Western Australian Current Acts

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MOTOR VEHICLE DEALERS ACT 1973 - SECT 41A

41A .         Rescission of sale, Magistrates Court may order on Commissioner’s application

        (1)         Where —

            (a)         a vehicle has been sold by a dealer, not being a financier or car hire operator, to a purchaser; or

            (b)         a vehicle has been sold by a financier or car hire operator to a purchaser and a dealer, not being a financier or car hire operator, arranged or procured the sale of the vehicle,

                and the Commissioner is of opinion that the vehicle as so sold —

            (c)         was substantially different from the vehicle as represented to the purchaser; or

            (d)         was a vehicle in relation to which a notice was, pursuant to section 33, required to be displayed but in relation to which no such notice was displayed,

                the Commissioner may apply to the Magistrates Court for an order for rescission of the sale of the vehicle.

        (2)         An application under this section shall set out the grounds on which it is made.

        (3)         After hearing the Commissioner or a representative of the Commissioner and affording any other person likely to be affected by any order made under this section an opportunity of being heard, the Magistrates Court may —

            (a)         order that the sale be rescinded; and

            (b)         make such further or consequential orders (including an order as to the payment of the costs of the application) as to it seem necessary or desirable.

        (4)         The power to make further or consequential orders conferred on the Magistrates Court by subsection (3) shall extend to the making of orders concerning any collateral credit agreement associated with the sale.

        (5)         In making any orders under subsection (3), the Magistrates Court shall so far as is possible apply the following principles in the following order:

            (a)         That there should be returned to the purchaser —

                  (i)         any moneys or other consideration paid or provided by him under any agreement for the sale (not being moneys or other consideration obtained by him under a collateral credit agreement associated with the sale for the purpose of being so paid or provided); and

                  (ii)         any moneys or other consideration paid or provided by him under any collateral credit agreement associated with the sale.

            (b)         That —

                  (i)         where the vehicle was sold by a financier or car hire operator, that financier or care hire operator; and

                  (ii)         any person who has provided finance under any collateral credit agreement associated with the sale,

                should be indemnified by the dealer referred to in subsection (1) against any loss suffered by the financier, person or car hire operator in consequence of any order made by the Magistrates Court.

            (c)         That the vehicle should be returned to the dealer, the financier or the car hire operator.

        (6)         Notwithstanding any Act or law to the contrary, upon an order rescinding a sale being made, the rights and obligations of the parties under any contract or agreement relating to the sale or under any contract or agreement relating to a collateral credit agreement connected with the sale and, where applicable, of any dealer referred to in subsection (1) who is not such a party, shall be as provided for in that order or in any order ancillary to or consequential upon that order and without limiting the generality of the foregoing it shall not be a bar, to the making of an order rescinding a sale, that one or more of those persons cannot be restored to the position or positions that existed prior to the sale.

        (7)         In this section collateral credit agreement means a contract or agreement for the provision of credit by a person other than the dealer referred to in subsection (1) for the purposes of the sale of a vehicle where that contract or agreement was arranged or procured by that dealer.

        [Section 41A inserted: No. 49 of 1979 s. 21; amended: No. 4 of 2002 s. 29; No. 59 of 2004 s. 141.]



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