Australian Capital Territory Numbered Acts Australian Capital Territory Numbered Acts24. (1) Sections 23, 24 and 25 of the Principal Act are repealed and the following sections substituted:
“23. (1) Except as provided in this section and sections 24 and 25, where a motor vehicle described in Column 2 of Schedule 1 is sold by a dealer and before—
(a) the vehicle has been driven for the number of kilometres after being manufactured or sold, as the case may be, specified opposite the description of the vehicle in Column 3 of Schedule 1; or
(b) the expiration of the period, specified opposite the description of the vehicle in Column 4 of Schedule 1, after the vehicle is so sold;
whichever first occurs, a defect appears or occurs in the vehicle, the dealer shall, whether or not the defect existed at the time of the sale, at the dealer's own expense, repair or make good, or cause to be repaired or made good the defect so as to place the vehicle in a reasonable condition having regard to its age.
“(2) The dealer's obligation under subsection (1) shall be taken to be a term of the contract of sale relating to the vehicle.
“(3) For the purposes of subsection (1), a defect which occurs in a vehicle includes a defect—
(a) which existed in the vehicle at any time before the occurrence of an event referred to in paragraph (1) (a) or (b); and
(b) which first became apparent after the event occurred;
but only if the defect is reported to the dealer within a reasonable period after it becomes apparent.
“(4) For the purposes of calculating the period referred to in paragraph (1) (b), no regard shall be paid to any period during which the dealer has the motor vehicle in his or her possession for the purpose or purported purpose of ascertaining or carrying out his or her obligations under subsection (1).
“(5) The obligation of a dealer under subsection (1) in relation to a new motor vehicle sold by the dealer is extinguished if, subsequent to that sale, the dealer or another dealer acquires ownership of the vehicle, or the vehicle is repossessed by a financier.
“(6) Subject to subsection (5), the obligation of a dealer under subsection (1) in relation to a new motor vehicle sold by the dealer subsists for the benefit of the owner, from time to time, of the vehicle and, for this purpose, the owner from time to time shall be taken to have entered into a contract of sale with the dealer in respect of the vehicle.
“(7) The obligation of a dealer under subsection (1) in relation to a second-hand motor vehicle sold by the dealer is an obligation only to the person who purchased the vehicle from the dealer.
“(8) The fact that a dealer's licence has been revoked, or that a dealer is not the holder of a dealer's licence or has ceased to be a dealer, does not affect the dealer's obligation under subsection (1).
“(9) Where the holder of a dealer's licence sells a motor vehicle on behalf of another dealer, this section does not apply to the other dealer.
“24. (1) In this section—
“(2) Where a dealer offers or displays for sale a second-hand motor vehicle, the dealer may attach to the vehicle a defect notice.
“(3) If—
(a) a defect notice has been attached to a second-hand motor vehicle at all material times when the vehicle is offered or displayed for sale by the dealer; and
(b) at or before the time of sale of the vehicle, the notice, or a copy of the notice, has been signed by the dealer and the purchaser and has been delivered to the purchaser for retention by the purchaser;
subsection 23 (1) does not apply in relation to the defects set out in the notice.
“(4) If, at or before the time of sale of a demonstrator motor vehicle, a defect notice has been signed by the dealer and the purchaser and has been delivered to the purchaser for retention by the purchaser, subsection 23 (1) does not apply in relation to any defect specified in the notice.
“(5) Where the reasonable cost of repairing a defect specified in a defect notice is greater than the amount specified in that notice, the purchaser may recover the difference between those amounts from the licensed dealer.
“(6) A defect notice—
(a) shall consist of legible writing on white material or on material of such colour as is approved by the Registrar;
(b) shall be written in letters and figures at least 2 millimetres in height; and
(c) shall be attached to the vehicle in such a place as to be clearly visible and readily legible from outside the vehicle.
