Car dealer may sue institute
The Motor Vehicle Dealers’ Institute may face legal action after unsuccess fully calling for the removal or suspension of a Christchurch car dealer’s licence. The institute’s case against Phillip Mills, Ltd, was rejected by the Motor Vehicle Dealers’ Licencing Board last week.
Mr Mills said yesterday that the case had cost
him about $BOOO, and had gone on for 2Va years. He was now considering legal action against the institute.
The institute claimed that the company was guilty of not properly supervising business arrangements in accordance with the Motor Vehicle Dealers’ Act. The case involved another company, Alan Boyd Motors, Ltd, which was
working in partnership with Phillip Mills, Ltd. The Alan Boyd Motors, Ltd, licence has been cancelled and the company has gone into receivership. The institute argued that a cheque given to a client of Alan Boyd Motors had not been honoured, and the institute said that Phillip Mills, Ltd, should have honoured it on behalf of its partner.
However, the board said that Mr Mills was not obliged to personally manage, supervise or control the dealings of the partner company. The cheque which had been dishonoured was the cheque of Alan Boyd Motors, Ltd, therefore it was that company which had breached the act and not Phillip Mills, Ltd, the board said.
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Press, 26 June 1984, Page 7
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220Car dealer may sue institute Press, 26 June 1984, Page 7
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