Bore v LMM Holdings Pty Ltd t/as Volvo Cars Brisbane North [2026] QCAT 379
QUEENSLAND CIVIL AND
ADMINISTRATIVE TRIBUNAL
CITATION: Bore v LMM Holdings Pty Ltd t/as Volvo Cars Brisbane
North [2026] QCAT 379
PARTIES: PETER BORE
(applicant)
v
LMM HOLDINGS PTY LTD t/as VOLVO CARS
BRISBANE NORTH
(respondent)
ORIGINATING
APPLICATION NO:
MVL 133-24
MATTER TYPE: Motor vehicle matters
HEARING DATE: 14 August 2026
DELIVERED ON: 20 August 2026
DECISION OF: Member Roney KC
ORDERS: 1. Subject to any application that may be made to
amend the application to seek alternative relief to that
presently sought, the application for the payment of or
refund of $59,250 is dismissed.
2. I grant the parties liberty to apply in respect of
any other consequential or other orders which might
be required to be made.
CATCHWORDS: TRADE AND COMMERCE – COMPETITION, FAIR
TRADING AND CONSUMER PROTECTION
LEGISLATION – CONSUMER PROTECTION –
GUARANTEES, CONDITIONS AND WARRANTIES
IN CONSUMER TRANSACTIONS – GUARANTEES,
CONDITIONS AND WARRANTIES – whether motor
vehicle of acceptable quality where it has throttle lag –
whether failure to comply with consumer guarantee a
major failure – whether consumer entitled to refund or
repair – whether section 50A Fair Trading Act 1989 (Qld)
establishes a mechanism by which a consumer can enforce
the supplier’s obligation to provide a refund arising under
s 263(4)(a) of the Australian Consumer Law –potential
amendment of the claims to seek other forms of
compensation other than a refund of the price paid
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Australian Consumer Law s 18, s 54, s 236, s 259, s 260, s
262, s 263
Competition and Consumer Act 2010 (Cth), Schedule 2
Fair Trading Act 1989 (Qld), s 50A
ACH Computing Pty Ltd v Austral Pty Ltd trading as
Brisbane City Jaguar Land Rover [2020] QCAT 176
Bert v Red 5 Ltd [2017] QCA 233
Foley v Westco Cairns Pty Ltd [2020] QCAT 345
Ford v Capiche [2024] 419 ALR [2024] 437 HCA 39
Haisman v Drive (Aust) Pty Ltd [2020] QCAT 44
Kablar Financial Services Pty Ltd v LSH Auto (Brisbane)
Pty Ltd trading as Mercedes-Benz Brisbane [2020] QCAT
346
Lam v Steve Jarvin Motors Pty Ltd [2016] NSWCATAP
186
Lieven v Shem-mell Pty Ltd trading as Capalaba Car
World [2020] QCAT 209
Medtel Pty Ltd v Courtney (2003) 130 FCR 182
Toyota v Williams [2024] 419 ALR 373 [2024] HCA 38
Williams v Toyota Motor Corporation Australia Limited
(Initial Trial) [2022] FCA 344
APPEARANCES &
REPRESENTATION:
Applicant: Self-represented
Respondent: Self-represented
REASONS FOR DECISION
[1] The applicant is the owner of a Chinese made Volvo XC 40 which he purchased in
September 2020 for $59,250. It is now almost six years old and has done approximately
40,000 kilometres. He bought it as a new vehicle from the respondent, which is a retail
motor vehicle dealer. The applicant sought a refund under the Australian Consumer Law,
which is Schedule 2 to the Competition and Consumer Act 2010 (Cth).
[2] The relief sought in the application puts the applicant’s case in one basket, in the sense
that, although a number of alternative remedies potentially were open to him against the
respondent, including an award of damages or compensation for the difference between
the value that the vehicle ought to have had but for its current condition, and that which
in fact had, and which may well have been a significant sum, he did not make such a
claim. He is only seeking a refund of what he paid.
[3] At the outset of the hearing, the applicant had explained to him that he needed to fit his
case within a legal framework to succeed in showing an entitlement to a refund. Neither
party addressed how this case fell within that or any legal framework but left it to the
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Tribunal to decide how it might determine the claim and what legal basis for it might
exist.
[4] The applicant said in opening that he had not specifically rejected or sought to return the
vehicle to the respondent, except by making a claim for a refund when the proceeding
here was commenced on 25 June 2024.He otherwise confirmed at the opening of his case
at the hearing that he was rejecting the vehicle. But he has driven the vehicle now for a
substantial time, albeit having to deal with an intermittent problem which I shall describe
shortly.
[5] The car has had a useful if not troubled life but has now ceased to be driveable. The
applicant stopped driving it in early 2025 and did not renew its registration from October
2025.What would be now required to register it is moot.
[6] The applicant gave evidence that in the first 6 months approximately after purchasing the
vehicle, he noticed the unusual and concerning way in which the vehicle drove,
specifically that there were intermittent events of an obvious delay in vehicle response
moving from a stationary position and getting up to speed, but he did not identify that
there was this specific problem with the delay at that time. He says that he did come to a
realisation about that at some point.
[7] He said, and I accept, that after about 6 to 8 months he noticed an intermittent delay in
the car taking off after depressing the accelerator pedal. The problem sometimes occurred
several times in one day but sometimes there were periods of up to two weeks without
him being aware of it. The length of the delay is variable but can be as long as 8 or 9
seconds. He became aware that there were obvious safety implications if such a delay
occurs unexpectedly whilst, for example, joining a major road in heavy traffic or entering
a roundabout.
[8] He said, and I accept, that on the occasions that he has been able to observe the
instruments when the problem has occurred, engine rpm increases very slowly until about
1800 rpm when the car starts to take off. The problem seems to be entirely random. In
the several hundred times that he has experienced the problem he has been unable to
reliably identify any circumstances which make the problem more likely to occur.
[9] As I shall later describe in outlining the expert evidence, the problem can be characterised
as “throttle lag" caused by “throttle drift”.
[10] He raised the lag problem with Volvo Brisbane North at the car's first service in
November 2021. They reloaded the car's software. The problem seemed to be less
frequent for a few weeks but gradually occurred more often.
[11] I accept the evidence of the applicant that he changed his driving style and then continued
to drive the vehicle since 2022, but nevertheless encountered this throttle lag problem
and also the evidence of the expert, Mr Grant that the respondent’s assertion that he was
engaging in left foot braking and that it was the cause of the problem was misguided and
incorrect.
[12] There are service invoices that show that a little more than a year after the vehicle was
purchased namely on 8 November 2021 and then again in June 2022, the applicant
brought the vehicle in for servicing to the respondent and complained about the lag
problem.
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[13] I accept that on those occasions or indeed on any other occasion when the respondent
sought to identify the existence of or cause of the problem, it could not replicate it but
that is not, however, the end of the story because it is not suggested that this is a problem
which is present at all times when the vehicle is being driven. And so, the mere fact that
the respondent could not replicate it at any time does not exclude the possibility that it
has occurred at other times.
