Retail motor businesses in South Africa can be subject to claims from consumers who allege that the vehicles or components they have purchased are defective. This is because consumers have several rights under South African law, including the right to receive goods of merchantable quality.
Relevant legislation and enforcement
The following legislation is relevant to the quality of vehicles and components in the motor retail industry in South Africa:
- Consumer Protection Act 68 of 2008 (CPA): The CPA protects consumers from unfair and deceptive trade practices. It also sets out a number of consumer rights, including the right to receive goods of merchantable quality.
- National Road Traffic Act 93 of 1996: The NRTA regulates the use of motor vehicles on public roads. It also sets out a number of requirements for the safety and roadworthiness of motor vehicles.
- National Consumer Commission (NCC): Th National Consumer Commission (NCC), is responsible for enforcing the CPA. The NCC also has the power to investigate complaints from consumers and to issue orders against businesses that have violated the CPA.
Consumer rights under CPA
Under the CPA, consumers have the right to receive goods of merchantable quality. This means that the goods must be free from defects, must be reasonably durable, and must be fit for the purpose for which they were bought.
If a consumer purchases a vehicle or component that is defective, they may have a number of legal rights, including the right to:
- Cancel the sale and receive a full refund: If the defect is serious, the consumer may have the right to cancel the sale and receive a full refund.
- Have the defect repaired or replaced: The consumer may also have the right to have the defect repaired or replaced at no cost to them.
- Claim damages: If the defect causes the consumer to suffer financial losses, they may have the right to claim damages from the seller.
How a claim is instituted against a motor retail business
If a consumer believes that they have purchased a defective vehicle or component from a motor retail business, they should first try to resolve the issue directly with the business. If the business is not willing to resolve the issue, the consumer may be able to make a complaint to the NCC.
The NCC will investigate the complaint and try to resolve the issue between the consumer and the business. If the NCC is unable to resolve the issue, the consumer may be able to refer the matter to a consumer tribunal or to court.
Recent applicable case law
In 2022 a South African court ruled in favour of a consumer who claimed that the car he had purchased from a dealership was defective. The court found that the dealership had breached its contract with the consumer by failing to deliver a vehicle that was of merchantable quality.
The court found that the vehicle had a number of defects, including a defective engine and a defective transmission. The court ordered the dealership to refund the consumer the full purchase price of the vehicle.
This case is a reminder that motor retail businesses in South Africa have a responsibility to ensure that the vehicles and components they sell are of merchantable quality. Consumers have the right to receive goods of merchantable quality, and they may have a number of legal rights if they purchase a defective vehicle or component.
Motor retail businesses in South Africa have a responsibility to ensure that the vehicles and components they sell are of merchantable quality. Consumers have a number of rights under South African law, including the right to receive goods of merchantable quality.
If a consumer believes that they have purchased a defective vehicle or component from a motor retail business, they should first try to resolve the issue directly with the business. If the business is not willing to resolve the issue, the consumer may be able to make a complaint to the NCC or refer the matter to a consumer tribunal or to court.
By Koos Benadie | Director
