CONSUMER LAW — Misleading or deceptive conduct — alleged contravention of s 18 of the Australian Consumer Law (NSW) by a car dealer by the making of false and misleading representations in an advertisement offering a classic car for sale and in associated dealings — damages
CONTRACTS — Breach of contract — implied term — damages
CONSUMER LAW — Consumer guarantees — Supply of goods — Guarantee as to acceptable quality — allegation of breach — damages
Quick Take
1An advertisement and associated representations by a car dealer describing a classic vehicle as retaining its 'original matching chassis/engine/gearbox combination' constitute misleading or deceptive conduct under s 18 of the Australian Consumer Law where the vehicle's body has been substantially replaced through a 'cut and shut' operation using a donor vehicle of a different model and year, even where the front clip and engine are original.
2Where affidavit evidence of multiple defence witnesses contains identical paragraphs that cannot be explained by independent recollection, and cross-examination reveals a process of cross-consultation between witnesses and the instructing solicitor, the court may find that the evidence has been infected by self-serving reconstruction and prefer the evidence of the opposing party.
3In valuing a classic car that is a 'cut and shut' rather than a factory-original vehicle, the court may use the purchase price as a starting point representing the market price for a genuine vehicle, apply deductions for undisclosed defects existing at sale, and then apply a percentage discount reflecting the diminution attributable to the vehicle not being factory-original.
