Burns v Man Automotive (Aust) Pty Ltd

The High Court of Australia considered an appeal by Mr Burns against a decision of the Supreme Court of New South Wales, which had dismissed his claim for damages against Man Automotive (Aust) Pty Ltd. Mr Burns alleged that he had suffered loss as a result of misleading and deceptive conduct by Man Automotive in contravention of s 52 of the *Trade Practices Act 1974* (Cth).

The central legal issue before the High Court was whether Man Automotive had engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in relation to the sale of a motor vehicle. Specifically, the court had to determine whether representations made by Man Automotive concerning the vehicle's suitability for a particular purpose, and its condition, were false or misleading.

The High Court found that Man Automotive had engaged in misleading and deceptive conduct. The court reasoned that the representations made by the company regarding the vehicle's suitability for towing a caravan and its mechanical condition were unsubstantiated and therefore misleading. The court applied the principles established in cases concerning s 52 of the *Trade Practices Act*, emphasizing that a representation need not be false to be misleading; it is sufficient if it creates a false impression or is likely to do so. The court also considered the effect of the representations on a reasonable consumer in Mr Burns' position.

The High Court allowed the appeal, setting aside the order of the Supreme Court and remitting the matter to the Supreme Court for assessment of damages.