The “Road to Recovery” - heavy machinery disputes and the ACL
Previously we highlighted some legal issues that commonly arise in relation to heavy machinery. This week we want to address the Australian Consumer Law (ACL), and its applicability to certain heavy machinery disputes.
The ACL is a Commonwealth Act which is designed to protect consumers when acquiring goods and services. A ‘consumer’ is defined as a person who acquires goods not exceeding $40,000 or which are of a kind ordinarily acquired for personal, domestic or household use or consumption. Naturally, this often excludes companies.
One of the most important ways in which the Act protects consumers is to provide statutory guarantees in relation to goods which they acquire. Principal amongst those guarantees are that the goods must:
Be of an acceptable quality (s 54);
Be reasonably fit for purpose (s 55); and
Correspond with the description (s 56).
These guarantees are designed to protect a vulnerable class of persons (often individuals) who otherwise may have little bargaining power or financial means.
However, did you know the ACL can also apply to commercial disputes involving certain heavy machinery?
However, did you know the ACL can also apply to commercial disputes involving certain heavy machinery?
The Act does this by an often-overlooked provision in the Act which extends the definition of ‘consumers’ to those acquiring vehicles or trailers for use principally in the transport of goods on public roads.
Therefore, even large transport companies who purchase tankers and semi-trailers for the transport of goods on roads can assert statutory guarantees and rely on the added protections which they provide if a dispute arises.
The benefit is that a dispute that may otherwise become bogged down in contractual issues (such as fights over what constitutes the contract, construction of its terms including implied terms and exclusion clauses) can be avoided by reliance upon the more certain and forceful ACL statutory guarantees which can have the effect of strengthening a party’s rights and negotiating power.
It is important to engage experienced lawyers who have expertise in the specific legal issues affecting the heavy machinery industry. If you find yourself involved in heavy machinery disputes and need legal advice, please do not hesitate to contact Tony Scoglio on (07) 3833 2100.