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The Farm Machinery and Equipment Act
This is an unofficial archived version of The Farm Machinery and Equipment Act
as enacted by SM 1987-88, c. 9 on July 17, 1987.

R.S.M. 1987, c. F40

The Farm Machinery and Equipment Act

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions.

1

In this Act

"board" means The Farm Machinery Board; ("Commission")

"custom operator" means a purchaser of farm machinery and equipment whose farm machinery and equipment are used for hire or for service to others for a fee, charge or other valuable consideration to the extent of 50% or more of the annual usage of the farm machinery and equipment; ("exploitant à façon")

"dealer" means a person operating a retail establishment or business for the sale of new farm machinery and equipment or repair parts but does not include a person who operates a repair shop

(a) from which no new or used farm machinery or equipment is sold, or

(b) from which repair parts are sold as part of repair services to farm machinery and equipment; ("concessionnaire")

"farm machinery and equipment" means any farm machine or farm equipment

(a) the retail selling price of which is $1,000. or more, and

(b) that is used or intended for use in any type of farming operations but does not include a passenger automobile, a farm truck, jeep, snowmobile or all-terrain vehicle; ("machine et matériel agricole" )

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; ("ministre")

"part" or "repair part" means a part used or to be used in the repair of farm machinery and equipment; ("pièce" ou "pièce de réparation" )

"vendor" means a manufacturer or supplier of farm machinery and equipment or repair parts who sells, consigns or delivers farm machinery and equipment or repair parts to a dealer for resale by the dealer. ("vendeur" )

Non-application of Act.

2

This Act does not apply to sales of farm machinery and equipment

(a) by farmers by auction or in the ordinary course of their farming operations; or

(b) by an executor or administrator of an estate or by a public official acting under judicial process; or

(c) to a dealer, except as provided in sections 33 to 35.

Application of Act

3

Except as otherwise provided, this Act applies to the sale of all new farm machinery and equipment in Manitoba.

Filing of retail price lists.

4(1)

Every vendor who sells or offers for sale farm machinery and equipment or repair parts in Manitoba, shall, at the request of the board, file with the board all retail price lists with respect to the farm machinery and equipment or repair parts, and any revisions of those price lists that may be made from time to time.

Disclosure as to freight.

4(2)

Every retail price list with respect to farm machinery and equipment shall indicate whether freight charges are included in the price list; and if freight is not included the list shall show the point from which shipment is made.

Names and addresses of dealers.

4(3)

In addition to the filing of the list under subsection (1) every vendor shall, on or before the first day of April in each year, file with the board a list showing the names and address of all his dealers in Manitoba.

Offence.

5

A vendor who fails to comply with the provisions of section 4 is guilty of an offence and liable on summary conviction to a fine not exceeding $500.

Sale above list price prohibited.

6(1)

Except as permitted by section 8, no person shall sell or offer for sale farm machinery and equipment or repair parts at a price higher than the price therefor as set out in the price list filed with the board.

Offence.

6(2)

A person who violates or contravenes the provisions of subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding $100., and in addition he shall repay to the purchaser the amount by which the purchase price exceeds the price set out in the price list filed with the board but any transportation, telephone or telegraph costs or customs duty, customs brokerage charges and sales tax incurred in requisitioning or obtaining any farm machinery and equipment or repair part shall not be considered as part of the price thereof.

Repair parts to be available.

7(1)

Where a farmer purchases new farm machinery and equipment from a dealer, the dealer and the vendor shall ensure that repair parts for the farm machinery and equipment shall be available for a period of ten years from the date of the purchase and where within that period the farmer orders repair parts for the farm machinery and equipment purchased by him, the dealer and vendor shall ensure that those repair parts are available to the farmer within 14 days from the date of the order, unless delivery of the parts cannot be made within that time because of strikes or other conditions beyond the control of the dealer or the vendor.

Sundays and holidays excluded.

7(2)

The time limit of 14 days mentioned in subsection (1) does not include Saturdays, Sundays or holidays.

Emergency repair parts.

8(1)

Every contract for the purchase of new

(a) seeding; or

(b) haying; or

(c) harvesting; or

(d) milking; or

(e) feed processing; or

(f) mechanical feeding; or

(g) farm tractor, when used in seeding, haying, harvesting or tilling operations;

machinery and equipment shall include a provision to enable the purchaser to order emergency repair parts from the dealer at any time between the hours of eight o'clock in the morning and ten o'clock in the evening of any day except Sunday during the season of use of the machinery and equipment.

Posting of procedure by dealer.

8(2)

The method or procedure for ordering emergency repair parts shall be clearly set out in the contract of purchase.

When emergency service shall be used.

8(3)

The emergency repair service shall be used by the purchaser only when the farm machinery and equipment breaks down during the season of use as mentioned in subsection (1) and cannot be operated to perform the intended functional requirements set out in the contract of purchase, with reasonable efficiency.

Notice to dealer.

8(4)

The purchaser shall notify the dealer when he is ordering repair parts that the parts are required for emergency repairs and the dealer shall in turn notify the vendor to that effect.

Time for supplying emergency repair parts.

8(5)

Where a purchaser orders emergency repair parts from the dealer from whom he purchased the farm equipment and machinery, the dealer and vendor shall ensure that those parts are available at the dealer's place of business to the purchaser within 72 hours from the time of the making of the order not including Saturdays, Sundays and holidays unless delivery of the parts cannot be made within that time because of strikes or other conditions beyond the control of the dealer or vendor.

Price of emergency repair parts.

8(6)

The price for emergency repair parts shall not exceed the price as set out in the retail list price except that the dealer or the vendor may add a service charge not exceeding $10. for each order for emergency repair parts.

Extra costs to be shown separately.

8(7)

Any extra costs, in excess of the current list price, charged to a purchaser for obtaining repair parts, shall be shown separately on the invoice or bill to the purchaser and shall not be included as part of the price of the repair parts.

Payment for delay in delivering repair parts.

9(1)

Where a dealer from whom a purchaser orders repair parts fails to obtain those parts within the times specified in section 7 or 8, as the case may require, the dealer shall except where delivery of repair parts cannot be made because of conditions beyond the control of the dealer or vendor, pay to the purchaser an amount equal to one-half the normal rental rate applicable for the farm machinery and equipment, from the date of the expiry of the time limit for delivery to the date on which those repair parts are made available to the purchaser, at the dealer's place of business.

Payment for normal use.

9(2)

The payment under subsection (1) shall be made only for the time during which the farm machinery and equipment would normally have been used.

Alternative to payment.

9(3)

In lieu of making payment as set out in subsections (1) and (2), the dealer may supply the purchaser with other farm machinery and equipment that is suitable and capable of functioning properly at one-half the normal rental rate for that machinery and equipment.

Normal rate defined.

9(4)

The normal rental rates mentioned in this section shall be those established by the board.

Year of manufacture.

10(1)

No vendor or dealer shall sell or offer for sale farm machinery and equipment as may be specified in the regulations that is manufactured on or after January 1, 1977, unless the farm machinery and equipment has the model year or date of manufacture imprinted

(a) on a metal serial number plate affixed to the farm machinery or equipment or on a supplementary metal plate affixed to the farm machinery and equipment adjacent to the metal serial number plate; or

(b) directly into the metal of the farm machinery and equipment adjacent to the serial number of the unit.

Serial number not to be defaced.

10(2)

No person shall obliterate, deface, alter, render illegible or remove the manufacturer's serial number, or the imprint indicating the model year or date of manufacture of the farm machinery and equipment.

