1993 Legislative Session: 2nd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE MOE SIHOTA
MINISTER OF LABOUR AND CONSUMER SERVICES
AND MINISTER RESPONSIBLE
FOR CONSTITUTIONAL AFFAIRS

BILL 21 -- 1993

CONSUMER PROTECTION STATUTES AMENDMENT ACT, 1993

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

 
Consumer Protection Act

1 Section 1 of the Consumer Protection Act, R.S.B.C. 1979, c. 65, is amended

(a) in paragraph (b) of the definition of "contract for future services" by striking out "$20;" and substituting "an amount set by regulation;",

(b) by adding the following definition:

"direct sale" means a contract for the sale of goods or services or both made by a direct seller in the ordinary course of business at a place other than the seller's permanent place of business, whether personally or through a salesperson, but does not include a contract where the sale, offering for sale or soliciting of orders is made by telephone, mail, fax or any other method that does not involve face to face contact with the intended purchaser; ,

(c) by striking out the definition of "direct seller" and substituting the following:

"direct seller" means a seller whose business includes

(a) selling or offering for sale goods or services or both, or

(b) soliciting orders for goods or services or both

at a place other than the seller's permanent place of business, whether personally or through a salesperson, but does not include selling, offering for sale or soliciting orders by telephone, mail, fax or any other method that does not involve face to face contact with the intended purchaser; ,

(d) in the definition of "executory contract" by striking out "$20 or a larger amount that may be determined by the regulations" and substituting "an amount set by regulation",

(e) by adding the following definition:

"registrar" means the registrar of direct sellers designated under section 25.81; , and

(f) in the definition of "salesman" by striking out ' "salesman",' and substituting ' "salesperson",'.

2 Section 10 is amended by striking out "salesman" whever it appears and substituting "salesperson".

3 Section 13 (1) is amended

(a) by striking out "or" at the end of paragraph (a), by adding "; or" at the end of paragraph (b) and by adding the following:

(c) whether or not the contract is executory, if the direct seller is not licensed as required by Part 1.1, by giving notice of cancellation not later than 1 year after the date the contract was made. , and

(b) in subsection (5) (b) by striking out "salesman" and substituting "salesperson".

4 The following sections are added:

When must a contract be in writing?

13.1 A direct seller shall use a written contract for a direct sale if the buyer's purchase price, excluding the cost of borrowing, but including any taxes, equals or exceeds the amount set by regulation.

What must be in a written contract?

13.2 A direct seller who enters into a written contract with a buyer for a direct sale shall ensure that the contract contains

(a) a notice of the buyer's right of cancellation,

(b) a detailed statement of the terms of payment including interest, and

(c) any other matter required by regulation.

Trust accounts

13.3 (1) The registrar may at any time require a direct seller

(a) to hold money in trust that is paid under a direct sale by a buyer to the direct seller in full or partial compensation for goods or services that are to be delivered, wholly or partly, after the payment, and

(b) to keep the trust money with a financial institution or class of financial institutions approved by the registrar

and the direct seller shall comply with the requirement.

(2) When requested by the registrar, the direct seller must provide to the registrar, in the manner and form requested, information or records respecting the trust or the money required to be held in trust.

5 The following Part is added:

PART 1.1

DIRECT SELLER LICENSING

Application of this Part

25.1 This Part applies to a direct seller who solicits orders for, or sells or offers for sale, goods or services where

(a) the purchase price, excluding the cost of borrowing, but including any taxes, equals or exceeds the amount set by regulation,

(b) the soliciting, sale or offering for sale is made to an individual, and

(c) the direct seller solicits, negotiates or concludes the contract at a place other than the direct seller's permanent place of business.

Definition

25.11 In this Part "commission" means the Commercial Appeals Commission established under the Commercial Appeals Commission Act.

Who must be licensed?

25.2 (1) A person shall not carry on business as a direct seller unless licensed by the registrar or exempted under section 25.21 or by regulation.

(2) No person may sell on behalf of a direct seller if the direct seller does not have a licence required by this section.

Who does not have to be licensed?

25.21 (1) No licence is required under this Act for

(a) the direct sale of newspapers published at intervals of 7 days or less,

(b) the direct sale of fuel,

(c) the direct sale of

(i) food for human consumption, or

(ii) a commodity that will become food for human consumption

if the food or commodity is unfrozen and perishable at the time of delivery,

(d) the direct sale of a class of goods exempted by regulation, or

(e) the direct sale by a class of direct sellers that is exempted by regulation.

