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Beacham Parts Service Ltd v Nian [2020] NZDC 11202

Published 21 April 2021

Appeal from tribunal — Motor Vehicle Disputes Tribunal — sale and purchase agreement — validity — misleading and deceptive conduct — Consumer Information Notice — statutory write-off — Motor Vehicle Sales Act 2003, ss 14, 15 & 16 — Fair Trading Act 1986, ss 9 & 43 — District Court Rules 2014, r 18.19 — Consumer Information Standards (Used Motor Vehicles) Regulations 2008 — Shotover Gorge Jet Boats Ltd v Jamieson [1987] 1 NZLR 437 (CA) — Austin, Nichols & Inc v Stichting Lodestar [2008] 2 NZLR 141 (SC) — Red Eagle Corp Ltd v Ellis [2010] 2 NZLR 492 (SC) — McBride Street Cars Ltd v District Court [2018] NZHC 111. This was an appeal from the Motor Vehicle Disputes Tribunal decision that the appellant had engaged in misleading conduct with regards to the sale of a car, and declared the sale and purchase agreement to be void. The car had been imported by the appellant from Australia as a damaged import. This was not disclosed to the respondent and no Consumer Information Notice was displayed, nor was the fact that it had been declared a statutory write-off in Australia (a more serious circumstance than the car merely being damaged). The Tribunal held that these constituted two separate obligations on the part of the appellant. The Court was satisfied that the Tribunal was correct in finding that the respondent had established breaches of the Fair Trading Act and that he had not been advised of the write-off in Australia. Consequently, the contract was void at all times. The Judge dismissed the appeal and directed that the order of the Tribunal be implemented; namely, a refund of the purchase price and return of the vehicle. Judgment Date: 18 June 2020.

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