As the reader is aware, Chapter 2 ethical and legal issues of our book Twelve Decades of Automotive Advertising contains a treasure hoard of information on legal and ethical issues. Understanding legal and ethical obligations is critical when trading in rare and collectible vehicles. The consequences of failing to understand your obligations are severe and expose you to civil liability, administrative penalties, and can even lead to criminal sanctions.
A host of ethical dilemmas can come up when buying and selling collectible vehicles. Some of the most common ethical issues for collectible car dealers relate to provenance and maintaining the trust of buyers. Failing to represent your inventory accurately can result in severe reputational and legal consequences.
When it comes to uncommon vehicles, all buyers want to know is whether the vehicle has been represented truthfully. Any hint that a dealer may not represent their vehicles truthfully is likely to cost them dearly – business wise and otherwise.
Your reputation will be tested every single time you have a conversation with a prospective buyer. Transparency is paramount in maintaining the trust of your clientele.
Provenance and legal ownership are important in collectible car sales. Any dispute over ownership will likely result in serious delays before the buyer can finally collect their vehicle. In many cases, the courts will need to be involved, and it can take years before everyone finally receives the resolution they expect.
Provenance, the record of authentic ownership, is key to the value of a collectible vehicle. It’s essential to research every aspect of the vehicle before you incorporate it into your inventory. Any discrepancies over provenance can make the vehicle worthless.
Canadian law is quite particular when it comes to advertising vehicles. All advertisements must comply with consumer protection and competition law obligations. When it comes to advertisements, there is no doubt that what you say about a vehicle can lead to problems for both ethical and legal reasons.
Understanding your obligations under the law is critical for any dealer. Whether it’s consumer protection law or competing law, it’s essential to be aware of your legal responsibilities. Otherwise, you could end up paying hefty fines or losing clients.
When disputes arise out of how collectible vehicles were represented, litigation will ensue. The outcome of these cases can be shocking, and ultimately leads to one person walking away from the deal feeling cheated. Many cases actually mirror each other, as we discover.
As with all things collectible, rarity is relative. The same goes for dubious claims made about collectible vehicles, whether it’s around exclusivity or quality. Dealers should never use unethical tactics in their negotiations and sales practices. Not only will it damage your reputation, but you could also be held accountable on strict liability grounds.
Disclaimer! As galling as it may sound, Buyers of collectible vehicles should exercise an appropriate level of due diligence. It’s not uncommon for a Buyer to walk away empty handed, after paying top dollar. It’s essential to research a vehicle’s history to ensure that all information you encounter is accurate and truthful.
Buyers privacy is another issue that comes up often. In many cases, the Collectible Vehicle is still registered to a prior owner. It is essential that you make the requisite disclosures to fulfill your obligations under the law and to maintain the buyer’s trust.
For more information on legal considerations in vehicle sales, you can visit Wikipedia on Consumer Protection.