MTAA recognizes that automotive repairers want to understand their business rights and obligations when faced with expensive repair costs caused by the failure of parts used in repair jobs that are no fault of their own.
Under provisions within ACL, the automotive repairer is liable for the costs of repairing the engine (both replacement parts and labour costs). However, there is some potential for recourse against the parts supplier.
To assist automotive repair businesses to minimize their exposure to product liability and associated litigation, MTAA and AARA provide the attached Product Liability Information Brief.
The information provides you with:
- An overview of product liability under Australian Commonwealth Law.
- Information on your business rights and obligations in the event of parts failure requiring your automotive repair business to undertake warranty work, both when the parts are purchased by you through a parts supplier or if provided by the consumer (i.e.the vehicle owner).
- Information and recommendations that may help when making a claim against a parts supplier for the costs of the repair incurred as a result of the failure of the part used in the repair.
This information is not a substitute for legal advice and does not cover all legal scenarios associated with product liability. Rather, it is a general guide to help MTAA member associations and their businesses members (including automotive repair businesses) to understand product liability better according to Australian Commonwealth Law.
To access the Product Liability Information Brief please use the following link: Download .pdf