Consumer Protection Act

(1) For the purposes of this Act, the total cash price is the aggregate of

(2) For the purposes of this Act, the balance owing is

SNWT 2011,c.23,s.54(5).

(1) In subsection (2), "real property" includes leasehold interest in real property.

(2) This Part applies to any debt owing by a borrower to a credit grantor that is payable by instalments, other than

(1) Subject to the restrictions set out in subsection (2), any provision in an agreement providing that in the event of default in payment of an instalment, the full balance will or may become immediately due and owing is valid and enforceable.

(2) The restrictions referred to in subsection (1) are as follows:

(3) In any case in which a borrower has been granted an extension of time, the time of default referred to in subparagraph (2)(e)(i) is the time when the borrower fails to comply with the terms of the extension.

(4) Except where expressly stated, references in this Act to payments in default do not include any payments that have become due by virtue of any provision for the acceleration of payments.

(5) A provision for acceleration of payments on default operates from time to time as and when default occurs and the circumstance that a borrower has been relieved from acceleration in accordance with this section shall not be taken to have exhausted the operation of the provision in respect of subsequent defaults.

(1) Where an agreement creating or relating to a debt imposes on the borrower any obligation in addition to the payment of the debt and the cost of borrowing, if any, and the borrower commits a breach of the obligation, the credit grantor may recover from the borrower as damages for the breach the amount of the loss the credit grantor has suffered and the actual expenses the credit grantor has incurred as a result of the breach, but not more.

(2) Every provision contained in an agreement creating or relating to a debt that imposes on the borrower a pecuniary penalty, however described, for committing a breach of an obligation in addition to the payment of the debt, imposed on the borrower by the agreement, is void in so far as it would entitle the credit grantor to recover more than the amount permitted by subsection (1), but is effective to prevent the credit grantor from recovering more than the amount of the penalty so specified.

(1) Every provision in an agreement creating or relating to a debt that gives or has the effect of giving the credit grantor the right to decide whether any given fact or circumstance exists is void.

(2) Notwithstanding subsection (1), if the credit grantor has reasonable cause to believe that the security for the debt is in jeopardy, an agreement may contain any or all of the following provisions, namely,

and it is a question of fact for the Supreme Court to decide whether the credit grantor has reasonable cause for his or her belief, but if the credit grantor has such cause at the relevant time it is immaterial whether or not the security is actually in jeopardy.

(3) The Supreme Court may relieve the borrower from the effect of a provision mentioned in subsection (2) on the terms that it thinks just.

(1) Subject to sections 53 and 54, every time sale shall be evidenced by a time sale agreement in writing signed by the buyer or his or her agent before or at the time of delivery of the goods containing a description of the goods by which they may be readily and easily known and distinguished, and also containing, in type not less than 10 point in size,

(2) The seller shall give a copy of the agreement referred to in subsection (1) to the buyer, or to the agent who signed it, not later than the time of delivery of the goods, but if there is more than one buyer it is sufficient to give a copy to one of them.

(1) Subject to subsections (2) to (4), a time sale that does not comply with section 51, 53 or 54 takes effect as an immediate sale and the property in the goods passes to the buyer on delivery and the seller has no lien on the goods, but this does not affect the obligation of the buyer to pay for the goods in accordance with the terms of the agreement.

(2) Where a time sale includes more than one separate article, and the only non-compliance with section 51, 53 or 54 is a failure to give a proper description of one or more of the articles, the reservation of the seller’s lien is effective in regard to the articles that are properly described, and subsection (1) applies only to the articles that are not properly described.

(3) The buyer may at any time consent in writing to the correction of an error or omission in the description of any goods in a time sale agreement, and on receipt of that consent the seller may correct the original agreement accordingly, and for the purposes of this section the agreement shall be deemed to have been originally written as so corrected, except that no such correction shall prejudice any rights in or to the goods that may have been acquired before the date of the correction by any other person claiming through the buyer who does not consent in writing to the correction.

(4) The Supreme Court, on being satisfied that an error or omission in the description of any goods in a time sale agreement was due to inadvertence and that the buyer accepted the goods and was not misled by the error or omission, may order the description in the original agreement to be deemed to have been originally written as so corrected, but every order shall contain the provisions that the circumstances of the case may require to protect any person who may have acquired in good faith through the buyer a right in or to the goods adverse to the title of the seller that would be prejudiced by the correction.

(5) Where

the title of the seller to the goods remains in full force and effect as reserved by the time sale agreement and the remedies of the seller in respect of future defaults by the buyer are not affected as a result of that.

(1) Where a seller on a retail sale of goods takes back a chattel mortgage on those goods to secure payment of the whole or part of the price, the chattel mortgage shall state clearly and explicitly that it is given for this purpose.

(2) No seller shall take a chattel mortgage that does not comply with subsection (1).

