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Dispute resolution: Standard procedures
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Dispute resolution: Standard procedures

23 September 2021

Disagreements in the automotive industry are generally about quality of product, service/labour or price charged. They can be between retail customers or business suppliers.

Disputes can take considerable time, effort and money that would be better used to operate, manage, or grow your business. It is preferable to resolve a dispute as cost-effectively and with as little damage to the relationship as possible. 

There are practical ways to resolve disputes. Often direct discussion, and negotiation between parties proves sufficient. Disputes of a more complex nature may need to be resolved using a more formal process. 

The approach required to resolve disputes will vary according, depending on the nature of the product or service provided. Generally, disputes in the automotive industry involve one of the following: 

  • Contract of sale of new or used motor vehicle 
  • Warranty obligations relating to sale of a motor vehicle 
  • Service or repairs 
  • Sale of new parts 
  • Sale of used parts.  


Generally, steps to resolve a dispute include: 

  • Document the relevant details about the dispute in chronological order
  • Write down all dates, times, product or service details, a summary of discussions, promises or verbal undertakings given
  • If there are multiple areas of disagreement, separate them. It may be possible to resolve a few smaller issues, allowing you to focus on major ones
  • The solution or action required will often become clear once the rights and obligations are set out  on paper. Collect all documents relevant to the issue. Eg: contracts, written warranties, invoices and any photographs
  • Take notes as to how each party would like the dispute resolved
  • Be clear about the solution being sought by you or the other party. Solutions could include compensation, refund, repair, replacement, an apology, behavioral change or any combination of these
  • Ask the other party what is important to them and what remedy they are seeking
  • Remember that each party has a common interest in resolving the matter quickly, fairly and cheaply. A direct exchange of information may present a solution that is acceptable to both parties
  • Present your case calmly and show respect for the other party’s point of view. Animosity from a badly managed dispute can cause long-term adverse effects on your business
  • Be prepared to compromise and give a little when the other party is prepared to do the same.


Need support? VACC members have access to a dedicated Business & Consumer Affairs service. The department provides timely and practical non-legal solutions to the problems businesses face on a day-to-day basis.

 

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