[14] Later the applicant returned to Volvo Brisbane North and went with the workshop
supervisor on a test drive. The lag problem did not manifest itself during that brief drive
either but the workshop supervisor noted that he sometimes used his left foot to operate
the brake and suggested that he might still have pressure on the brake pedal when he next
depressed the accelerator. That, he said, would cause inhibition of engine acceleration.
[15] Despite him changing his driving habits the problem continued to occur at times when
he was conscious that his left foot was nowhere near the brake pedal. Moreover, he could
not reproduce the problem by deliberately applying pressure on the brake pedal. She says
that when he reported this at his next visit to the dealer, he was ignored.
[16] Subsequently Volvo Brisbane North had the car for several days for a prolonged test. It
again said that they could not reproduce the problem. Their written report said only that
no fault codes were recorded. It claimed that this problem is unknown to them.
[17] The applicant said, and I accept, that it seems unlikely that a fault code would exist for
this problem. They did not respond to his suggestion that they should attach a diagnostic
computer to the car whilst driving it. The respondent told him that the problem was due
to his keeping some pressure on the brake pedal.
[18] He says he was not keeping some pressure on the brake pedal. I accept that evidence. He
gave evidence that up to a certain time, he said in 2022 he used both feet in driving the
vehicle and would use his left foot for breaking, but changed his driving style to not using
left foot breaking sometime in 2022.
[19] The applicant said, and I accept that the XC 40 owner's manual under RC 4 XC 40
Manual at page 423 – “Launch function” describes the 'launch function' as achieved by
applying brake pedal pressure, depressing the accelerator, after a few seconds when
engine revolutions have increased release the brake, as a way of making a brisk take off.
He says that when the car is stationary one depresses the brake pedal followed by pressing
the accelerator there is no inhibition of engine acceleration.
[20] The applicant said, and I accept that he contacted the CEO of Volvo Brisbane North
informing him that he was about to submit a claim to QCAT and was offering them a
final opportunity to deal with this matter without recourse to legal action.
[21] He then received a telephone response from Neil Marshall. In summary his response was
that the respondent would not accept that the vehicle had a fault unless the fault occurred
when a Volvo technician was there to observe it. Whilst he did not dispute the applicant’s
suggestion that it was unrealistic to claim that the evidence or opinion in a dispute could
be limited to only one party, he said that he was constrained by Volvo policy. He
promised to put this response in writing at the time but did not do so.
[22] He set out in his application to this Tribunal his position;
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I am now left with a car that I cannot sell. If I tell a potential buyer that
the car has a safety related fault they would not buy it. Morally I cannot
sell it without disclosing its faults and if I did, I would place myself in
some legal peril.
In the light of the above you will perhaps understand that I have no
confidence in either the willingness nor the ability of Volvo Brisbane
North to investigate let alone rectify a problem which is potentially
dangerous.
Thus the only option open to me is to request a refund of the purchase
price.
[23] He had consulted an independent automobile engineer, Mr Crossley who has particular
expertise in electronic engine management systems and who specialises in modifying
engines and in finding and rectifying faults in vehicles which have been modified
elsewhere. He has a Diploma in Mechanical Engineering.
[24] Tests were carried out using appropriate data measuring equipment by Mr Crossley and
his report of 14 May 2024 is in evidence. He had no personal relationship with the
applicant and was independent of the parties. He was, in my view a persuasive and
truthful witness.
[25] That report said;
On the 11th of October 2022 I, Paul Crossley of Redlands Dyno Centre,
went for a short drive with Peter in this car. From new Peter has
complained that intermittently the vehicle does not actually accelerate
away from a standing position when the accelerator is applied.
I used a Snap-on Modis Edge Scan Tool to capture data from the OBD-
11 port. In a drive lasting about thirty minutes we experienced two
distinct delay events perceptible to the occupants and which were
captured on the scan tool. The longer lasted about ten seconds.
From the time the accelerator is first depressed (time 3472 seconds) to
the vehicle speed reaching 7 km/hr (time 3482 seconds) is 10 seconds /
From the time the accelerator is first depressed (time 3472 seconds) to
the vehicle speed reaching 15 km/hr (time 3487 seconds) is 15 seconds.
I have also attempted to replicate the fault by deliberately applying
pressure to the brake pedal but have not been able to do so. That is
consistent with the fact the torque converter transmissions do not require
the protection afforded by inhibition of engine acceleration when there is
pressure on the brake pedal and if such a mechanism were fitted it would,
in some circumstances, have an adverse effect on the car's performance.
I can supply (electronically) the original data and a link to the Snap-on
Tools software which will enable the captured data to be viewed.
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I can confirm that the vehicle Volvo XC40 950 AC3 exhibits an
intermittent fault which could cause, or contribute to the cause, of an
accident. The problem is not caused by pressure on the brake pedal.
[26] Mr Crossley also gave oral evidence at the hearing. He gave evidence that he has
qualifications amongst other things as an A Grade motor mechanic, is an auto electrician,
and has been involved in supercar motor vehicle sports at a high level, and as well
familiar with the operations of these kinds of vehicles.
[27] He gave evidence of his having observed two examples of this problem during the time
the vehicle was being driven in his presence and he was in the passenger seat. He went
on a 15-to-20-minute drive, and the vehicle came to a stop and accelerated from a
stationary position some 10 to 20 times in that time. On two of those occasions, whilst
moving from the stationary position, the vehicle showed a significant lag in reaching any
significant speed, critically, taking reaching 10 seconds to reach seven kilometres per
hour and fifteen seconds to get to a speed of fifteen kilometres per hour in the second
example.
[28] This is, in his view, which I accept, a potentially dangerous condition for a vehicle to
have, whether by design or not, because insofar as it occurs intermittently, driving the
vehicle in busy traffic can present a situation where one sought to move quickly into a
position in the traffic or to turn across oncoming traffic only to find that in effect, the
vehicle is unresponsive or extremely slow to respond. The driver in a potentially
dangerous situation. It is the uncertainty about when this condition will engage that also
presents the danger.
[29] Mr Crossley also gave evidence, which I accept, that the applicant did not engage in left
foot breaking when these two test-drive incidents occurred and in fact, according to his
evidence, left foot breaking does not affect whether this problem occurs. That is, he gave
evidence, which I accept, that the applicant did not have his foot on the brake at the time
the two incidents occurred, and they occurred after the vehicle had come to a full stop
and he was attempted to move forward from a stationary position. He gave evidence that
the accelerator pedal moves forward, but the vehicle does not or does not do so except at
a very slow speed.
[30] Mr Crossley was cross-examined about whether he said in an email that he was unaware
of left foot breaking having occurred to slow the vehicle, but he explained whatever
comments he made on that issue was about whether he saw it, which he did not. Rather
his evidence was that he recorded the data that showed that and that he did not need to
specifically see it.
[31] His logs showed that the throttle was responding, but the vehicle was not responding
accordingly, and the brake was not being engaged in those instances. In the evidence of
Mr Dudley, for the respondent and in final submissions, the respondent contended that
this evidence could not be correct because the logs kept by Mr Crossley did not show or
record brake usage.
[32] The respondent had the opportunity to challenge the evidence of Mr Crossley on this
point when he was in the witness box but did not. I accept the evidence of Mr Crossley
on that issue.
