Property Agents and Motor Dealers (Motor Dealing Practice Code of Conduct) Regulation 2001
Property Agents and Motor Dealers (Motor Dealing Practice
Code of Conduct) Regulation 2001
QueenslandPropertyAgentsandMotorDealersAct2000PropertyAgentsandMotorDealers(MotorDealingPracticeCodeofConduct)Regulation2001Current as at 1 December 2009Reprint noteThis is the last
reprint before lapse. Lapsed on 1 December 2014 by 2014Act
No. 22 s 237.
Information about this reprintThis
regulation is reprinted as at 1 December 2009. The reprint shows
the law as amendedby all amendments that commenced on or before
that day (Reprints Act 1992 s 5(c)).The reprint
includes a reference to the law by which each amendment was
made—see listoflegislationandlistofannotationsinendnotes. Alsoseelistoflegislationforanyuncommenced amendments.This
page is specific to this reprint. See previous reprints for
information about earlierchanges made under the Reprints Act
1992. A table of reprints is included in the endnotes.Also
see endnotes for information about—•when
provisions commenced•editorial changes made in earlier
reprints.SpellingThe spelling of
certain words or phrases may be inconsistent in this reprint or
with otherreprints because of changes made in various
editions of the Macquarie Dictionary (forexample, in the
dictionary, ‘lodgement’ has replaced ‘lodgment’). Variations of
spellingwill be updated in the next authorised
reprint.Dates shown on reprintsReprints dated at
last amendmentAllreprintsproducedonorafter1July2002,authorised (that is, hard copy) and
unauthorised (that is, electronic), are dated as at the lastdate
of amendment. Previously reprints were dated as at the date of
publication. If anauthorised reprint is dated earlier than an
unauthorised version published before 1 July2002,itmeansthelegislationwasnotfurtheramendedandthereprintdateisthecommencement of the last amendment.If the
date of an authorised reprint is the same as the date shown for an
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that the unauthorised version was publishedbeforetheauthorisedversion.Also,anyrevisededitionofthepreviouslypublishedunauthorised
version will have the same date as that version.Replacement reprint dateIf the date of an
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other.
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001[s
1]Property Agents and Motor Dealers
(MotorDealing Practice Code of Conduct)
Regulation2001[as amended by all amendments that
commenced on or before 1 December 2009]1Short
titleThisregulationmaybecitedasthePropertyAgentsandMotorDealers(MotorDealingPracticeCodeofConduct)Regulation
2001.2CommencementThis regulation
commences on 1 July 2001.3Code of
conductThe code of conduct in the schedule is the
code of conductabout motor dealing practice prescribed for
the Act, section293.Current as at 1
December 2009Page 3
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001ScheduleScheduleMotor
Dealing Practice Code ofConductsection 3Part
1Preliminary1TitleThiscodeofconductmaybecitedastheMotorDealingPractice Code of Conduct.2Object(1)Theobjectofthiscodeistoincreasetheaccountabilityofmotor dealers for their actions in carrying
on the business of amotor dealer.(2)The
object is achieved by—(a)setting conduct
standards for motor dealers; and(b)establishing principles for fair trading in
motor dealingpractice; and(c)providingforasystemofcomplaintresolutionforcomplaints about motor dealing
practice.3DefinitionsIn this
code—clientmeans—(a)apersonwhoasksamotordealertoselltheperson’sused motor
vehicle on consignment; or(b)aperson,otherthananauctioneeroranothermotordealer,withwhomamotordealerhasenteredintoaconsultancyagreementunderwhichthedealermayPage
4Current as at 1 December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedulenegotiateforthepurchaseorsaleofausedmotorvehicle for the person.customermeans a person, other than a client, with
whom amotor dealer deals for the acquisition,
purchase or sale of aused motor vehicle.motor dealerincludes a motor
salesperson.4Compliance with code(1)This code contains provisions with
which a motor dealer mustcomply.Editor’s
note—Contravention of this code is a ground
for—•starting disciplinary proceedings
under the Act, section 496•obtaining an
injunction under the Act, section 565•seeking an undertaking under the Act,
section 569.(2)Thiscodeoverridesaninstructionorrequestthatdoesnotcomply with the code from a client or, if
the motor dealer is anemployee, from the dealer’s
employer.Part 2General rules of
conduct5Knowledge of Act and codeAmotordealermusthaveareasonableknowledgeandunderstanding of the Act and this