(2) A salesperson or class of salespersons may be required by regulation to be licensed, but in the absence of such a regulation a salesperson is not required to be licensed.

How to apply for a licence

25.3 (1) A person may apply for a licence to the registrar using a form required by regulation.

(2) An application for a licence or renewal of a licence must be accompanied by

(a) the fee required by regulation,

(b) security, or proof of security, that is satisfactory to the registrar including, if the registrar requires it, an irrevocable letter of credit, and

(c) any information that the registrar reasonably requires to determine whether to issue the licence or renewal.

Licence may have conditions

25.31 (1) The registrar may decide

(a) to issue or renew a licence with conditions including a condition that restricts the goods or services that may be sold under the licence, or

(b) to alter, add to or impose conditions on a licence at any time.

(2) A licensee may appeal the decision to the commission.

Refusal, suspension or
cancellation of a licence

25.4 (1) For the purposes of subsection (2) "associate" means a salesperson or a person, including an officer and a director, who performs services related to the management of the business of a direct seller.

(2) The registrar may refuse to issue a licence to a person and may suspend, cancel or refuse to renew the licence of a person if there are reasonable grounds to believe that

(a) the person's finances are not adequate to carry on the business of a direct seller,

(b) the past conduct of the person or an associate of the person is such that it is contrary to the public interest for the person to carry on the business of a direct seller,

(c) the person or an associate of the person has contravened this Act, the regulations or a condition of a licence, or

(d) the security in respect of the licence has ceased to be effective for the purpose for which it was given and has not been replaced with security that is the equivalent of the original security.

(3) The registrar shall not refuse an application for a licence or renewal, or suspend or cancel a licence, without first giving the applicant or licensee an opportunity to be heard.

(4) A person whose application for a licence or renewal has been refused or whose licence has been suspended or cancelled may appeal the decision to the commission.

(5) Despite section 12 of the Commercial Appeals Commission Act, a decision of the registrar under this section is not stayed pending an appeal to the commission.

Change of address

25.41 A licensee shall notify the registrar in writing of a change in the address of the licensee's place of business within 2 weeks of the change.

What information can the
registrar require?

25.5 (1) The registrar or a person authorized in writing by the registrar may by written order require a licensee, within the time specified in the order, to provide information or produce records that are

(a) related to the direct sales business of the licensee, and

(b) specified or otherwise described in the order.

(2) The registrar may require a licensee or an officer or director of a licensee to state by affidavit his or her knowledge or belief respecting information or a record supplied under this section.

(3) A licensee, officer or director, as the case may be, shall provide the information, records and affidavits required by the registrar under subsection (1) or (2).

Inspection of records

25.51 (1) The registrar or a person authorized in writing by the registrar may inspect the records and inventory of a licensee.

(2) A licensee shall facilitate an inspection under this section.

(3) Section 49 applies to the removal of records and inventory inspected under this section as if the person conducting the inspection under this section were an investigator.

Licence not transferable

25.6 A licence under this Part is not transferable.

What name must a licensee use?

25.61 A licensee shall not advertise, contract or otherwise carry on business in a name other than the licensee's name as it appears in the licence.

Production and surrender of licenceby licensee

25.62 (1) A licensee shall produce the licence when requested by a person to whom the licensee is making or attempting to make a direct sale, a police officer, the registrar or any person authorized in writing by the registrar.

(2) A person who ceases to hold a licence shall surrender it to the registrar on the registrar's request.

Salesperson's identification card

25.7 (1) A licensee shall give an identification card to a salesperson who makes or attempts to make direct sales on behalf of the licensee.

(2) The identification card must contain the salesperson's name, the name and business address of the licensee and the signature of the licensee or, if the licensee is a corporation, of an officer of the licensee and any other information required by regulation.

Production or surrender ofidentification card

25.71 (1) A salesperson who has received an identification card under section 25.7 shall produce it when requested by a person to whom the salesperson is making or attempting to make a direct sale, a police officer, the registrar or any person authorized in writing by the registrar.

(2) A person who has received an identification card who is no longer authorized to make direct sales on behalf of a licensee shall surrender the card

(a) to the licensee, or

(b) if the person that held the licence no longer does so, to the registrar.