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[33] Mr Crossley also gave evidence of the essential launch function. The essential launch
function as he described it, and which is specifically referred to in the vehicle’s manual,
involves, broadly speaking, having the foot on the brake and the right foot on the throttle
or accelerator pedal, allowing the revolutions per minute to increase in the engine to
allow it to launch or catapult forward as he put it.
[34] It was suggested to him that the car had neutral control to which he responded in the
negative. It was put that if you have your foot on the brake, you can apply the throttle
and the vehicle will launch, it isn't disengaged.
[35] He disagreed with the proposition that if one put a foot on the brake lightly, it would not
engage, but if you press it hard, it will launch.
[36] He said and I accept that no one had ever demonstrated this practice to him or
demonstrated that this is what happened.
[37] The only expert evidence presented by the respondent was that of Mr Dudley, who did
not even bother to deal with what was said in either Crossley or Grant reports, he said,
because he rejected the conclusions that they reached because in his opinion, neither of
them excluded the possibility of left foot breaking as being the cause. That proposition
is also inconsistent with the direct evidence to the contrary, which I have accepted.
[38] The evidence of Mr Dudley for the respondent as to the sensitivities around the essential
launch function, is set out in his statement. He said that in his encounters with the
applicant;
(He)explained that Volvo cars were different, and they are fit with a
neutral control function which will inhibit the transmission from
engaging when the brake is pressed. Dr. Bore insisted this is not the issue
and referred to another shop's diagnostic data that was shared with us, but
we were unable to open the file type as it was from aftermarket
equipment.
At this point we decided that I will drive the car for the next 3 days to
see if I could reproduce the fault. I drove the car for the next 3 nights, the
car worked flawlessly as designed with zero manufacturer defects or
drivability issues detected.
When conducting the extensive test drive, I used only my right foot to
drive with no faults as described by Dr. Bore.
When I used my left foot on the brake and accelerated with my right then
released the brake the car would move forward quickly.
[39] Mr Dudley’s explanation of the essential launch function and the brake override function
was as follows;
Dr Bore's vehicle contains a neutral control function. This function is
activated when the driver stops the vehicle and the vehicle is stationary
for example at traffic lights. The Transmission Control Module (TCM)
then partly disengages the C1 clutch, which releases the forward drive of
the transmission and reduces the load on the engine. The function
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improves the fuel consumption and reduces vibrations at idle speed.
When the driver releases the brake, the C1 clutch engages and drive is
resumed.
The following conditions must be met in order for the neutral control
function to activate:
• The gear selector is in position D.
• The oil temperature is above+ 1 o °C.
• The accelerator pedal is less than 3 % depressed.
• The brake pedal is depressed.
• The vehicle speed is o km/h.
• The engine speed is less than 1500 r/min.
If the driver is left foot braking and leaving their foot on the brake after
neutral control has been activated, then the C1 clutch (which will allow
the vehicle to move forward again) would not engage until the brake
pedal is released. This would not require braking pressure, just the
indication the brake pedal is pressed or depressed at that time.
Dr Bore's vehicle also contains a brake override function. This function
is different to the neutral control function. The brake override function
operates during periods when the car is already in motion and operates as
a brake override system to override the throttle function.
[40] The conditions that must be met in order for the neutral control function to activate are
such that, in my view, the operation of the neutral control function is not the explanation
for the problem. I find that the problem which the applicant was encountering was not
the essential launch function in action or the circumstances in which it might have been
engaged enlivened, but rather some other specifically unidentified cause.
[41] The brake override function is not the cause of it either because it operates during periods
when the car is already in motion and operates as a brake override system to override the
throttle function and this problem occurs when the vehicle is being from a stationary
position not when the car is already in motion.
[42] There is evidence from experts which I accept to the effect that using both feet in a non-
manual geared vehicle, that is one that does not have a clutch, is not inappropriate and is
common and one of the experts gave evidence that he used this practice himself.
[43] This is significant because throughout the period whilst complaints have been made about
this problem with the vehicle, including in its final submissions at the hearing, the
respondent contended that the explanation for the problem was the applicant's practice of
left foot breaking.
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[44] In my view, there is no cogent or reliable evidence that he in fact has, since 2022 adopted
the practice of left foot breaking, but more critically, there is no evidence that if he has
been using this practice intermittently or regularly, that it is a relevant cause of the
problem.
[45] It was put to the applicant that once he engaged the brake it disengaged the accelerator
and so the car was not in gear until he took his foot off the break and then used the
accelerator and it would move. I accept the evidence of the applicant that he changed his
driving style after representatives of the respondent suggested he do so when the lag
problem was first reported.
[46] That means that the evidence of Mr Dudley, which attributed the cause of the problem to
left foot breaking is not supported by the evidence and otherwise the only other
explanation advanced for what might be causing the problem was. the presence
potentially of the essential launch problem. There is no objective evidence that this
specifically was the cause of the lag.
The Motor Vehicle Assessment Report
[47] There is a Motor Vehicle Assessment Report by Mr Grant (‘the Assessment Report’)
provided in consequence of orders by the Tribunal .There were orders of the Tribunal on
2 July 2024 which had the effect of notifying that the Tribunal intended to appoint an
assessor to assist in the determination of the application and by orders made on 4
September 2024 upon receipt of the assessor's report, the parties were to be provided with
a copy of the assessor's report but no party was be allowed to produce further expert
evidence without the leave of the Tribunal. Hence after the report of Mr Grant had been
obtained in January 2025 that prevented either party, presenting later expert evidence on
the issues for determination without leave. That meant that without leave of the Tribunal,
the respondent was not able to present expert evidence on those issues, although it could,
of course, challenge the evidence of Mr Grant. Nevertheless, the respondent relied upon
a statement from its own in-house expert Mr Dudley as well as oral testimony from him.
[48] The applicant did not oppose the calling of evidence from Mr Dudley nor did the
respondent oppose the calling of Mr Crossley for the applicant and so I received not only
their statements and written reports, but also additional oral evidence that each of them
gave.
[49] The Assessment Report provided as follows;
For the first 6 months or so all was well with his car, however, he began
noticing instances where the car's accelerator pedal would not respond
when pressed before coming back to life after varying length pauses. This
would typically happen at slow speeds such as taking off from lights,
entering moving traffic etc. He reported these unnerving intermittent
events to his dealership. They road tested the car and could not reproduce
the issue. They scanned the car with their workshop computer and could
find no recorded events/faults. They did a software update at that time.
They also noticed that the applicant was a left foot braker and decided
that he was pressing the brake pedal when using the accelerator pedal
causing the automatic "Brake Override Function" to activate.
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Brake override is a safety feature whereby in a case of runaway
acceleration if the brake pedal is pressed the throttle pedal will be
disconnected from the engine and the car will return to idle so the driver
can get things under control. This system was introduced many years ago
after the introduction of "Fly by wire" throttle pedals with no physical
cable connection between the throttle pedal and the engine. BOF is
basically a feature of every new automatic car in Australia, it is very
complex and relies on a number of inputs to the engine control computer
to work.
