Australian consumers are generally aware of the guarantees provided under the Australian Consumer Law (“ACL”) in relation to statutory guarantees that goods are of acceptable quality and reasonably fit for purpose.  Generally, in relation to motor vehicles, it can be readily seen whether the motor vehicle purchased would comply with guarantees when subsequent mechanical failures or manufacture faults become apparent to cause the vehicle to break down regularly and require constant repairs for various faults.

In relation to recreational vehicles such as campervans, mobile caravan homes and the like, Court authorities tend to suggest that in relation to these types of goods making claims for breaches of the statutory guarantees may not be as straightforward or as self-evident as with motor vehicles, or for that matter, other consumer goods.

The Guarantee of Acceptable Quality

The ACL sets our various matters by which the standard of being acceptable quality can be ascertained in circumstances of which it cannot be said that goods cannot be regarded as being of unacceptable quality.  Without going into detail of these, it can be said that the test is if 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 …”.  The reasonable consumer test is an objective test, ie, one which a Court or Tribunal would consider a reasonable consumer would consider to be reasonably acceptable, rather than an individual consumer’s belief as to what is acceptable.  The authorities state that the standard of acceptable quality prescribed by the ACL is “not absolute, or a standard of perfection”.  Essentially the standard depends on the particular circumstances of the particular case, ie, of the particular goods supplied and the circumstances in which they were sold.  More will be said about this later.

Fit for Purpose

The guarantee provides for goods which should be reasonably fit for any disclosed purpose or for any purpose for which the supplier represents that they are reasonably fit.  Disclosed purpose means purposes expressly made known by the consumer or impliedly.  In some respects, this guarantee can overlap with the objective standard of acceptable quality referred to above.

Major Failure of Guarantee

A major failure occurs if the failure of one or two of the failures to comply with the guarantee and the goods would not have been acquired by “a reasonable consumer fully acquainted with the nature and extent of those failures, taken as a whole”.  Again, an objective test rather than a subjective individual consumer test.

It is this objective consumer test which has been considered by Court authorities, especially in relation to recreational vehicles in which perhaps it can be said that a lot of tolerance can be expected of a reasonable consumer concerning recreational vehicles, such that defects in recreational vehicles, especially after some use, could not be said to be a major failure.

It has been said that there are three features as to why a reasonable consumer would have “some degree of tolerance for certain types of failure”:

1. The ACL itself assumes that not every failure to comply with a guarantee will be a major failure and in particular, provides for the fact that it contemplates that if there is a failure to comply with the guarantee, that it can be remedied within a reasonable time by the supplier or manufacturer.  This can apply both in respect of not being of acceptable quality or not reasonably fit for purpose, even for a disclosed purpose.
   
2. The nature of the goods is relevant.  accordingly, in respect of recreational vehicles, these types of vehicles give rise to their own “tolerance by the consumer” existing from say, motor vehicles or other consumer goods.  The best explanation of the tolerance that should be allowed can be seen from the following quotation:
   
   “RVs, like many substantial consumer items such as motor vehicles, yachts, and even bicycles, are manufactured from a range of component parts, many of which may be capable of easy replacement or repair in the event of some fault.  Some of the accessories, such as air conditioning units, televisions, or microwave ovens, may be manufactured by specialist suppliers of electrical appliances, and installed in the RV by the manufacturer or supplier of the RV.  Many of the component parts are designed for mechanical movement.  RVs are intended to be towed.  The process of towing will subject the RVs to stressors and flex.  RVs will necessarily be exposed to weather.  They are designed to be lived in, and otherwise to be used.  Lids will be raised, and lowered.  Doors will be opened, and shut.  Draws will be pulled out, and pushed in.  RVs will be used by families with children, who sometimes lack fine motor skills when handling equipment.  Surfaces may become scratched or chipped through normal use.  An appliance installed in an RV, if found to be faulty, might be able to be easily repaired or replaced by a specialist supplier …  Screws might have to be tightened.  Doors might have to be straightened.  These things are inherent in the nature of the goods.  The reasonable consumer would tolerate some faults or breakages and some need for adjustments of this type if they are exposed by a period of initial use””.
   
3. The reasonable consumer will accept that a process of production of certain complex goods, such as RV’s, can never be perfect.

Accordingly, when either purchasing a new RV or complaining of a defect in it after some use, the above shows that a Court or Tribunal would not readily conclude that there is a major defect, or even a simple breach of the guarantees. .

Accordingly, if it is thought that a claim is to be made that there has been a major defect and there is a major failure of a statutory guarantee under the ACL, advice should be sought first before insisting on returning the goods on the basis of a major failure. If a major failure is claimed and found not to be, then you could be found liable to the seller for damages for wrongfully terminating the contract. Hence the importance of advice first. 

Of course, if there is a breach of the guarantee, rather than a major failure of the guarantee, a consumer is entitled to claim damages to remedy the failure, which would normally constitute repairs and other outlays associated with the defect.  Again, some legal advice in relation to this should be sought as to what ought to be claimed.  There are limitations upon whether damages that are sought to be claimed are regarded as too remote from the breach of the guarantee, which is a legal question, which may not be obvious to the lay consumer.

RMO Law can provide you with clear, precise advice if you are concerned about a recreational or indeed any vehicle you are concerned does not come up to expectations of quality or intended use.  

Contact Us

If you have questions in relation to Australian Consumer Law and Recreational Vehicles, contact us to book an initial consultation with one of our experienced lawyers, and we will provide you with tailored advice with respect to your unique circumstances. call 1800 957 936, email mail@rmolaw.com.au or submit an enquiry on our website.

We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.

This article is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.

Roly O’Regan

Director