Change in firm requires prior approval

25.8 A licensee shall obtain the registrar's prior approval,

(a) if the licensee is a partnership, to a change in partners, or

(b) if the licensee is a corporation, to a change in the directors or officers.

Appointment of registrar

25.81 The minister may designate an individual as the registrar of direct sellers.

Register

25.9 (1) The registrar shall maintain a register of persons

(a) who are licensed,

(b) who have been refused a licence, and

(c) whose licences have been suspended or cancelled,

and shall supply information from the register to any person who asks.

(2) A written statement concerning information in the register is admissible in court as proof of the information contained in the register if the written statement purports to be signed by the registrar.

6 Section 57 (1) is amended by adding "the registrar," after "the director," and by adding "or the regulations" at the end.

7 Section 58 is amended

(a) in subsection (1) by adding "13.1 to 13.3," after "12 (1),", by adding "25.2, 25.41, 25.51 (2), 25.61, 25.62, 25.7, 25.71, 25.8," before "26," and by striking out "$2,000" and substituting "$10 000", and

(b) in subsection (2) by striking out "$25,000." and substituting "$100 000."

8 Section 60 (1) is amended by striking out "and" at the end of paragraph (n) and adding the following:

(p) respecting the licensing of salespersons or classes of salespersons who sell on behalf of a direct seller;

(q) respecting the licensing of direct sellers or classes of direct sellers, including providing that no licence is required for a direct sale of a class of goods or for a direct sale by a class of direct sellers;

(r) respecting application forms and licensing fees for direct sellers and classes of direct sellers and salespersons and classes of salespersons;

(s) respecting the term of a licence or class of licences;

(t) setting the amount of the purchase price referred to in section 13.1;

(u) setting the amount of the purchase price referred to in section 25.1;

(v) respecting wording that a direct seller shall include, or not include, in a written direct sales contract or class of contracts, and respecting the form of the wording and the manner of its inclusion;

(w) respecting wording that is conclusively deemed to be in a direct seller's written direct sales contract or class of contracts;

(x) requiring direct sellers or classes of direct sellers to obtain the registrar's approval of the form and content of

(i) the direct seller's sales contract or class of contracts, or

(ii) any other document or class of documents intended to be used by a direct seller in the course of making a sale to a purchaser

before the contract or document is used; and

(y) respecting information that a licensee is required to include in a saleperson's identification card.

 
Credit Reporting Act

9 Section 1 of the Credit Reporting Act, R.S.B.C. 1979, c. 78, is amended by repealing the definition of "report" and substituting the following:

"report" means a written, oral or other communication made by a reporting agency in connection with a purpose set out in section 10 (1) (a) about,

(a) except in sections 14 to 17, credit information or personal information respecting a consumer, or

(b) in sections 14 to 17, information respecting a person whether or not the person is a consumer; .

10 Section 11 (1) is repealed and the following substituted:

(1) A reporting agency shall

(a) develop procedures that are acceptable to the registrar for ascertaining the accuracy and fairness of the contents of its reports, and

(b) supply information respecting the matters referred to in paragraph (a) to the registrar on the registrar's request.

11 Section 14 is amended

(a) by striking out "consumer" wherever it appears and substituting "person",

(b) in subsection (1) (a) (i) by striking out "in the file" and substituting "it has",

(c) in subsection (1) (c) by striking out "contained in the file",

(d) by repealing subsection (4) and substituting the following:

(4) The reporting agency shall make the disclosure required under this section to not more than 2 individuals chosen by the person requesting the disclosure, one of whom may be the person requesting the disclosure. ,

(e) by repealing subsection (6) and substituting the following:

(6) A reporting agency shall require reasonable identification of the persons to whom disclosure is made before making the disclosure. ,

(f) by repealing subsection (7) and substituting the following:

(7) No reporting agency shall require a person to give an undertaking, or to waive or release a right, including a right to take legal action, as a condition of the person obtaining access to information under this section. , and

(g) in subsection (8) by striking out "consumer's" and substituting "person's".

12 Section 15 is repealed and the following substituted:

Explanation

15 (1) A person may deliver to a reporting agency, in writing of not more than 100 words, an explanation or additional information that relates to information kept by the reporting agency about the person.

