Serious faultsIf a vehicle has a serious fault, the consumer may choose between these remedies:
* rejecting the vehicle and seeking a refund or replacement vehicle (of similar value and type), or
* keeping the vehicle and seeking compensation for the loss in value.
Even if a serious fault can be fixed, the consumer may choose a refund rather than a repair.
What is a serious fault?A serious fault is one where:
a reasonable consumer would not have bought the vehicle if they had known the fault existed
the vehicle is significantly different from the demonstration model or its description
the vehicle is substantially unfit for its normal purpose and cannot be made fit for purpose by a repair
the vehicle is substantially unfit for the particular purpose it was purchased for – eg, you informed the consumer that the car will be able to tow their boat and it cannot.
the vehicle is unsafe.
From the Courts
The Courts have decided that a fault might be considered serious when:
the cost of the repair is high compared with the price paid for the vehicle – eg, repairs of $1,000 required on a car bought for $5,000
the vehicle has a number of small faults, which on their own may be minor, but together may be serious.
If you accept that the fault is serious, and that you are responsible under the CGA, you are obliged to accept the remedy that the consumer has chosen.
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