This article should not be seen as legal advice. As every situation is different, caravan owners with a problem should check up on their own or the dealer’s responsibilities.
Getting warranty problems resolved seems to cause more concern amongst caravanners than just about anything else. Knowing your rights and approaching the situation in a business like manner can often avoid conflict.
What is or isn’t a warranty problem?
Generally speaking, the cause of a particular problem has to be related to faulty materials or bad workmanship. For example, wall panelling that de-laminates or vinyl flooring that is not stuck down properly. With RVs, a common complaint is poor refrigerator operation. While the owner may be tempted to blame the fridge itself, in the majority of cases it is the installation that is wanting and therefore comes under the heading of workmanship.
Consumer laws also relate to products being ‘Fit for Purpose’ and of ‘Merchandisable Quality’. A caravan that cannot be towed in a stable manner could fit in the former category while a chassis that bends during the van’s first outing because of inferior material could fit in the latter.
There are of course a myriad of little things like a broken door catch, faulty gas strut, water leaks or screws missing that are usually attended to without too many hassles. It is the bigger problems that often create disputes.
What can I do if there is a problem?
Irrespective of how much effort is put in to preventing problems, from time to time something will go wrong. Satisfaction is generally closely related to expectations. Some people expect every screw slot to be in line while others are happy if the caravan tows in a stable fashion. But if there is one common thread, it must be that consumers expect to be treated in a reasonable manner when a problem does arise with a product or service that they purchased.
When it comes to warranty, there are quite clear guidelines as to the responsibility of the retailer, and for that matter the consumer. Sadly some business owners deny any knowledge of these while others pass the buck to the manufacturer. The term ‘warranty’ can best be thought of as ‘promises’ that a seller makes in regard to goods or services.
There are basically two types of ‘promises’. The ones ‘implied’ by regulations, for example, the goods must be of merchantable quality, and ‘voluntary’ ones made by the seller or manufacturer, like ‘one year warranty’.
As mentioned, warranty normally relates to faulty materials or faulty workmanship. A shelf that has be left out of a new caravan does not constitute a warranty problem. That doesn’t mean that it should be ignored but it is probably the result of poor communication between the dealer and the manufacturer. On the other hand a leaking pipe behind the shower wall is a warranty problem.
People with what is perceived to be warranty problems tend to fall into three categories. Those who will not go back to the dealer or retailer because of previous bad treatment, those who believe that if you jump up and down the problem will be taken care of and those who know that softly but firmly is probably the best approach.
Consumer Rights
The Australian Competition and Consumer Commission (ACCC) administer the Trade Practices Act 1974 which, together with relevant State/Territory legislation, makes it illegal for a business to:
- mislead or deceive a consumer or do something that is likely to mislead or deceive,
- make false claims about quality, standard, approval, price or benefits of the goods and services,
- advertise something at a certain price if they know or should know that they cannot supply it within a reasonable time,
- accept a payment for goods or services when they don’t intend to supply it.
As a consumer, any goods that you purchase must:
- be of a merchantable quality,
- be fit for purpose,
- match the description or sample supplied before purchase.
The ACCC, in a brochure called “Know how to complain – stand up for your consumer rights”, explains that the Act provides certain legal rights, called Statutory Rights, whenever you buy goods or services from a business. These rights are in addition to any voluntary warranties offered. While the Act does offer consumers some protection, it is worth noting that the Act is not designed to protect consumers who are careless or have unreasonable demands.
Where do you stand legally?
If you feel that you have some genuine warranty concerns and that a solution seems elusive, finding out your rights can be a good starting point. While there can be different approaches to resolving warranty problems, there are basically three main types of warranties. These are Statutory or Implied Warranty, Voluntary or Express Warranty and Purchased Warranty.
1. Statuary Warranty
A Statutory or Implied Warranty is based on the Trade Practices Act and ‘implies’ certain minimum conditions into all consumer transactions. In essence this warrants that goods meet a basic level of quality and do the job for which they are designed, keeping in mind their price and description.
