Robert Case Study - Sections 54 and 55 of the Australian Consumer Law - Law Assignment Help

Assignment Task:

Robert Case Study:

Robert wanted to buy a car. He decided to buy a new car because he needed a car that was reliable, and he decided to look at new entrants in the Australian market because he wanted to buy something that was good value for the price. He settled on a new car company called “Jora” and so he went to the Jora dealership at Ryde.

He explained to the Jora salesperson that he was a stay-at-home dad with two young sons. He said he would be ‘using the car to run them around to soccer, school and to do the shopping’. Robert said he lived in inner Sydney and did not go on long car trips. Robert looked at many new cars in the Jora showroom and finally settled on a new Jora Diesel SUV called a ‘Stora’ because it had plenty of room for his two young sons and their football mates and it was very economical. The salesperson said Robert will be very happy with his Stora because ‘he has one himself, to ferry his kids around the city on weekends, and he loves it’. Robert bought the Stora for $62,000. The car came with a three-year unlimited-kilometre new car warranty. In essence, the warranty covered all ‘defects arising from manufacture’ of the car. There were various exclusions to the warranty, one of which was the failure to have the car serviced in accordance with the Jora servicing guidelines every 12 months from the date of purchase. The warranty is not invalid if the owner services their car at a non-Jora dealer but it is recommended that owners have their Jora car serviced by a Jora dealer so that the service will be done in accordance with Jora Guidelines and using Jora authorised spare parts.

Robert had the car for 11 months when an orange warning light came on. Robert rang the dealership who advised him to drive the car on the motorway for 20 minutes at 70 kilometres an hour to complete what was called a ‘regenerative process’ which would solve the problem. Robert did so – but the car went into ‘limp’ mode, shut down in the middle of a busy road and it had to be towed to the dealers. The dealer drew Robert’s attention to the Owner’s handbook of the Stora which stated:

‘This is a diesel car. It has a self-cleaning process. Once the amber light appears the car needs to be run at a high speed (over 60 kilometres/hour) for between 10-20 minutes due to the Diesel Particulate Filter (DPF). Self-cleaning can occur at a lower speed but this will take longer.’

The dealership said the damage was due to the way Robert drove the car and not due to a defect in the manufacture of the car itself. They said the way that Robert drove the car was not covered by the warranty. Robert protested and said he did drive the car over 60 kilometres as he was told to do. The dealer didn’t believe him but nevertheless, repaired the car as ‘a courtesy’ and gave Robert’s car it’s 12 month’s service while it was there. Robert had a second incident, it occurred 6 months later. This time the DPF warning light did not come on and the light went straight to red. The dealership refused to fix his car this second time. The dealer said the damage was due to the incorrect way the car had been driven, it was therefore not within warranty and said that as the car had been fixed the first time as a courtesy, it would not be fixed again for free.

Robert tells you he rang up ‘someone’ at Jora who told him that the dealerships can alter the amber light to go straight to red ‘as people ignore the amber light anyway.’ Robert believes that this is what happened at the first service.

1. Using and applying the law as found in sections 54 and 55 of the Australian Consumer Law (and any relevant cases discussed in class) advise Robert.

2. Apart from the rights under sections 54 and 55, what is the relevance of the three-year unlimited-kilometre new car warranty here? What possible legal rights does Robert have in relation to it and what would be his remedies?

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