code.6Fiduciary obligationsAmotordealermustcomplywithafiduciaryobligationincurred as a
motor dealer.Current as at 1 December 2009Page
5
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule7Honesty, fairness and professionalism(1)A motor dealer must act honestly,
fairly and professionally inthe conduct of a
motor dealing practice.(2)Without limiting
subsection (1), a motor dealer must treat acustomer
honestly and fairly.8Skill, care and diligence(1)Amotordealermustexercisereasonableskill,careanddiligence in the conduct of a motor dealing
practice.(2)A motor dealer must complete all work
for a client as soon asis reasonably practicable.9Motor dealer to act in client’s best
interestsA motor dealer must act in a client’s best
interests unless it isunlawful or unreasonable to do
so.10Motor dealer to act in accordance with
client’sinstructions(1)Amotordealermustactinaccordancewithaclient’sinstructionsunlessitiscontrarytothiscodeorotherwiseunlawful to do
so.(2)However, the price at which a motor
dealer offers to sell orbuyausedmotorvehiclemustbeinaccordancewiththeclient’s written instructions.11Motor dealer to keep client informed
of developments(1)A motor dealer acting for a client for
the sale of a used motorvehiclemustkeeptheclientinformedofanysignificantdevelopment or
issue relating to the motor vehicle.Example of a
thing a motor dealer must keep a client informed of—The repairs needed to bring the
client’s vehicle to a saleable condition.Page 6Current as at 1 December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule(2)Withoutlimitingsubsection(1),amotordealermustimmediatelycommunicatetotheclienteachexpressionofinterest, whether written or oral, about the
sale of the vehicle.(3)However,subsection(2)doesnotapplyiftheclienthasdirected otherwise in writing.12Motor dealer to ensure employees
comply with Act andcode(1)Amotordealerwhoisaprincipallicenseemusttakereasonable steps to ensure a registered
employee of the dealercomplies with the Act and this code in
relation to the dealer’sbusiness.Example—A motor dealer in whose business the
supervisor to employee ratio is solow that
supervisors can have little knowledge of what staff are doing
orhowtheyareperformingtheirworkmayneedtoemploymoresupervisors.(2)A
motor dealer who is an employed licensee in charge of amotordealer’sbusinessataplaceofbusinessmusttakereasonable steps
to ensure a registered employee at the placecomplies with
the Act and this code in relation to the business.(3)Thissectionappliesonlytothe extentthattheAct,section280(1)doesnotalreadyrequireamotordealertotakethesteps mentioned in the section.13Representations by employeesA
motor dealer must take reasonable steps to ensure that anemployee of the dealer—(a)does
not falsely represent that the employee is the holderof a
licence in relation to motor dealing, or falsely use atitlethatsuggeststheemployeeistheholderofalicence; or(b)whetherlicensedundertheActornot,doesnotrepresentthattheemployeeisthepersonineffectivecontrolofthedealer’sbusiness,oruseatitlethatCurrent as at 1
December 2009Page 7
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedulesuggests the
employee is the person in effective controlof the
business.14Fraudulent or misleading
conductA motor dealer must not engage in conduct
that is fraudulentor misleading in the conduct of a motor
dealing practice.Example—Representing a loan offered to a client is
interest free when the interestcharged has been
factored into the purchase price of the motor vehicle.Editor’s note—Engaging in conduct of this nature or other
unlawful conduct could leadtoaprosecutionundertheAct, forexampleseesection576(Falserepresentations
about mileage).15High pressure tactics, harassment or
unconscionableconductAmotordealermustnotengageinhighpressuretactics,harassmentorunconscionableconductintheconductofamotor dealing
practice.Examples of unconscionable conduct—1Threatening a
customer with legal action when the customer has alegal
right to terminate or rescind a contract.2Wrongly suggesting to a customer that the
customer can be sued forthe whole purchase price if the
customer does not proceed with acontract.Examples of harassment—1Using, or getting a third party to
use, threatening or intimidatinglanguage or
behaviour towards a client or customer.2Engaginginconductthatwouldmakeanordinarypersonfeelunwillinglycompelledtocomplywithanagent’srequestordemand.16Claiming membership or endorsementA
motor dealer must not falsely claim to be a member of, orendorsed by, an organisation or
association.Page 8Current as at 1
December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule17Conflict of duty or interest(1)Amotordealermustnotacceptanappointmenttoact,orcontinue to act, as a motor dealer for a