(2) The reporting agency shall maintain the explanation or additional information with the other information it keeps about the person.

13 Section 16 is amended

(a) by repealing subsection (1) and substituting the following:

(1) A person about whom information has been disclosed under section 14 may dispute the accuracy and completeness of the information by filing with the reporting agency a written statement of protest of not more than 100 words. , and

(b) in subsection (3) by striking out "consumer," and substituting "person," and by striking out "file" and substituting "information".

14 Section 17 (2) is repealed and the following substituted:

(2) The registrar may order a reporting agency to furnish notification of an amendment, deletion, restriction or prohibition referred to in subsection (1) to a person who has received a report.

 
Motor Dealer Act

15 Section 1 of the Motor Dealer Act, R.S.B.C. 1979, c. 287, is amended by adding the following definitions:

"board" means the Motor Dealer Customer Compensation Fund Board established under section 13.11;

"fund" means the Motor Dealer Customer Compensation Fund established under section 13.1; .

16 Section 3 (a) (ii) is repealed and the following substituted:

(ii) has, if required by a condition under section 4 (4.1), furnished an irrevocable letter of credit satisfactory to the registrar; .

17 Section 4 is amended by adding the following:

(4.1) Under subsection (4) the registrar may impose a condition requiring an irrevocable letter of credit, in an amount fixed by the registrar, as evidence of financial responsibility.

(4.2) The registrar at any time may, on giving written notice to a registered person, add to or alter terms or conditions or restrictions of a registration.

18 The following Part is added:

PART 1.1

Motor Dealer Customer
Compensation Fund

13.1 (1) A fund is established called the Motor Dealer Customer Compensation Fund for the payment of claims against motor dealers in accordance with this Part.

(2) In amounts, at times and in the manner prescribed by the Lieutenant Governor in Council, a motor dealer carrying on business in the Province shall make payments to the fund through the registrar.

(3) The fund is a trust fund under the Financial Administration Act.

Motor Dealer Customer
Compensation Fund Board

13.11 (1) A board is established called the Motor Dealer Customer Compensation Fund Board to hear and decide claims against the fund.

(2) The board shall consist of the number of members appointed by the Lieutenant Governor in Council, one of whom shall be designated as chair.

(3) Each member shall be reimbursed for reasonable travelling and out of pocket expenses necessarily incurred in the discharge of board duties and, in addition, may be paid the remuneration fixed by the Lieutenant Governor in Council.

(4) A member of the public service may be appointed as a member of the board, but shall not receive remuneration for carrying out the duties of a board member.

(5) If a member of the board resigns or the appointment terminates, the member may complete the duties and continue to exercise the powers in relation to a proceeding in which the member participated until the proceeding is completed.

(6) If a member of the board becomes incapacitated during the course of a proceeding and is unable to continue, the remaining members may exercise the powers and duties of the board in relation to that proceeding.

(7) The board and each member has the powers, privileges and protection of a commissioner under sections 12, 15 and 16 of the Inquiry Act.

Powers and duties of the board

13.2 (1) The board has exclusive jurisdiction to hear and decide claims against the fund.

(2) A decision, order or ruling of the board made under this Act in respect of a matter which is within the board's jurisdiction is final and conclusive and is not open to question or review in court except on a question of law or excess of jurisdiction.

(3) Despite subsection (2) the board may, at its discretion, reconsider its own decision.

(4) The board shall follow practices and procedures prescribed by the Lieutenant Governor in Council.

(5) The board shall prepare and file an annual report with the minister who shall lay it before the Legislative Assembly,

(a) if the Legislative Assembly is sitting, within 90 days following the end of the fiscal year for which the report is made, or

(b) if the Legislative Assembly is not sitting, within 15 days after the opening of the next session.

Claims against the fund

13.21 (1) An application for compensation from the fund shall comply with the regulations.

(2) An application for compensation from the fund shall be filed with the registrar within 2 years from the refusal or failure of the motor dealer to pay.

(3) The board shall not compensate a person who has applied for compensation in respect of a default judgment or judgment by consent against a motor dealer unless the board is satisfied that the claim would otherwise be payable under this Part.