Offence.

10(3)

Every person who contravenes subsection (1) or (2) is guilty of an offence and liable on summary conviction to a fine not exceeding $200. or to imprisonment for a term not exceeding one month or to both a fine and imprisonment.

Meaning of "model year" and "date of manufacture".

10(4)

For the purposes of subsections (1) and (2), the expressions "model year" and "date of manufacture" have those meanings given to them by the regulations.

Form of contract

11(1)

Where new farm machinery and equipment is sold, the contract for the sale thereof shall be in writing in a form prescribed by the board and approved by the Lieutenant Governor in Council and a duplicate copy of the contract shall be given by the dealer to the purchaser.

Effect of non-compliance with form.

11(2)

Where subsection (1) is not complied with, the contract shall not be invalid on that account only, but all the terms and conditions set out in the form that should have been included in the contract, so far as applicable, apply to the contract in the same manner as if it had been reduced to writing in the prescribed form.

Compliance with other statutes.

11(3)

Nothing in this section dispenses with the necessity of a written contract, when under The Sale of Goods Act an instrument in writing is necessary to constitute a binding contract.

Market value of trade-in.

11(4)

Every contract of purchase of new farm machinery and equipment in the prescribed form shall show both the market value and the trade-in value of the goods given in trade by the purchaser to the dealer, as well as the "cost of borrowing" as defined in The Consumer Protection Act.

Offence.

11(5)

Every dealer who fails to comply with the requirements of subsection (4) is guilty of an offence and is liable on summary conviction to a fine not exceeding $200.

Date of delivery.

12(1)

The date of delivery of farm machinery and equipment is the date on which it is ready for use and this date shall be specified in the contract.

Failure to meet delivery date.

12(2)

Where the date of delivery of farm machinery and equipment purchased from a dealer cannot be met by the dealer, the dealer shall at least five days prior to the delivery date, in writing, notify the purchaser

(a) by personally delivering the notice to the purchaser at his regular place of business; or

(b) by prepaid registered mail addressed to the purchaser at his regular place of business;

in which case the purchaser may, at his option, cancel the contract of purchase.

Return of consideration by dealer.

12(3)

Where a purchaser cancels a contract under subsection (2) the dealer shall return to the purchaser all moneys and other consideration given by the purchaser to the dealer and any goods given by the purchaser in trade in the same condition in which they were given; and if those goods are, or any part thereof is, sold by the dealer, the dealer shall pay to the purchaser the market value of the goods sold as specified in the contract of purchase.

Payment of costs of repair.

12(4)

Where the dealer is required to return any goods given in trade by the purchaser, in accordance with subsection (3) but has, prior to the termination of the contract incurred costs or performed work in repairing or reconditioning the trade in, the dealer may refuse to return the trade in until he has been paid for the reasonable costs of the repairs or reconditioning including labour, which shall be the usual shop rate for that particular dealer's repair shop at the time, and the time charged for doing the work shall be reasonable; or until arrangements satisfactory to the dealer have been made for the payment of those costs.

Acceptance of late delivery by purchaser.

12(5)

If the purchaser after being notified pursuant to subsection (2), chooses to accept late delivery of the farm machinery and equipment purchased by him, the dealer shall

(a) provide the purchaser with alternative farm machinery and equipment of approximately the same capacity and capability to carry out the functions as the farm machinery and equipment ordered by the purchaser; or

(b) pay to the purchaser the normal rental rate for similar farm machinery and equipment as determined by the board, for the time that the machinery and equipment would have normally been used between the promised date and the actual date of delivery;

unless the reason for the failure to deliver is beyond the control of the dealer.

Cancellation of contract by dealer.

12(6)

Notwithstanding anything contained in this section, if the dealer or vendor, as the case may be, cannot complete delivery of farm machinery and equipment ordered by the date specified in the contract, the dealer may at any time not later than 15 days prior to the specified date of delivery cancel the contract and return to the purchaser all moneys and other consideration given by the purchaser to the dealer in accordance with subsection (3).

Determination of rental rate.

12(7)

The rental rate for farm equipment and machinery mentioned in this section shall be determined by the board.

Trial period to be specified in contract.

12(8)

Every contract for the purchase of new farm machinery and equipment shall clearly specify

(a) the intended functional requirements of the machinery and equipment; and

(b) a trial period which shall commence from the first day of actual use for a minimum of ten days usage during the first season of use after purchase;

and any dispute with respect to the computation of the trial period and the failure of the farm machinery and equipment to perform any of its intended functions, shall be referred to the board for its decision with regard to extending the trial period.

Rejection of machinery and equipment.

12(9)

Subject to subsection (10), where during the trial period of 10 days or as stated in the contract of purchase the farm machinery and equipment fails, under reasonable operating conditions and with proper care and maintenance, to perform satisfactorily the intended functional purposes, the purchaser may reject the machinery and equipment.

Time for correcting defects.

12(10)

Where during the trial period the farm machinery and equipment fails to perform the intended functional purposes satisfactorily, the purchaser shall, in writing, notify the dealer

(a) by personally delivering the notice to the dealer at his regular place of business; or

(b) by prepaid registered mail addressed to the dealer at his regular place of business;

of the failure; and the dealer shall, within seven days after the notification, correct the failure.

Cancellation of contract.

12(11)

Where within the time mentioned in subsection (10) the dealer is unable to make the farm machinery and equipment function satisfactorily, the purchaser subject to subsection (9), may reject the machinery and equipment and cancel the contract by giving notice in writing by registered mail to the dealer within three days after the seven day period mentioned in subsection (10), not including Saturdays, Sundays or holidays, in which case the dealer shall return to the purchaser all moneys and other consideration given by the purchaser to the dealer together with any goods given by the purchaser in trade in accordance with subsection (3).

Rejection of machinery and equipment in certain cases.

12(12)

Except where an outfit is purchased under subsection 27(1), where a contract of sale relates to the purchase of more than one farm machinery and equipment, the purchaser may pursuant to the provisions of subsections (2) and (9) or subsections 19(1) and (2) reject the machinery and equipment that

(a) is not delivered to the purchaser; or

(b) fails to perform the purposes for which it was intended; or

(c) is not new;

and the dealer shall refund to the purchaser that portion of moneys paid or market value of any goods given in trade under the contract, that the price of the rejected machinery and equipment bears to the total price of the machinery and equipment purchased under the contract.

Negligence of purchaser.

12(13)

Subsections (9), (10) and (11) do not apply where the failure of the farm machinery and equipment to perform the intended functional purposes satisfactorily is due to the negligence of the purchaser or of any person operating the machinery and equipment with the authority of the purchaser.

Warranty.

13(1)

All new farm machinery and equipment sold by a dealer shall carry a warranty against defects in material and workmanship, and the warranty shall apply

(a) with respect to tractors for a minimum of two years from the date of delivery to the purchaser or for 1500 hours of use, whichever occurs first;

(b) with respect to combines for a minimum of two years from the date of delivery to the purchaser or 300 hours of use whichever occurs first;

(c) with respect to all other farm machinery and equipment for at least one year from the date of delivery to the purchaser;

and the warranty shall include the cost of defective parts, labour and transportation up to a maximum distance of 50 miles from the dealer's place of business or repair shop for repairs except that the warranty covering transportation is to apply only

(d) when the farm machinery and equipment is incapable of being driven due to mechanical breakdown; or

(e) where the dealer specifies that the farm machinery and equipment should not be driven due to its mechanical condition; or

(f) where the purchaser cannot deliver the farm machinery and equipment to the dealer's shop for repairs because of the significant size, weight or nature of the farm machinery and equipment.

