Standing Senate Committee on Transport and Communications

Report of the committee

Thursday, November 24, 2016

The Standing Senate Committee on Transport and Communications has the honour to present its

FIFTH REPORT

Your committee, to which was referred Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, has, in obedience to the order of reference of October 25, 2016, examined the said bill and now reports the same with the following amendment:

1. Clause 9, page 5: Add after line 26 the following:

10.52 (1) In this section, dealer  means a person who is engaged in the business of purchasing vehicles or equipment directly from a company and reselling it to another person who purchases it for a purpose other than resale.

(2) If, on the date on which an order is made under section 10.5 or 10.61, a dealer still owns a vehicle or equipment that it purchased from a company that is the subject of the order, the company shall, without delay, either

(a) provide the dealer, at the company’s expense, with the materials, parts or components required to correct a defect or non-compliance in the vehicle or equipment, in accordance with any terms and conditions specified in the order; or

(b)  repurchase the vehicle or equipment from the dealer at the price paid by the dealer, plus transportation costs, and compensate the dealer with an amount equivalent to at least one percent per month of the price paid by the dealer, prorated from the date on which the order was made to the date of purchase.

(3) If the company provides materials, parts or components in accordance with paragraph (2)(a),

(a)  the dealer shall install the materials, parts or components in the vehicle or equipment without delay after it has received them; and

(b)  the company shall compensate the dealer for the cost of installation and with an amount equivalent to at least one percent per month of the price paid by the dealer, prorated from the date on which the order was made to the date the dealer has received the materials, parts or components.”

Respectfully submitted,

MICHAEL L. MACDONALD

Deputy Chair