Types of evidence the board may consider

13.3 The board may

(a) require that the information in an application be verified by a statutory declaration,

(b) receive and examine evidence and information on oath or affirmation, by affidavit or otherwise that in its discretion it considers proper, whether or not the evidence is admissible in court,

(c) examine records and make inquiries that it considers necessary, and

(d) authorize a person to administer oaths and affirmations, exercise the powers of the board under paragraphs (a) to (c) and report the findings to the board.

Assignment of rights to board

13.4 No money shall be paid from the fund unless the claimant has assigned to the government all the rights under the claim that gave rise to the application.

Claimant to repay fund for money received from debtor

13.5 (1) If the fund pays a person's claim and the person receives something of value from some other source in payment of the loss that led to the payment from the fund, the person shall repay to the fund money equal to the value of the thing received from the other source.

(2) If the person fails to repay the fund, the government has a cause of action against the person for the amount unpaid.

Money recovered belongs to fund

13.6 Money recovered by the government under section 13.5 is part of the fund, but the Lieutenant Governor in Council may order the board to pay all or part of the money to the claimant after deducting

(a) the amount paid out of the fund in respect of the claim,

(b) interest on the amount in paragraph (a) at the prescribed annual rate from the date of payment, and

(c) costs of recovery including actual legal costs.

Costs of administering the fund

13.7 The costs of administering the fund, including money paid to board members and the costs incurred in investigating and processing claims against the fund, shall be paid from the fund.

What if there is insufficient money in the fund?

13.8 The board may prorate payments between claimants if the fund is insufficient to pay all claims.

Effect of payment on motor dealer's registration

13.9 (1) If a claim is paid out of the fund against a motor dealer whose failure, insolvency, bankruptcy or receivership caused the claim, the registration of the motor dealer is cancelled.

(2) If the registration of a motor dealer is cancelled under subsection (1), the motor dealer may not be registered again until the motor dealer has paid to the fund the amount paid out for the claim.

19 Section 24 (1) (d) is amended by adding "13.5 (1)," after "13,".

20 Section 27 is amended by renumbering the section as section 27 (1) and by adding the following subsections:

(2) Without restricting subsection (1), the Lieutenant Governor in Council may make regulations

(a) respecting the disclosure of information and handling of money related to consignment sales of motor vehicles by motor dealers,

(b) respecting the disclosure of information related to motor vehicle leasing by motor dealers,

(c) prescribing provisions that motor dealers must include in motor vehicle leasing contracts,

(d) prescribing provisions that are deemed to be included by motor dealers in the leases of motor vehicles,

(e) respecting matters that may be prescribed under sections 13.1 (2), 13.2 (4) and 13.6 (b), and

(f) respecting applications for compensation from the fund including

(i) who may apply,

(ii) what losses are eligible for compensation,

(iii) the manner of making an application to the registrar, and

(iv) the maximum amount of compensation payable to a person or for a loss.

(3) For the purposes of subsection (2), the Lieutenant Governor in Council may

(a) make different regulations for different classes of motor vehicles, persons, motor dealers, purchasers, lessees, consignors and transactions,

(b) delegate a matter to a person, and

(c) confer a discretion on a person.

 
Sale of Goods Act

21 Section 1 of the Sale of Goods Act, R.S.B.C. 1979, c. 370, is amended by adding the following definitions:

"contract of lease" has the same meaning as "lease";

"lease" means a lease or an agreement to lease where the lessee is acquiring the goods that are being leased primarily for personal, family or household purposes;

"lessee" means a person who leases or agrees to lease goods from a lessor primarily for personal, family or household purposes;

"lessor" means a person who leases or agrees to lease goods to a lessee; .

22 Sections 15 (1) and (2) and 16 to 20 are amended

(a) by adding "or lease" after "sale" and after "sell" wherever they appear,

(b) by adding "or lessor" after "seller" wherever it appears,

(c) by adding "or lessee" after "buyer" wherever it appears, and

(d) by adding "or lessor's" after "seller's" wherever it appears.

23 Section 15 is amended by adding the following:

(3.1) Where a lessee has accepted goods or part of them, the breach of a condition to be fulfilled by the lessor can only be treated as a breach of warranty, and not as a ground for rejecting the goods and treating the lease as repudiated, unless there is a term of the lease, express or implied, to that effect.

(3.2) Section 39 applies to a determination of whether a lessee has accepted goods or part of them under subsection (3.1) of this section.