No warranty on certain parts.

13(2)

The following parts of farm machinery and equipment are not subject to the warranties set out in subsection (1) but are subject to such warranties as may be set out in the regulations:

(a) tires;

(b) batteries;

(c) belts;

(d) hydraulic components;

(e) electrical parts;

(f) diesel pumps;

(g) such parts as are set out in the regulations and classified as convenience or cosmetic parts which are not essential or required for the primary intended functional operation of the farm machinery and equipment.

Limitation on warranty.

13(3)

The warranty mentioned under subsection (1) is limited to the original purchaser of farm machinery and equipment and does not apply to farm machinery and equipment purchased by a custom operator.

Additional warranty.

13(4)

In addition to the warranties set out in subsection (1) the dealer or vendor of new farm machinery and equipment shall warrant, in the contract of sale, the power that the machinery or equipment is capable of developing at the drawbar, the power take off, the belt or at any other place.

Replacement of defective parts.

13(5)

Where, during the warranty period, parts in farm machinery and equipment are found to be defective, the dealer or the vendor, as the case may be, shall replace those parts promptly; and where a defective part causes damage to any other part the damaged part shall likewise be replaced by the dealer or vendor.

Warranty on parts.

13(6)

Where pursuant to subsection (5) new parts are replaced by a dealer or vendor, the new parts are subject to warranty against defects in materials and workmanship for a minimum of one year from the date of replacement or for the balance of the warranty period where more than one year remains on the original warranty period.

Warranty or repair parts.

13(7)

Repair parts purchased from a dealer shall be warranted against defects as to material and workmanship for one year from the date of purchase; and the purchaser shall be refunded the full purchase price upon the return within 30 days after the part proves defective, to the dealer or if this is not possible, to the vendor.

Non-application of warranty.

13(8)

The warranties set out in this section do not apply

(a) where the deterioration of parts is due to normal wear and tear; or

(b) to parts excluded by regulations; or

(c) to any failure of farm machinery and equipment to perform satisfactorily its intended functions that is caused by the negligence of the purchaser or operator thereof.

Application to board.

14(1)

Notwithstanding subsections 13(1) and (2), a purchaser of farm machinery and equipment who, with respect to any defect in the farm machinery and equipment purchased by him

(a) has been refused a settlement from the vendor or dealer, for the defect; or

(b) is offered a settlement by the vendor or dealer that he considers to be unfair;

may, within 30 days of the refusal or offer as the case may be, in writing apply to the board for assistance in determining whether or not the farm machinery and equipment was defective.

Investigation and examination by board.

14(2)

Upon receiving an application under subsection (1), the board shall carry out such investigations, including the examination of the farm machinery and equipment to determine whether or not the farm machinery and equipment was defective at the time of purchase; and for the purpose of any such investigation or examination the board may engage the services of such experts as it deems necessary.

Action by board.

14(3)

Where after an investigation or examination under subsection (2) the board determines that

(a) there was no defect or that reasonable doubt exists as to whether the farm machinery and equipment was defective, it shall notify the purchaser to that effect in writing, giving reasons for its decision; and

(b) there was a defect in the farm machinery and equipment, it shall on behalf of the purchaser, take such action, including legal action if necessary, to obtain a fair and reasonable settlement for the purchaser.

Independent legal action by purchaser.

14(4)

Nothing in clause (3)(b) prohibits a purchaser from taking independent legal action against a vendor or dealer to obtain settlement with respect to any defect in farm machinery and equipment purchased by him from the vendor or dealer; but in that case the board

(a) where it is carrying out an investigation under subsection (2), shall discontinue the investigation; and

(b) where it has, on behalf of the purchaser commenced action under clause (3)(b), shall discontinue the action.

Liability under warranty.

15(1)

Where a purchaser of new farm machinery and equipment purchases it from a dealer

(a) the manufacturer who supplied the machinery and equipment to a wholesaler who sold it to a dealer who sold it to the purchaser; or

(b) the manufacturer who sold it to the dealer who sold it to the purchaser; and

(c) the dealer or vendor who sold it to the purchaser;

are jointly and severally liable to observe, keep and perform every warranty set out in this Act and the regulations.

Liability of dealer and assignee under warranty.

15(2)

Where a dealer or vendor sells new farm machinery and equipment to a purchaser in accordance with subsection (1), and assigns his rights under the contract of purchase to another person the dealer or the vendor, as the case may be, and the assignee are both jointly and severally liable with respect to the warranties mentioned in sections 12 and 13.

Reimbursement by vendor.

15(3)

Where the fault for the late delivery of parts or farm machinery and equipment is the fault of the vendor and not of the dealer, and the dealer pursuant to section 9 or 12 has made payments to the purchaser or incurred a liability as required under either of those sections, the vendor shall reimburse the dealer for any payment made by the dealer or liability incurred by the dealer.

Sharing of costs for late delivery.

15(4)

Where under section 9 or 12 the fault for late delivery of parts or farm machinery and equipment is attributable to both the dealer and the vendor, the payment or cost of supplying alternative farm machinery and equipment shall be shared by the dealer and the vendor in proportion to the degree of their fault; and where there is a dispute as to the proportion of fault between the dealer and the vendor the matter shall be referred to the board to determine the degree of fault of the dealer and vendor respectively.

Appeal.

15(5)

A determination by the board under subsection (4) may, within 10 days of the making thereof, be appealed by the dealer or vendor to a judge of the Court of Queen's Bench, and the judge after hearing the matter may

(a) confirm the determination of the board; or

(b) vary the determination of the board; or

(c) dismiss the appeal; or

(d) make such other determination as in the circumstances he considers just.

Determining of hours of use.

16(1)

The number of hours of use of a tractor or combine for the purpose of subsection 13(1), shall be determined by taking the number of hours as shown on the hour meter with which the tractor or combine was equipped by the vendor or dealer, but where a tractor or combine is not equipped with an hour meter the warranty with respect to the tractor or combine shall be for a period of two years from the date of delivery to the purchaser.

Purchaser to notify dealer of meter failure.

16(2)

Where during the warranty period the hour meter on a tractor or combine fails or ceases to function properly, the purchaser shall, within five days of the failure or cessation, in writing notify the dealer that the hour meter has failed or is not functioning properly.

Tampering with hour meter.

16(3)

Where the hour meter of a tractor or combine is disconnected or tampered with the warranty on the tractor or combine is void, unless the meter is temporarily disconnected for the sole purpose of servicing the tractor or combine and, thereafter the hour meter is reconnected before the tractor or combine is placed in use.

Dealer going out of business.

17

Where a dealer goes out of business, the vendor shall provide the purchaser with repair and warranty services.

Agreement to limit liability void.

18(1)

Any statement, agreement or bargain, oral or written made or given in connection with the sale of farm machinery and equipment to the effect that the liability of the dealer or vendor as set out in this Act, is limited or modified, is void.

Limitation of certain liability.

18(2)

Notwithstanding section 13 and subsection (1), a purchaser and a dealer may agree, in writing, to waive the liability of the dealer and vendor under the warranty with respect to labour and to transportation if a provision waiving the labour or transportation is included in the contract at the time the contract is signed by the purchaser but the signing of a waiver of liability shall not be a condition of sale of farm machinery and equipment.

Machinery and equipment deemed to be new.

