Berry v Auto Direct Group Pty Ltd

Case [2020] QCAT 383


QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Berry v Auto Direct Group Pty Ltd [2020] QCAT 383

PARTIES: NED CASSIDY BERRY

(applicant)

v

AUTO DIRECT GROUP PTY LTD

(respondent)

APPLICATION NO/S:

MVL052-20

MATTER TYPE:

Motor vehicle matters

DELIVERED ON:

6 October 2020

HEARING DATE:

1 October 2020

HEARD AT:

Brisbane

DECISION OF:

Member Cranwell

ORDERS:

1.   Ned Cassidy Berry is required to return the motor vehicle the subject of these proceedings (including the engine) to Auto Direct Group Pty Ltd within 14 days of the date of these orders.

2.   Auto Direct Group Pty Ltd is required to pay to Ned Cassidy Berry the amount of $18,950 within 28 days of the date of these orders.

CATCHWORDS:

TRADE AND COMMERCE – COMPETITION, FAIR TRADING AND CONSUMER PROTECTION LEGISLATION – CONSUMER PROTECTION – GUARANTEES, CONDITIONS AND WARRANTIES IN CONSUMER TRANSACTIONS – GUARANTEES, CONDITIONS AND WARRANTIES – whether motor vehicle of acceptable quality – whether failure to comply with consumer guarantee a major failure – whether goods rejected during the rejection period – whether consumer entitled to refund

Competition and Consumer Act 2010 (Cth), Schedule 2 – Australian Consumer Law s 54, s 259, s 260, s 262, s 263, s 278, s 279

Fair Trading Act 1989 (Qld), s 50A

Campbell v Caravan & RV Central Pty Ltd t/as Avan New South Wales & FCA Australia Pty Ltd [2016] NSWCATCD 90

Haisman v Drive (Aust) Pty Ltd  [2020] QCAT 44
Medtel Pty Ltd v Courtney (2003) 130 FCR 182

Morphy v Beaufort Townsville Pty Ltd [2018] VCAT 1520

APPEARANCES & REPRESENTATION:

Applicant:

Self-represented

Respondent:

Self-represented

REASONS FOR DECISION

  1. On 28 February 2020, Mr Berry (‘the applicant’) filed an Application – Motor Vehicle Dispute with the Tribunal.  The respondent is Auto Direct Group Pty Ltd (‘the respondent’).

  2. The applicant is the owner of a 2010 Subaru Impreza (‘the motor vehicle’). 

  3. The applicant purchased the motor vehicle from the respondent on 15 May 2019 for $18,950.

  4. The applicant seeks relief under the Australian Consumer Law, which is Schedule 2 to the Competition and Consumer Act 2010 (Cth). The relief sought by the applicant is a refund plus damages.

  5. Section 50A of the Fair Trading Act 1989 (Qld) vests the Tribunal with jurisdiction in relation to motor vehicles in respect of certain actions under the Australian Consumer Law.

  6. Pursuant to s 3(1)(b) of the Australian Consumer Law, a person is taken to have acquired goods as a consumer if ‘the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption’. This includes the applicant’s motor vehicle.

Guarantee of acceptable quality

  1. Section 54(1) of the Australian Consumer Law provides that, where a person supplies goods in trade or commerce, the goods are guaranteed to be of ‘acceptable quality’.

  2. The time at which goods are to be of acceptable quality is the time at which the goods are supplied to the consumer: Medtel Pty Ltd v Courtney (2003) 130 FCR 182 at [64] and [70]. However, information available after the time of…

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Details
AGLC
Berry v Auto Direct Group Pty Ltd [2020] QCAT 383
Case
[2020] QCAT 383
Decision Date

CaseChat Overview and Summary

In the matter of Berry v Auto Direct Group Pty Ltd, the primary dispute centred on the quality of a motor vehicle sold to Ned Cassidy Berry by Auto Direct Group Pty Ltd. The Federal Court of Australia was tasked with determining whether the vehicle met the acceptable quality standards as defined by the Australian Consumer Law and whether the failure to comply with the consumer guarantee constituted a major failure. The court was also required to assess whether the consumer had exercised his right to reject the goods within the stipulated period and whether he was entitled to a refund.

The legal issues before the court encompassed several aspects of consumer protection legislation, particularly the guarantees, conditions, and warranties in consumer transactions. Central to the dispute were sections 54, 259, 260, 262, 263, 278, and 279 of the Australian Consumer Law, which outline the requirements for goods to be of acceptable quality and the consumer's rights to reject goods and seek remedies if these standards are not met. The court had to determine the definition of "acceptable quality" in the context of the sale, whether the failure to meet these standards was significant enough to be considered a major failure, and whether the consumer's rejection of the vehicle occurred within the legal timeframe for such actions.

The court found that the motor vehicle did not meet the acceptable quality standards as it exhibited significant defects that substantially impaired its use. The failures identified were deemed major, thereby entitling the consumer to reject the goods. The court also confirmed that the rejection occurred within the legally prescribed period. Given these findings, the consumer was entitled to a refund. The court ordered that the vehicle be returned to the seller within 14 days, and the seller was required to reimburse the purchase price to the consumer within 28 days.

In summary, the Federal Court of Australia ruled in favour of the consumer, Ned Cassidy Berry. The court ordered the return of the defective motor vehicle to Auto Direct Group Pty Ltd and mandated the company to refund the purchase price to Mr Berry within the specified timelines.

Orders

Orders of the court

1. Ned Cassidy Berry is required to return the motor vehicle the subject of these proceedings (including the engine) to Auto Direct Group Pty Ltd within 14 days of the date of these orders.

2. Auto Direct Group Pty Ltd is required to pay to Ned Cassidy Berry the amount of $18,950 within 28 days of the date of these orders.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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