24 Section 16 (a) is amended by adding "or the lessee is to take possession of the leased goods" after "when the property is to pass".

25 Section 18 is amended by adding the following:

(b.1) there is an implied condition that the goods will be durable for a reasonable period of time having regard to the use to which they would normally be put and to all the surrounding circumstances of the sale or lease; .

26 Section 20 is amended

(a) by repealing subsection (1) (a) and (b) and substituting the following:

(a) to a purchaser for resale or to a lessee for subletting;

(b) to a purchaser or lessee who intends to use the goods primarily for business purposes; ,

(b) in subsection (2) by striking out "16,", and

(c) by adding the following subsection:

(3) Notwithstanding section 18 (d) or 68, in the case of a retail sale or lease of new or used goods,

(a) any term of a contract of sale or lease, or

(b) any collateral or contemporaneous contract or agreement

that purports to negative or in any way diminish the condition or warranty under section 16 shall,

(c) if a term, be severable from the contract and be void, or

(d) if a collateral or contemporaneous contract or agreement, be void.

27 The following Part is added:

PART 9

BUYER'S LIEN

Interpretation

73 In this Part

"buyer's lien" means a lien arising under section 74;

"payment" includes an obligation incurred by the buyer to a person, other than the seller, to whom the buyer remains liable notwithstanding a default by the seller;

"seller" includes

(a) a successor in interest or title of a seller, and

(b) a trustee;

"trustee" means a person who assumes control of a seller's property by operation of law, under legal process or under the terms of a security agreement and includes a sheriff, a trustee in bankruptcy, a liquidator and a receiver.

Buyer's lien

74 (1) Where in the usual course of a seller's business the seller makes an agreement to sell goods and

(a) the buyer pays all or part of the price,

(b) the goods are unascertained or future goods, and

(c) the buyer is acquiring the goods in good faith for use primarily for personal, family or household purposes,

then the buyer has the lien described in subsection (2).

(2) The lien under subsection (1) is for the amount the buyer has paid towards the purchase price of the goods and is against

(a) all goods

(i) that are in or come into the possession of the seller and are held by the seller for sale,

(ii) that correspond with the description of or with any sample of the goods under the agreement to sell, and

(iii) the property in which has not passed to a different buyer under a different contract of sale, and

(b) any account in a savings institution in which the seller usually deposits the proceeds of sales.

Termination of lien

75 (1) A buyer's lien is discharged when the seller

(a) fulfills the contract of sale by causing property in goods to pass to the buyer in accordance with the contract of sale, or

(b) refunds to the buyer the money that the buyer has paid towards the purchase price of the goods.

(2) Whether a buyer's lien is to be discharged under subsection (1) (a) or under subsection (1) (b) is at the option of the seller, but a discharge of the lien under subsection (1) (b) does not affect any right of action the buyer may have for a breach of the contract of sale.

(3) A buyer's lien ceases to bind goods that are appropriated to a sale made in good faith to a different buyer, whether or not that sale is in the usual course of the seller's business.

Priority

76 (1) For the purposes of subsection (2) "security interest" has the same meaning as in the Personal Property Security Act.

(2) A buyer's lien has priority over other security interests.

Trustee's duty

77 (1) A trustee who assumes control of a seller's property is, with respect to any valid and existing buyer's lien of which the trustee has knowledge, under a duty to ensure that property subject to the lien is dealt with for the benefit of the buyer in accordance with this Part.

(2) A trustee who deals with property that is subject to a buyer's lien is not liable to the buyer if the trustee acts in good faith and without knowledge of the lien.

Proceedings

78 (1) Subject to subsection (3), a person entitled to a buyer's lien on goods may commence a proceeding to enforce the lien in whatever court has monetary jurisdiction and the jurisdiction shall be determined by reference to the amount the buyer has actually paid.

(2) In a proceeding to enforce the lien the court may make one or more of the following orders:

(a) an order declaring that the buyer's lien exists;

(b) an order that goods be seized and sold and the proceeds applied to the discharge of one or more buyers' liens;

(c) an order that goods be seized and delivered to the holder of a buyer's lien to discharge the lien.

(3) No proceeding may be brought under this section to enforce a buyer's lien against goods that are in the possession, custody or control of a trustee.

