New South Wales Consolidated Acts

MOTOR DEALERS ACT 1974 - SECT 29

29 Excluded defects

(1) Where a dealer offers or displays for sale a second-hand motor vehicle (not being a second-hand motor cycle) the dealer may attach, or cause to be attached, to the vehicle, in the prescribed manner, a notice, in the prescribed form, which includes or, as may be required by the regulations, to which is attached a defect notice and shall, where any such notice is attached, or caused to be attached, to the vehicle, attach, or cause to be attached to the vehicle an inspection report issued in respect of the vehicle, being an inspection report issued:

(a) in any case where the offer or display for sale is in relation to an auction or proposed auction, not more than 1 month before the date of the auction or proposed auction, or

(b) in any other case, not more than 1 month before the date on which the dealer first offered or first displayed the vehicle for sale,

which states that the vehicle has been found to be roadworthy.

(2) If:

(a) a notice referred to in subsection (1) and an inspection report so referred to have been attached to a second-hand motor vehicle (not being a second-hand motor cycle) 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,

then section 27 (1) does not apply to or in relation to the defects set out in the notice.

(3) If, at or before the time of sale of a second-hand motor cycle:

(a) a notice in or to the effect of the prescribed form which includes or, as may be required by the regulations, to which is attached a defect notice has been signed by the dealer and the purchaser and has been delivered to the purchaser for retention by the purchaser, and

(b) an inspection report issued in respect of the motor cycle, being an inspection report issued:

(i) in any case where the sale is in relation to an auction or proposed auction, not more than 1 month before the date of the auction or proposed auction, or

(ii) in any other case, not more than 1 month before the date of the sale,

which states that the motor cycle has been found to be roadworthy has been delivered to the purchaser for retention by the purchaser,

then section 27 (1) does not apply to or in relation to any defect specified in the defect notice.

(4) If in any notice referred to in subsection (1) or (3) the amount estimated as the fair cost of repairing or making good any defect set out in the notice is less than the amount of the fair cost of then repairing or making good that defect, the purchaser may sue for and recover the difference between those fair costs as a debt due to the purchaser from the dealer.

(5) Nothing in this section prevents the application of section 27 (1) in respect of a defect set out in a notice to which this section applies if the defect has not been specified in an inspection report referred to in subsection (1) or (3), as the case may require.