Every manufacturer has their own slant on how they want theirs to work,
some are very sensitive and some require significant brake operation to
kick in (this is important as the member will later see). The applicant felt
over time the throttle pedal lag was getting more frequent and longer and
continued to raise this with Volvo Brisbane North who could not get the
car to fault and continued to maintain the issue was caused by his left
foot braking. The applicant took his car to Volvo Springwood who could
not get the car to fault and still no fault codes logged in the cars ECM.
Frustrated, the applicant took his car to an independent expert
diagnostician for analysis. The car displayed the issue while be driven
with the applicant's diagnostician on board with a sophisticated scanner
hooked up to and recording the cars streaming data. The applicant took
the evidence to Volvo Brisbane North and Volvo Australia who, the
applicant maintains, would not even look at it.
Volvo Australia stance is that they will not do anything until a Volvo
technician has experienced the issue and Volvo Brisbane North have
decided that the problem is that the applicant is a left foot braker and
there is no fault with the car. This led the applicant to QCAT.
We went for a drive in the XC40, and needless to say the car behaved
normally and my equipment recorded no events or anything unusual.
What I was most interested in was how much brake application was
required to get the brake override system to overrule the throttle pedal. I
tried numerous times to get the brake pedal to cancel out the throttle but
could not do so until there was enough braking pressure to be physically
pulling the car up. I expected this as I have driven other XC40s and know
that they do not have sensitive brake override systems. Volvo cars are not
consistent in this as other models are quite sensitive.
[50] The Assessment Report concluded as follows;
Throttle "Lag" is the hallmark of "fly by wire" modern day throttle
management in cars. The Japanese/Koreans are arguably the best at
controlling it, most owners of these cars would probably never have
noticed it, Euro cars and the Chinese are the worst at having good on time
throttle control. A whole aftermarket industry has popped up selling plug
and play "throttle controllers" promising to fix a whole host of issues
including in their "spiel" ....... throttle lag!
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I am curious about Volvo's "Launch Mode". It seems, on the face of it to
be suggesting a way for drivers to not be caught out by lack of throttle
response at times. I cannot imagine why any manufacturer would be
suggesting this driving style if they were happy with the throttle
responsiveness of their cars. I am not aware of any other manufacturer
who recommends this driving technique.
Ultimately, the following is clear:
• The car did not have the condition (fault) when purchased;
• The car does have a throttle responsiveness problem that alarms the
customer;
• The car still has the condition;
• Volvo North is incorrect in its belief that the applicant's habit of left
foot braking is the cause of the condition;
• The intermittent lack of throttle control is dangerous. Any car that can
fail to respond to driver control inputs is dangerous;
• The lack of attempts by Volvo to resolve the issue (replacing the throttle
pedal assembly and the throttle body assembly at least) seems to indicate
they have an internally known problem with no fix as yet.
Given that I have not experienced the condition, I cannot say whether the
applicant is being hypersensitive to the lag issue or not, although based
on the applicant's ownership of a manual gearbox Land Rover Defender,
I would think he is not in the habit of being too prissy about his car’s
behaviours.
[51] I will deal with his oral evidence later in these reasons.
The relief sought under the Australian Consumer Law and orders that this
Tribunal could make
[52] This Tribunal is vested with jurisdiction in relation to motor vehicle consumer claims
arising out of the Australian Consumer Law (‘ACL’) by virtue of section 50A of the
Fair-Trading Act 1989 (Qld). Section 50A(1) of the Fair Trading Act 1989 (Qld) (‘FT
Act’) provides that a person may apply, as provided under the QCAT Act, to this tribunal
for an order mentioned in subsection (2) for an action (a) under a provision of the
Australian Consumer Law (Queensland) listed in the table to this section; and (b) relating
to a motor vehicle; and (c) seeking an amount or value of other relief of not more than
$100,000.
[53] As I have said, the only relief sought was a sort of refund of what the applicant had paid
for the vehicle, but there is no secondary claim for damages.
[54] As to whether Section 50A does not expressly establish a mechanism by which a
consumer can enforce the supplier’s obligation to provide a refund arising under s
263(4)(a), this issue has been decided previously by this Tribunal and was also
considered by the New South Wales Civil and Administrative Tribunal in Lam v Steve
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Jarvin Motors Pty Ltd [2016] NSWCATAP 186 (‘Lam’). The Appeal Panel, which
included the President of the Tribunal, Wright J, stated (at [99]):
“A contrary indication in Part 5-4 is that the legislature expressly stated
that certain amounts could be recovered “by action” by the consumer in
s 259(2)(b)(i), s 259(3)(b) and s 259(4) but did not do so in respect of the
obligations to provide a refund or replacement in s 263(4). This might, in
other circumstances, be sufficient to establish that the obligations under
s 263(4) were not intended to be able to be enforced by action by the
consumer. Nonetheless, given the nature, scope and purpose of the ACL
NSW, the mischief against which it is directed, the nature of the conduct
prescribed and the pre-existing law, the failure expressly to provide that
the obligation under s 263(4) could be enforced by action should not be
taken to exclude the implication of a right on the part of the consumer to
bring proceedings to enforce the supplier’s duty to provide a refund or
replacement”.
[55] The orders that the this Tribunal could make are set out in s 50A(2) and they include (a)
an order requiring a party to the proceeding to pay a stated amount to a stated person; (b)
an order that a stated amount is not due or owing by the applicant to a stated person, or
by any party to the proceeding to the applicant; (c) an order requiring a party to the
proceeding, other than the applicant, to perform work to rectify a defect in goods or
services to which the claim relates; (d) an order requiring a party to the proceeding to
return goods that relate to the claim and are in the party’s possession or control to a stated
person; and (e) an order combining 2 or more orders mentioned in paragraphs (a), (b),
(c) and (d).
[56] The approach in Lam is clearly correct and there is no doubt that that Tribunal has
jurisdiction to make an order requiring the supplier to pay to the consumer a stated
amount of money, namely the amount of the refund payable under s 263(4)(a).
The guarantee of "acceptable quality" and “major failures” in the ACL
[57] A guarantee of "acceptable quality" of a consumer product is provided for by s 54 of the
ACL, which provides as follows:
Section 54 - Guarantee as to acceptable quality
(1) If:
(a) a person supplies, in trade or commerce, goods to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the goods are of acceptable quality.
(2) Goods are of acceptable quality if they are as:
(a) fit for all the purposes for which goods of that kind are commonly
supplied; and
(b) acceptable in appearance and finish; and
(c) free from defects; and
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(d) safe; and
(e) durable;
as a reasonable consumer fully acquainted with the state and
condition of the goods (including any hidden defects of the goods),
would regard as acceptable having regard to the matters in
subsection (3).
(3) The matters for the purposes of subsection (2) are:
(a) the nature of the goods; and
(b) the price of the goods (if relevant); and
(c) any statements made about the goods on any packaging or label on
the goods; and
(d) any representation made about the goods by the supplier or
manufacturer of the goods; and
(e) any other relevant circumstances relating to the supply of the
goods.
(4) If:
(a) goods supplied to a consumer are not of acceptable quality; and
(b) the only reason or reasons why they are not of acceptable quality
were specifically drawn to the consumer’s attention before the consumer
agreed to the supply;
the goods are taken to be of acceptable quality.