Several liens

79 (1) Where there are 2 or more buyers' liens over the same property and

(a) the seller fails, or is unable, to discharge the liens, and

(b) on the enforcement of the liens, insufficient money is realized to satisfy the claims of those buyers,

then, subject to subsection (2), the shortfall shall be attributed to the buyers' claims in the proportions that their respective claims bear to the sum of those claims.

(2) The equitable principles respecting the marshalling of claims apply to competing buyers' liens.

Application

80 (1) The provisions of this Part and the regulations made under it apply notwithstanding any waiver or agreement to the contrary.

(2) Nothing in this Part derogates from the rights of a buyer under a contract of sale, including the right of a buyer to

(a) reject goods where the buyer would otherwise be entitled to do so, or

(b) claim damages in respect of defective or deficient goods.

Commencement

28 This Act comes into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Notes

 
Consumer Protection Act

SECTION 1:

(a) deletes a reference to $20 and substitutes an amount to be determined by regulation,

(b) adds a definition of "direct sale",

(c) clarifies that a person who sells by mail or other similar method is not a direct seller,

(d) deletes a reference to $20 and leaves the amount to be determined by regulation,

(e) is consequential to the proposed new Part 1.1 of the Consumer Protection Act that provides for the licensing of direct sellers, and

(f) is self-explanatory.

SECTION 2: is self-explanatory.

SECTION 3:

(a) creates a period of 1 year for cancellation of a direct sales contract if the direct seller is not licensed, and

(b) is self-explanatory.

SECTION 4: provides the following protection to purchasers from direct sellers:

SECTION 5: provides for the licensing of direct sellers.

SECTION 6: provides immunity to the registrar, consequential to the proposed new Part 1.1 of the Consumer Protection Act, and provides that immunity applies to powers exercised under a regulation as well as under the Consumer Protection Act.

SECTION 7: increases fines and makes it an offence to contravene consumer protection and licensing provisions added by this Bill.

SECTION 8: provides regulation making powers that

 
Credit Reporting Act

SECTION 9: is consequential to the amendments to sections 14 to 17 of the Credit Reporting Act.

SECTION 10: requires reporting agencies to develop procedures that are satisfactory to the registrar to ensure accurate and fair reports.

SECTION 11: extends the right to inspect one's credit report to include not just consumers, but also businesses and other persons.

SECTION 12: extends to a business or other person the right to file an explanation with a credit reporting agency.

SECTION 13: extends to a business or other person the right to correct errors.

SECTION 14: allows the registrar, if the registrar has required a change to a report, to require a reporting agency to notify a business or other person of the change.

 
Motor Dealer Act

SECTION 15: provides definitions consequential to the proposed new Part 1.1 of the Motor Dealer Act.

SECTIONS16 and 17: clarify that one of the types of security that can be required of a motor dealer is a letter of credit and provide that the registrar at any time may add to or alter terms, conditions or restrictions of a registration.

SECTION 18: proposes a new Part 1.1 to the Motor Dealer Act to provide for

SECTION 19: provides for an offence consequential to the proposed new section 13.5 (1) of the Motor Dealer Act.

SECTION 20: provides regulation making powers respecting

 
Sale of Goods Act

SECTION 21: defines terms consequential to amendments to sections 15 to 20 of the Sale of Goods Act.

SECTION 22: provides that consumer leasing contracts are covered by the implied conditions and warranties in the Sale of Goods Act.

SECTION 23: provides that consumer leasing contracts are covered by a provision similar to section 15 (3) of the Sale of Goods Act.

SECTION 24: is consequential to the amendments to sections 15 to 20 of the Sale of Goods Act and provides that a consumer lease has an implied condition that a lessor has the right to grant a lease of the goods.

SECTION 25: adds an implied warranty of durability to the other implied conditions and warranties in the Sale of Goods Act.

SECTION 26: provides that

(a) the inability to waive an implied warranty in section 20 (2) of the Sale of Goods Act also applies to the implied warranties in respect of leased goods that are added by the amendments to sections 15 to 20 of the Sale of Goods Act, and

(b) and (c) the implied warranty of title in section 16 of the Sale of Goods Act applies to used as well as new goods.

SECTION 27: adds a new Part that protects buyers who pay a retail seller for consumer goods before the goods are delivered by providing that the buyers have a lien against the goods which ranks in priority to a security interest, and by providing that the lien is not discharged until the seller fulfills the contract or refunds the money.


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