(1) Where a seller on a time sale has repossessed the goods by reason of the default by the buyer in payment, the seller shall retain them for a period of 20 days after the giving of the notice required by subsection (2), or such longer period of time as may be permitted for redemption under the Personal Property Security Act, during which period of time the buyer may

(2) Within 48 hours after repossessing any goods, the seller shall give written notice to the buyer containing

(3) Notwithstanding subsection (1), but subject to any right under section 62 of the Personal Property Security Act, the seller may resell the goods during the period of time referred to in subsection (1) with the written consent of the buyer given not less than 24 hours after the goods were repossessed.

(4) Where a notice must be given to a buyer under subsection (1) of this section and under subsection 59(6) or (10) of the Personal Property Security Act, the notice must contain the information set out in subsection (2) of this section and need not otherwise comply with subsection 59(7) or (11), as the case may be, of the Personal Property Security Act. SNWT 1994,c.8.s.77(2).

(1) Where a seller on a time sale has repossessed the goods

the buyer may, within 20 days after giving of the notice required by subsection (2), or such longer period of time as may be permitted for redemption under the Personal Property Security Act,

(2) Within 48 hours after repossessing the goods, the seller shall give written notice to the buyer containing

(3) Repealed, SNWT 1994,c.8,s.77(3).

(4) Where a buyer applies to the Supreme Court for relief under subsection (1), the Supreme Court may, if it sees fit, relieve the buyer against the consequences of the repossession by ordering the seller to return the goods to the buyer either unconditionally or subject to the fulfilment by the buyer of the conditions that the Supreme Court may see fit to impose.

(5) Where the Supreme Court has ordered the seller to return the goods to the buyer unconditionally, and the Supreme Court is of the opinion that

as the case may be, the Supreme Court may order the seller to pay the buyer’s costs of the application.

(6) Where a notice must be given to a buyer under subsection (2) of this section and under subsection 59(6) or (10) of the Personal Property Security Act, the notice must contain the information set out in subsection (2) of this section and need not otherwise comply with subsection 59(7) or (11), as the case may be, of the Personal Property Security Act. SNWT 1994,c.8,s.77(3),(4),(5).

(1) Sections 57 and 58 do not apply to the repossession of goods under this section.

(2) Where a seller on a time sale would be, but for this section, entitled to repossess any goods, and the balance owing by the buyer on those goods at that time is less than 25% of the cash price of the goods at the time of the sale of the goods, the seller may not repossess the goods without the leave of the Supreme Court or the written consent of the buyer given at the time of repossession.

(3) The seller shall give notice to the buyer of his or her application for leave required under subsection (2), unless

(4) Where leave to repossess is given ex parte, the order giving the leave may be set aside on the application of the buyer initiated not later than

whichever is the earlier, and the seller shall at, or as soon as possible after, the time of repossession give to the buyer a copy of the order and a notice in a form approved by the judge who made the order of the rights of the buyer under this subsection.

(5) In deciding whether to grant leave to repossess, or to set aside an order made ex parte, the Supreme Court shall consider all relevant circumstances, including

and may permit the buyer to keep the goods, or, if they have been repossessed under an order made ex parte, to redeem them, on the terms that it sees fit and may extend the time for payment by the buyer of the balance owing, but if it grants an extension, the Supreme Court shall require the buyer to pay any additional amount that may be necessary to compensate the seller for the extension. SNWT 1995,c.11.s.11.

(1) A notice required by subsection 57(2) or 58(2) and the copy of the order and notice required by section 60 may be given to the buyer

(2) If a seller fails to give the notice required by subsection 57(2) or 58(2) within the time required, the repossession of the goods is not invalidated, but the time allowed to the buyer to redeem the goods or to apply to the Supreme Court is extended until the expiration of 20 days after the day on which the requisite notice is given.

(3) The Supreme Court may extend

but the Supreme Court shall not grant the extension unless it is satisfied that the seller will not be prejudiced as a result of that. SNWT 1994,c.8,s.77(7); SNWT 2008,c.8,s.4(7).

(1) Where a buyer has persistently defaulted on his or her obligations under the time sale agreement or master agreement in question, or has deliberately evaded repossession of the goods, the Supreme Court, on the application of the seller, may deprive the buyer in whole or in part of the protection of sections 44, 57,

(2) Where the buyer does not appear on the hearing of an application under subsection (1), an order made on the application is not effective until a copy of the order has been served on the buyer in a manner approved by the Supreme Court.

(3) Nothing in subsection (2) diminishes the power of the Supreme Court to order substitutional service.

(1) Subject to subsection (2), every provision in a time sale agreement or in a master agreement that prohibits or restricts or has the effect of prohibiting or restricting the buyer from

is void.

(2) A time sale agreement or a master agreement may provide that the buyer may not

unless the buyer gives to the seller by registered mail addressed to the seller at the address specified in the agreement at least 10 days before so doing written notice of his or her intention to do so, specifying the place to which the buyer intends to remove the goods, or the person to whom the buyer intends to charge them.

(3) On receipt of a notice given under subsection (2), the seller, if the seller believes he or she will be prejudiced by the intended action specified in the notice, may apply to the Supreme Court, and the Supreme Court may make whatever order may seem just to protect the interests of the seller and of the buyer. SNWT 2011,c.16,s.3(2).

(1) Subject to subsection (2), where a seller under a time sale repossesses the goods comprised in the time sale, or any portion of the goods, the right of the seller to recover any balance, whether of the price or of the cost of borrowing or both, owing on the goods is after that limited to his or her lien on the goods and his or her right to repossession and sale of the goods, and no action is after that maintainable by the seller to recover the balance or any part of the balance.

(2) Where the seller repossesses the goods and

the seller is, for the purposes of subsection (1), restored to his or her former position and in the event of any subsequent default by the buyer may proceed as if the goods had not been previously repossessed.

(3) Subject to subsection (4), where a seller on a time sale obtains judgment in an action for the whole or any part of the balance, whether of the price or of the cost of borrowing or both, owing on any goods comprised in the time sale, his or her lien on the goods comprised in that sale is extinguished on the date of the judgment and on that the property in the goods passes to the buyer.

(4) If an action brought by the seller was for the full amount then owing by virtue of an acceleration provision, and the Supreme Court relieves the buyer or hirer from the acceleration, it may, as one of the conditions of granting the relief, exempt the seller either wholly or partially from the operation of subsection (3).

(5) Where

the right of the seller to recover under the judgment, in so far as it is based on that balance, is limited to the amount realized from the sale of the goods so seized, and the judgment, to the extent that it is based on that balance and taxed costs, shall be deemed to be fully paid and satisfied but where the amount realized from the sale of the goods exceeds the amount of the judgment and the costs of execution, the excess shall be paid to the buyer or to subsequent execution creditors.

(6) Where the seller has obtained judgment for only part of the balance, and the goods comprised in the sale, or any of them, are seized under an execution issued pursuant to that judgment, the seizure operates not only to satisfy the judgment as provided by subsection (5), but also to extinguish the right of the seller to maintain any action for the remainder of the balance but in that case, if the amount realized from the sale of the goods exceeds the amount of the judgment and the costs of execution, the excess shall be paid into the Supreme Court, and the Supreme Court may order it to be paid out in a manner that is just.

(7) The Supreme Court may exempt the seller either wholly or partially from the operation of subsection (1) or of subsections (5) and (6), as the case may be, where only some of the goods comprised in a time sale agreement are repossessed by the seller or are seized under the execution, and the reason that the other goods are not repossessed or seized is that the seller, Sheriff or bailiff is unable to find them.

(8) Where any of the goods have been destroyed or damaged by the deliberate act or wilful neglect of the buyer, the seller may, notwithstanding subsections (1), (5) and (6), recover from the buyer the lesser of

SNWT 2009,c.12,s.3(3).

(1) Where a buyer has removed from any article sold on a time sale an accessory or component that was included in the sale, and has not replaced it by another of a similar kind and value, or has replaced it by one that is itself subject to a lien or charge held by another person, and the article has been repossessed by the seller or seized under an execution issued at the suit of the seller, the seller may, notwithstanding section 64, maintain an action to recover the least of

(2) Where a seller has lawfully repossessed goods sold on a time sale, and the buyer has not redeemed them within the time allowed for the purpose, the seller may resell them.

(3) A seller who resells goods must act in good faith, and as long as the seller does so, the seller may sell them at any price and on any terms he or she sees fit.

(4) Where the amount realized on the resale of the goods exceeds the balance owing on the goods and the expenses of taking and keeping possession and of resale, the excess shall be paid by the seller to the buyer.

(5) Where a seller has the goods repaired before reselling them, the cost of the repair is part of the expenses of sale.

(6) Where the seller resells the goods by retail in the ordinary course of his or her business, the seller may charge, as an allowance for the overhead expenses of resale, 20% of the proceeds of sale.

(7) Where the seller is unable to resell the goods at a price sufficient to satisfy the balance owing on them and the expenses of taking and keeping possession and of resale, the seller may keep the goods and use them as the seller sees fit. SNWT 1995, c.11,s.11.

(1) No part of the price of any goods comprised in a time sale that is not made on open credit, or of the cost of borrowing with respect to the price, may be secured on any goods not comprised in that time sale, and any provision or arrangement that purports to do so is void.

(2) Every provision in a master agreement relating to open credit under which the seller may

is void.

(3) Except with the prior consent of the Director, no time sale agreement shall provide that the balance owing, or any part of it, is payable on demand.

(4) A time sale agreement that contravenes subsection (3) takes effect as an immediate sale and the property in the goods passes to the buyer on delivery and the seller has no lien on the goods, but this does not affect the obligation of the buyer to pay for the goods in accordance with the terms of the agreement. SNWT 2011,c.23,s.54(12).

(1) Where

the mortgagee may not repossess the goods without the leave of the Supreme Court.

(2) A mortgagee of goods shall give notice to the mortgagor of his or her application for leave under subsection (1) unless

in which event the Supreme Court may give leave to seize on the ex parte application of the mortgagee.

(3) Where leave to seize is given ex parte under subsection (2), the order giving the leave may be set aside on the application of the mortgagor initiated not later than

whichever is earlier, and the mortgagee shall at, or as soon as possible after, the time of seizure give to the mortgagor a copy of the order and a notice in a form approved by the judge who made the order of the rights of the mortgagor under this subsection.

(4) In deciding whether to grant leave to seize, or to set aside an order made ex parte, the Supreme Court shall consider all relevant circumstances, including

(5) Where the Supreme Court grants leave to seize, it may order the mortgagee to offer the goods for sale in the manner and on the terms that it sees fit.

(6) Where the Supreme Court refuses leave to seize, or sets aside an order giving leave made ex parte, the Supreme Court may extend the time for payment by the mortgagor of the balance owing, but in granting the extension, the Supreme Court shall require the mortgagor to pay the additional amount that may be necessary to compensate the mortgagee for the extension.

(1) The copy of the order and notice required by subsection 67(3) may be given to the mortgagor in the same manner as is provided by section 61 for giving a notice to a buyer.

(2) The Supreme Court may extend the time allowed by subsection 67(3) to a mortgagor to apply to set aside an ex parte order, but an extension shall not be granted unless the Supreme Court is satisfied that the mortgagee will not be prejudiced as a result of that.

(3) The rights of a mortgagor under this section and sections 67 to 69 are in addition to any rights he or she has under sections 47 to 49.

(4) If a chattel mortgage is subject to the provisions of section 60, the provisions of that section prevail over any conflicting provisions of this section and sections 67 to 69.

(1) Notwithstanding any agreement to the contrary, the following conditions or warranties on the part of the seller are implied in every retail sale of goods and in every retail hire-purchase of goods:

(2) For the purposes of paragraph (1)(e), it is not necessary to specify every defect separately, if the general condition or quality of the goods is stated with reasonable accuracy.

(3) In the case of a sale of goods under a credit agreement, where a description of goods is required under this Act or under the Cost of Credit Disclosure Act or the regulations under that Act, the description of goods shall include any statement required to be made under subsection (1) respecting

(4) In the case of a sale of goods not under a credit agreement, a statement respecting the matters referred to in paragraphs (3)(a) to (d) has no effect unless it is made in writing and

(5) If the goods are described as used in the manner set out in this Part, the following must be taken into account in determining whether or not they are of merchantable quality:

SNWT 2008,c.8,s.4(8); SNWT 2009,c.12,s.3(4); SNWT 2011,c.16,s.3(16); SNWT 2011,c.23, s.54(13).

(1) For the purposes of paragraph (2)(f),

"merchant" does not include a person who has a recognized retail store where section 73 is applicable to more than 50% of the goods or service sold by that person in the Northwest Territories; (marchand)

"recognized retail store" does not include a dwelling, mail order office, display room, office, repair or service shop, warehouse, studio or any other place of a similar nature notwithstanding that the owner or occupant of it is or may be assessed by the municipality for business tax purposes in respect of that place. (magasin de vente au détail reconnu)

(2) This Part does not apply to

SNWT 1998,c.21,s.4(4); SNWT 2011,c.16,s.3(2).

(1) In addition to the right of cancellation under section 76, a buyer may cancel a direct sales contract in the circumstances set out in this section.

(2) A buyer may cancel a direct sales contract within one year after the day the contract is entered into

(3) A buyer may cancel a direct sales contract within one year after the day the contract is entered into if the vendor

(4) Where, after the period set out in paragraph (3)(a) or (b) has expired, the buyer accepts delivery of the goods or the buyer authorizes the services to begin, the buyer may not cancel the direct sales contract under subsection (3). SNWT 1998,c.21, s.4(5).

(1) A direct sales contract is cancelled on the giving of a notice of cancellation in accordance with this section.

(2) A notice of cancellation may be expressed in any way that indicates the intention of the buyer to cancel the direct sales contract.

(3) A notice of cancellation may be sent or delivered in accordance with the regulations.

(4) Where the notice of cancellation is given by a means other than personal delivery, the notice of cancellation is deemed to be given when sent.

(5) The notice of cancellation may be sent or delivered to the vendor or direct seller to the physical or postal address, telephone or fax number, electronic mail address or other address set out in the direct sales contract.

(6) If the buyer did not receive a copy of the direct sales contract, or if the address of the vendor or direct seller was not set out in the contract, the buyer may send or deliver the notice of cancellation

(7) If the buyer is unable to find an address referred to in subsection (5) or (6), the buyer may send or deliver the notice of cancellation to the office of the Government of the Northwest Territories designated by the regulations. SNWT 1998,c.21, s.4(5); SNWT 1999,c.6,s.2(3).

(1) Subject to subsections 79(2), (3) and (4), the cancellation of a direct sales contract under this Part extinguishes every liability or obligation of the buyer under the contract.

(2) Where credit is extended or arranged by the vendor or direct seller, the credit contract is conditional on the direct sales contract, whether or not the credit contract is a part of or attached to the direct sales contract, and if the direct sales contract is cancelled, that cancellation has the effect of cancelling the credit contract and extinguishes every liability or obligation of the buyer under the credit contract. SNWT 1998,c.21,s.4(5).

(1) The right of a buyer to cancel a direct sales contract under this Part is not affected by

but the right of a buyer to cancel a contract under this Part is extinguished by

(2) Where goods have been used, partially consumed or accidentally destroyed or damaged by a buyer, or any services have been partially performed by the vendor,

(3) A vendor shall not, under subsection (2), recover payment from the buyer more quickly than the vendor would have been entitled to under the direct sales contract, and any judgment in favour of the vendor under subsection (2) may, therefore, be made payable by instalments.

(4) A buyer has a lien on all goods delivered to the buyer for all sums payable to the buyer by the vendor, but shall return those goods to the vendor as soon as the lien has been satisfied. SNWT 1998, c.21,s.4(6).

(1) The rights conferred by this Act on a borrower pass to and may be exercised by any person claiming through or under the borrower without any express assignment of those rights, but no such person has any right to receive from a credit grantor any notice required by this Act unless the credit grantor has been made aware of the transfer to that person of the rights of the borrower before the time when that notice has to be given.

(2) Notwithstanding subsection (1), a buyer, when selling or transferring to another person any goods that the buyer has acquired on a credit sale or hire- purchase, may reserve, either expressly or by necessary implication, any rights he or she has against the seller under Part VI.

(3) Where the context so admits, in this Act "borrower" and "buyer" include any person to whom their rights pass under this section.

(4) Every provision of this Act that restricts or reduces the amount payable by a borrower, or gives the borrower a right of set-off, restricts or reduces the amount payable by and gives a similar right of set-off to any endorser, surety or guarantor for the borrower, but nothing in this subsection affects any liability to an assignee of a credit grantor on the part of

(5) Where goods that were acquired on a time sale or are subject to a chattel mortgage are repossessed or seized, and an assignee of the buyer or mortgagor applies to the Supreme Court for relief, the Supreme Court, as a condition of granting relief, may require the assignee to undertake to be personally liable for payment of the balance owing to the seller or mortgagee. SNWT 2008,c.8,s.4(9); SNWT 2011, c.16,s.3(21).

(1) Except as otherwise provided in this Act, the assignee of any rights of a credit grantor in any transaction to which this Act applies has no greater rights than, and is subject to the same obligations, liabilities and duties as, the assignor, and the provisions of this Act apply equally to the assignee.

(2) Notwithstanding subsection (1), no borrower may recover from, or be entitled to set off against, an assignee of the credit grantor an amount greater than the balance owing on the contract at the time of the assignment, and, if there have been two or more assignments, no borrower can recover from an assignee who no longer holds the benefit of the contract an amount that exceeds the payments made by the borrower to that assignee.

(3) Except as otherwise provided in this Act, all restrictions imposed by this Act on

apply equally to any assignee of the credit grantor, seller or mortgagee and, in the restrictions, "credit grantor", "seller" and "mortgagee" include an assignee of a credit grantor, seller and mortgagee respectively.

(4) The cancellation of an agreement by any buyer under Part VII is effective against any assignee of the seller.

(5) If payments to be made by a borrower under a credit agreement are secured by a promissory note that is negotiated to an assignee of the credit grantor, and the assignee sues in the Northwest Territories on that note,

(6) Subject to section 82, a breach of any of the conditions or warranties implied by Part VI may be set off by the buyer against any claim to the goods or to payment of the price and cost of borrowing or rent or any part of it or of any promissory note given for that purpose made by any assignee of the seller, or by any holder of the promissory note, whether or not the note discloses the purpose for which it was given, or by any person claiming the goods by a title paramount to that of the seller with whose consent, express or implied, the seller has sold or let on hire the goods.

(7) The amount that may be set off against an assignee or holder of a note under subsection (6) shall not exceed the amount limited by subsection (2), and the amount that may be set off against any person claiming the goods by paramount title shall not exceed the lesser of

(8) Where a credit grantor assigns a promissory note taken in any transaction to which disclosure requirements set out in the Cost of Credit Disclosure Act apply, the credit grantor shall deliver to the assignee a copy of all information disclosed to the borrower in accordance with that Act.

(9) An assignee referred to in subsection (8) who reassigns a promissory note shall deliver to his or her assignee the same information that had been provided to him or her. SNWT 2008,c.8,s.4(9); SNWT 2011, c.16,s.3(2); SNWT 2011, c.23,s.54(14), (15), (16).

(1) Where a chattel mortgage to which subsection 56(1) applies does not indicate that it was given to secure payment of the price of the goods or goods and services, any assignee for value of that mortgage who took an assignment without notice that the mortgage was given for that purpose is not affected by any liabilities or restrictions imposed on the seller by Parts IV or VI.

(2) The burden lies on the assignee to prove that he or she took the assignment for value and without notice of the purpose for which the chattel mortgage was given. SNWT 2008,c.8,s.4(9).

(1) Where a buyer on a retail sale of goods finances his or her purchase by a chattel mortgage on the goods given to a person other than the seller, the transaction is nevertheless a time sale for the purposes of sections 57 to 66 and a retail sale for the purposes of Part VI, and the mortgagee is deemed to be an assignee of the seller, if the financing was arranged by the seller, but not otherwise.

(2) Any mortgagee who takes a mortgage to which subsection (1) applies shall, on any assignment of the mortgage, disclose that circumstance in writing to the assignee, and any assignee of the mortgagee who is aware of that fact shall disclose it to any person to whom he or she assigns the mortgage.

(3) No person shall assign a mortgage without making a disclosure required by subsection (2).

(4) Any assignee for value of a mortgage to which subsection (1) applies who took an assignment without notice of that circumstance is not affected by any liabilities or restrictions imposed on the seller by Parts IV or VI.

(5) The burden lies on the assignee to prove that he or she took the assignment for value and without notice that subsection (1) applied to it.

(6) Subsection (1) does not apply to a chattel mortgage on a cottage, garage, shed or other building if the money is advanced by the mortgagee to the seller on written instructions from the buyer, given not less than seven days after the signing of the mortgage, that state

SNWT 2008,c.8,s.4(9).

(1) No person shall make on his or her own behalf or employ others to make on his or her behalf any offer, solicitation, proposal or approach that is intended to result in a sale to which Part VII applies unless he or she is licensed as a vendor under this Act.

(2) No person shall on behalf of another person make any offer, solicitation, proposal or approach that is intended to result in a sale to which Part VII applies unless he or she is licensed as a direct seller under this Act.

(1) No person shall carry on business as a collection agency unless he or she is licensed as a collection agency under this Act.

(2) No person shall act as a collector unless he or she is licensed as a collector under this Act. SNWT 2003,c.2,s.3.

(1) Subject to sections 87 to 91, the Director shall issue any licence required by this Part to any person who makes application for a licence in the prescribed form and pays the prescribed fee, and, subject to section 92, shall renew a licence on receipt of a renewal application in the prescribed form and of the prescribed renewal fee.

(2) Every licence issued under this Act expires on March 31 following its issue unless it is cancelled before that date.

(1) The Director may refuse to issue or renew a licence as a vendor, direct seller, collection agency or collector

(2) Licences as direct sellers or collectors may only be issued to individuals.

(3) The Director, when issuing or renewing a licence or by written notice to the licensee at any other time, may impose on a licence conditions and restrictions that the Director considers to be reasonably necessary. SNWT 2003,c.2,s.4.

(1) In issuing or renewing a licence to a corporation, the Director may make it a condition of the licence that a named individual shall continue to hold the office or position named in the licence.

(2) A licence issued subject to the condition referred to in subsection (1) expires one month after the condition ceases to be fulfilled and a licence that has so expired shall not be renewed, but an application for a new licence to replace an expired licence may be made.

(1) Persons who are carrying on business in partnership may join in one application for a licence as a vendor or collection agency and a single licence may be issued to all of them.

(2) A licence issued under subsection (1) shall show both the partnership name and the names of all the partners and, if any change occurs in the composition of the partnership, the licence expires one month after the change occurs.

(3) A licence that has expired under subsection (2) shall not be renewed, but an application for a new licence to replace the expired licence may be made, and where the only change is that one or more of the partners named in it have ceased to be partners, the new licence may be granted to the continuing partners for the balance of the year of the old licence, and in that event no fee is payable for the new licence. SNWT 2003,c.2,s.5.

(1) Every applicant for a licence as a vendor or collection agency shall state in the application an address for service in the Northwest Territories.

(2) Any notice given under this Act or the regulations shall for all purposes be deemed to be sufficiently served if delivered or sent by registered mail to the licensee at the address for service stated in his or her application for a licence, unless the licensee has notified the Director in writing of a change of address for service, in which case, the notice shall be sufficiently served if delivered to or sent by registered mail to the licensee at the latest address for service of which the Director has been notified. SNWT 2003, c.2,s.7; SNWT 2011,c.16,s.3(2).

(1) The Director may refuse to renew a licence if any event or any change in the directorship or management of a corporation has occurred since the licence was issued or last renewed, and that event or change would give grounds for refusing the issuing of a licence.

(2) The Director shall refuse to renew a licence if the Director has become aware of any circumstances that would require him or her to refuse to issue a licence to the applicant.

(1) Where the Director refuses to issue or to renew a licence, the Director shall state in writing his or her reasons for the refusal.

(2) Where the Director has imposed a condition or restriction on a licence, the Director shall, on the written request of the licensee, state in writing his or her reasons for imposing the condition or restriction.

(1) A licence under this Act is not assignable.

(2) The holder of a licence as a vendor may carry on a business to which Part VII applies in every respect, except that he or she may not act as a direct seller of another vendor.

(3) The holder of a licence as a direct seller may only act as a direct seller for or on behalf of the vendor whose name is specified on his or her licence.

(4) No vendor or direct seller shall, in the course of a business to which Part VII applies, sell or offer for sale or solicit orders for the future delivery of goods or services of any sort or class other than those specified in his or her licence.

(5) Every application for a licence as a direct seller shall be accompanied by a notice given by a licensed vendor, stating that the applicant if issued a licence, is authorized to act as a direct seller representing that vendor.

(6) A licence issued to a direct seller shall specify as the principal of the licensee the vendor who has given the notice accompanying the application for that licence under subsection (5).

(7) A direct seller who is the holder of a licence shall be deemed to be authorized by the vendor specified in the licence to act for and on behalf of that vendor.

(8) Where a direct seller ceases to represent a vendor, that vendor shall without delay give notice in writing to the Director that the direct seller has ceased to represent him or her and the receipt of the notice by the Director shall operate as a cancellation of the licence of the direct seller.

(1) Where the Director has cause to believe that a person who is licensed under this Act has committed a breach of this Act or the regulations, or of any conditions or restrictions in respect of a licence, the Director may serve by registered mail a notice on the person stating

and warning the person that if he or she commits a further breach of a similar nature, his or her licence may be cancelled.

(2) The Director shall not serve a notice under subsection (1) in any case in which the Director is satisfied that the breach committed was due to

SNWT 2003,c.2,s.8; SNWT 2011,c.16,s.3(24).

(1) Where a person who is licensed under this Act

the Director may serve on that person by registered mail a notice of cancellation of his or her licence.

(2) A notice of cancellation of a licence shall state

(3) Unless an appeal is taken under section 100, and notice of that appeal given to the Director within 14 days, the Director shall cancel the licence 14 days after the mailing of the notice under subsection (2) without any further notice.

(4) Where the licence of a vendor is suspended or cancelled, the licence of all direct sellers of the vendor also shall be suspended or cancelled, as the case may be. SNWT 2003,c.2, s.9.

(1) An applicant may appeal by originating notice of motion to the Supreme Court from the decision of the Director in the following cases and on the following grounds:

(2) Where the Supreme Court allows an appeal under subsection (1), the Director shall

as the case may be, but until the appeal is decided the decision of the Director that is under appeal is valid and effective, and the applicant must comply with it while the appeal is pending.

(1) Where a person who receives a notice under section 96 wishes to contend that the act or omission complained of in the notice is not a breach of the section, or of any conditions or restrictions of the licence, he or she may apply to the Supreme Court by originating notice of motion for the determination of the question.

(2) Until a question before the Supreme Court under subsection (1) has been finally determined, the Director shall not

but the Supreme Court may, on the application of the Director, issue an interim injunction requiring the person to desist from the actions or course of conduct to which the Director objected.

(1) A person on whom a notice of cancellation under section 97 is served may appeal the cancellation by originating notice of motion to the Supreme Court on the grounds that

(2) The notice of motion under subsection (1) must be filed and served on the Director within 14 days after the mailing of the notice under section 97.

(3) A notice of cancellation under section 97 is of no effect where the Supreme Court allows the appeal.

(4) The Director shall cancel the licence where the Supreme Court dismisses the appeal.

(1) The Supreme Court shall determine any fact in dispute in the manner that it considers appropriate where an appeal is taken under section 98 or 100.

(2) Every notice of motion appealing from a decision or action of the Director shall be served on the Director and the Director shall be named as the respondent.

(3) Where the Director has refused to issue or to renew, or has cancelled a licence on the ground that the applicant or licensee has been convicted of an offence that, in the opinion of the Director, involves a dishonest act or intent on the part of the offender, this opinion is, for the purposes of this Part, a question of law, and the Supreme Court may substitute its own opinion for that of the Director.

(1) An applicant for the issuing or renewal of a licence as a collection agency shall file with the Director as part of the application a surety bond of not less than $5,000 in a form acceptable to the Director protecting clients of the applicant against his or her insolvency issued by an assurance or bonding company authorized to carry on business in the Northwest Territories and the licence shall not be granted or renewed until the bond has been filed.

(2) In the case of an application for renewal of a licence, the Director may accept a bond of less than $5,000 on being furnished with proof acceptable to the Director that a bond of the lesser amount would be sufficient, in view of the volume of the business of the applicant in the preceding 12 months.

(3) Where a collection agency licensed under this Act is a corporation and a change occurs in the directors or officers of the corporation, the collection agency shall without delay file with the Director the documentary evidence that the Director may require establishing to the satisfaction of the Director that the surety that bonded the collection agency has been notified of the change.

(4) Every bond required by this section shall provide that it cannot be cancelled without written notice to the Director.

(5) When a bond is cancelled, whether by the collection agency or by the surety, the licence of the collection agency is automatically suspended, and remains suspended until the collection agency files with the Director a new bond complying with the requirements of this section.

(6) Where the Director has received from a surety notice of intention to cancel a bond of a collection agency who applied to renew a licence, the Director may refuse to renew the licence until a new bond has been filed in accordance with the requirements of this section. SNWT 2003,c.2,s.10; SNWT 2011,c.16, s.3(2).

(1) The applicant for the issuing or renewal of a licence as a vendor shall file with the Director as part of the application a bond in the prescribed form and in the amount that the Director may require.

(2) Where the applicant gives the Director written notice that he or she considers the amount of the bond required by the Director under subsection (1) to be excessive, the Director shall state in writing his or her reasons for requiring a bond of the amount in question.

(3) Notwithstanding that the Government of the Northwest Territories has not suffered any loss or damages, every bond filed under subsection (1) shall be construed as being a penal bond and where the bond is forfeited under subsection (4), the amount due and owing as a debt to the Government of the Northwest Territories by the person bound as a result of the bond shall be determined as if the Government of the Northwest Territories suffered such loss or damages as would entitle the Government of the Northwest Territories to be indemnified to the maximum amount of liability prescribed by the bond.

(4) Every bond filed under subsection (1) shall be forfeited on demand of the Director where

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.

(5) Where a bond secured by the deposit of collateral security with the Director is forfeited under subsection (4), the Director may sell the collateral security at the current market price.

(6) The Minister may by order direct that any money recovered under a bond or realized from the sale of any collateral security be paid over

in accordance with and on the conditions set out in the order, or

(7) Any money not expended under the order of the Minister under subsection (6) shall be refunded to the surety or obligor under the bond. SNWT 1995, c.11,s.11; SNWT 2011,c.16,s.3(26),(27).

(1) A person who is aggrieved by a decision of the Director under subsection 103(4) or (5) may, within 30 days after the date of the decision, appeal to a judge of the Supreme Court who may, on hearing the appeal, make such order as may seem fit having regard to all the circumstances.

(2) The appeal shall be by notice of motion and a copy of the notice of motion shall be served on the Director within 30 days after the date of the decision and not less than 10 days before the day on which the motion is returnable.

(1) A creditor, collection agency or collector shall not add to the amount owing by the debtor on the debt, any charges made or incurred by a collection agency or collector in respect of the collection of a debt, or incurred by a creditor in employing a collection agency or collector to collect a debt.

(2) A collection agency or collector shall not collect, or attempt to collect, any money in addition to the amount owing on the debt by the debtor.

(1) Collection agencies and collectors shall adhere to the prescribed practices in respect of the collection of debts.

(2) Collection agencies and collectors shall not engage in any prohibited practice in the collection of debts. SNWT 2003,c.2,s.11.

(1) For the purposes of this Act and the regulations, the Director, or a person authorized in writing by the Director, may, at all reasonable times, enter the business premises of any person carrying on business to which this Act applies, and is entitled to have access to and to examine and copy the books of account, accounting records, documents, files, correspondence and other records of that person.

(2) No person shall refuse access, or withhold, conceal, falsify or refuse to produce any of the records referred to in subsection (1).

(3) Notwithstanding the Access to Information and Protection of Privacy Act, except for the purposes of a prosecution under this Act or of court proceedings or for the purpose of the administration and enforcement of this Act and the regulations, no person shall, without the consent of the owner,

(4) Subsection (3) does not prohibit the Director from divulging any information obtained under subsection (1) to persons charged with the administration or enforcement of any Act of Canada, another territory or a province relating to the subject matter of this Act. SNWT 1999,c.21,s.3(2),(3); SNWT 2008,c.8,s.4(10).

(1) Every individual who contravenes or fails or neglects to comply with this Act or the regulations is guilty of an offence and liable on summary conviction, for the first offence, to a fine not exceeding $1,000 and, for each subsequent offence, to a fine not exceeding $2,000 or to imprisonment for a term not exceeding three months.

(2) Every corporation that contravenes or fails or neglects to comply with this Act or the regulations is guilty of an offence and liable on summary conviction, for the first offence, to a fine not exceeding $2,000 and, for each subsequent offence, to a fine not exceeding $5,000.