19(1)

Every farm machinery and equipment sold by a dealer under a contract as prescribed by the board, shall be deemed to have been sold on the representation that it was new; and where after the sale the machinery and equipment is found to be second-hand, the purchaser may within five days from the date of delivery, at his option, return the machinery and equipment to the dealer.

Return of consideration.

19(2)

Where under subsection (1) a purchaser returns the farm machinery and equipment, the dealer shall return to the purchaser all the consideration given by the purchaser, including any goods given in trade, in the same condition in which it was given; and where the goods given in trade have been sold by the dealer, the purchaser shall receive cash equivalent to the market value of the goods given in trade.

Payment of costs to repair.

19(3)

Where in accordance with subsection (2) the dealer is required to return any goods given in trade by the purchaser but has, prior to the termination of the contract, incurred costs or performed work in repairing or reconditioning the trade in, the dealer may refuse to return the trade in until he has been paid for the reasonable costs of the repairs or reconditioning including labour which shall be the usual shop rate for that particular dealer's repair shop at the time, and the time charged for doing the work shall be reasonable, or until arrangements satisfactory to the dealer have been made for the payment of those costs.

Used parts to be specified in contract

19(4)

Where new farm machinery and equipment sold by a dealer has on it second-hand or used parts or attachments, these shall be clearly specified in the contract of purchase.

Form not to be used for second-hand machinery.

19(5)

Except as provided in subsection (4), the form of contract prescribed under subsection 11(1), shall not be used in the sale of second-hand or rebuilt farm machinery and equipment.

Consideration to include goods given in trade.

19(6)

For the purpose of subsection (2) or subsection 12(3), (6) or (11) the term "other consideration" or "consideration" includes any goods given in trade by a purchaser to a dealer.

Reading and explaining of contract.

20(1)

Where a purchaser is unable to read the language in which the contract is written, the contract shall be read over and explained to the purchaser in a language that the purchaser understands, before the purchaser signs the contract.

Non-application of subsection (1).

20(2)

Subsection (1) does not apply where the contract is made by correspondence.

Contract to be signed.

21(1)

A contract signed by a purchaser shall not be binding upon him, until it is signed by the dealer or an agent of the dealer authorized to bind him, and the contract so signed or a duplicate thereof is delivered to the purchaser or deposited in the post office, addressed to the purchaser, postage prepaid, and registered.

Non-application of subsection (1).

21(2)

Subsection (1) does not apply where the purchase price has been paid in full and the purchaser has taken delivery of the machine or equipment.

Payment to agent

22

A purchaser of farm machinery and equipment may make any payment, whether due under the contract or under any note given thereon, to any authorized agent or employee of the vendor or dealer in Manitoba unless the contract otherwise provides, and receipt of that payment by such an agent or employee shall be deemed to be receipt of the dealer or vendor; and where the vendor or dealer assigns the contract of purchase to another person, the vendor, dealer or assignee shall in writing, not later than thirty days after the assignment, by prepaid registered mail, notify the purchaser of the name and address of the assignee as recited in the contract of sale or note, a copy of which was previously given to the purchaser.

Liens.

23

A dealer or vendor of farm machinery and equipment, or a financing agent such as a bank, credit union, acceptance corporation, or any other person or company financing the purchase or acquisition of farm machinery and equipment (hereafter called the lienholder) shall have a lien upon the machinery and equipment for the unpaid purchase money, only if the lien is specified in a lien note which may form part of the contract document taken for the purchase price or balance of the purchase price thereof.

Title remains in lienholder.

24(1)

Property in and title to farm machinery and equipment that is sold by a dealer to a purchaser and that is subject to a lien, remains in the lienholder until payment is made in full of the purchase price of the machinery and equipment.

Possession in purchaser.

24(2)

The purchaser is entitled to the possession of, and the right to use of the farm machinery and equipment; but during the possession and use, the farm machinery and equipment shall be at the risk of the purchaser as to damage or destruction, and in the event of its damage or destruction the purchaser shall remain liable for the full purchase price thereof, or any unpaid balance thereof except where the damage or destruction is due to fault or defect within the farm machinery or any part of the farm machinery and equipment.

Collateral liens prohibited.

24(3)

No part of the price of new or used farm machinery and equipment may be secured by a lien on any goods not comprised in the contract of purchase of the new or used farm machinery and equipment.

Application to board to repossess.

25(1)

Where a purchaser is in default of payment or absconds or abandons farm machinery and equipment purchased by him, and the lienholder wishes to repossess the farm machinery and equipment he shall apply to the board for leave to repossess, and mail a copy of the application to the purchaser at the same time as the application is made to the board and the copy of the application shall be deemed to be received by the purchaser on the third day after the date of receipt of the application by the board.

Matters to be considered by the board.

25(2)

In deciding whether to grant leave to repossess, the board shall consider all relevant circumstances including the following matters:

(a) the original purchase price;

(b) rate of depreciation of the farm machinery and equipment;

(c) the equity which the purchaser has in the farm machinery and equipment;

(d) the interest rate in the original contract both before and after default has occurred;

(e) the amount of default and the length of time the purchaser has been in default;

(f) location and condition of the farm machinery and equipment;

(g) assets possessed by the purchaser which might at some future date be used to pay for the farm machinery and equipment in question;

(h) any other pertinent information supplied by the purchaser or lienholder which the board considers as having a bearing on the question.

Copy of contract to accompany application.

25(3)

The application for leave to repossess shall be attached to a copy of the original contract and shall list the date on which any payment or payments were made and the amount of each payment, the amount in arrears including interest on overdue accounts as well as the total amount owing on the farm machinery and equipment at the time of application for leave to repossess, and the value the lienholder places on the farm machinery and equipment at time of application to repossess.

Letter of objection to repossess.

25(4)

The purchaser may, within one week of receipt of the copy of application for leave to repossess, supply the board and the lienholder with a letter stating whether he objects to the repossession giving reasons for the objection, listing any assets which might be used to make payment for the farm machinery and equipment, and listing any payments made, the date of such payments, as well as the value the purchaser places on the farm machinery and equipment at the time of receipt of application for leave to repossess.

Notice of decision by board.

25(5)

The board shall, within four weeks of receipt of application for leave to repossess, consider the application and give notice in writing to both the lienholder and the purchaser as to its decision, stating the reasons for its decision and if it grants leave to repossess, it may set a value on the farm machinery and equipment.

Forms for repossession.

25(6)

The board shall be responsible to prescribe the forms of any application for leave to repossess or any other form which would assist in the administration of this section.

Retention for 10 days.

25(7)

Where a lienholder repossesses farm machinery and equipment pursuant to leave from the board, he shall retain the farm machinery and equipment for at least 10 days, not including Saturdays, Sundays and holidays, during which time the purchaser may redeem the farm machinery and equipment on payment of

(a) any payments then in default;

(b) any additional interest on payments past due, at the rate stated in the contract; and

(c) the actual expenses of taking and keeping possession not exceeding the amount allowed by The Distress Act.

Lienholder to keep machinery in safe condition.

25(8)

During the period mentioned in subsection (7) the lienholder is responsible for the safekeeping of the machinery and equipment.

Notice of repossession of lienholder.

25(9)

Within 48 hours excluding Saturdays, Sundays and holidays after repossessing any machinery and equipment, the lienholder shall give written notice to the purchaser and a copy thereof to the board stating

(a) that the goods have been repossessed;

(b) the date on which the goods were repossessed;

(c) the amount required to redeem them, showing how this amount is made up;

(d) the date on or before which the goods may be redeemed;

(e) the place where the goods are, or are to be kept; and

(f) the name and address of the lienholder or his agent from whom the purchaser may redeem the machinery and equipment.