“25. (1) In this section—
“(2) Subsection 23 (1) does not apply in relation to a defect—
(a) occurring in—
(i) a tyre or battery; or
(ii) an accessory fitted to a motor vehicle;
(b) arising from or incidental to any accidental damage to a motor vehicle that occurred after the relevant sale when the vehicle was not in the possession of the dealer;
(c) arising from misuse or negligence on the part of a driver of a motor vehicle, or arising from the use of a motor vehicle for motor racing or motor rallying, that occurred after the relevant sale of the vehicle; or
(d) appearing or occurring in an accessory that was not fitted to or supplied with a motor vehicle at the time of the relevant sale of the vehicle.
“(3) In the case of a second-hand motor vehicle, subsection 23 (1) does not apply in relation to any superficial damage to the paint-work or upholstery of the vehicle which would have been apparent on a reasonable inspection of the vehicle carried out at the time of the relevant sale of the vehicle.
“(4) Subsection 23 (1) does not apply in relation to the sale of—
(a) a second-hand motor vehicle where the purchaser has been in possession of the vehicle for a period of not less than 3 months immediately preceding the day of the relevant sale;
(b) a commercial vehicle; or
(c) a substantially demolished or substantially dismantled motor vehicle.
“(5) Where the proposed purchaser (in this subsection called ‘the buyer') of a new motor vehicle is in possession of the vehicle for a period immediately preceding the day on which the buyer purchases the vehicle from a dealer then, for the purposes of subsection 23 (1), the buyer shall be taken to have purchased the vehicle on the day when the buyer first acquired that possession.
“(6) Subsection 23 (1) does not apply in relation to a motor vehicle where—
(a) the motor vehicle or a class of motor vehicles which include the motor vehicle has been declared by the Minister, by notice published in the Gazette , to be a motor vehicle or a class of motor vehicles in relation to which subsection 23 (1) does not apply; and
(b) a copy of the notice is attached to the vehicle at all material times when the vehicle is offered or displayed for sale by the dealer.
“(7) Where, by reason of a declaration by the Minister under subsection (6), a dealer would not be liable under subsection 23 (1) in respect of a defect in a motor vehicle if the dealer were to sell that vehicle, a licensed dealer shall not offer or display that vehicle for sale unless a notice in accordance with Form 2 in Schedule 2 that complies with the requirements of subsection (8) is attached to the motor vehicle.
Penalty:
(a) if the offender is a natural person—10 penalty units;
(b) if the offender is a body corporate—50 penalty units.
“(8) The notice shall contain letters at least 5 millimetres in height and shall in all other respects comply with the requirements of subsection 24 (6) as if it were a notice attached to a motor vehicle in accordance with subsection 24 (2).
“(9) Where a licensed dealer sells a motor vehicle referred to in subsection (7), the dealer shall—
(a) sign 2 copies of the notice referred to in that subsection;
(b) retain 1 copy of the notice for a period of 3 years from the date of the sale; and
(c) furnish the purchaser with the other copy of the notice.
Penalty:
(a) if the offender is a natural person—5 penalty units;
(b) if the offender is a body corporate—25 penalty units.
“(10) For the purposes of subsection (9), where the motor vehicle has been sold to the purchaser by the employee or agent of the dealer, compliance by the employee or agent with a requirement of that subsection shall be taken to be compliance by the dealer with that requirement.
“25A. (1) Subject to this section, where—
(a) a dealer sells to a person a new motor cycle or a demonstrator motor cycle; and
(b) before—
(i) the motor cycle has been ridden for 10,000 kilometres after the sale; or
(ii) the expiration of the period of 6 months next following the date of the sale;
whichever is the earlier;
a defect in the motor cycle occurs or becomes apparent to the purchaser the dealer shall, at the dealer's own expense, repair or make good, or cause to be repaired or made good, the defect so as to place the motor cycle in a reasonable condition having regard to its age.
“(2) Subsection (1) applies to a defect whether or not that defect existed at the time of the sale.
“(3) The dealer's obligation under subsection (1) shall be taken to be a term of the contract of sale relating to the motor cycle.
