Grehan & Anor v WestPoint Autos Qld Pty Ltd

In the case of Grehan & Anor v WestPoint Autos Qld Pty Ltd, the appellants, Grehan and another consumer, brought an appeal against the respondent, WestPoint Autos Qld Pty Ltd, concerning a motor vehicle sold to them. The central issue was whether the vehicle was of acceptable quality when it was supplied to the appellants. The appellants claimed that a balance shaft gear in the vehicle failed after 6 months of use and 9,000 kilometres, leading them to allege that the vehicle was not of acceptable quality. The court was tasked with determining whether the vehicle met the standards of acceptable quality and whether the failure of the balance shaft gear constituted a major failure of guarantee.

The court examined the application of the wrong test in the original decision, which had concluded that the vehicle was of acceptable quality. It was established that the vehicle was indeed not of acceptable quality; however, the failure of the balance shaft gear was not considered a major failure of guarantee. This distinction was crucial as it impacted the rights and remedies available to the appellants. The court also had to address the procedural issues, including the purported rejection of the vehicle and the subsequent sale of the vehicle before the appeal was heard.

The court found that the original decision had applied the wrong test in determining the quality of the vehicle, which led to an incorrect conclusion. Despite the vehicle not meeting the acceptable quality standards, the failure of the balance shaft gear was not deemed a major failure of guarantee. As a result, the court allowed the appeal, ordered the respondent to pay the appellants the sum of $2,511.78 within 14 days, and dismissed the application to strike out the appeal. The court also granted leave to adduce fresh evidence and leave to appeal, ensuring that the appellants received appropriate compensation for the issues encountered with the vehicle.