Manner of serving notice.

25(10)

The written notice under subsection (9) shall be delivered to the purchaser in person by the lienholder or his agent or deposited in the post office addressed to the purchaser postage prepaid and registered.

Failure of lienholder to give notice.

25(11)

Where a lienholder fails to give the notice required under subsection (9) within the time required, the repossession of the machinery and equipment is not invalidated; but the time allowed to the purchaser to redeem the machinery and equipment or to apply to the court for an order revoking the leave of the board to repossess, shall be extended to 20 days, not including Sundays and holidays, from the date of repossession.

Application to court for revocation order.

25(12)

Where the board

(a) grants leave to a lienholder to repossess farm machinery and equipment; or

(b) refuses leave to a lienholder to repossess farm machinery and equipment;

the purchaser or the lienholder, as the case may be, may within 10 clear days of the date of the decision of the board apply to a judge of the Court of Queen's Bench

(c) in the case of the purchaser, for an order revoking the leave granted to repossess; or

(d) in the case of the lienholder, for an order granting leave to repossess.

Service of application.

25(13)

A purchaser or lienholder who makes an application under subsection (12) shall, within the period specified in subsection (7), serve a copy on the lienholder or purchaser, as the case may require, and the board.

Disposition of application.

25(14)

The judge who is seized of the matter under subsection (12) shall hear the matter and either grant or refuse the order applied for.

Purchaser to produce machinery and equipment

25(15)

No purchaser shall refuse to produce or make available to a lienholder any farm machinery and equipment or any part thereof which the lienholder is legally authorized to repossess; and a purchaser who fails or refuses to comply with this subsection is guilty of an offence and is liable on summary conviction to a fine not exceeding $200.

Sale with consent of purchaser.

26(1)

Notwithstanding anything contained in section 25, a lienholder may, with the written consent of the purchaser, repossess and sell the farm machinery and equipment.

Sale by lienholder.

26(2)

Where

(a) within the ten days mentioned in subsection 25(7); or

(b) within the 20 days mentioned in subsection 25(11);

a purchaser whose farm machinery and equipment has been repossessed fails to redeem the machinery and equipment, or an application made by the purchaser to the court under subsection 25(12) is dismissed, the lienholder may sell the farm machinery and equipment.

Disposition of proceeds of sale.

26(3)

Where under this section a lienholder sells farm machinery and equipment he is entitled to retain

(a) the amount owed by the purchaser thereon, together with interest, if any;

(b) the costs of repossession and sale not exceeding 10% of the sale price; and

(c) the cost of repairs to the machinery and equipment that may have been necessary in order to facilitate the sale thereof;

and any surplus remaining shall be turned over forthwith by the lienholder to the purchaser.

Purchaser's liability is discharged.

26(4)

Where a lienholder repossesses farm machinery and equipment under this Act and sells the farm machinery and equipment pursuant to this section and the amount realized from the sale is less than the amount owed by the purchaser to the lienholder, the indebtedness of the purchaser with respect to that farm machinery and equipment is nevertheless fully discharged and the purchaser's liability to the lienholder as well as the dealer under the contract of purchase of that farm machinery and equipment is fully discharged; and thereafter no action is maintainable by the lienholder against the purchaser to recover the balance of the purchase price of the farm machinery and equipment.

Written statement by lienholder.

26(5)

Upon completion of a sale under this section, the lienholder shall within 15 days of the completion of the sale provide the purchaser and the board with a written statement showing

(a) the selling price of the farm machinery and equipment;

(b) the cost of repossession and sale; and

(c) the cost of any repairs, if any, made to the farm machinery and equipment.

Damage to farm machinery and equipment.

26(6)

Where under this Act a lienholder

(a) repossesses farm machinery and equipment and finds that the farm machinery was wilfully damaged; or

(b) is unable to repossess farm machinery and equipment because the machinery and equipment is dismantled in such a way as to render repossession impossible or impracticable; or

(c) is able to repossess only part of the farm machinery and equipment because of the failure or refusal of the purchaser to produce the rest of the machinery and equipment;

the lienholder may notify the board in writing, with a copy of the notification to the purchaser, of any or all of those circumstances.

Investigation of lienholder's claim by board.

26(7)

Upon receipt of a notification under subsection (6) the board shall without undue delay investigate the matter and

(a) if it is satisfied that the claim of the lienholder is justified, it shall, notwithstanding the provisions of subsection (4) order the purchaser to pay to the lienholder such balance together with interest and such part of the cost of borrowing as may be set out in the contract of sale and as it finds to be due to the lienholder; or

(b) if it is satisfied that the claim of the lienholder is not justified, dismiss the claim;

and shall, in writing, notify the lienholder and the purchaser of its decision.

Appeal.

26(8)

Subsection 15(5) applies, with such modifications as the circumstances require, to an order or decision of the board under subsection (7).

Purchase of outfit.

27(1)

Where a purchaser purchases two or more new farm machines or equipment at the same time from the same dealer or vendor, whether by one or more orders, with the declaration that the farm machinery and equipment shall together form one outfit, the purchaser, upon the happening of any event that, under this Act would give him the right to reject any one of the farm machines or equipment, may reject all of them.

Machinery and equipment to be listed in contract.

27(2)

In a case to which subsection (1) applies, the farm machinery and equipment shall all be listed and the intention must be expressed in the contract, or in at least one of the contracts where there is more than one, governing the sale or sales.

Assignment of earnings.

28(1)

Where a purchaser of farm machinery and equipment is in arrears in his payments as required under the terms of the contract of purchase and the farm machinery and equipment is being used by the purchaser to do work for other persons, the lienholder may apply to a judge of the Court of Queen's Bench, for an order for an assignment of the earnings of the farm machinery and equipment.

Limitation on amount of equipment.

28(2)

Where under subsection (1) a judge makes an order, the amount of the earnings to be assigned shall not exceed 50% of the earnings of the farm machinery and equipment.

Service of order.

28(3)

The lienholder shall, within seven days of the making of an order under subsection (1)

(a) serve a copy thereof on the purchaser personally; or

(b) mail a copy thereof by prepaid registered mail to the purchaser, addressed to the last known address of the purchaser.

Pro rating of earnings.

28(4)

Where a purchaser has purchased two or more farm machines or equipment and each of those farm machines or equipment is subject to liens by different lienholders, if the purchaser is in arrears to each of those lienholders and those farm machines or equipment are being used by the purchaser to do work for other persons and the earnings thereof are such that it is difficult to ascertain accurately the earnings of each farm machine or equipment, the court in making an order under subsection (1), may, subject to subsection (2), order that the earnings be pro rated among the lienholders in accordance with the amount of the arrears payable to each lienholder.

Credit to purchaser's account.

28(5)

Any moneys received by a lienholder under this section shall be credited by the lienholder to the purchaser towards the reduction of the purchaser's indebtedness to the lienholder.

Farm Machinery Board.

29(1)

The Lieutenant Governor in Council shall appoint such number of persons as he considers advisable to a board to be known as The Farm Machinery Board who shall hold office for such term as may be determined by the Lieutenant Governor in Council.

Remuneration.

29(2)

The members of the board, other than a member who is a civil servant, may be paid such remuneration from and out of the Consolidated Fund as may be approved by the Lieutenant Governor in Council and in addition the members may be reimbursed for such reasonable out-of-pocket expenses as may be incurred by them in discharging their duties as members thereof.

Chairman, secretary-manager and quorum.

