Crawford v Sunco Motors Pty Ltd

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QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Crawford v Sunco Motors Pty Ltd [2021] QCAT 183

PARTIES: WILLIAM CRAWFORD

(applicant)

v

SUNCO MOTORS PTY LTD

(respondent)

APPLICATION NO/S:

MVL162-20

MATTER TYPE:

Motor vehicle matters

DELIVERED ON:

HEARING DATE:

14 May 2021

HEARD AT:

Brisbane

DECISION OF:

Member Cranwell

ORDERS:

1.   William Crawford is required to return the motor vehicle the subject of these proceedings to Sunco Motors Pty Ltd within 7 days of the date of these orders.

2.   Sunco Motors Pty Ltd is required to pay to William Crawford the amount of $45,773.78 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

Australian Consumer Law, s 2, s 54, s 259, s 260, s 262,
s 263

Competition and Consumer Act 2010 (Cth), Schedule 2

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

Cary Boyd v Agrison Pty Ltd [2014] VMC 23
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 16 July 2020, Mr Crawford (‘the applicant’) filed an Application – Motor Vehicle Dispute with the Tribunal.  The respondent is Sunco Motors Pty Ltd (‘the respondent’).

  2. The applicant is the owner of a 2017 Nissan Navara (‘the motor vehicle’). 

  3. The applicant purchased the motor vehicle from the respondent on 17 August 2018 for $45,773.78.   The contract included supply of a TJM canopy, carpet mats, towbar, smoked bonnet protector and roof racks.

  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.

  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.

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 supply may be taken into account in deciding whether the goods were of acceptable quality at the time of supply.

  3. Sections 54(2) and (3) of the Australian Consumer Law define acceptable quality as follows:

    (2) Goods…

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Details
Case
[2021] QCAT 183
Decision Date

CaseChat Overview and Summary

The dispute between Crawford and Sunco Motors Pty Ltd was heard in the Australian Consumer and Competition Commission. The issue at hand was whether the motor vehicle supplied by Sunco Motors was of acceptable quality and if the failure to comply with the consumer guarantee constituted a major failure. Additionally, the court had to determine if the vehicle was rejected within the allowable period and whether the consumer was entitled to a refund. The crux of the matter revolved around the quality of the motor vehicle and the consumer's rights under the Australian Consumer Law.

The court considered the definition of "acceptable quality" under the Australian Consumer Law, which includes being safe, durable, and free from defects. It was necessary to determine if the vehicle met these standards and if the defects were significant enough to be considered a major failure. The court also examined whether the rejection of the vehicle was within the specified period and if the consumer's rights had been violated by the failure to provide goods of acceptable quality.

After reviewing the evidence and legal arguments, the court found that the motor vehicle did not meet the acceptable quality standard, and the defects were significant enough to be considered a major failure. The rejection of the vehicle occurred within the allowable period, and the consumer was entitled to a refund. Consequently, the court ordered the consumer to return the vehicle within seven days and required the seller to pay a refund within 28 days.

The court's final orders were that the consumer must return the vehicle within seven days of the decision and that the seller must pay a refund within 28 days. This decision highlights the importance of providing goods of acceptable quality and the consumer's right to reject goods that do not meet these standards.

Orders

Orders of the court

32. The orders of the Tribunal are:

32. 1. The applicant is required to return the motor vehicle the subject of these proceedings to the respondent within 7 days of the date of these orders.

32. 2. The respondent is required to pay to the applicant the amount of $45,773.78 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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