SEIZED MOTOR CAR.

Auckland Star, Volume LXI, Issue 220, 17 September 1930, Page 9

SEIZED MOTOR CAR.

CASE ARGUED AT HAMILTON. OPERATIONS OF FINANCE CORPORATION. AMERICAN UNDERTAKING. (By Telegraph.—-Own. Correspondent.) :. s " , HAMILTON, this day. The status of General Motors' Acceptance Corporation gave rise to interesting argument before *Mr. Justice Smith, in the Supreme Court to-day in a case which James Leonard O'Reilly, painter, of Taumarunui (Mr. J, A. Gordon) sought to recover from the defendant corporation (Mr. H. F. O'Leary) £250, the value of a car, which by the corporation, with £100 damages. Evidence in the case was heard yesterday. I£ was then stated that O'Reilly bought a car from Bishara Brothers, Taumarunui, for £250 and that he had paid £83 when the car was : seized- by the defendant corporation, -which claimed to be the'.owner of the vehicle because of the hire purchase agreement.'. >• During Mr. address his Honor; asked if. the corporation had a memorandum lor , any other authority under which it.acted. -.. . , Mr. O'Leary-said the'-corporation was constituted un;der the banking section of th& American."company law. It was a foreign company and there was no one in New. Zealand who could give proof of the corporation's status. He pointed out, however, , ' that as' the corporation was the defendant in the action before ] the Court it was not competent for anyone ,to challenge its status. If the corporation were the plaintiff the position would be different. ■;■', Meaning of "Acceptance.". The word "acceptance" appearing in the title of the company was the subject of a good deal-, of discussion, but counsel said the word simply meant that, the corporation was open to accept proposals for. the purchase of cars,; provided by General Motors. (N.Z.), : Ltd. It was true, he added, that the corporation traded in motor cars , wherever a branch of ■ General Motors was.;..; lished. The subsidiary acceptance- corporation was set up to buy vehicles and finance purchasers. ' -• • '<■'■■■ . His Honor: ,It is .a peculiar title, "acceptance corporation," for a Company trading in, chattels"^ Mr. O'Leary said .the? company retained the same name throughout the world. The name was given to the New Zealand company, and they liad to retain it. ~ His Honor: If the General Motors Acceptance Corporation .are owners of the cars, as claimed, why'have they not registered the 20,000 cars they say they have owned? "If their contention is correct it might leave them , open to penalties inconceivable. Mr. ' O'Leary admitted he- had not given close attention to this phase of the case. If the company were liable for- registration, it would also bo liable for penalties attaching- to non-registra-tion.', ' • ■. •' '■■ : His Honor:; Probably. £1-per car or more. , : ./■ .. Mr.'O'Leary, thought, the -.advisers- of the company must have considered,, this aspect. ' .'.."■■'■, . '•■' -*■ ..' '\\ Law ot New Zealand. His Honor:,/ Assuming this company knows'the law of New-."Zealand and the Statute requirements, if it/does not register as owner of these vehicles, am I to assume that a company of this size is flouting the ,laWj or am Ito assume it intends to observe the lawy and if it is merely a finance, company > and trading as such?', "' , , .', ' i "Mr. O'Leary: .The question is whether importers are required-to'register iinder the Motor, Vehicles Act. v >-/ ■ His Honor: It is .the .essence ofvyour case that you biiy' these cars"*,:from .General Motors. . \ ''■ )! Mr.,. Gordon contended that' the G.M.A.C, existed for the? purpose riot merely of helping the G.M.N.Z. to dispose of its product but tb make .money out, of the ; credit ; system which he claimed it conducted.,. The corporation wassail American * company and was financed by, , American money.- The American investors "doubtless considered this a safe, way of getting from 15 to 20 per cent'on their investments. Question of Finance. His 4 Honor asked- a question relative: to the meaning of the word "sell" and , the; word, "dispose." If a man was a ■dealer in chattels lie was not a dealer in finance. '■'_■' deferring again' to the■ liability of the company for. thea-egistration of vehicles, Mr. O'Leary said the owners were only liable to register these- vehicles when placed oii. the road: Apparently at the worst the company might bo liable in respect to second-hand cars such as the ; one in question. . '.'■'.', , ';■ His Honor reserved his decision.