The manual covers the liability of car dealers in the management of their trust accounts. The agreement should specify what the billing or net return will be to the person handing over the vehicle (owner). When entering into a supply contract with a member of the public, all contracts must be written and all the following terms and conditions, as required by the 1974 regulations of the (sales) car dealers. The Motor Trade Association of WA`s standardized shipping contract meets these requirements. As a general rule, licenses are imposed on all merchants to prevent mail order sales. To remove this condition of a licence, the Commissioner must ensure that the licensee still has sufficient financial resources. The shipping rate is regulated by the law on car dealers, the dealer is required to use standard conditions for their delivery contracts – these are legal documents. Merchants are also required by law to create deposit accounts and control how these accounts are used. 8.1 The dealer is not liable for any losses or damages that may be caused to the vehicle during the shipment, except for: (a) theft, loss or damage that may result from negligence or omission on the part of the distributor or a person acting on behalf of the distributor; or (b) a violation of the Australian Consumer Law (replaced by the Fair Trading Act of 1987) or the Trade Practices Act of 1974, whose liability and remedies cannot be excluded by agreement. A dealer wishing to participate in the sale of shipments must request that this condition be removed from the car dealership license using the Request to Remove Consignment Condition form. Mail-order is the procedure by which a licensed car dealership agrees to sell a vehicle on behalf of a member of the public.
The trader then pays the proceeds of the sale to the former owner minus an agreed commission. Merchants should pay particular attention to the requirements for payments on and from the fiduciary account. The management of trust accounts is dealt with in more detail on the audit dealers page. Under the agreement, a merchant cannot charge the owner for presale repairs unless he has the owner`s prior written consent. The merchant must pay for warranty repairs that cannot be charged to the sender (owner). 1.1 The signing of this contract by the owner and dealer or a person authorized by the dealership means that an agreement has been reached between the owner and the dealer for the sale of the vehicle on the terms set out in this contract. 1.2 No agreement is reached, unless a copy of this contract is provided to the owner at the time of signing by the owner and merchant or by a person authorized by the distributor. 1. Formation 1.1 The signing of this contract by the owner and dealer or a person authorized by the dealership means that an agreement has been reached between the owner and the dealer for the sale of the vehicle on the terms set out in this contract. 1.2 No agreement is reached, unless a copy of this contract is provided to the owner at the time of signing by the owner and merchant or by a person authorized by the distributor.
1.3 The owner grants the dealer the exclusive right to sell the vehicle for the period specified in the contract. 2. Sale price 2.1 The dealer may sell the vehicle at a minimum selling price for the vehicle for more than the agreed amount. The trader has the right to withhold an amount that goes beyond the minimum selling price to the commission. 3. Count 3.1 If the dealer sells the vehicle, the dealer pays all net receipts to the owner within two business days of receiving the payment. 3.2 If payment is made by cheque for all or part of the sale price of the vehicle, the payment is considered received by the dealer only when the cheque has been honoured.