Authority required by dealer for sale of motor vehicle on consignment
172 Authority required by dealer for sale of motor vehicle on consignment
A dealer must not:
(a) sell a motor vehicle, or an interest in a motor vehicle, for or on behalf of another person; or
(b) offer or display a motor vehicle for sale for or on behalf of another person;
unless the dealer is authorised to do so by the owner of the vehicle or interest by writing in the approved form.
Maximum penalty: If the offender is a natural person – 100 penalty units.
If the offender is a body corporate – 500 penalty units.
(2) An authorisation under subsection (1) must be prepared in duplicate, and must:
be signed by the owner and by or on behalf of the dealer; and
bear the date on which it is signed by the owner; and
contain a full statement of the terms of the authorisation; and
sufficiently describe the vehicle; and
(e) state whether or not the vehicle is encumbered, and, if encumbered, to whom and in what respect; and
(f) contain a full statement of the commission or other remuneration to which the dealer is or is to be entitled.
(3) A dealer who is given an authorisation under subsection (1) must:
(a) return one copy to the owner after it has been signed by or on behalf of the dealer; and
(b) where the dealer has effected a sale in reliance on the authorisation, retain the other copy for 3 years after the date of the sale.
Maximum penalty: If the offender is a natural person – 100 penalty units.
If the offender is a body corporate – 500 penalty units.
(4) An authorisation under subsection (1) may be varied only by agreement of the parties in writing.
(5) An authorisation under subsection (1) ceases to have effect on the expiry of 90 days beginning on the day after that on which it is signed by the owner, or at such earlier time as the parties may have agreed in writing.
(6) A dealer is not entitled to any commission or other remuneration in respect of the sale of a motor vehicle, or an interest in a motor vehicle, effected by the dealer for or on behalf of another person unless:
(a) the sale is effected in accordance with an authorisation complying with this section; and
the dealer has complied with subsection (3)(a).
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