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Motor Vehicle Sales Act 2003
Motor vehicle trading
Key provisions
Banned persons
12: Banned persons not to be employed or engaged in business of motor vehicle trading

Part 1:
Preliminary provisions

General

2Commencement 3Purpose 4Overview 5Act binds the Crown 5ATransitional, savings, and related provisions

Interpretation

General

6Interpretation

Meaning of motor vehicle trader

7Meaning of motor vehicle trader 8Who is treated as motor vehicle trader 9Who is not treated as motor vehicle trader

Part 2:
Motor vehicle trading

Key provisions

Other requirements

16Written acknowledgment that buyer has received copy of notice must be obtained 17Requirements of section 16 may form part of contract for sale 18No contracting out of requirements of section 16 19Duty of motor vehicle trader with respect to money received from sales on consignment of used motor vehicles 20Motor vehicle trader must provide account 21Motor vehicle trader must keep record of contracts for sale 22Duty to produce certificate of registration on demand

Qualifications of motor vehicle traders

Registration

23Who may register 24Persons disqualified from registration: individuals 25Persons disqualified from registration: companies

Exemptions from registration

26Crown exempt from requirement to register 27Power to exempt persons from requirement to register by Order in Council 28Exemption may be recommended by Minister on application from any person 29Matters Minister must take into account in recommending exemption 30Process for making recommendation for exemption

Part 3:
Registration of motor vehicle traders

Procedure for registration of motor vehicle traders

Application

31Application: general 32Content of application

Acceptance or refusal of application

33Registrar may accept or refuse application for registration 34Acceptance of application 35Refusal of application

Registration

36Registration 37Duration of registration 38Registration may not be transferred

Renewal of registration

39Renewal of registration

Obligation to notify Registrar of changes

40Obligation to notify Registrar of change in circumstances 40AObligation to notify Registrar if new person concerned in management of company

Removal from register

General

41Removal from register

Cancellation of registration

42When Registrar must cancel registration 43Process for cancellation 44Effective date of cancellation 45Name must be entered immediately on list of banned persons in certain cases

Surrender of registration

46Voluntary surrender 47Mandatory surrender 48Registrar must record surrender on register 49Effective date of surrender

Expiry of registration

50Expiry of registration 51Effective date of expiry

Miscellaneous provisions

Register of motor vehicle traders

52Register of motor vehicle traders 53Purpose of register 54Contents of register 55Alterations to register

Searches of register

56Search of register 57Search criteria 58Search purposes 59When search constitutes interference with privacy of individual

Registrar of Motor Vehicle Traders

60Appointment of Registrar of Motor Vehicle Traders 61Functions of Registrar 62Power of Registrar to delegate 63Certificate of Registrar is sufficient evidence

Appeals against decisions of Registrar

64Right of appeal 65District Court may make interim order pending determination of appeal 66Duties of Registrar if interim order made 67Determination of appeal

Part 4:
Enforcement

Banning

Ban imposed by Act

68Persons banned from participating in business of motor vehicle trading

Ban ordered by court

69Power to ban certain persons from participating in business of motor vehicle trading 70Notice of hearing 71District Court may order payment of costs 72Appeals to High Court

List of banned persons

73List of banned persons to be kept by Registrar 74Purpose of list 75Contents of list 76Alterations to list 77Procedure for recording names of banned persons on list

Searches of list

78Search of list 79Search criteria 80Search purposes 81When search constitutes interference with privacy of individual

Motor Vehicle Disputes Tribunals

Constitution

82Motor Vehicle Disputes Tribunals

Adjudicators

83Appointment of adjudicators 84Term of office of adjudicators 85Vacation of office 85AAppointment of temporary acting adjudicator 86Remuneration and allowances of adjudicators 87Adjudicator to submit annual report

Panel

88Panel of persons who may be appointed as assessors

Jurisdiction

89Jurisdiction of Disputes Tribunal 90Limits on jurisdiction of Disputes Tribunals 91Disputes Tribunal's jurisdiction not excluded 92Jurisdictions of other courts not limited 93Transfer of proceedings

Notice of decisions

94Decisions to be publicly available

Offences

Offences relating to requirement to be registered

95Offence to carry on business of motor vehicle trading or to hold out to be motor vehicle trader unless registered

Offences relating to banned persons

96Offence for banned person to participate in business of motor vehicle trading 97Offence to contravene conditions imposed on banned person by court 98Offence to employ or engage banned persons

Offence relating to tampering with odometers

99Offence to tamper with odometers 100Evidence in prosecutions for offence of tampering with odometers

Offences relating to disclosure requirements

101Failure to display particulars about used motor vehicle offence under Fair Trading Act 1986 102Failure by car market operator to comply with section 14(2) an offence

