(1) Subject to
subsections (4) and (5) where, after the coming into operation of section 15
of the Motor Vehicle Dealers Amendment Act 1981 , a second-hand vehicle is
sold —
(a) at
premises provided by a car market operator; and
(b) at
the time of the conduct of a car market at those premises,
a person who has
incurred loss in connection with the sale by reason of the fact that the
vendor has not passed an unencumbered title to the vehicle may sue for and
recover the amount of the loss as a debt due to the person from the car market
operator.
(2) Without limiting
the generality of subsection (1), a vehicle shall be deemed to be sold —
(a) at
premises provided by a car market operator; and
(b) at
the time of the conduct of a car market at those premises,
for the purposes of
that subsection if negotiation of the sale is commenced at those premises and
at that time but the sale is completed elsewhere.
(3) The fact that a
person —
(a) has
since the material time ceased to be registered under section 17B as a car
market operator; or
(b) was
not, at the material time, registered under section 17B as a car market
operator; or
(c) has,
since the material time, ceased to be a car market operator,
does not affect his
liability under subsection (1).
(4) A person who is or
has been a car market operator is not liable under subsection (1) for any loss
incurred in connection with the sale of a vehicle if he satisfies the court
that a notice as required by section 40B was attached to the vehicle in the
manner, and at the times, required by that section and that the notice
contained a statement to the effect that the title to the vehicle was not
guaranteed by him.
(5) Subsection (1)
does not apply to or in relation to the sale of a vehicle to a dealer.
[Section 40A inserted: No. 87 of 1981 s. 15;
amended: No. 4 of 2002 s. 28.]