Responding to a Faulty-Car Claim in the Tasmanian Magistrates Court: a Motor Dealer’s Defence Guide

You are a licensed Tasmanian motor dealer, and a buyer says the car you sold is faulty. Maybe a letter has arrived, or maybe a claim has already been filed. Either way, the worst thing you can do is ignore it or assume a signed contract clause has you covered. This page explains, in plain terms, where a faulty-car claim is heard in Tasmania, what the law actually requires of you, and how to respond properly and on time. The aim is simple: know your obligations, prepare your response, and protect your business.

Where a faulty-car claim is heard in Tasmania

In some states these disputes go to a consumer tribunal. Tasmania is different. A buyer’s faulty-car claim against a licensed dealer is heard by the Magistrates Court of Tasmania (Civil Division). The Tasmanian Civil and Administrative Tribunal (TASCAT) does not decide consumer-guarantee, Australian Consumer Law or Motor Vehicle Traders Act buyer disputes; under the Motor Vehicle Traders Act 2011 its role is limited to reviewing a licensing decision (s 26). Motor vehicle buyer disputes go to the Magistrates Court: a rescission application under s 55 is made to the Magistrates Court (Civil Division), and loss or damage from a contravention is recoverable in a court of competent jurisdiction (s 57).

Most faulty-car claims are “minor civil claims”. A claim up to $15,000 is a minor civil claim; $15,001 to $50,000 is an ordinary civil claim; and more than $50,000 is heard only if everyone agrees.

Two sets of rules apply to you

When you sell a vehicle in Tasmania, two bodies of law sit side by side, and neither can be contracted out of.

The Australian Consumer Law (ACL) consumer guarantees. Every vehicle you supply to a consumer must be of acceptable quality: fit for its usual purposes, free from defects, safe and durable, as a reasonable buyer fully aware of its state and condition would regard as acceptable, judged against the car’s age, kilometres and price (ACL s 54). The remedy depends on how serious the failure is. For a minor failure that can be fixed, the buyer must let you remedy it within a reasonable time, and you choose whether to repair, replace or refund (ss 259(2), 261). For a major failure, the buyer chooses between rejecting the car and keeping it with compensation (ss 259(3), 260).

The Tasmanian statutory warranty (Motor Vehicle Traders Act 2011). This covers a used or new vehicle (not a motor cycle) that had travelled less than 120,000 km before sale and whose compliance plate was fitted less than 7 years before sale (s 42). The warranty requires the vehicle to be fit for common use, having regard to age, description and price, with all parts in working order except as specified on the pre-sale disclosure statement (s 43). The period ends at the first of three months from delivery or 3,000 km after delivery (plus other events such as resale or repossession) (s 44). It excludes items such as tyres, the battery and brake wear parts, and defects caused by misuse or neglect after delivery (s 45). Leaving the warranty out of the contract does not get rid of it (s 43(5)).

What you cannot do

The ACCC’s industry guidance is clear that some moves are simply not open to a dealer, whatever the paperwork says:

• You cannot rely on an “as is”, “no refund” or “sold as inspected” clause to escape the guarantees. Section 64 of the ACL makes those terms void.
• You cannot tell the buyer to take the problem to the manufacturer. You must assist them yourself.
• An expired manufacturer’s warranty is not a defence on its own.
• You cannot insist the buyer service the car at a licensed dealer to keep their guarantee rights.
• You cannot tell a buyer they have no rights once the state statutory warranty expires; the ACL guarantees can still apply.

In its December 2025 report on second-hand cars, the ACCC singled out dealer conduct it treats as a concern, including denying responsibility and putting the onus back on the buyer, arguing a failure does not exist despite clear evidence, and relying on a blanket “no refunds” policy. If your intended response sounds like one of those, test it hard before you run it.

Respond on time: the 21-day defence

When the claim is served, you will receive the Claim and a Notice to Defendant. You then have a firm deadline: a defence must be filed in an approved form within 21 days after service, and served on all other parties (Magistrates Court (Civil Division) Rules 1998 r 48). The forms are the Defence (Form 4), or the Defence and Counterclaim (Form 5) if you have your own claim against the buyer.

Miss that deadline and the claimant can enter default judgment against you on filing an affidavit of service (r 116), and a default judgment can be enforced, for example by a warrant to sell property or a garnishee order. You can apply to set aside a default judgment using an application (Form 8) with a sworn affidavit showing why you were late, that you have a good defence, and that the claimant is not prejudiced, but that is a remedy for a genuine slip, not a plan. File your defence within the 21 days.

What the process looks like

After a defence is filed in a minor civil claim, the matter goes to a conciliation conference, where the parties try to settle and narrow the issues. Attendance is compulsory unless you are excused, and a company must send a natural person authorised to represent it. If a party is more than 15 minutes late, the Court can give judgment in that party’s absence, so be there and be on time. Anything said about settlement at the conference is not passed to the trial magistrate until after final judgment, so you can speak frankly.

If it does not settle, the Magistrate hears it. In a minor civil claim the Court conducts an inquiry into the facts rather than an adversarial contest, is not bound by the rules of evidence, and may call witnesses (Magistrates Court (Civil Division) Act 1992 s 31AB). A legal practitioner generally cannot represent a party in a minor civil claim, but a dealer company can appear through an officer or employee (s 31AD), and there are generally no legal costs. If the claim is over $15,000, the process is more formal and costs can follow the event, so take advice early.

Build your evidence early

The Court decides whether the buyer has proved the claim, and it decides on the evidence in front of it. Pull together your sale contract and invoice, the signed pre-sale disclosure statement, the odometer reading and compliance-plate date (which decide whether the statutory warranty applies), full service and repair records, all correspondence with the buyer (including when they first reported the fault), dated photographs, and any independent mechanic’s report. If you want to rely on an expert report, rule 105 sets strict service and filing deadlines, so get the inspection done early.

Get the full TAS Defence Guide – $29

The full guide is a step-by-step Business Defence Toolkit for Tasmanian dealers: your obligations under the ACL and the Motor Vehicle Traders Act 2011 set out in full; a structured way to test, honestly, whether the claim is actually made out; every deadline and step in the Magistrates Court (Civil Division); an evidence bundle and document register; adaptable response templates (a without-admission defence, an offer to inspect and repair, and a settlement proposal); how to settle with a binding consent order; and what to expect at the hearing, including your duty of honesty and when to get a lawyer.

This is general information, not legal advice. It describes the law and court procedure in general terms and does not take account of your particular circumstances. Claim Done is not a law firm and does not provide legal advice. Laws, forms, fees and figures change; confirm the current position against the official sources before you rely on anything here.

Questions people ask