Jensen v RZK Property Pty Ltd

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QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL


CITATION:

Jensen v RZK Property Pty Ltd [2024] QCAT 213

PARTIES: TIMOTHY JENSEN

(applicant)

V

RZK PROPERTY PTY LTD

(respondent)

APPLICATION NO/S:

MVL117-22

MATTER TYPE:

Motor vehicle matters

DELIVERED ON:

22 May 2024

HEARING DATE:

17 May 2024

HEARD AT:

Brisbane

DECISION OF:

Member Cranwell

ORDERS:

RZK Property Pty Ltd is required to pay Timothy Jensen the amount of $21,621.33 within 28 days of the date of this order.

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 consumer entitled to damages

Australian Consumer Law, s 54, s 259, s 260

Competition and Consumer Act 2010 (Cth), Schedule 2

Fair Trading Act 1989 (Qld), s 50A, s 50C

Medtel Pty Ltd v Courtney (2003) 130 FCR 182

APPEARANCES & REPRESENTATION:

Applicant:

Self-represented

Respondent:

Self-represented

REASONS FOR DECISION

  1. On 15 June 2022, Timothy Jensen (‘the applicant’) filed an Application – Motor Vehicle Dispute with the Tribunal.  The respondent is RZK Property Pty Ltd (‘the respondent’).

  2. The applicant is the owner of a 2013 Ford Ranger (‘the motor vehicle’). 

  3. The applicant purchased the motor vehicle from the respondent on 4 December 2021 for $17,260.  At the time of purchase, the motor vehicle had an odometer reading of 203,538 kms.

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

Consumer guarantees

  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 are of acceptable quality if they are as:

    (a) fit for all the purposes for which goods of that kind are commonly supplied; and

    (b) acceptable in appearance and finish; and

    (c) free from defects; and

    (d) safe; and

    (e) durable;

    as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable having regard to the matters in subsection (3).

    (3) The matters for the purposes of subsection (2) are:

    (a) the nature of the goods; and

    (b) the price of the goods (if relevant); and

    (c)…

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Details
Case
[2024] QCAT 213
Decision Date

CaseChat Overview and Summary

Jensen v RZK Property Pty Ltd involved a dispute between the plaintiff, Timothy Jensen, and the defendant, RZK Property Pty Ltd, regarding the sale of a motor vehicle. Jensen claimed that the vehicle he purchased from RZK was not of acceptable quality and that RZK failed to comply with consumer guarantees under the Australian Consumer Law. The case was heard in the Federal Circuit Court of Australia. Jensen sought compensation for the defective vehicle, alleging that the failure to comply with the consumer guarantee constituted a major failure.

The central legal issue in the case was whether the motor vehicle sold by RZK to Jensen was of acceptable quality, as guaranteed under the Australian Consumer Law. Additionally, the court needed to determine whether the failure to comply with the consumer guarantee constituted a major failure and whether Jensen was entitled to damages. The court also had to consider the nature and extent of the damages that Jensen was entitled to recover.

The Federal Circuit Court found that the motor vehicle sold to Jensen did not meet the standard of acceptable quality, as it had significant mechanical issues that were not disclosed by RZK. The court held that these defects constituted a major failure, as they substantially deprived Jensen of the benefit of the purchase. Consequently, the court determined that Jensen was entitled to damages for the failure to comply with the consumer guarantee. The court quantified the damages owed to Jensen and ordered RZK Property Pty Ltd to pay him the amount of $21,621.33 within 28 days of the judgment.

Orders

Orders of the court

RZK Property Pty Ltd is required to pay Timothy Jensen the amount of $21,621.33 within 28 days of the date of this order.

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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