ARTICLE · 29 JANUARY 2013

Unfair Contracts - Better Protection for Dealers in NSW?

Moore Australia

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The changes may include better protection for dealers by general prohibitions on unfair contracts and unfair conduct.

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The issue of unfair contracts is currently under consideration by the NSW State Government.

In April 2012, the NSW State Government through Fair Trading NSW published an Issues Paper which included a review of the Motor Vehicles Dealers Act 1974 (Act) and in particular a review of the dealer and manufacturer/distributor relationship. There have been calls from the Motor Vehicle Industry Advisory Council (MVIAC) to introduce a prohibition on unfair contracts into the Act.

Dealers have argued that a prohibition on unfair contracts is in fact not enough and that the concept of unfairness should be extended to include a prohibition on unfair conduct. It is expected that the NSW State Government will issue a Bill at some stage during the first quarter of 2013 setting out the proposed changes to the Act.

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