29(3)

The Lieutenant Governor in Council shall appoint one member as chairman of the board and another member as secretary-manager and shall indicate the number of members that shall constitute a quorum.

Secretary-manager may investigate complaint

29(4)

The board may delegate to the secretary-manager the responsibility to receive and investigate complaints under this Act and in any such case the secretary-manager shall after an investigation submit his findings together with his recommendations to the board.

Majority decision.

29(5)

A decision by the majority of the members present at a meeting of the board is a decision thereof.

Powers of board.

30(1)

The board in addition to any other powers conferred upon it under this Act

(a) shall receive and investigate complaints made to it under this Act;

(b) shall establish normal rental rates for farm machinery and equipment where required under this Act;

(c) may make recommendations to the minister with respect to safety requirements of farm machinery and equipment; and

(d) shall do such other things as it may be required to do by the Lieutenant Governor in Council, consistent with the intention of this Act.

Investigation and recommendations.

30(2)

Where the board receives a complaint under this Act it shall investigate the complaint as expeditiously as possible and submit its findings and recommendations to the parties concerned.

Brochure.

31(1)

Where a purchaser purchases from a dealer any new farm machinery and equipment, the dealer shall at or before the time of delivery of the farm machinery and equipment, furnish the purchaser with a brochure which shall set out

(a) the details of warranty as required by this Act;

(b) the name, address and telephone number of the dealer and vendor responsible under the warranty;

(c) the name, address and telephone number of the dealer from whom repair parts for the farm machinery and equipment may be ordered and obtained;

(d) the procedure to be followed and the name, address and telephone number of the dealer responsible for supplying emergency repair parts and service, the period of the year when emergency repair parts and service will be available and any alternate source where emergency repair parts and service will be available;

(e) the terms on which repair parts will be available and the time within which repair parts may be obtainable under normal as well as emergency conditions; and

(f) the procedure involved in repossession as set out in this Act.

Brochure to be approved by board.

31(2)

The brochure mentioned in subsection (1) shall first be approved by the board.

Used farm machinery and equipment.

32

Notwithstanding that this Act applies only to new farm equipment and machinery where a dealer sells used farm machinery and equipment, the sections of this Act dealing with repossession and sale and assignment of earnings apply to the used farm machinery and equipment.

Definitions.

33

In this section and in sections 34 and 35

"agreement" means a written or oral agreement between a dealer and a vendor; ("accord")

"allowance" means an amount paid to a dealer or credited to a dealer's account by a vendor in respect of the purchase by the dealer of repair parts or farm machinery and equipment and includes a discount, bonus or rebate or other type of payment that results in a reduction in the cost of the item or items to the dealer; ("remise")

"current net price" means the price payable for the unused part by the dealer as shown in the vendor's current price list and without taking into account any allowance granted by the vendor; ("prix net actuel")

"invoice price" means the price payable for unused farm machinery and equipment by the dealer as shown on the invoice prepared by the vendor less the amount of any unearned allowance granted by the vendor in respect of that unused farm machinery and equipment; ("prix de facture")

"unearned allowance" means an allowance granted to a dealer subject to the fulfilment by the dealer of a condition that has not been fulfilled by the vendor but does not include an allowance for a payment made by a dealer within a specified time; ("remise non gagnée")

"unused farm machinery and equipment" means a machinery and equipment that has not beep used whether or not it has received predelivery services; ("machines et matériel agricoles inutilisés")

"unused part" means a part or parts assembly that has not been used, but does not include

(a) a part that has been broken or damaged, or

(b) a parts assembly that is incomplete and cannot be completed at reasonable expense as provided for under subsection 34(11), or

(c) a part or parts assembly that has been removed from farm machinery and equipment and replaced at no cost to the dealer for parts under a modification or warranty substitution program, or

(d) a seal, hose or other part made of rubber, a gasket made of cork or made of composition of materials, a seal made of leather, or a liquid chemical, that has deteriorated and is of limited use, or paint; ("pièces inutilisées")

"used farm machinery and equipment" means machinery and equipment

(a) that was sold to a dealer as a demonstrator and was invoiced to him and used as a demonstrator, or

(b) that has been operated for a distance or for a period of time in excess of that required to deliver the machinery and equipment to the dealer and to enable the dealer to service, prepare and operate if for the purposes of sale; ("machines et matériel agricoles usagés")

"vendor's current price list" means the latest issue of the vendor's comprehensive price list that includes all parts that may be ordered by a dealer from the vendor. ("liste de prix actuelle du vendeur")

Vendor to purchase unused machinery and parts.

34(1)

Where an agreement expires or is otherwise terminated by the dealer or the vendor who are parties to that agreement, the vendor shall, subject to this Act and the regulations, take inventory, purchase and accept from the dealer at the dealer's place of business, all unused farm machinery and equipment and unused parts that the dealer obtained from the vendor.

Vendor not obligated to purchase.

34(2)

A vendor is not obligated to purchase under subsection (1) if the dealer refuses to allow the vendor to enter the dealer's place of business where the unused farm machinery and equipment and parts are located.

Amount payable by a vendor.

34(3)

Where a vendor purchases unused farm machinery and equipment or unused parts or both, from a dealer under subsection (1), payment shall be made by the vendor to the dealer in the following manner:

(a) for each unused farm machine and equipment, 100% of the invoice price together with the transportation costs paid by the dealer from the point of manufacture to the dealer's place of business;

(b) for each unused part, 85% of the current net price;

together with interest on any amount payable, calculated from the first day of the second month following the day the amount becomes due and payable.

Signing of declaration by dealer.

34(4)

Before cash settlement is made of a dealer's account the vendor may require the dealer to sign a declaration that those parts, machinery and equipment being repurchased by the vendor are free from all liens and encumbrances and refusal by the dealer to sign such a declaration, releases the vendor from the obligation to purchase those parts or machines or equipment as required under subsection (1).

When payment due.

34(5)

The amount payable by a vendor to a dealer for unused farm machinery and equipment or unused parts becomes due and payable

(a) on the day that immediately follows the expiry of 90 days after the day the vendor receives the notice to purchase from the dealer;

or

(b) within 30 days of the day that the vendor removes all the unused farm machinery and equipment or unused parts from the possession of the dealer;

whichever day first occurs but the time for payment may be extended

(c) by agreement between the vendor and the dealer; or

(d) by an order of the county court upon the application of the vendor by way of originating notice of motion returnable on a day not later than 120 days after the day on which the vendor received the notice to purchase, if the court is satisfied that the vendor's failure to remove all the unused parts from the possession of the dealer was caused by circumstances beyond the vendor's control or by the fault of the dealer.

Payment under terminated agreement.

34(6)

Where an agreement between a dealer and a vendor expires or is terminated by the vendor, and where the vendor has a lien or charge on used farm machinery and equipment which are unsold by the dealer, the amount payable by the dealer to the vendor under the lien or charge, regardless of the date of expiry or termination of the agreement, becomes due and payable on the date specified in the lien note or charge unless the dealer and the vendor agree, in writing, on another date.

Service of notice to purchaser or vendor.

34(7)

A dealer shall, within 90 days after the day an agreement expires or is terminated

(a) personally serve on the vendor or an officer of the vendor; or

(b) send by prepaid registered mail to the vendor;

a written or printed notice to purchase containing a request by the dealer that the vendor purchased the unused machinery and equipment or unused parts or both that were obtained from the vendor, and if the dealer does not comply with this subsection the vendor is not required to purchase unused farm machinery and equipment or unused parts from the dealer.