client if doing so willplace the dealer’s duty or interests
in conflict with the client’sinterests.(2)However,subsection(1)doesnotapplyifthemotordealerdiscloses the conflict to the client in
writing before acceptingthe appointment or continuing to
act.18Soliciting through false or misleading
advertisements orcommunicationsA motor dealer
must not solicit clients or customers throughadvertisements
or other communications the dealer knows arefalse or
misleading.Example—Knowinglygivingaprospectiveclientanoverestimateofthelikelyselling price of
a motor vehicle.Part 3Rules specific to
motor dealersDivision 1General19Finding out or verifying vehicle’s
ownershipBefore a motor dealer offers a used motor
vehicle for sale, thedealermusttakereasonablestepstofindoutorverifythevehicle’s ownership.20Finding out or verifying material
facts(1)A motor dealer appointed for the sale
or purchase of a usedmotor vehicle must take reasonable
steps to find out or verifythe facts
material to the sale or purchase that a prudent motorCurrent as at 1 December 2009Page
9
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Scheduledealer would
have found out or verified in order to avoid error,omission, exaggeration or
misrepresentation.(2)Thestepsmustbetakenbeforethemotordealeroffersthevehicle for sale and afterwards as the
occasion arises.21False or misleading
representations(1)Amotordealermustnotmakeafalseormisleadingrepresentationaboutrelevantinformationtoaclientorcustomer of the dealer.(2)In
this section—false or misleading, in relation to
a representation, includesthe wilful concealment of a material
fact in the representation.relevant
informationmeans any of the following—(a)thecondition,descriptionorfitnessforpurposeofaused motor vehicle;(b)thecondition,descriptionorfitnessforpurposeofaccessories or equipment for a used motor
vehicle;(c)thenatureofadocumenttobesignedbyaclientorcustomer of the motor dealer;(d)the terms of a contract for the
purchase of a used motorvehicle;(e)the
rights and obligations of a client or customer, if theclient or customer is a party to a contract
with the motordealer;(f)the
nature and cost of a warranty sold or provided with aused
motor vehicle;(g)thetermsofawarrantysoldorprovidedwithausedmotor
vehicle;(h)the terms of a deposit or option to
purchase a used motorvehicle;(i)the
availability of finance or insurance for the purchaseof a
used motor vehicle;Page 10Current as at 1
December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule(j)the
terms of finance or insurance for the purchase of aused
motor vehicle.22Applications for finance or
insuranceA motor dealer must not knowingly record or
help a customerto record false, misleading or incomplete
information on anapplication for—(a)finance to purchase a used motor vehicle;
or(b)motor vehicle insurance.23Referral to service provider(1)A motor dealer who refers a client or
customer to a serviceprovider must not falsely represent to
the client or customerthat the service provider is
independent of the dealer.(2)Forsubsection(1),aserviceproviderisindependentofamotor dealer if—(a)the
dealer receives no rebate, discount, commission orbenefit for referring a client or customer
to the serviceprovider; and(b)thedealerdoesnothaveapersonalorcommercialrelationship
with the service provider.Examples of relationships for
paragraph (b)—1A family
relationship.2Abusinessrelationshipotherthanacasualbusinessrelationship.3A
fiduciary relationship.4A relationship in
which 1 person is accustomed, or obliged,toactinaccordancewiththedirections,instructionsorwishes of the other person.(3)If the service provider is not
independent of the motor dealer,the dealer must
disclose to the client or customer—(a)thenatureofanyrelationship,whetherpersonalorcommercial,thedealerhaswiththeserviceprovider;andCurrent as at 1 December 2009Page
11
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule(b)thenatureandvalueofanyrebate,discount,commissionorbenefitthedealermayreceive,orexpects to receive, by referring the client
or customer tothe service provider.(4)In
this section—clientincludes a
prospective client.serviceprovidermeansaproviderofprofessionalservicesassociated with the purchase or sale of a
used motor vehicle.24Contract to purchase used motor
vehicle from someoneelse(1)This
section applies if a motor dealer is aware that a customerhas
signed a contract with someone else for the purchase of aused
motor vehicle.(2)The motor dealer must not sign a
contract with the customerforthepurchaseofausedmotorvehiclefromthedealerunless the
dealer has—(a)advised the customer in writing of the
