Automobile Centre (Auckland) Ltd v Facer

974 Year 974 ( CMLXXIV) was a common year starting on Thursday (link will display the full calendar) of the Julian calendar. Events By place Europe * Battle of Danevirke: Emperor Otto II defeats the rebel forces of King Harald I, who has ...

2 NZLR 767 is an often cited case regarding illegal contracts under the

Illegal Contracts Act 1970 The Illegal Contracts Act 970'' is a New Zealand law that manages how contracts are deemed illegal under either common law or under Statute. Under this law, all such contracts are deemed illegal, but it gives wide discretionary powers to grant r ...

. It was one of the first cases decided since the law was passed.

Background

Automobile Centre sold Facer a car. The car did not have a Warrant of Fitness that lasted more than the 5 months that regulation 53 of the Transport Regulations 1956 legally requires, with a penalty upon conviction, of a

fine Fine may refer to: Characters * Sylvia Fine (''The Nanny''), Fran's mother on ''The Nanny'' * Officer Fine, a character in ''Tales from the Crypt'', played by Vincent Spano Legal terms * Fine (penalty), money to be paid as punishment for an offe ...

. Facer subsequently used this breach of the law to not pay for the car, claiming the contract was illegal. and thus not legally enforceable. The car dealer ultimately sued Facer to obtain payment.

Held

The court ruled that the Regulations' purpose was road safety, and not consumer protection as Facer had argued. That being the case, the judge noted that the interests of road safety could be served by fines rather than go as far as making the purchases illegal, and ruled that Facer was liable to pay for the car.

References

{{reflist Footnote: This ruling followed the earlier similar warrant of fitness case of Fenton v Scotty's Car Sales Ltd

968 Year 968 ( CMLXVIII) was a leap year starting on Wednesday (link will display the full calendar) of the Julian calendar. Events By place Byzantine Empire * Emperor Nikephoros II receives a Bulgarian embassy led by Prince Boris (the ...

NZLR 929, which pre-dated the

. High Court of New Zealand cases 1974 in case law 1974 in New Zealand law New Zealand contract case law