Felice v Mercedes-Benz Group Australia/Pacific Pty Ltd

The case of Felice v Mercedes-Benz Group Australia/Pacific Pty Ltd involved a dispute between Shane Felice and Mercedes-Benz Group Australia/Pacific Pty Ltd. The dispute centred on the sale of a Mercedes-Benz A 250 4Matic vehicle which Felice had purchased from Tynan Motors, a dealership affiliated with Mercedes-Benz Group Australia/Pacific. The matter was heard in the Consumer, Trader and Tenancy Tribunal (CTTT) in New South Wales.

The primary legal issues the CTTT had to address were whether the motor vehicle supplied by Mercedes-Benz Group Australia/Pacific Pty Ltd met the consumer guarantees under the Australian Consumer Law, specifically the guarantee relating to the supply of goods by description, and whether there was a major failure in the vehicle. Additionally, the court had to consider the implications of the dealer-related finance contract on the remedies available to Felice under the Fair Trading Act 1987 (NSW).

The CTTT found that the motor vehicle had a significant defect that constituted a major failure, as it was not fit for the purpose for which goods of that kind are commonly supplied, thereby breaching the consumer guarantee. The court also found that the dealer-related finance contract did not alter the consumer's statutory rights under the Australian Consumer Law. In ordering remedies, the CTTT held that Felice was entitled to a price reduction and required Mercedes-Benz Group Australia/Pacific Pty Ltd to refund the purchase price minus the amount owed to the finance company, and any associated fees and charges for the early termination of the finance contract. The court further ordered that Felice must return the vehicle to the dealership and relinquish ownership of the vehicle to Mercedes-Benz Group Australia/Pacific Pty Ltd. The tribunal also provided that any difficulties in complying with these orders could be brought before the Registrar for directions.