(5) If:
(a) goods are displayed for sale or hire; and
(b) the goods would not be of acceptable quality if they were supplied
to a consumer;
the reason or reasons why they are not of acceptable quality are
taken, for the purposes of subsection (4), to have been specifically
drawn to a consumer’s attention if those reasons were disclosed on
a written notice that was displayed with the goods and that was
transparent.
(6) Goods do not fail to be of acceptable quality if:
(a) the consumer to whom they are supplied causes them to become of
unacceptable quality, or fails to take reasonable steps to prevent
them from becoming of unacceptable quality; and
(b) they are damaged by abnormal use.
(7) Goods do not fail to be of acceptable quality if:
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(a) the consumer acquiring the goods examines them before the
consumer agrees to the supply of the goods; and
(b) the examination ought reasonably to have revealed that the goods
were not of acceptable quality.
[58] Hence, section 54(1) of the Australian Consumer Law has the effect that where a person
supplies goods in trade or commerce, the goods are guaranteed to be of ‘acceptable
quality’. The time at which goods are to be of acceptable quality is the time at which the
goods are supplied to the consumer: per the Full Court of the Federal Court in Medtel Pty
Ltd v Courtney (2003) 130 FCR 182 at [64] and [70] per Branson J.
[59] More recently in Williams v Toyota Motor Corporation Australia Limited (Initial Trial)
[2022] FCA 344 Justice Lee held as follows in relation to the operation of s 54:
[164] Despite the obscure drafting of other sections of the ACL, s 54 is
relatively straightforward. The continued use of the conjunction “and” in
s 54(2) makes clear that goods must possess all of the qualities listed in s
54(2), to the requisite standard, in order to comply with the guarantee of
acceptable quality. Failure to possess any one of those qualities will result
in a failure to comply with the guarantee: see Vautin v By Winddown, Inc
(formerly Bertram Yachts)(No 4) [2018] FCA 426; (2018) 362 ALR 702
(at 732 [142(d) — (f)] per Derrington J); Australian Competition and
Consumer Commission v Jayco Corporation Pty Ltd [2020] FCA 1672
(at [25] per Wheelahan J).
[165] The question of whether the goods are of acceptable quality is to be
answered by reference to the quality of the goods at the time of supply:
Capic v Ford Motor Company of Australia Pty Ltd [2021] FCA 715;
(2021) 154 ACSR 235 (at 377 [606] per Perram J); Jayco (at [27]); Vautin
(at 738 [170]–[171], 760 [263]). The applicable standard of “acceptable
quality” is to be determined by reference to what the “reasonable
consumer” would regard as acceptable, having regard to the matters in s
54(3). The relevant enquiry is necessarily objective: Medtel Pty Ltd v
Courtney [2003] FCAFC 151; (2003) 130 FCR 182 (at 199 [43] per
Moore J, 205 [64] and 207 [72] per Branson J, with whom Jacobson J
agreed at 209 [81]); Capic (at 265 [105]). As Wheelahan J explained in
Jayco (at [26]):
The reasonable consumer sits with an array of other hypothetical
persons who have been recruited by the law and by reference to
whom objective standards are evaluated: see, Healthcare at Home
Ltd v The Common Services Agency [2014] UKSC 49; 4 All ER
210 at [1]–[4] (Lord Reed JSC). Such a person has been described
as an anthropomorphic conception of justice that is and must be
the court itself: see Davis Contractors Ltd v Fareham Urban
District Council [1956] AC 696 at 728 (Lord Radcliffe).
[166] In determining whether the “reasonable consumer” would regard the
goods as acceptable at the time of supply, one must assume that the
construct is “fully acquainted with the state and condition of the goods
(including any hidden defects of the goods)”: s 54(2) of the ACL; see also
Medtel (at 205–206 [65]–[70]). Thus, in the present case, the “reasonable
consumer” is taken be fully acquainted with the nature of the Core Defect,
including the ways in which it causes the Relevant Vehicles to
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malfunction when exposed to the High Speed Driving Pattern, and the
class of consequences or symptoms associated with the Core Defect.
[167] Although TMCA accepts that the question of whether the goods are of
acceptable quality is to be assessed by reference to the quality of the
goods at the time of supply, it submits that the determination of what was
objectively reasonable for the consumer to expect is made taking into
account all relevant information available at the time of trial. Relying on
the reasoning in Medtel (at 200 [45], 203 [57], 206 [70], 209 [81]),
TMCA submits that “the individual experience of each vehicle owner,
affects the assessment”.
[168] The flaw in this proposition is that the state and condition of the vehicles
at the time of supply is not determined by anything occurring after the
time of supply. The fact that a defective product has continued to perform
following the time of supply through to the time of trial does not defeat a
finding that the product was defective at the time it was supplied. In
Medtel, as Branson J (at 202 [54], with whom Jacobson J agreed at 209
[81]) explained, “the principal issue to be determined … is whether a
product which, at the time of trial, can be demonstrated to have
performed, and to be continuing to perform, satisfactorily can
nonetheless be found to be “not of merchantable quality” within the
meaning of s 74D(1) of the Trade Practices Act 1974 (Cth) ”. Her Honour
found (at 199 [41]) that the goods in issue — pacemakers — were not of
merchantable quality at the time of supply, despite the fact that the
applicant’s pacemaker had not failed by the time of trial: see generally at
197–202 [36]–[52].
[60] In relation to the supply of goods, such as a vehicle, the remedies available to a consumer
where goods are not of an acceptable quality under the ACL include:
(a) an action to recover from the supplier all reasonable costs incurred by the
consumer in having the failure remedied, in circumstances where the
failure is not a major failure and the supplier has not remedied it within a
reasonable time (s 259(2)(b)(i));
(b) an action to recover from the supplier compensation for any reduction in
the value of the goods below the price paid by the consumer, in
circumstances where the failure is a major failure and the consumer has
not rejected the goods (s 259(3)(b)); and
(c) an action to recover from the supplier damages for loss or damage
suffered by the consumer where such loss or damage was reasonably
foreseeable in respect of the failure (s 259(4)).
[61] In respect of “major failures”, Section 260 of the ACL provides as follows (emphasis
added):
When a failure to comply with a guarantee is a major failure
A failure to comply with a guarantee referred to in section 259(1)(b) that applies
to a supply of goods is a major failure if:
(a) the goods would not have been acquired by a reasonable consumer fully
acquainted with the nature and extent of the failure; or
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(b) the goods depart in one or more significant respects:
(i) if they were supplied by description—from that description; or
(ii) if they were supplied by reference to a sample or demonstration model—
from that sample or demonstration model; or
(c) the goods are substantially unfit for a purpose for which goods of the
same kind are commonly supplied and they cannot, easily and within a
reasonable time, be remedied to make them fit for such a purpose; or
(d) the goods are unfit for a disclosed purpose that was made known to:
(i) the supplier of the goods; or
(ii) a person by whom any prior negotiations or arrangements in
relation to the acquisition of the goods were conducted or made;
and they cannot, easily and within a reasonable time, be remedied
to make them fit for such a purpose; or
(e) the goods are not of acceptable quality because they are unsafe.