“(4) A dealer is not liable under this section in respect of a defect in a motor cycle where the defect—
(a) arises from, or is incidental to, accidental damage suffered by the motor cycle after the purchaser took delivery of the motor cycle from the dealer;
(b) arises from misuse of the motor cycle or negligence by a rider of the motor cycle, or from the use of the motor cycle for motor cycle racing or motor cycle rallying, after the purchaser took delivery of the motor cycle from the dealer;
(c) consists of damage to, or wear of, tyres or any accessory of the motor cycle; or
(d) consists of superficial damage to the paintwork or upholstery of the vehicle that would have been apparent on a reasonable inspection of the motor cycle carried out at the time of delivery of the motor cycle from the dealer or of the sale, whichever is the earlier.
“(5) A dealer is not liable under this section in respect of a defect in a motor cycle sold by the dealer where the motor cycle is—
(a) a motor cycle that has been in the possession, or under the control, of the purchaser continuously for a period of not less than 3 months immediately preceding the date of the sale;
(b) a motor cycle that is sold by auction at a sale referred to in subsection 4 (2) of the Auctioneers Act 1959 ;
(c) a motor cycle or a motor cycle included in a class of motor cycles that has been declared by the Minister, by notice published in the Gazette , to be a motor cycle or a class of motor cycle in relation to which this section does not apply; or
(d) a motor cycle that is sold to a person who is a trade owner.
“(6) This section does not apply to a sale to the Territory.
“25B. (1) A purchaser (not being a dealer or a corporation) under an agreement for the sale of a motor vehicle may, at any time before the expiration of 3 clear business days after the purchaser signs the agreement, terminate the agreement by giving to or serving on the dealer or an agent of the dealer notice in writing to the effect that the purchaser terminates the agreement.
“(2) Subsection (1) ceases to apply if the purchaser immediately before accepting delivery signs an instrument in accordance with Form 3 in Schedule 2 acknowledging that the right to terminate the agreement no longer applies.
“(3) A dealer shall not sell, give in exchange or otherwise dispose of a motor vehicle given or agreed to be given by a purchaser under an agreement for the sale of another motor vehicle in satisfaction of part of the purchase price during the period during which the purchaser may terminate the agreement under this section.
“(4) If an agreement for the sale of a motor vehicle has been terminated in accordance with this section—
(a) the vendor under the agreement—
(i) shall pay to the purchaser all money received by the vendor under the agreement less the sum of $100 or 1 per centum of the purchase price under the agreement (whichever is the greater); and
(ii) shall return to the purchaser any motor vehicle given in satisfaction of any part of the purchase price;
(b) any collateral credit agreement is discharged to the extent that it was entered into for the purposes of the payment for the motor vehicle supplied or to be supplied under the agreement;
(c) any security interest in the motor vehicle arising under the collateral credit agreement is extinguished to the extent that it secures the payment of a debt or other pecuniary obligation or performance of any other obligation under the collateral credit agreement; and
(d) a purchaser who has accepted delivery of the motor vehicle before the agreement was terminated—
(i) is liable to the dealer for any damage (other than fair wear and tear) occurring to the motor vehicle while it was in the purchaser's possession; and
(ii) subject to subsection (5), shall return the motor vehicle to the dealer.
“(5) A purchaser is not liable under paragraph (4) (d) to return the motor vehicle to the dealer if, before the agreement was terminated, a defect appeared in the motor vehicle for reasons beyond the control of the purchaser making the motor vehicle—
(a) incapable of being driven; or
(b) unroadworthy;
but shall permit the dealer to collect, or arrange for the collection of, the motor vehicle.
“(6) Sections 25 and 26 of the Credit Act 1985 do not apply to the termination of agreements under this section.
“(7) This section does not apply to an agreement for the sale of a commercial vehicle or a motor vehicle purchased at a public auction.”.
(2) Section 25B of the Principal Act as amended by this Act is amended by omitting from subsection (6) “Sections 25 and 26 of the Credit Act 1985 do” and substituting “Section 125 of the Consumer Credit (Australian Capital Territory) Code does”.