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South Africa Judgment

Consumer Affairs Court

Mathole v Sebo Motors (GCC/10/2022) [2022] ZACONAF 24 (12 September 2022)

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Research organized from the available case record

Source document

01

Holding and result

The court found that the Respondent engaged in prohibited conduct and unfair business practices by failing to deliver the vehicle and retaining the deposit. Both parties entered into a settlement agreement for the refund of the deposit, and the court confirmed this agreement as an order to ensure the applicant receives the agreed payments. The order provides for monthly instalments until the full amount is paid, thereby protecting the applicant's rights under consumer protection legislation.

Court disposition

Settlement agreement confirmed and made an order of court; Respondent ordered to pay the applicant in instalments.

Orders

  • The Respondent shall pay the applicant R11,500.00 per month for ten months, with the first instalment due on or before 30 September 2022 and subsequent payments on or before the last day of each following month until the full debt is settled.

02

Material facts

Parties

Joel Mathole

Applicant Counsel: Consumer Protector

Sebo Motors

Respondent Counsel: Mr Sebopetsa

Amounts and remedies

  • Total Refund Amount: ZAR 115,000
  • Monthly Instalment: ZAR 11,500
  • Number of Instalments: ZAR 10

03

Procedural history

  1. Posture

    Urgent Application / Settlement Agreement Confirmation and Final Order

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant, represented by the Consumer Protector, argued that the Respondent failed to deliver the vehicle as contracted and retained the deposit, constituting prohibited conduct and unfair business practice. The applicant requested that the settlement agreement for a refund be made an order of court to ensure compliance.
Respondent
The Respondent, represented by Mr Sebopetsa, acknowledged the settlement agreement and confirmed willingness to proceed with the matter and comply with the payment terms as agreed, despite short notice of the hearing.

05

Court’s reasoning

  1. 01

    Consumer Protection Act, No 68 of 2008

    Prohibited conduct under the Consumer Protection Act includes any act or omission that contravenes the Act or its regulations.

  2. 02

    Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996

    An unfair business practice is any business conduct that is unfair, unreasonable, or unjust as defined by the Consumer Affairs (Unfair Business Practices) Act.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the Respondent engaged in prohibited conduct and unfair business practices by failing to deliver the vehicle and retaining the deposit. Both parties entered into a settlement agreement for the refund of the deposit, and the court confirmed this agreement as an order to ensure the applicant receives the agreed payments. The order provides for monthly instalments until the full amount is paid, thereby protecting the applicant's rights under consumer protection legislation.

Obiter and limits

  • The court noted the importance of settlement agreements in resolving consumer disputes efficiently.
  • The court emphasized that compliance with consumer protection statutes is mandatory for all businesses operating in the province.

Court disposition

Settlement agreement confirmed and made an order of court; Respondent ordered to pay the applicant in instalments.

  • The Respondent shall pay the applicant R11,500.00 per month for ten months, with the first instalment due on or before 30 September 2022 and subsequent payments on or before the last day of each following month until the full debt is settled.

Source and reliance status

Consumer Affairs Court

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Judgment reading view

Judgment text

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Source document

Consumer Affairs Court

Judgment

[2022] ZACONAF 24

IN

THE CONSUMER AFFAIRS COURT FOR THE PROVINCE OF GAUTENG

HELD

AT JOHANNESBURG

CASE NO: GCC/10/2022

In the matter between:

JOEL

MATHOLE

Complainant

and

SEBO

MOTORS

Respondent

JUDGMENT

The matter was heard online through MS Teams on the 20th of September 2022. Both the Complainant and the Respondent were in attendance. The Complainant was represented by the Consumer Protector. The Respondent, duly represented by Mr Sebopetsa the owner of the Respondent business, confirmed that he was happy to proceed with the matter despite being notified that the notice of set down for the Court sitting was a day short.

The parties had entered into a settlement agreement concluded on the 29th of August 2022 in terms of which the Respondent was to pay the Complainant an amount of R115 000,00 (one hundred and fifteen thousand rands only) as a refund for moneys that had been paid by the Complainant as a deposit towards the purchase of a Toyota Quantum vehicle. The Respondent had undertaken to pay monthly instalments of RI 1 500,00 (eleven thousand five hundred rands only) for a period of ten months. The first instalment is payable on or before the 30th of September 2022.

The Consumer Protector requested that the settlement agreement aforesaid be made an order of the Consumer Affairs Court. Both parties also confirmed, under oath, that they would like the settlement agreement entered into on the 29th of August 2022 to be made an order of court. The Settlement Agreement concluded on the 29th of August 2022 was thus confirmed by the Gauteng Consumer Affairs Court and was made an order of the Gauteng Consumer Affairs Court.

FINDING:

The Respondent engaged in prohibited conduct as defined in terms of section 1 of the Consumer Protection Act, No 68 of 2008.

The Respondent engaged in an unfair business practice as defined in terms of section 1 of the Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996.

IT IS HEREBY ORDERED THAT:

1. The Respondent shall pay the Plaintiff the amount of Rll 500,00 (Eleven Thousand Five Hundred Rands Only) on a monthly basis for a period of ten (10) months, with the first instalment payable on or before 30 September 2022 and monthly thereafter on or before the last day of each following month until the full debt is settled.

ORDERED as such at JOHANNESBURG on 21 September 2022.

Zandile Mpungose

CHAIRPERSON (Alternate)

MEMBERS M. Phukubje and Ina Opperman concur

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Consumer Protection Act, No 68 of 2008

Legislation

Legislation referenced in the available case record.

Consumer Affairs (Unfair Business Practices) Act, No 7 of 1996

Legislation

Legislation referenced in the available case record.

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