[62] Rejection is governed by s 262 and 263 of the ACL. They provide as follows:
262 When consumers are not entitled to reject goods
(1) A consumer is not entitled, under section 259, to notify a supplier of goods
that the consumer rejects the goods if:
(a) the rejection period for the goods has ended; or
(b) the goods have been lost, destroyed or disposed of by the consumer;
or
(c) the goods were damaged after being delivered to the consumer for
reasons not related to their state or condition at the time of supply; or
(d) the goods have been attached to, or incorporated in, any real or
personal property and they cannot be detached or isolated without
damaging them.
(2) The rejection period for goods is the period from the time of the supply of
the goods to the consumer within which it would be reasonable to expect the
relevant failure to comply with a guarantee referred to in section 259(1)(b)
to become apparent having regard to:
(a) the type of goods; and
(b) the use to which a consumer is likely to put them; and
(c) the length of time for which it is reasonable for them to be used; and
(d) the amount of use to which it is reasonable for them to be put before
such a failure becomes apparent.
263 Consequences of rejecting goods
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(1) This section applies if, under section 259, a consumer notifies a supplier of
goods that the consumer rejects the goods.
(2) The consumer must return the goods to the supplier unless:
(a) the goods have already been returned to, or retrieved by, the supplier;
or
(b) the goods cannot be returned, removed or transported without
significant cost to the consumer because of:
(i) the nature of the failure to comply with the guarantee to which the
rejection relates; or
(ii) the size or height, or method of attachment, of the goods.
(3) If subsection (2)(b) applies, the supplier must, within a reasonable time,
collect the goods at the supplier’s expense.
(4) The supplier must, in accordance with an election made by the consumer:
(a) refund:
(i) any money paid by the consumer for the goods; and
(ii) an amount that is equal to the value of any other consideration
provided by the consumer for the goods; or
(b) replace the rejected goods with goods of the same type, and of similar
value, if such goods are reasonably available to the supplier.
(5) The supplier cannot satisfy subsection (4)(a) by permitting the consumer to
acquire goods from the supplier.
(6) If the property in the rejected goods had passed to the consumer before the
rejection was notified, the property in those goods revests in the supplier on
the notification of the rejection.
[63] Section 54 should be read bearing in mind the terms of section 260 and, in particular, that
a "major failure" regarding acceptable quality will be made out "if the goods would not
have been acquired by reasonable consumer fully acquainted with the nature and extent
of the failure".
[64] As is evident from what I have said above, section 54(2) of the ACL defines "acceptable
quality" by reference to the "reasonable consumer" test and five specified criteria set out
in sub-sections 54(2)(a)-(e). These criteria are cumulative, as evidenced by the use of the
conjunction "and". Thus, if for example, particular goods are fit for purpose, safe, free
from defects and durable, but not acceptable in appearance and finish, the goods will still
fail to be of acceptable quality. Section 54(3) of the ACL identifies the matters relevant
for the purposes of sub-section (2).
[65] In summary then, the test of whether there is a major failure for the purposes of section
260 and the test for whether goods are of acceptable quality for the purposes of section
54 both adopt a ‘reasonable consumer’ test. If the failure can be remedied and is not a
major failure, the consumer is limited to requiring the supplier to remedy the failure
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within a reasonable time; or if the supplier cannot remedy the failure within a reasonable
time, having the failure remedied by someone other than the supplier and seeking
compensation from the supplier, or rejecting the goods.
[66] The more defects a vehicle has, and the more time it has spent off the road as a result of
those defects, the more willing the Tribunal has been to find that there is to be a major
failure. Examples of where the Tribunal has found the existence of a major failure in such
circumstances include in Haisman v Drive (Aust) Pty Ltd [2020] QCAT 44, where the
presence of defects resulted in the motor vehicle being returned to the dealer for 30 days
out of the first two months of the applicant’s ownership of the motor vehicle. In ACH
Computing Pty Ltd v Austral Pty Ltd trading as Brisbane City Jaguar Land Rover [2020]
QCAT 176 the presence of defects resulted in the vehicle being returned to the dealer for
29 days out of the first few months of the applicant’s ownership of the motor vehicle. In
Foley v Westco Cairns Pty Ltd [2020] QCAT 345the presence of defects resulted in the
vehicle being returned to the dealer on 14 occasions, and remaining in the dealer’s
possession for 57 days in the first year of the applicant’s ownership of the vehicle and 16
days in the second year. In Kablar Financial Services Pty Ltd v LSH Auto (Brisbane) Pty
Ltd trading as Mercedes-Benz Brisbane [2020] QCAT 346 the presence of defects which
resulted in the vehicle being returned on nine occasions in the first year of the applicant’s
ownership.
[67] It is provided in the table to section 50A of the FT Act, that one may bring an action for
damages against a manufacturer such as the second respondent pursuant to section 271(1)
of the ACL. Section 272 of the ACL outlines the types of damages that may be recovered
by action against the manufacturer if the acceptable quality guarantee has not been
complied with, including: (a) any reduction in the value of the goods; and (b) any
reasonably foreseeable loss or damage incurred as a result of the failure to comply with
the acceptable quality guarantee.
[68] Five judges of the High Court (Gageler CJ, Gordon, Steward, Gleeson and Beech-Jones
JJ) gave combined reasons in both Toyota v Williams [2024] 419 ALR 373 [2024] HCA
38 and Ford v Capiche [2024] 419 ALR [2024] 437 HCA 39.
[69] The majority held that:
(a) Damages under s272(1)(a) are to be calculated as the amount by which the value
of the goods was reduced by the failure to comply with the acceptable quality
guarantee at the time of supply. With that said, the enquiry is to be carried out
'having regard to all that is known at the time of trial about the "state and condition
of the goods"';
(b) The acceptable quality guarantee involves a hypothetical inquiry into what a
reasonable consumer, 'fully acquainted with the state and condition of the goods'—
including any defects—would regard as acceptable. In this way, the inquiry
involves attributing to the consumer knowledge about the existence and nature of
the defect (including hidden defects), even if such knowledge was, in reality, only
acquired later; and
(c) If knowledge about the existence and nature of a defect, including its potential
consequences, is to be attributed to the hypothetical 'reasonable consumer', there is
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no reason to stop there. That is, later-acquired knowledge about the availability,
effectiveness and cost of ameliorating the defect should also be attributed.
[70] While the High Court formally dismissed the car manufacturers' appeals and upheld the
plaintiffs' appeals, the availability of effective and timely repairs will need to be taken
into account when assessing the quantum of damages available to consumers (even if it
does not provide a complete defence).
[71] What this means in practice is that, in the case of Toyota, the Full Court was correct to
take into account the repair fix that was offered to customers. However, the Court was
also required to take into account the length of time after acquisition of the vehicles that
the fix would become available, and the 'inconvenience and cost that would be
occasioned to a hypothetical reasonable consumer in the meantime'.
[72] The High Court observed that any additional cost and inconvenience experienced by an
individual consumer over and above that of a reasonable consumer, while not recoverable
under s 272(1)(a), may be recoverable as consequential loss under s 272(1)(b).
[73] One consequence of the Court's decision is that where a risk or propensity for a defect
exists at the time of supply, whether or not the defect actually emerges in a given
consumer's case, is not relevant to the assessment of damages under s272(1)(a).For
example a vehicle that, at the time of supply, carries a 50% risk of the brakes failing in
five years, all other things being equal, there will be no difference in the amount of
damages under s272(1)(a) payable to one consumer whose brakes failed, and another
whose brakes did not (assuming they bought their vehicles at the same time and for the
same price).
