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Chapter 14

REPAIRS
14.01 Learning Objectives 14.05 Invoice for Repairs
14.02 What Do You Know? 14.06 Summary
14.03 Introduction 14.07 Test Yourself
14.04 Repairs

14.01
Learning Objectives
After completing this chapter, you will be able to identify:
1. The act that regulates vehicle repairs
2. Repair estimate requirements
3. Replaced parts requirements
4. The statutory warranty on repairs
5. The requirements for telephone authorization of repairs
6. The signage that must be posted at the dealer
7. The importance of a detailed repair invoice
8. The statement that must be printed on every repair invoice

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14.02
What Do You Know?
Try answering these questions to test your knowledge:

1. Motor vehicle repairs are governed by what Ontario legislation?


a) Motor Vehicle Repair Act
b) Consumer Protection Act
c) Motor Vehicle Dealers Act
d) None of the above
2. True or False: Dealers/repairers must provide estimates for repairs.
3. True or False: Final repair costs may not exceed the estimate by more
than 10 per cent.
Keep these questions in mind as you read through the following section.

14.03
Introduction
Motor vehicle repairs are covered under Part VI of the Consumer Protection
Act (CPA), not the Motor Vehicle Dealers Act (MVDA). The CPA protects a
“consumer” only (that is, an individual acting for personal, family or household
purposes, and not a person who is acting for business purposes).
If a dealer offers repairs to a consumer’s vehicle, there are specific legal
requirements that must be adhered to, particularly in the area of estimates,
authorizations, parts installation and warranties. This chapter provides a brief
summary of key points of Part VI of the CPA, “Repairs to Motor Vehicles and
Other Goods.”

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14.04
Repairs
The CPA stipulates the following obligations for the dealer or any other motor
vehicle repairer:
• The dealer must give the consumer an estimate of how much repairs will
cost. The final bill must not be more than 10 per cent above that estimate.
There is one exception: if the dealer offers to give the consumer an
estimate and the consumer declines an estimate but specifically authorizes
a maximum amount for the repair, the final bill cannot exceed the
maximum amount authorized – not even by one penny.
• If the cost is being paid directly or indirectly by an
insurance company (an “insurance job”), the dealer cannot Note: If the dealer offers to give the
give a higher estimate or charge more than if the job was consumer an estimate and the consumer
declines an estimate, but specifically
not being paid by an insurance company.
authorizes a maximum amount for the
• When the dealer replaces a part, the old part must be repair, the final bill cannot exceed the
offered to the consumer. This offer to return old parts must maximum amount authorized – not even
be automatic (meaning that consumers don’t have to ask by one penny.
first) and the parts must be returned in a clean container.
• Repairs involving the installation of new or reconditioned
parts come with a mandatory minimum warranty of 90 days or 5,000 km,
whichever comes first. This warranty includes installed parts and required
labour. While warranty repair work will normally be done at the same
dealer that performed the original work, sometimes it is not reasonable
to return the vehicle to the original repairer. In such a circumstance, the
vehicle may be taken to the closest facility available for repairs and the
consumer is entitled to recover from the original repairer the cost of the
repairs and reasonable towing charges.
• If a consumer subjects the vehicle to misuse or abuse, they are not entitled
to any part of this warranty.
• The dealer must provide the consumer with a written invoice.
• The dealer should ask the customer to sign a written authorization before
any repairs are started. The customer can authorize repairs by telephone,
but the dealer must document four key pieces of information: the name
of the person authorizing, their phone number, the date of the call and
the time of the call.

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• Under CPA Regulation 50, the dealer must post a sign stating:
a) The dealer’s obligation regarding estimates
b) How labour charges are computed (hourly rate, flat rate,
charge for diagnostic time)
c) Details of any commission received by the dealer on parts sold
d) A list of other possible charges (e.g., vehicle storage or delivery,
charge for a “loaner vehicle”)
e) That each part removed will be available to the consumer
• Under CPA Regulation 51, the dealer must ensure the following
statement is printed on every invoice:

“The Consumer Protection Act, 2002, provides you


with rights in relation to having a motor vehicle
repaired. Among other things, you have a right to
a written estimate. A repairer may not charge an
amount that is more than ten (10) per cent above that
estimate. If you waived your right to an estimate,
the repairer must have your authorization of the
maximum amount that you will pay for the repairs.
The repairer may not charge more than the maximum
amount you authorized. In either case, the repairer
may not charge for any work you did not authorize.
If you have concerns about the work or repairs
performed by the repairer or about your rights or
duties under the Consumer Protection Act, 2002, you
should contact the Ministry of Consumer Services.”