Any goods made, as well as services provided, must last a reasonable length of time regardless of any Voluntary Warranty stated. What is reasonable depends on several factors, including the price as well as the application. A battery operated drill bought for $15.00 can’t be expected to perform like an industrial type drill worth $400.00. On the other hand, it would probably be reasonable to expect a caravan refrigerator to perform efficiently for at least five years if it isn’t misused.
An Implied Warranty, whether covered by the Trade Practices Act or State and Territory Legistation, cannot be excluded. It is designed to give consumers a degree of protection.
2. Voluntary Warranty
Voluntary Warranty, also known as manufacturer, express, extended or dealer warranty, are offered by a manufacturer or retailer. Conditions will vary but generally state a specific period of time and can include what is or what isn’t covered. Voluntary Warranties operate in addition to Implied Warranty. Although the Voluntary Warranty may include conditions or limitations, these generally do not restrict the provisions of an Implied Warranty. Buying a product that does not have a stated voluntary warranty doesn’t mean that there is no protection.
In many cases the voluntary warranty is a bit of window dressing as the statuary warranty may still apply after a one or two year warranty expires. However, at a recent caravan show, one company was offering five-year warranty on their products. This certainly indicates that the manufacturer has faith in the product.
3. Extended or Purchased Warranties
In some cases, consumers are offered Extended Warranties when purchasing a product. In regard to caravans this may apply to air-conditioners and refrigerators. Although they may be called extended warranties, in reality they are service or insurance contracts rather than warranties. The ACCC recommends that consumers check if the likely benefits of these contracts justify the additional cost and especially that the extended warranty is not duplicating statutory right that exist anyway.
Resolving a dispute or the best approach
Be constructive
As most retailers are reasonable people, it is helpful to approach staff in an open and rational manner. Remember that the majority of caravan sales staff have not had any input into the construction of the unit. It is much more productive to put some efforts in to getting the dealer onside rather then upset them with threats.
One manager that I spoke to said that he very quickly lost interest in helping someone if they mentioned that they had been to Consumer Affairs or Fair Trading before giving the dealership an opportunity to look at the problem.
Don’t be a know-all
Another put-off is to suggest to the dealer how the problem should be fixed, even if the solution is obvious to you. It is much better to describe your concerns, get the dealer to concur and then let the dealer come up with the remedy. It may be that the problem has arisen before and a fix is already in place
Remain objective
Although some people believe that above all it is the principle that counts, it is really a matter of getting a dispute settled. To that end the main issue has to be kept in focus and not clouded by other insignificant matters.
I have seen a water leak dispute go to a mediation hearing where the caravan owner came along with a list of 20 perceived problems – the main one plus 19 minor issues. The dealer agreed to fix the 19 little ones and the person presiding over the hearing reckoned that this was a great result and gave the dealer a pat on the back. It would have been better to negotiate on the major problem and keep the others out of it as the owner was still in ‘deep water’.
Keep a record
If a problem is not resolved immediately, it is a good idea to keep a diary of events. A list of names, dates and main discussion points can be helpful at a later time. Also collect any other written information relevant to the sale, for example, the contract, plans, list of additional items requested, etc.
Confirm problems or concerns in writing
Once an appropriate course of action has been decided on, it can be helpful if you write to the dealer (with a copy to the manufacturer if needed) outlining your understanding of the problem and the remedial process suggested.
Realise that everyone has a bad day
First thing Monday morning or 15 minutes before closing on a Saturday afternoon may not be a good time to air your grievances to a dealer, unless there are safety issues that can’t wait. Sometimes a note outlining your concerns and asking the dealer to get back to you may be better. Rather than walking in and mentioning a problem straight away, ask if this is a good time to discuss a concern. It could be that the previous customer has given the dealer a hard time or that he just received a phone call telling him that next week’s orders are held up.
