Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

High Court Tells Daewoo It Breached The Law

High Court Tells Daewoo It Fundamentally Breached The Law

In a decision released earlier this week, Justice Wild of the High Court in Wellington stated that Daewoo `fundamentally breached the licensing regime in the [Motor Vehicle Dealers] Act, and the detailed requirements applying to it.' Justice Wild has referred the matter back to the Motor Vehicle Dealers Licensing Board.

Daewoo's lawyers argued that the Board erred in finding Daewoo guilty of misconduct. Justice Wild disagreed saying that the Motor Vehicle Dealers Act `achieves its purpose of protecting the interests of consumers by requiring every person carrying on business as a motor vehicle dealer to be licensed under the Act.' In this regard the judge believed that the Motor Vehicle Dealers Institute (MVDI) were right to bring the Daewoo matter before the Board.

`The issues of this case became very blurred. Like Daewoo, the media and the general public MVDI felt that the law was outdated. However, regardless of whether the law is right or not, MVDI has a statutory function and therefore must apply the law. After all, the law is the law' says MVDI Executive Director Steve Downes.

Justice Wild agreed, saying, `Daewoo's two senior managers, Messrs Vidak and Horn were experienced and well aware of the requirements of the Act, and formulated and then embarked upon Daewoo Direct knowing all along that it did not comply with the Act. Daewoo was carrying on unlicensed dealing around New Zealand outside Auckland.'

The matter has been referred back to the Board as the judge believes the initial decision to cancel Daewoo's license to be overly harsh. `The Board has a wealth of expertise and experience which the Court lacks and therefore it is inappropriate for the Court to `second guess' the Board's specialist expertise' said Justice Wild.

The High Court proceedings came about as a result of the Motor Vehicle Dealers Licensing Board's (the Board) decision in January this year which cancelled Daewoo's motor vehicle dealers license. Interim relief was granted by the High Court in February which allowed Daewoo to trade in the Auckland area until a substantive hearing.

On 1 July this year the Motor Vehicle Dealers Amendment Act 1999 (the `Daewoo Amendment') was passed. This allows new motor vehicle business to be conducted anywhere in New Zealand, provided the person carrying on the business has at least one licensed place of business in New Zealand. The amendment comes into effect 13 September 1999.

ENDS....

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>