Parts to be clearly identified.

34(8)

A vendor is not required to purchase

(a) an unused part that is not clearly identified either by means of a ticket or tag or box or other container or by an imprint on the part itself; or

(b) an unused part that is not listed in the vendor's current price list;

except where a part is still current and unchanged but the part number has been superseded by a new number because of a change in the numbering system or for some other reason.

Care and custody of unused machinery and equipment.

34(9)

A dealer is responsible for the care and custody of unused farm machinery and equipment or unused parts until

(a) the day the vendor removes it from his possession; or

(b) the day following the expiry of 90 days after the day the vendor receives the notice to purchase from the dealer, whichever day first occurs, after which the vendor is responsible.

Adequate packaging of machinery and equipment.

34(10)

A dealer is responsible for doing such acts as are necessary

(a) to prepare adequately each unused farm machinery and equipment so that it is acceptable by a carrier for shipment from the dealer's place of business; and

(b) to package, crate or otherwise prepare adequately each attachment to an unused farm machinery and equipment and all unused parts so that they are acceptable by a carrier for shipment from the dealer's place of business.

Deductions by vendor.

34(11)

A vendor may deduct from the amount payable by him to a dealer for purchasing unused machinery and equipment or unused parts, an amount equal to the cost to the vendor of supplying and installing any missing or damaged part at the current net price therefor including a reasonable charge for necessary labour for the installation.

Deductions by dealer.

34(12)

In addition to any other remedy available to him

(a) a dealer may recover an amount owing to him under this section by a vendor by deducting that amount from any amount he owes to the vendor; and

(b) a vendor may recover an amount owing to him by a dealer by deducting that amount from any amount he owes to the dealer under this section.

Bulk Sales Act not to apply.

34(13)

The Bulk Sales Act does not apply to a sale to a vendor under this section.

Cost of repainting.

34(14)

Where a vendor undertakes to repaint unused farm machinery and equipment or unused parts he is responsible for the cost unless the dealer agrees, in writing, prior to the repainting being undertaken to share the cost.

Date of receipt of notice.

34(15)

Where a dealer sends a written or printed notice to purchase to a vendor by prepaid registered mail as required by this section, the notice shall be deemed to have been received by the vendor on the second day following the date of receipt by the postmaster of the envelope containing the notice.

Information to minister.

35

A vendor shall, upon the request of the minister, furnish the minister with

(a) a copy of each or any franchise or other agreement in effect between a vendor and a dealer; or

(b) particulars of any unwritten agreement with any dealer; or

(c) a copy of any written agreement or particulars of any unwritten agreement with any dealer with respect to the return of farm machinery and equipment or parts to the vendor.

Interchangeable parts.

36

The board may after consultations and discussions with vendors or dealers or both, establish and publish lists of parts that may be used interchangeably in various farm machinery and equipment.

Licence required.

37(1)

No person shall carry on business as a vendor or dealer or a business of selling used farm machinery and equipment or repair parts unless he is the holder of a valid and subsisting licence issued to him for the purpose by the board.

Conditions to which licence is subject.

37(2)

A licence issued under subsection (1)

(a) expires on December 31 of the year in which it was issued but may be renewed annually;

(b) is not transferable or assignable;

(c) when cancelled or terminated for any reason is to be returned to the board; and

(d) no part of the fee paid therefor is refundable if the licence is cancelled or terminated.

Bonds and fees required.

37(3)

A licence shall not be issued to a vendor or a dealer unless the vendor or dealer deposits with the board a bond in favour of the Crown in right of Manitoba

(a) in a form acceptable to the board;

(b) in the amount of $10,000. or such other amount as may be prescribed by the regulations or as the board may require; and

(c) conditioned on the payment by the vendor or dealer, as the case may require, of all moneys which the vendor or dealer becomes liable to pay under this Act or any sale agreements under this Act; and

(d) pays to the board such licence fee and annual assessment fee as may be prescribed by the regulations;

but the board may in its absolute discretion waive the requirement of a bond; and a vendor or dealer with respect to whom the bond requirement is waived, shall pay to the board such levies as may be required by the board for the purpose of establishing The Farm Machinery and Equipment Act Fund.

No payment from fund.

37(4)

Where a vendor or dealer has furnished a bond pursuant to subsection (3), no claim made against that vendor or dealer, as the case may be, under this Act shall be paid from and out of The Farm Machinery and Equipment Act Fund.

Notice of intent to suspend licence.

37(5)

Where a vendor or dealer, in the opinion of the board, fails, refuses or neglects to comply with any provision of this Act or the regulations or where the board has reason to believe that a vendor or dealer has committed or is committing a breach of the Act or the regulations, the board shall serve on the vendor or dealer, by registered mail a written notice of its intent to suspend the licence of the vendor or dealer, as the case may be, together with written reasons therefor.

Dispute of notice to suspend licence.

37(6)

A vendor or dealer who receives a notice under subsection (5) may, within 10 days of the date thereof, by notice in writing sent by registered mail to the board

(a) dispute the reasons given by the board in its notice of intent to suspend his licence stating the grounds or reasons therefor; or

(b) indicate that he intends within a specified time to correct the matters raised by the board as reasons for the notice of intent to suspend his licence.

Minister in public interest may suspend licence.

37(7)

Notwithstanding anything contained in this section, the minister where he considers it to be in the public interest, may by notice in writing, suspend the licence of a vendor or a dealer for such period of time as he considers advisable.

Notification of hearing.

37(8)

Where

(a) under subsection (5) the board has given a vendor or a dealer a notice of intent to suspend his licence and the board has not received a reply in accordance with subsection (6) or has received a reply and is not satisfied therewith; or

(b) pursuant to subsection (7) the minister has suspended the licence of a vendor or dealer;

the board shall in writing notify the vendor or dealer that a hearing will be held by the board to determine

(c) whether the licence of the vendor or dealer should be suspended; or

(d) whether the suspension imposed by the minister should be confirmed, varied or revoked;

or

(e) whether the licence of the vendor or dealer should be cancelled;

and shall in writing give notice of the date, time and place of the hearing.

Date of hearing.

37(9)

The date fixed by the board for a hearing under this section shall be

(a) not later than 10 days after the date of the notice of suspension by the minister given pursuant to subsection (7); or

(b) at least 20 clear days from the date of notice given by the board pursuant to subsection (6);

and the licensee as well as the board has a right to be represented at the hearing by counsel to adduce evidence and to make submissions.

Action of board after hearing.

37(10)

After the completion of a hearing under this section, the board may

(a) confirm the suspension imposed by the minister; or

(b) revoke the suspension imposed by the minister; or

(c) revoke the notice of intent to suspend the licence; or

(d) suspend the licence for a stated period; or

(e) cancel the licence;

and in writing, not later than five clear days after the completion of the hearing, notify the licensee of its decision.

Appeal.

37(11)

Any person whose licence is cancelled by the board may within 30 days of the date of the notification under subsection (10) appeal the cancellation to a judge of the Court of Queen's Bench and the appeal shall be by way of a trial de novo.

Service of notice of appeal on board.

37(12)

The appellant shall, within seven days after the date of the filing of the appeal, by registered mail, serve a copy of the notice of appeal on the board; and on the hearing of the appeal, the board or any member thereof may appear and tender evidence and may be represented by counsel.

Power of court of appeal.

37(13)

Upon completion of the hearing of an appeal under subsection (11), the court may

(a) dismiss the appeal; or

(b) quash the cancellation of the licence; or

(c) make such other order as in the circumstances it considers just.