Who is responsible?
When a problem comes up, often caravanners become annoyed by being bounced back and forth between the dealer and the manufacturer, neither of whom will accept responsibility. Broadly speaking it is the person or business with whom you have a contract that is responsible for any warranty concerns. Generally a contract exists if money is exchanged for goods or services.
A motorcar is a good example. When a problem arises, the car is taken back to the dealer who carries out the required remedial work and then afterwards puts in a claim with the manufacturer or supplier. The only exception may be items like tyres.
Some caravan dealers on the other hand will say that as they didn’t build the van it isn’t their problem. However, in most cases when push comes to shove, the dealer has to face up to their responsibility. In other instances a supplier of an item of equipment may have a particular service agent who provides the required repair service. Although the repair may be seen as a warranty claim, the supplier may ask the owner to pay for the removal and installation of the equipment. ACCC’s view is that if it is a genuine warranty claim the owner should not be financially disadvantaged. This includes transport if required.
Case Studies
Case 1
After travelling for only one day along bitumen roads, cupboard doors were difficult to open and close. At the end of the second day during which it rained, water had entered the two front wardrobes and wet the clothing as well as the floor. Initially the dealer didn’t want to know even when it was discovered that the chassis had bent due to inferior material. After the owner and dealer both sought legal advice, the owner was refunded the purchase costs plus receiving compensation for damage to personnel property.
Case 2
The owner of a 4WD traded in an ‘off-road’ van for a later model off-road unit. He made it clear to the dealer that he travelled along unsealed roads and was assured that the van would handle it. The van had additional ground clearance, larger tires, a couple of Jerry cans on the front and back and a decal that said ‘Off-Road’.
During a six month period, nearly every window cracked and internal cupboards came away from the wall. The dealer’s response was that the van must have been mistreated. The owner replied that his previous unit had travelled along the same roads without any problems. It turned out that the van had been fitted with very solid slipper-type leaf springs that basically didn’t budge. As a result all shocks and vibrations were transmitted to the body instead of being absorbed by the suspension. After a solicitor’s letter the dealer saw the light of day and refunded the purchase price.
Case 3
A caravanner wanted to update his van and insisted that the new one be fully insulated. No problem said the dealer, all our vans are fully insulated. And see, it mentions this on the brochure. On the first outing the owners though that the van was getting hotter than it should. Some checks indicated that there was no insulation in the walls. The dealer and manufacturer denied this based on the fact that there was a sticker on the van that said “Fully Insulated”. On the insistence of Fair Trading the dealer agreed to remove a few sheets of aluminium cladding to allow a closer examination. The day before this was to happen the dealer pulled the plug.
Subsequently the owner had the caravan de-clad and insulation installed. He was able to recoup the costs through the Small Claims Tribunal.
Case 4
After purchasing a new caravan, which was ordered with insulation, the owner discovered that the insulation had been omitted. After pointing this out to the dealer, the caravan was taken back and a brand new one built. With insulation of course. Needless to say, the customer was most impressed.
Wrap-Up
All consumer transactions, like buying a new caravan or motorhome, have certain implied statutory warranty automatically attached to it. This means that consumers will always have some protection. The weak link is that some retailers will tell consumers that only the Voluntary or Express Warranty applies and that if the time limit stated is exceeded, it is too late. If the fault or problem can be shown to be the result of poor materials or bad workmanship, there is a good chance that you will still have a claim. If there is a dispute, visit your State Office of Fair Trading or Consumer Affairs and obtain the information that is relevant to your location and transaction.
A business is not required to offer a voluntary warranty. However, they are legally obliged to stand by their voluntary warranties once given. In layman’s terms, if promises are made, they must be kept.
For more information, a booklet called “Warranties and Refunds can be obtained from www.accc.gov.au. Once again, keep in mind that this article should not be seen as legal advice. As every situation is different, caravan owners with a problem should check up on their own or the dealer’s responsibilities. |
