Automotive business licence (Alberta)

A buyer of a dealership, repair shop or leasing business in Alberta meets this licence at the start of the deal, because s. 8 of the Automotive Business Regulation bars a business operator from selling or transferring its licence. This entry covers Alberta only; check the rules where the business operates. The guide on licensing and property transfers in an automotive sale covers the wider picture.

What the regulation says

• The Alberta Motor Vehicle Industry Council (AMVIC) says automotive businesses, including sales, service and repair, consignment, lease, wholesale and agent or broker businesses, must hold a valid AMVIC licence.
• The Automotive Business Regulation (AR 192/99), s. 3(1), sets four classes: sales, leasing, consignment and repair.
• Section 5(1) gives a licence a term of one year, renewable for additional one-year terms; under s. 5(2) the Director may issue or renew one for less than a year if that is in the public interest.
• Section 8 says a licence does not confer any property right, and no business operator may sell, transfer, assign, lease or otherwise dispose of or deal in a licence.
• Section 10 requires an operator, when asked by a customer or potential customer, an inspector, the Director or a peace officer, to produce the licence for inspection or give details that show whether a licence has been issued.

What to ask

Ask which classes the seller holds, and ask AMVIC which classes the buyer must hold in its own name before it operates. Ask the seller how customer work in progress is handled on the closing date. A related entry is motor vehicle dealer registration.