consequences ofsigning another contract; and(b)obtained a written acknowledgement
from the customerthat the customer understands the
consequences.Example of consequences of signing another
contract—A customer will lose the
non-refundable deposit if, at the end of thecooling-off
period, the customer does not go ahead with the contract topurchase the vehicle.25Written record of undertaking(1)Thissectionappliesifamotordealergivesaclientorcustomer an undertaking in relation to a
used motor vehicle.(2)The motor dealer must, as soon as
practicable after giving theundertaking,
give the client or customer a written record of theundertaking.Example of a
written record of an undertaking—An
undertaking recorded on a sales contract or invoice.Page
12Current as at 1 December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule(3)The
motor dealer must comply with the undertaking unless itis
unlawful to do so.Division 2Consignment
selling26Application of div 2Thisdivisionappliesonlytoamotordealerwhohasbeenaskedbyaclienttoselltheclient’susedmotorvehicleonconsignment.27Motor
dealer to open trust accountBeforeamotordealerstartssellingusedmotorvehiclesonconsignment, the dealer must open a trust
account into whichto deposit proceeds of sales on behalf of
the dealer’s clients.28InsuranceBefore acting for a client, a motor dealer
must—(a)tell the client that the client is
responsible for insuringthe used motor vehicle against loss or
damage; and(b)obtaintheclient’swrittenacknowledgementoftheadvice.29Motor
dealer’s obligations in relation to client’s motorvehicleA motor dealer
acting for a client must ensure that—(a)theclient’smotorvehicleisproperlysecuredandreasonably protected from damage;
and(b)nopartsareremovedfromthevehiclewithouttheclient’s written authorisation.Current as at 1 December 2009Page
13
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule30Duty
to obtain maximum sale priceA motor dealer
acting for a client must obtain the maximumsale price for
the client’s used motor vehicle.31Notice to customerBefore selling a
used motor vehicle on consignment, a motordealer must give
a customer of the dealer written notice—(a)that
the motor vehicle is being sold on consignment; and(b)that there is no statutory warranty or
cooling-off periodunder the Act in relation to the motor
vehicle.Division 3Use and
disclosure of information32Confidentiality(1)Amotordealermustnotuseordiscloseconfidentialinformation
about a client or customer obtained while actingfor
the client or dealing with the customer.(2)Subsection (1) does not apply to
information—(a)used or disclosed for a purpose
authorised in writing bythe client or customer; or(b)that must be lawfully used or
disclosed.Example of when information must be lawfully
used or disclosed—To comply with legal process.(3)In this section—clientincludes a former client.customerincludes a
former customer.motor dealerincludes a
former motor dealer.Page 14Current as at 1
December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001SchedulePart 4Publicising code33Publicity about code(1)A
motor dealer who is a principal licensee must prominentlydisplay a notice of the existence and
availability of this codein the public area of each of the
dealer’s offices.(2)If asked by a client or customer, a
motor dealer must promptlytell the client or customer where to
obtain a copy of this code.Editor’s
note—ThiscodemaybepurchasedfromGoprintoraccessedat<www.legislation.qld.gov.au>.Part
5Complaint resolution34Principal licensee to have complaint
handling procedure(1)Thissectionappliestoamotordealerwhoisaprincipallicensee.(2)The motor dealer must have a
reasonable, simple and easy touse procedure in
place for handling complaints by clients orcustomers of the
dealer.(3)The motor dealer must have information
readily available toinform clients and customers of the
procedure.(4)The information must include the
following details—(a)how a complaint is to be made;(b)when a complaint must be in writing
and when it may beoral;(c)the
person who is to handle the complaint.(5)The
motor dealer must consider every complaint made by aclient or customer and—(a)accept the complaint, whether wholly or
partly; orCurrent as at 1 December 2009Page
15
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule(b)reject the complaint in writing.(6)If the motor dealer accepts the
complaint, whether wholly orpartly, and
restitution is required to be made to the client orcustomer (thecomplainant), the dealer
must arrange for therestitution to be made—(a)within 7 days after accepting the
complaint; or(b)if the dealer and the complainant
agree, by a later day.(7)If the motor
