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VIC New bike turns out to be a Lemon

Discussion in 'Politics, Laws, Government & Insurance' started by Mick1971, Aug 22, 2014.

  1. Hi All,

    Desperate need of some quality advice!
    I bought a new bike from Peter Stevens and from the initial point of purchase had a multitude of mechanical and electrical problem.
    Constantly taking it back to be looked at (and I am sure that's all they did is some instances), get comment like "we are unable to fault it", "it's the way you ride it", your over heating the bike and even "Sorry it was an apprentice that worked on your bike we will have a senior look into it".

    They even omit work that they have done on the invoice, which was all done under warranty!

    The bike has cost me in loss of income, cost of travel and even where I had to pay for services as I was not in a position to contest their findings.

    I must sound like a complete idiot and certainly feel this way! I will not be in a position provide details of the bike as am yet to decide on which direction I will be taking with this situation.
    The bike is currently with PS and has been for some weeks, having a major part replaced.

    The warranty period is almost over and I am confident that I will have to endure further problems
    Would appreciate any advice on how to handle this from a legal perspective!
    What are my rights and is there anyone that can provide an independent assessment on my situation based on what repairs have been done.
    Hope that my jumbled frustration is somewhat interpreted by the community
  2. Without knowing the circumstance of each incident I can't comment. Also, I'm not sure about the laws in Vic about this. Lemon laws were being considered in some states, but I doubt they ever progressed.

    I'd be interested in knowing what type of bike it was too.
  3. I would be taking to another dealer if possible.

    What is the make?
  4. What brand of bike are we talking here?
  5. Sorry to hear of your problems. Unfortunatley Australia doesn't have "Lemon Laws". The only avenue I can think of to suggest is talking to Consumer affairs/Department of fair trading and making the case the the item is "Unfit for purpose". The dealer seems to be doing the right thing and trying to fix the bike for you. As the problems started under warranty, then they are obliged to repair the bike so that it is "fit for purpose" even if the warranty now runs our. Make sure you have documented everything.
  6. Yeah, it may be a pain in the rear, but I think you need to take this to the Fair trading Ombudsman. Read through the warranty and see if theres a refund clause or something to back you up. A new bike shouldn't be that much trouble no matter what brand.
  7. What bike is it and what sort of problems has it had ?
  8. I think there is a provision that everyday a bike is in the shop for a warranty repair, is an extra day added to the base warranty period, plus the repair itself should have a warranty period itself.

    This doesn't sound like a good story.
  9. #10 ibast, Aug 22, 2014
    Last edited: Aug 22, 2014
    I'd be suprised if the standard contract, which the bike retailer gives you, would have an evergreen clause.

    [edit] actually, thinking about it, i could be completely wrong on that.
  10. Could possibly be in the consumer law to prevent retailers stringing it out 'til the warranty expires?
    • Agree Agree x 1
  11. Warranty work doesn't go on the invoice as you didn't pay for it.
    PS are good with warranty stuff if you get them onside. Often its
    not their call. They have to negotiate with the distributor.
    Bugger about the bike though.
  12. Are you sure? I found this

    Australian Consumer Law
    "If you have what the ACL calls a major failure with your car, you are entitled to return it to the dealer to claim a refund, or a replacement -- your choice of an identical new car or one of similar value.

    A major failure is when a reasonable consumer would not have bought the car if they had known about the problem, or when the car is substantially unfit for its normal purpose.

    In other words -- the car is a lemon.

    If you have a minor problem with the car, the dealer is still allowed to fix it under warranty. If you have to get your car fixed at another workshop, you're entitled to claim the cost from the dealer who sold you the car.

    However, if the dealer can't fix the problem within a reasonable time, you are also entitled to a refund or a replacement."
  13. You seem to have found what you need so you should speek to the dealer and work out if they are going to fix the bike to your complete satisfaction, that is make it fit for purpose, or if they will go back to the distributor and replace the bike.
  14. I'm betting it's a Hyosung too...
  15. I'm actually wondering if it's a Hardley or a Ducati.
  16. Well, we know it is a cruiser from PS, that's about it....

    Electrical problems does kinda point towards Ducati though, LOL.
  17. Hi All,
    Greatly appreciate the responses, will endeavor to provided more clarity on the model and the list of issues once I make a clear decision on how I will proceed.
    Please keep the legal information coming if there is.
    I don't plan to go down without a fight.
  18. Old news mate, by 8 or 9 years. Federal legislation from more than 3 years ago applies to consumer laws in all states and territories, and those changes affect nearly all businesses including component producers, motor vehicle dealers and after market suppliers:

    Competition and Consumer Act 2010
    Competition and Consumer Regulations 2010
    Explanatory Memorandum
    Consumer Guarantees Guide

    Both irrelevant. Those concerns and dodgy practices are a reason why we had our biggest overhaul of consumer law in the last 25 years.

    The definition of 'acceptable quality' now contains an express element of 'durability'. If a product is not sufficiently durable ie. it breaks down earlier than a person would reasonably expect, then it is no longer necessary to prove that it had a defect at the time of purchase. All you as a consumer needs to establish is that a product failed early and was therefore not sufficiently durable.

    All manufacturers, warranty cards or statements must contain the following text prescribed by legislation:

    "Our goods, come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and for compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure."

    Example: Apple products and ACL

    OP does not provide information on what repairs have been completed to date, but for easy-to-read information about your rights, refer to page 12 of the 'Consumer Guarantees Guide' and how to handle this situation, refer to page 20.

    You have 9 consumer guarantees applicable to goods and 3 for services provided. When a consumer guarantee has been breached, the consumer’s remedy depends on whether the breach is classed as a 'major failure' or a 'minor failure'. If a failure to comply is 'major' you can can chose the remedy you want. This may include returning the item for a refund or getting a replacement.

    Information on what is a major and/or minor failure is provided in the above Guide.

    Interesting scenario: manufacturer recalls - The fix may be minor, but until the problem is fixed the vehicle may be deemed unsafe. Therefore, it is a major fault, and under ACL, consumers can choose a refund of the full purchase price rather than the repair of the vehicle.

    • Like Like x 1
  19. As usual Justus's info is spot on topic, but if you want assistance from the rest of us that aren't walking law firms I think you'll need to provide the bike details and problem details so we can advise whether they are common faults etc. Also if you can specify the PS location people can tell you whether they have had similar experiences, whether there is a better person to be dealing with in the PS network, etc....