National Consumer Commission v Western Car Sales CC t/a Western Car Sales (NCT/81554/2017/73(2)(b)) [2017] ZANCT 102 (14 September 2017)

National Consumer Commission v Western Car Sales CC t/a Western Car Sales (NCT/81554/2017/73(2)(b)) [2017] ZANCT 102 (14 September 2017)

The Tribunal found that the respondent sold a defective vehicle to Ms Van Lill and attempted to evade statutory liability by using standard contract terms purporting to exclude warranties and liability. The evidence showed that the vehicle was not fit for purpose, broke down within days, and was not usable. The Tribunal held that the respondent's contract wording did not meet the requirements of section 55(6) of the Consumer Protection Act, as there was no objective evidence that the consumer intended to purchase the vehicle as scrap or in a non-running condition. The Tribunal concluded that the respondent contravened sections 51(1)(a) and (b) by misleading consumers and defeating the...

Citation
[2017] ZANCT 102
Parties
Applicant: National Consumer Commission; Respondent: Western Car Sales CC t/a Western Car Sales
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
14 September 2017
Case Number
NCT/81554/2017/73(2)(b)
Procedural Posture
Default Application / Judgment on Default Application Under Section 73(2)(b) of the CPA
Outcome
Application granted. The respondent is ordered to refund the consumer, return the vehicle, cease prohibited contract terms, and pay an administrative fine.
Judges
T Woker, J Simpson, H Devraj
Legal Topics
Consumer Protection Act, Implied Warranty of Quality, Prohibited Contract Terms, Administrative Fine, Voetstoots Exclusion, Refund of Purchase Price
Commercial and Corporate Civil Procedure Consumer Protection Act Implied Warranty of Quality Prohibited Contract Terms Administrative Fine Voetstoots Exclusion Refund of Purchase Price

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Parties

National Consumer Commission

Applicant

Western Car Sales CC t/a Western Car Sales

Respondent

Procedural Posture

Default Application / Judgment on Default Application Under Section 73(2)(b) of the CPA

Legal Issues

  1. 1 Whether the respondent contravened sections 51(1)(a) and (b) of the Consumer Protection Act by including prohibited terms in its contracts.
  2. 2 Whether the respondent is liable to refund the consumer under section 56 of the Consumer Protection Act for a defective vehicle.
  3. 3 Whether the respondent's standard contract wording validly excludes liability under section 55(6) of the Consumer Protection Act.

Ratio Decidendi

The Tribunal found that the respondent sold a defective vehicle to Ms Van Lill and attempted to evade statutory liability by using standard contract terms purporting to exclude warranties and liability. The evidence showed that the vehicle was not fit for purpose, broke down within days, and was not usable. The Tribunal held that the respondent's contract wording did not meet the requirements of section 55(6) of the Consumer Protection Act, as there was no objective evidence that the consumer intended to purchase the vehicle as scrap or in a non-running condition. The Tribunal concluded that the respondent contravened sections 51(1)(a) and (b) by misleading consumers and defeating the...

Court Disposition

Application granted. The respondent is ordered to refund the consumer, return the vehicle, cease prohibited contract terms, and pay an administrative fine.

Orders

  • The respondent is to reimburse Ms Van Lill with an amount of R61,450.00 within 15 business days of the date of this judgment.
  • After payment has been made, the respondent may collect the Volkswagen Passat 1.8 T vehicle from Mr Van Lill at its own cost.