14.05
Invoice for Repairs
CPA Section 62 and CPA Regulation 51 set out the requirements for vehicle
repair invoices.
Repair invoices must be in writing and include:
1. The name of the consumer
2. The name of the repairer (and if different, the name under which the
repairer carries on business)
3. The business address, telephone number, email address and fax number
of the repairer

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4. The make, model, vehicle identification number (VIN) and licence


number of the vehicle
5. The date the consumer authorized the work and repairs
6. The date the work and repairs were completed
7. The date the vehicle is returned to the consumer
8. The odometer reading at the time the consumer authorized the work or
repairs and when it is returned to the consumer
9. An exact description of the work performed or repairs made to
the vehicle
10. An itemized list of the parts installed and a statement as to whether
each part is a new part provided by the original equipment
manufacturer, a new part not provided by the original equipment
manufacturer, a used part or a reconditioned part
11. The amount the consumer is being charged for each part listed under
paragraph 10
12. An itemized list of the shop supplies used for which the consumer is
being charged, and the amount charged for each of the supplies
13. The total charge for labour and the method used to compute it,
including:
• The number of hours billed
• If a flat rate was applied in respect of any of the work or repairs,
the flat rate
• The amount, if any, charged for diagnostic time
14. An itemized list of all other goods and services (such as storage, picking
up or delivering the vehicle, providing a loaner vehicle, etc.) for which
the consumer is charged.
15. If the consumer has declined the return of any parts removed, work on
or repairs to the vehicle:
• A statement to that effect
• The resulting reduction, if any, in price
16. The total amount billed to the consumer and the terms and methods of
payment.

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14.06
Summary
Repair invoices must include all
information specified under the
Consumer Protection Act.
Motor vehicle repairs are regulated
under the CPA, which clearly sets out
the dealer’s/repairer’s specific obligations
regarding estimates (provide them in
writing), parts replacement (offer to
return old parts to the consumer),
warranties (minimum of 90 days/
5,000 km), telephone authorization
(document authorizing person’s name,
phone number, and the date and time of
the call), and the signage that must be
posted at the dealer.

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14.07

Test Yourself
The first questions below are the same questions REmEmbER:
asked in “What Do You Know?” at the beginning of The questions on the
Automotive Certification
this chapter. Try answering these questions again and
Test are in multiple-choice
compare your results with your earlier answers. format only. This manual,
Then, answer the additional questions. however, contains a variety of
question formats to help you
1. Motor vehicle repairs are governed by which Ontario legislation?
understand the content, such
a) Motor Vehicle Repair Act c) Motor Vehicle Dealers Act
as activities, assignments,
b) Consumer Protection Act d) None of the above
multiple-choice questions,
2. True or False: Dealers/repairers must provide estimates for repairs. true-false questions and
3 True or False: Final repair costs may not exceed the estimate by more fill-in-the-blank questions.
than 10 per cent.
4. List five pieces of information that must be on all repair invoices.
5. If a repair involves the installation of new or reconditioned parts, which of
the following statements is most correct?
a) The minimum warranty on repairs is 90 days or 5,000 km
(whichever comes first)
b) The minimum warranty on repairs is 180 days or 10,000 km
(whichever comes first)
c) There is no warranty on repairs unless it is written on the
repair invoice
6. Choose the most correct answer.
When the dealer replaces a part:
a) The consumer can have the old part returned if the consumer
asks for it Refer to Appendix 1 for
b) The dealer must offer the old part to the consumer the correct answers. Review
c) The dealer must warn the consumer that the part is greasy and dirty
the relevant section of the
d) The dealer can keep the old part
chapter for any question
7. If the dealer/repairer is seeking authorization for repairs by phone, they
must document four pieces of information. What are they? you answered incorrectly.

8. Dealers must post a sign stating:


a) Labour charges and how they are computed
b) The dealer’s obligation to provide estimates
c) That each part removed is available to the consumer
d) All of the above

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