[74] Whether the brakes eventually failed would not affect the conclusion that, at the time of
supply, both vehicles carried the same defect that rendered them non-compliant with the
guarantee in s54. However, a consumer whose brakes did fail may also be able to recover
for 'loss or damage' under s272(1)(b).
[75] The Court observed that the term 'damages' is not confined to compensation for loss
suffered and, accordingly, there is no requirement to show loss or damage (beyond the
reduction in value at the time of supply) in order to recover damages under s272(1)(a).
[76] In relation to second-hand vehicle purchasers, although it was not strictly necessary to
either decision, the Court suggested that an entitlement to damages from a manufacturer
under s272(1)(a) runs with the title or ownership of the goods. This means the claim of
the primary purchaser of goods ceases upon any subsequent sale, with the second-hand
purchaser being in a position to bring a claim for breach of the acceptable quality
guarantee. However, all consumers in the 'chain of possession' of affected goods may be
entitled to claim consequential damages under s272(1)(b).
The Motor Vehicle Assessor’s evidence/findings on the lag problem and acceptable
quality in the Australian Consumer Law
[77] I have set out already what was relevantly contained in the Assessment Report of Mr
Walsh which is not contradicted by any other evidence.
[78] The nearest any expert witness came to explaining the cause of the problem was in the
oral evidence of the Tribunal appointed examiner Mr Grant. No cause was attributed to
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the problem in his report. He said at one point that he was glad that he did not have to be
the person on the Tribunal to decide what the outcome of this case should be.
[79] In his opinion, expressed in his oral evidence, and which was not challenged in cross-
examination, and which I accept, is that the problem would not have been present at the
time of the sale of the vehicle but had developed sometime afterwards. He said, and I
accept that the accelerator pedal has two sensors, and each sensor has, in effect, to agree
with each other for the vehicle to operate effectively. He said, and I accept that there can
be drift in the pedal application so the sensors “get out of kilter” over time. He described
this as a software problem, which he called throttle drift. This throttle drift problem is
not an inherent defect, and not every Volvo, has time. He said that it is one of the
disadvantages or downsides of using fly by wire throttles.
[80] Mr Grant’s evidence was not inconsistent with that of Mr Crossley. He had examined Mr
Crossley’s data and found no fault with it.
[81] In his engagement with the vehicle, he could not get the vehicle to present this problem
but says that he has in fact, encountered on many other occasions on other vehicles.
[82] The respondent sought to argue that Mr Grant had made some positive finding in its
favour about the applicant’s hypersensitivity to this throttle lag problem. What he was
actually, saying is that he did not have 8 particular hypersensitivities to it, meaning that
he was not a person who was unusually intolerant of a situation where you have a fifteen
second lag. The applicant drove other vehicles which demanded tolerance and it was in
my view, a reasonable inference to draw that the applicant was not being hypersensitive
to this problem with this vehicle.
[83] The conundrum, in this case and which the assessor Mr Grant referenced was that there
was no identified solution to the presence of this throttle drift or delay issue. He could
offer no specific solution or say with certainty whether it was in the repair or replacement
of a component in the vehicle but he was clear that when the vehicle was sold, it did not
have this problem.
[84] He acknowledged that it felt dangerous to be in the vehicle with this condition that he
could not offer a solution to what should occur in the circumstances. After initially
suggesting that it was a repairable issue, he concluded that it ‘might’ be repairable, by
doing adaptations to or resetting the sensors or replacing them. Some cars may need new
sensors to fix the problem. Ultimately, though he could not say what the prospects of
such a repair being carried out, were and whether it was likely to, in fact, repair the
problem.
[85] In his opinion, which I accept, it might well not be repairable and the likelihood is as he
put it, Volvo being Chinese owned, means it's probably not repairable.
[86] His evidence, which I accept is that that the applicant might have been using left foot
breaking from either a stationary position or while moving was of no significance and
not cause of the throttle lag/ drift problem.
[87] His evidence is that it is entirely unsatisfactory that a vehicle presents a 15 second lag to
move from a stationary position to 15 km per hour, with this potentially being dangerous
at roundabouts or where there was this lag whilst moving out of a line of traffic. He
described the scenario as dangerous. I would agree.
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[88] He did not express any opinion about the issue acceptable quality but his conclusion that
the defect was not present when the vehicle was sold is significant.
[89] The opinions expressed by Mr Walsh in the Assessment Report and in his expanded
evidence in oral testimony are reasonable. The conclusions he has reached in that report
and in his expanded evidence are not so inherently implausible or unreasonable such that
despite there being no contrary evidence or conclusions, I should reject them. I accept
his evidence and the opinions expressed.
[90] In final submissions, the respondent contended that the vehicle has always performed
normally as designed and was not faulted even by Mr Grant in his report. I reject that
contention on the evidence, which established the contrary.
[91] The respondent also submitted that the experts’ focus on the brake override is not the
correct system to examine and that, since neither expert looked at the neutral control
function as the explanation, it could not be concluded that there was no major failure or
defect. I also reject that contention on the evidence.
[92] As I have set out earlier, section 54(1) of the Australian Consumer Law has the effect
that where a person supplies goods in trade or commerce, the goods are guaranteed to be
of ‘acceptable quality’. The following principles apply;
1. The time at which goods are to be of acceptable quality is the time
at which the goods are supplied to the consumer.
2. Adopting the approach discussed in Williams v Toyota Motor
Corporation Australia Limited, goods must possess all of the
qualities listed in s 54(2), to the requisite standard, in order to
comply with the guarantee of acceptable quality.
3. Failure to possess any one of those qualities will result in a failure
to comply with the guarantee.
4. The question of whether the goods are of acceptable quality is to
be answered by reference to the quality of the goods at the time of
supply.
5. In determining whether the “reasonable consumer” would regard
the goods as acceptable at the time of supply, one must assume that
the construct is “fully acquainted with the state and condition of the
goods (including any hidden defects of the goods”: s 54(2) of the
ACL.Thus, the “reasonable consumer” is taken be fully acquainted
with the nature of any defect.
6. While the state and condition of the vehicle at the time of supply is
not determined by anything occurring after the time of supply, the
fact that a defective product has continued to perform following the
time of supply through to the time of trial does not defeat a finding
that the product was defective at the time it was supplied.
7. The issue is whether a product which, at the time of trial, can be
demonstrated to have performed, and to be continuing to perform,
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satisfactorily can nonetheless be found to be “not of acceptable
quality”.
[93] The ACL also provides for consumers to take action against suppliers even when a failure
to comply with a consumer guarantee can be remedied and is not a major failure. Pursuant
to s 259(2)(b), if a supplier fails to remedy a failure to comply with a consumer guarantee
in a reasonable time, the consumer is entitled to reject the goods and take action pursuant
to s 263 of the ACL.
[94] The applicant has certainly rejected the vehicle. It would have been open to the applicant
to submit that it is open to the Tribunal to determine that pursuant to s 259(2)(b) of the
ACL, that the respondent did not remedy the failure to comply with consumer guarantees
represented by the problem in a reasonable time, as evidenced by its ongoing nature.