dealer rejects the complaint, whether wholly orpartly, the
dealer must give the complainant written reasonsfor
the rejection.(8)Thenoticemustbeaccompaniedbyaseparatedocumentcontaining—(a)a
warning that there may be time restrictions on makingaclaim,includingaclaimagainstthefundundertheAct;(b)astatementthatthecomplainantshouldconsiderwhether or not
to seek legal advice; and(c)a statement that
the complainant—(i)may seek mediation through the dispute
resolutionproceduresoftheDepartmentofJusticeandAttorney-General; or(ii)may,dependingonthenatureandamountofthecomplaint, commence an action against
the motordealer in QCAT or a court; or(iii)may contact the
Office of Fair Trading which maycommence
disciplinary proceedings, or take otheraction, under
the Act.(9)Thedocumentmayalsoincludedetailsaboutotherwaysavailable to the complainant to resolve the
complaint.Example of another way available to resolve
the complaint—Anindustrydisputeresolutionschememaybeavailabletothecomplainantbecauseofthemotordealer’smembershipofanorganisation.Page 16Current as at 1 December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Schedule(10)However,thedocumentmuststatethatparticipationinanindustry dispute resolution scheme is
voluntary.35Client to be notified of complaint and
outcome(1)This section applies if a complaint is
made by a motor dealer’scustomer and the complaint is dealt
with under the complainthandling procedure mentioned in
section 34.(2)The motor dealer must notify the
relevant client of—(a)the complaint made by the customer;
and(b)the final outcome of the
complaint.36Compliance with complaint handling
procedure(1)Amotordealermustcomplywiththecomplainthandlingprocedure mentioned in section 34 and the
final outcome ofthe complaint.Examples of
complying with final outcome of complaint—1If a motor dealer accepts a complaint
that requires a matter to berectified, the
dealer must rectify the matter.2A
motor dealer must comply with an agreement reached throughmediation about the subject matter of the
complaint.3A motor dealer must comply with a
court decision about the subjectmatter of the
complaint.(2)This section applies subject to any
stay granted by a court.Current as at 1 December 2009Page
17
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001EndnotesEndnotes1Index to endnotesPage2Date to which amendments incorporated
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.183Key . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . .194Table of reprints
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .195List
of legislation . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .196List of annotations . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .202Date to which amendments
incorporatedThis is the reprint date mentioned in the
Reprints Act 1992, section 5(c). Accordingly, thisreprint includes all amendments that
commenced operation on or before 1 December2009. Future
amendments of the Property Agents and Motor Dealers (Motor
DealingPractice Code of Conduct) Regulation 2001 may
be made in accordance with this reprintunder the Reprints
Act 1992, section 49.Page 18Current as at 1
December 2009
Property Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct) Regulation2001Endnotes3KeyKey to abbreviations in list of
legislation and annotationsKeyAIAamdamdtchdefdivexpgazhdginslapnotfdnumo in comorigpparaprecpresprevExplanation=Acts
Interpretation Act 1954=amended=amendment=chapter=definition=division=expires/expired=gazette=heading=inserted=lapsed=notified=numbered=order in council=omitted=original=page=paragraph=preceding=present=previousKey(prev)procprovptpubdR[X]RArelocrenumrep(retro)rvsschsdivSIASIRSLsubunnumExplanation=previously=proclamation=provision=part=published=Reprint No. [X]=Reprints Act 1992=relocated=renumbered=repealed=retrospectively=revised edition=section=schedule=subdivision=Statutory Instruments Act 1992=Statutory Instruments Regulation
2002=subordinate legislation=substituted=unnumbered4Table of reprintsReprints are
issued for both future and past effective dates.For
the most up-to-date tableof reprints, see the reprint with the
latest effective date.Ifareprintnumberincludesaletterofthealphabet,thereprintwasreleasedinunauthorised, electronic form only.ReprintNo.11AAmendments
tonone2001 SL No. 120Effective1
July 20011 August 2001Reprint
date6 July 20017 September
2001ReprintNo.1BAmendments included2009
Act No. 24Effective1 December
2009Notes5List
of legislationProperty Agents and Motor Dealers (Motor
Dealing Practice Code of Conduct)Regulation 2001
SL No. 99made by the Governor in Council on 28 June
2001notfd gaz 29 June 2001 pp 822–5Current as at 1 December 2009Page
19