Used car dealers cannot sell you a defective car or make you give up your rights in terms of the CPA, according to the Consumer Tribunal.
Two used car dealers two were fined R100 000 each for making a consumer sign an agreement intended to avoid their obligations or duty. Picture: iStock
Two months later, the car overheated with the coolant and fan running properly and a warning light on the cluster illuminated, indicating that the consumer must stop the car. She informed the dealer of the mechanical problem and enquired about their warranty but did not explicitly request the dealer to repair the car.
MIOSA issued a recommendation indicating that the relief requested was impossible and advised the consumer to file a complaint with the NCC. The respondents also argued that the contractual terms did not attempt to circumvent the supplier’s responsibilities in terms of the CPA but that they were lawful and standard clauses in the industry.
The NCC also abandoned its plea for a refund of the purchase price and asked the Consumer Tribunal to directing the respondents to refund the consumer the costs incurred in an attempt to repair the vehicle in the sum of R73 977.78 and pay an administrative fine in the amount of R1 million.According to section 48, a supplier is not allowed to offer to supply, supply, or enter into an agreement to supply any goods or services on terms that are unfair, unreasonable or unjust.
According to the respondents, the purchase agreement’s terms and conditions are fair and standard industry terms and conditions. They argued that the exclusion was the result of an arms-length transaction and that the consumer agreed to the clause. By including the exclusion clause in the purchase agreement, the supplier deprived the consumer of her rights in terms of section 56.
The Tribunal, therefore, found that the respondents contravened sections 48 and 48 of the CPA and although the Consumer Tribunal could not find that Squad Cars contravened section 56, it said that the consumer should consider applying for a certificate of prohibited conduct from the chairperson of the Tribunal and instituting a claim for the assessment and awarding of damages in a civil court.
In addition, the Tribunal found that Bryanston Executive Cars also contravened section 51 and by making the consumer sign an agreement that purported to avoid its obligations or duty in terms of the CPA.
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