How to Resolve a Dispute With a Mechanic

In Short

• Consumers are protected under Australian Consumer Law, which ensures services are provided with due care and skill.

• Start by discussing issues directly with the mechanic and reviewing the service agreement.

• If unresolved, consider mediation or lodging a claim with a relevant tribunal.

Tips for Businesses

To manage disputes with mechanics, maintain clear communication and keep detailed records of services and agreements. Know your rights under Australian Consumer Law and explore mediation before taking legal action.

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Table of Contents

• Your Rights under the Australian Consumer Law
• Discuss the Issue With Your Mechanic
• Check the Service Agreement
• Alternative Dispute Resolution
• Administrative Tribunal
• Key Takeaways
• Frequently Asked Questions

You may find yourself in a dispute with your mechanic for a number of reasons. You may not be satisfied with the work performed by the mechanic, or they may have engaged in some form of misconduct that damaged your vehicle. It may be tempting to pursue litigation against mechanics, but resolving a dispute through a court or tribunal is often a costly and lengthy process. This article will outline some methods available to you to settle disputes with your mechanic in an amicable manner to avoid escalating the situation.

Your Rights under the Australian Consumer Law

You may be entitled to certain guarantees and warranties under the Australian Consumer Law (ACL). The ACL is a national law that regulates how businesses can sell goods and services to consumers, providing consumers with a comprehensive level of protection. The service you received will be covered by the ACL if you engaged a mechanic for goods and/or services that cost:

• less than $100,000; or
• more than $100,000, but were engaged for a household or personal purpose. 

Under the ACL, anyone who provides services that match the criteria above must ensure that 

• they render their services with due care and skill; 
• services, and products resulting from services, are reasonably fit for their particular purpose; and 
• services are provided within a reasonable time. 

Under the ACL, goods must be:

• of acceptable quality; 
• reasonably fit for their disclosed purpose; 
• as stated in their description, if they are sold with a description; and 
• in compliance with an express warranty made by the manufacturer or supplier. 

If you believe a mechanic did not comply with their obligations as a service provider under the ACL, you should discuss these issues with the mechanic and see how they respond.

Discuss the Issue With Your Mechanic

If you have any issues with your mechanic, your first step should be to raise the issue with them. Make sure to take note of what they say in your discussion. Ideally, they need to acknowledge your concerns and identify how they will resolve the situation. It is helpful if you also create a timeline of events, starting with when the issue first came to your attention.

Finding another qualified mechanic to look at your vehicle and provide their own findings may also benefit you. Another option is to request an independent report from an impartial mechanic. 

Check the Service Agreement

If you received a service agreement from your mechanic, you should thoroughly read it. Typically, a service agreement issued by your mechanic should include:

• an outline of the services the mechanic will provide and associated terms and conditions, which may address failures or defects in servicing; and
• alternative dispute resolution (ADR) mechanisms to follow if a dispute arises with your mechanic. ADR allows parties to try to settle their dispute in a third-party forum before going to court.

In any situation with your mechanic, you should review the service agreement to understand your rights and obligations. If your mechanic did not provide you with a service agreement or terms and conditions, you can also review the quote they provided you, which should contain details as to the services they were to provide. 

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Alternative Dispute Resolution

If there are no provisions for ADR in the service agreement, you should try to resolve your dispute using these mechanisms anyway. ADR is often faster and less costly than taking your matter to a tribunal, where you will ordinarily be referred to conciliation. 

Various government agencies in your state or territory will provide dispute resolution services. In New South Wales (NSW), the Small Business Commissioner and NSW Fair Trading offer ADR services.

You must also go into an ADR with a willingness to negotiate and discuss an amicable resolution with the mechanic.

Administrative Tribunal

If ADR has been unsuccessful, you can choose to apply to your state’s administrative body. In NSW, this is the Consumer and Commercial Division of the NSW Civil Administrative Tribunal (NCAT). To bring a claim in NCAT or any administrative tribunal, be aware of the following:

• Fee: Any application to an administrative tribunal will require a fee. For general applications, the standard fee is $124. 
• Claim Limit: In NCAT, your claim must be under $100,000. 
• Time Limit: Your application must be within three years of when the problems associated with the mechanic occurred. The services provided by the mechanic must also have been provided within the past ten years. 
• ADR: An administrative tribunal may ask parties who apply to first engage in conciliation prior to the hearing. 
• Costs: Generally, in administrative tribunals, parties pay their own costs of preparing for the hearing. There are cases in which a tribunal may make costs orders, for example, if a party conducts the proceedings in a way that disadvantages the other party or if they make a claim with no basis.

Key Takeaways

Disputes with your mechanic may arise for numerous reasons. When this occurs, you should try to resolve the dispute before turning to litigation, as litigation is a costly and time-consuming process. Some ways to resolve a dispute with your mechanic without the courts include the following:

• discussing the issue with your mechanic;
• checking if the ACL entitles you to guarantees;
• checking the terms and conditions in the service agreement; 
• engaging in ADR; and
• applying to an administrative tribunal, such as NCAT. 

If you are involved in a commercial dispute, our experienced dispute resolution lawyers can assist as part of your LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions