Final answer:
OMVIC (Ontario Motor Vehicle Industry Council) may go to court to appoint a receiver and manager for a dealership facing serious issues like insolvency, fraud, or failure to comply with the Motor Vehicle Dealers Act, to protect consumers and creditors.
Step-by-step explanation:
OMVIC (Ontario Motor Vehicle Industry Council) could apply to court to appoint a receiver and manager to assume temporary control of a dealership under several possible situations. These circumstances typically involve serious financial or legal issues that threaten the interests of consumers, creditors, and other stakeholders. A few examples of such situations are: when a dealership is insolvent or facing bankruptcy, if there is evidence of significant and systematic fraudulent activities, or if the dealership is unable to fulfill its obligations under the Motor Vehicle Dealers Act.
For instance, if unpaid customer deposits or unfilled warranties leave consumers at risk, an OMVIC intervention with a court-appointed receiver can protect the consumers' interests. The aim of the receivership is to manage the troubled dealership's affairs in a manner that either turns around the business or ensures an orderly wind-down process. Receivership is seen as a last resort, and typically all other reasonable options to rectify the issues at hand are considered prior to this course of action.