WAH & IMEX GOODS NETWORK PTY LTD TRADING AS IMEX MOTORS (Civil Dispute)

The applicant, WAH & IMEX GOODS NETWORK PTY LTD trading as IMEX Motors, brought a claim against the respondent for breach of the Australian Consumer Law (ACL) in relation to the sale of a second hand motor vehicle. The motor vehicle broke down after only three weeks, leading to the claim. The case was heard by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).

The primary legal issue before the tribunal was whether the respondent, as the motor dealer, was liable under the ACL for selling a vehicle that did not meet acceptable quality. The tribunal needed to determine the meaning of "acceptable quality" under the ACL, and whether the breakdown of the vehicle constituted a major failure. Additionally, the tribunal had to consider the effect of the statutory warranty provided under the Sale of Motor Vehicles Act 1977 on the respondent’s liability under the ACL.

The tribunal found that the vehicle did not meet acceptable quality as it broke down within a very short period of time after purchase. The tribunal held that the definition of "acceptable quality" in the ACL includes that the goods are fit for all the purposes for which goods of that kind are commonly supplied, are acceptable in appearance and finish, free from defects, durable, and safe. The breakdown of the vehicle within three weeks of purchase was considered a major failure, which triggered the respondent’s liability under the ACL. The statutory warranty under the Sale of Motor Vehicles Act 1977 did not absolve the respondent of their obligations under the ACL. Therefore, the tribunal held that the respondent was liable for breach of the ACL.

The tribunal ordered the respondent to pay the applicant $5,302.63, which included the original purchase price of $4,852.00, interest from 27 June 2016 to 28 July 2017 of $296.63, and the filing and search fees of $145.00 and $9.00, respectively. The tribunal also ordered the respondent to collect the vehicle from the applicant’s premises by close of business 11 August 2017.