Offences relating to other requirements for motor vehicle trading

103Offence to fail to pay money to principal 104Offence to fail to provide account 105Offence to falsify record of contracts for sale 106Duty to produce certificate of registration

Offences relating to registration and notification to Registrar

107Offence of providing false declarations, etc 108Offence to fail to notify change in circumstances 108AOffence to fail to notify Registrar when new person concerned in management of company

Offences relating to inspection and search

109Offence to obstruct inspection 110Offence to obstruct search

Offences relating to Disputes Tribunals

110AOffence in relation to suppression orders 110BContempt of Tribunal

Proceedings for offences generally

111Proceedings for offences generally

Proceedings for infringement offences

112Proceedings for infringement offences 113Issue of infringement notices 114Form of infringement notices 115Payment of infringement fees

Penalties

116Penalty for infringement offences 116APenalties for offences relating to Disputes Tribunals 117Penalties for offences under sections 98, 103, and 104 118Penalties for other offences 119Power of District Court to impose additional penalty in certain cases

Information-gathering powers

Information-matching provisions

120Purpose of disclosure of Customs' information 121Customs must supply Customs' information to Registrar 122Purpose of disclosure of information by Ministry of Transport 123Registrar of Motor Vehicles must supply vehicle registration information to Registrar

Inspection

124Purpose of inspection by Registrar 125Inspection powers 126Conditions of authorisation 127Registrar's entry to premises restricted 128Disclosure of information from inspection 129Restriction on disclosure of information from inspection

Search warrants

130Issue of warrant 131Powers conferred by warrant 132Form and content of search warrant 133Warrant must be produced 134Other duties of person who executes warrant 135When alternative to list of seized documents may be provided 136Matters that must be stated in list of documents 137Duty to assist 138Power to inspect and take copies of documents, etc, obtained under warrant 139Disposal of things seized 140Court order for disposal of things seized to be suspended on conviction

Part 5:
Miscellaneous provisions

Exemption for car auctioneers from registration requirement under Auctioneers Act 2013

141Exemption for car auctioneers from registration requirement under Auctioneers Act 2013

Service of notices

142Service of notices

Levy regulations

143Regulations may impose levy

Regulations

144Regulations

Amendments and repeal

145Amendments to other enactments 146Repeal

No compensation for loss of office

147No compensation for loss of office

Transitional provisions for existing licence applications

148Existing licence applications must be treated as applications for registration under this Act in certain cases 149What happens if applicant does not meet requirements of section 148(2)150Registrar's requirements for processing existing licence applications 151Payment of prescribed application fee under former Act sufficient for purpose of processing existing licence application

Transitional provisions for registration

152Certain persons to be treated as registered on commencement of Act 153When registration under section 152 ceases

Transitional provisions for Board

154Continuation of Board 155Board must deliver certain records to Registrar

Transitional provisions for disciplinary proceedings under former Act

156Transitional provisions for disciplinary proceedings under former Act

Transitional provisions for licensees' obligations

157Obligations of licensees

Transitional provisions for Fund

158Purpose of section 159 159Membership of Institute to continue despite repeal of former Act 160Claims against Fund 161Registrar must cancel registration for non-payment of contribution to Fund 162Winding up of Fund

Review of Act

163Review of operation of Act

Schedule 1AA:
Transitional, savings, and related provisions

Schedule 1:
Procedure of Disputes Tribunals

Schedule 2:
Enactments amended

Motor Vehicle Sales Act 2003

Motor vehicle trading - Key provisions - Banned persons

12: Banned persons not to be employed or engaged in business of motor vehicle trading

You could also call this:

"Don't employ banned people in motor vehicle trading jobs"

Illustration for Motor Vehicle Sales Act 2003

You cannot employ a banned person in a job that involves motor vehicle trading. A banned person is not allowed to work in the motor vehicle trading business. You must not let a banned person help with your motor vehicle trading business.

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This page was last updated on 9 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM188550.

Topics:

Business > Industry rulesWork and jobs > Worker rights

11: Persons banned from participating in business of motor vehicle trading, or

"Who Can't Sell Cars"

13: Tampering with odometers prohibited, or

"Don't touch or change a car's odometer, it's against the law."

Part 2Motor vehicle trading
Key provisions: Banned persons

12Banned persons not to be employed or engaged in business of motor vehicle trading

A person must not employ or engage a banned person in any capacity that involves participation in the business of motor vehicle trading.

Motor Vehicle Sales Act 2003

Motor vehicle trading - Key provisions - Banned persons

12: Banned persons not to be employed or engaged in business of motor vehicle trading

"Don't employ banned people in motor vehicle trading jobs"

Part 2Motor vehicle tradingKey provisions: Banned persons

12Banned persons not to be employed or engaged in business of motor vehicle trading

Part 2Motor vehicle trading
Key provisions: Banned persons