Issue Date:  -  Monday, 27 September 2004

Motor vehicle dealer fined

A motor vehicle dealership and its managing director were found guilty this morning of using incorrect sales contracts when dealing with consumers.

Baldev Singh Bagga and Farm Cove Pty Ltd (trading as Action Motors), were convicted of 8 charges each under the Motor Vehicle Dealers Act 1973 of using sales contracts which were not in the prescribed form in Perth Court of Petty Sessions this morning.

Farm Cove Pty Ltd was fined $4,000, and Mr Bagga $400 plus $399.50 costs.

Mr Bagga is the Managing Director of the company and dealer principal of Action Motors, which is based at 1439 Albany Highway Cannington.

The court heard that on a routine inspection to Action Motors in May 2003, a Consumer Protection Officer noticed that the dealership was not using the standard form of sales contract, as required by the Motor Vehicle Dealers (Sales) Regulations 1974 (WA).

"We found that the contracts varied on a number of significant points," Consumer Protection Commissioner Patrick Walker said.

"For example, the contracts stipulated that purchasers could not bring a claim against the dealership for non-delivery of vehicles, which is a right that every consumer has at law.

"Further, their contracts did not contain terms relating to when a consumer may terminate the contract or provisions relating to finance arrangements.

"Consumers have a right to know that the contract they are signing is the one the government has required dealers to use to protect consumer’s interests," Commissioner Walker said.

"Contracts should provide consumers with certainty and a clear understanding of their rights.

"Motor vehicle dealers not conforming with government regulation will be prosecuted," Mr Walker added.

"I urge consumers to always ask and get a copy of the contract, before signing it," Mr Walker said. "If something is not clear, contact Consumer Protection."

For information or advice on contracts, contact Consumer Protection on 1300 30 40 54.