest
10 cents.
The value of a fee unit for future financial years is to be fixed by the
Treasurer under section 5 of the Monetary Units Act 2004. The value of a
fee unit for a financial year must be published in the Government Gazette and
a Victorian newspaper before 1 June in the preceding financial year.
Endnotes
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