Forfeiture of bond.

38(1)

Every bond delivered under subsection 37(3) shall be forfeited, upon demand of the chairman of the board where

(a) a dealer or vendor in respect of whose conduct the bond is conditioned or any representative, agent, or salesman of that dealer or vendor has been convicted of

(i) an offence under this Act or any regulation, or

(ii) an offence involving fraud or theft or conspiracy to commit an offence involving fraud or theft under the Criminal Code (Canada); or

(b) judgment in respect of a claim arising out of a sale under this Act has been given against the dealer or vendor in respect of whose conduct the bond is conditioned, against any representative, agent, or salesman of that dealer, or vendor and such judgment remains unsatisfied for a period of 90 days after the date thereof or the date the judgment has been confirmed by an appeal court; or

(c) the dealer or vendor in respect of whose conduct the bond is conditioned commits an act of bankruptcy as defined in the Bankruptcy Act (Canada), whether or not proceedings have been taken under the Bankruptcy Act; or

(d) a decision has been rendered by the board in writing stating in effect that after consideration and investigation of a complaint, the board is satisfied that the dealer or vendor in respect of whose conduct the bond is conditioned, or any representative, agent or salesman of that dealer or vendor

(i) has violated any provision of the Act or the regulations or has failed to comply with any of the terms, conditions or restrictions to which his licence is subject, and

(ii) with the intent to defeat or delay his creditors or the lawful claims of his purchasers, has departed from Manitoba or being out of Manitoba remains out of Manitoba, or departs from his dwelling house or otherwise absents himself;

and the conviction, judgment, order, or decision has become final by reason of lapse of time or of having been confirmed by the highest court to which any appeal may be taken.

Sale of collateral to bond.

38(2)

Where a bond secured by the deposit of collateral security with the chairman is forfeited under subsection (1), the board may sell the collateral security at the current market price.

Disposition of moneys recovered under bond.

38(3)

The Lieutenant Governor in Council may, by order, direct that any moneys recovered under a bond or realized from the sale of any collateral security be paid over

(a) to the Registrar or deputy registrar, in trust for such persons as may become judgment creditors of the person named in the bond, in respect of claims arising out of sales made under the Act; or

(b) to any trustee, custodian, interim receiver, receiver, or liquidator of the person or corporation named in the bond; in accordance with, and upon the conditions set forth in, the order; or

(c) to the board for distribution in such manner as may be provided in the regulations; or

(d) to such persons as may be deemed to be entitled thereto by reason of a sale under the Act made with the person or corporation named in the bond or any representative, agent, or salesman of that person or corporation;

and any moneys not expended under the order shall be paid over to the surety or obligor under the bond.

Bond considered penal.

38(4)

Notwithstanding that the Crown in right of Manitoba has not suffered any loss or damages, a bond furnished under this section shall be considered as a penal bond and upon forfeiture the amount owing to the Crown by a person bound thereby shall be determined as if the Crown suffered such damages as would entitle the Crown to be indemnified to the maximum amount of liability prescribed by the bond.

Appeal of decision of board.

38(5)

A person who is aggrieved with a decision of the board under subsection (1) may, within 30 days after the date of the decision, appeal to a judge of the Court of Queen's Bench who may, upon hearing the appeal, make such order as may seem fit having regard to all the circumstances.

Form of appeal.

38(6)

The appeal shall be by notice of motion, and a copy thereof shall be served upon the board within 30 days after the date of the decision and not less than 10 days before the day on which the motion is returnable.

Exemption from liability.

39

No action lies, or shall be instituted, against the board or any member of the board or any other officer or employee of the government employed by the board, to recover any loss or damages alleged to have been suffered as a consequence of any act or omission in connection with the administration or carrying out of this Act or the regulations.

Establishment of fund.

40(1)

The Minister of Finance with the approval of the Lieutenant Governor in Council may, subject to such terms and conditions as the Lieutenant Governor in Council may prescribe, advance to the board from and out of the Consolidated Fund an amount not exceeding $300,000. for the purpose of establishing a fund to be known as "The Farm Machinery and Equipment Act Fund" to be administered and used by the board subject to subsection 37(4) and the regulations, for the payment of claims of purchasers of farm machinery and equipment, for moneys owed to them by a vendor or dealer under this Act.

Board may impose levies.

40(2)

Notwithstanding subsection (1), the board may establish the fund mentioned in that subsection, by annual levies on dealers and vendors in such amounts as may be set out in the regulations and as may be required to maintain the fund at an amount not exceeding $300,000. at any given time.

Moneys to be deposited with Minister of Finance.

40(3)

Moneys received under this section for the purpose of establishing the fund shall be deposited with the Minister of Finance to be held in the Trust and Special Division of the Consolidated Fund.

Regulations by minister.

40(4)

For the purpose of establishing The Farm Machinery and Equipment Act Fund and paying out claims therefrom, the minister may make regulations

(a) establishing categories or classes of vendors and dealers based on the volume of business and the value of units sold by a dealer;

(b) fixing the amount to be levied annually against each category or class of vendor or dealer who is required to pay into The Farm Machinery and Equipment Act Fund; and

(c) fixing the maximum amount to be paid out on claims against each category or class of vendor or dealer in a fiscal year.

Regulations.

41

For the purposes of carrying out the provisions of the Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by, this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders

(a) prescribing forms except those prescribed by the board, for use under this Act;

(b) requiring vendors or dealers or both to submit such returns and other information as he deems necessary for the purpose of this Act;

(c) governing applications for vendors' and dealers' licences and renewals thereof and prescribing the requirements to be met by applicants therefor;

(d) governing the issue of licences and prescribing terms and conditions to which a licence may be subject;

(e) prescribing the fee payable for a licence and any renewal thereof;

(f) prescribing warranties for the purpose of subsection 13(2) of the Act;

(g) prescribing the duties of holders of licences;

(h) prescribing the circumstances under which a licence may be suspended or cancelled by the board, other than those set out in the Act, or under which the renewal of a licence may be refused;

(i) prescribing the duties of the holder of a licence that has been suspended or cancelled or has terminated and not been renewed;

(j) providing for the reinstatement of a licence that has been suspended or cancelled;

(k) providing for

(i) the filing of claims by claimants against the bond furnished by a licensee,

(ii) the manner of making and proving the claims,

(iii) the terms and conditions under which the proceeds of the bond are to be used to satisfy the claims that are approved by the board, and

(iv) pro rata payment of claims where the proceeds of the bond are insufficient to meet all claims;

(l) respecting the establishment and maintenance by the board of a complete file of all current retail price lists of farm machinery and equipment and repair parts;

(m) designating persons or classes of persons who may file claims with the board against The Farm Machinery and Equipment Act Fund;

(n) for the purpose of administering The Farm Machinery and Equipment Act Fund, respecting

(i) the time during which and the manner in which a claim may be filed with the board,

(ii) the maximum amount allowable under a claim,

(iii) the manner of proving the claims, and

(iv) the investigation of any claim by the board for the purpose of determining its validity;

(o) respecting the amounts that may be levied each year by the board on vendors and dealers for the purpose of establishing The Farm Machinery and Equipment Act Fund;

(p) respecting the use of appropriate markers by vendors and dealers to identify emergency repair orders;

(q) designating the season of use of any particular type of farm machinery and equipment;

(r) prescribing the procedure to be followed by a purchaser in ordering emergency repairs;

(s) respecting any other matter or thing that he deems necessary for carrying out the provisions of this Act effectively.