[95] Since the time at which goods are to be of acceptable quality is the time at which the
goods are supplied to the consumer, the evidence of Mr Walsh which I have accepted is
that the vehicle did not have the defect at the time when the vehicle was purchased. It
developed later.
[96] Since a "major failure" regarding acceptable quality will be made out "if the goods would
not have been acquired by a reasonable consumer fully acquainted with the nature and
extent of the failure
[97] Nor do I accept that the fact that there was such work required meant that a reasonable
consumer fully acquainted with the nature and extent of the failure would not have
acquired this vehicle.
[98] Since the test of whether there is a major failure for the purposes of section 260 and the
test for whether goods are of acceptable quality for the purposes of section 54 both adopt
a ‘reasonable consumer’ test and if the failure can be remedied and is not a major failure,
the consumer is limited to requiring the supplier to remedy the failure within a reasonable
time; or if the supplier cannot remedy the failure within a reasonable time, having the
failure remedied by someone other than the supplier and seeking compensation from the
supplier, or rejecting the goods.
[99] I find that there is a defect comprised by the throttle lag condition. I am not however
satisfied that a "major failure" regarding acceptable quality has been made out because I
am not persuaded that having regard to its character that the vehicle would not have been
acquired by a reasonable consumer fully acquainted with the nature and extent of the
failure. Nor do I accept that the fact that there is work required, meant that a reasonable
consumer fully acquainted with the nature and extent of the failure would not have
acquired this vehicle.
[100] I am not satisfied the respondent did not remedy the failure to comply with consumer
guarantees represented by the defect in a reasonable time having regard to the fact that it
has been unable to identify the cause of condition. I evidence now does identify it.
Whether Volvo or a Volvo technician has identified it is not to the point.
[101] I find that the applicant has not made out of case to be refunded the cost of the vehicle.
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The contractual warranty and promises from the respondent at the hearing
[102] Neither party addressed the issue of whether that the vehicle carried a manufacturer’s
warranty and therefore, was current when this problem emerged.
[103] The Volvo Australia website1 asserts that;
Each new Volvo comes with the assurance of a five years unlimited
kilometres manufacturer’s warranty, commencing from the date of first
registration. The Volvo Car Australia 5 years/unlimited km new car
warranty is only applicable to new Volvos with a retail sale date of 1st
April 2020 or later.
[104] Assuming that position to be correct, whilst now outside the warranty period, the vehicle
was shown to be defective during the warranty period. A failure to remedy the defect in
the warranty period in and of itself may provide a foundation of a contractual or other
claim
[105] The respondent did go on record in its oral submissions at the hearing to say, in what I
take to be the giving of an undertaking to the applicant as a foundation for the way in
which he can proceed to act in the future, that it would be “happy” to conduct further
diagnosis, albeit continuing to contend that there is in fact no defect. It said it would be
willing to conduct further diagnosis to ascertain if a fault could be found. The proposition
was that they could not fix something that was “not there”, but that if they could find a
problem, they would fix it and provide whatever parts were necessary for that to occur.
[106] The respondent's proposition that it was happy to do something with the car if it could
find out what the problem is may be a barren undertaking if it is effectively refusing to
accept the evidence of experts whose evidence I have accepted about the existence of a
defect. If, as has been suggested, it can be remedied by working with or replacing the
sensors or fixing some software issue in my view responsibly, it ought to attend to those
works instead of continuing in denial of the existence of a problem which others have
seen, measures and experienced whilst the vehicle was still under warranty.
[107] In my view, having made the finding that I have made that there is a defect in this vehicle
and that it is not caused by left-foot breaking by the applicant, responsibly, the respondent
ought effect whatever repairs are necessary to make this vehicle safe to drive. It should
move from its position of denial as to the existence of any defect and responsibly put this
vehicle into a safe state for it to be driven.
[108] Neither party addressed the question of whether it would ever be capable of being
registered and whether a roadworthy certificate would be required for that purpose and
whether the vehicle in its present condition, particularly with the alleged defect present,
would permit such a certificate to be issued. The vehicle may have to be towed from the
applicant’s premises to the Volvo workshop for any further diagnosis to occur
[109] This Tribunal has power to make an order requiring a party to the proceeding, other than
the applicant, to perform work to rectify a defect in goods or services to which the claim
relates. No present claim is made in which such an order is sought but one might be made.
1 https://www.volvocars.com/au/l/warranty/
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Potential to amend the relief sought to make a claim for damages
[110] The applicant was well intentioned and motivated and although self-represented, but
showed in their written and oral submissions that he had no understanding of legal
principle and cited no law or authority in support of his claims.
[111] As I mentioned at the outset, the relief sought in the application rather put the applicant’s
case and the eggs in it in one basket , in the sense that , although a number of alternative
remedies potentially were open to him against the respondent , including an award of
damages or compensation for the difference between the value that the vehicle ought to
have had but for its current condition, and that which in fact had , and which may well
have been a significant sum, they did not make such a claim.
[112] He only sought a payment of what he paid for the vehicle based on the contention that he
was entitled to and had rejected the goods by commencing this proceeding.
[113] As I said earlier, the orders that the this Tribunal could make are set out in s 50A(2) and
they include (a) an order requiring a party to the proceeding to pay a stated amount to a
stated person; (b) an order that a stated amount is not due or owing by the applicant to a
stated person, or by any party to the proceeding to the applicant; (c) an order requiring a
party to the proceeding, other than the applicant, to perform work to rectify a defect in
goods or services to which the claim relates; (d) an order requiring a party to the
proceeding to return goods that relate to the claim and are in the party’s possession or
control to a stated person; and (e) an order combining 2 or more orders mentioned in
paragraphs (a), (b), (c) and (d).
[114] Even where there is a major failure, an applicant may keep or elect to keep the vehicle
and claim damages for its repair under s259(4), rather than being limited to rejecting the
goods and seeking a refund; Lieven v Shem-mell Pty Ltd trading as Capalaba Car World
[2020] QCAT 209.
[115] Had an application been made to amend the relief sought to make a claim for damages to
reflect repair cost or difference in value, leave to amend would have been difficult to
resist, although there was no evidence of what such cost would be or that there was any
difference in value or as to what the quantum of it was.
[116] I entertained the prospect after the hearing of inviting such an application to amend to be
made and the orders that I make which grant the party's liberty to apply are intended to
include that possibility should the applicants be so minded.
[117] I will grant the applicant liberty to make any application as may be necessary to amend
the claims to seek claims for damages, reflecting the extent to which the presence of this
defect has affected the vehicle's value to the extent that it has not been repaired by the
respondent in future or for orders requiring the respondent to perform work to rectify the
defect or such other claims as he may be advised are appropriate having regard to the
findings I have made.
Conclusion
[118] The application must fail as presently brought. Subject to any application that may be
made to amend the application to seek alternative relief to that presently sought, the
application for the payment of or refund is dismissed.
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25
[119] I grant the parties liberty to apply in respect of any other consequential or other orders
which might be required to be made.
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Official source: https://www.sclqld.org.au/caselaw/QCAT/2026/379