The Act assigns duties to licence-holders and rights to consumers and the Director, with detailed procedural protections and remedy channels. Key trader duties include licensing, disclosure, contract form and content, encumbrance checks, title transfer, advertising accuracy, and repair obligations under warranty.
Licensing duties: a person must not deal in motor vehicles unless licensed (s 6). Applicants must apply in a form approved by the Director, provide identity documents, police records, insolvency declarations where relevant, and fees (s 9). The Director must grant a licence if satisfied the applicant is fit and proper and has not provided false information (s 13(1)(a)(i)-(ii)); on grant, the Director issues a licence on payment of any prescribed fee (s 14). Licences are non-transferable (s 17) and typically last three years (s 16(1)). Licensed traders must display the licence (s 38) and include their licence number in advertisements, pre-sale statements, contracts and warranties (s 39).
Contractual duties: contracts for sale, purchase or exchange must be in writing and contain conditions of sale, total price or consideration, trade-in and changeover price details where relevant, any undertakings made during negotiations, statutory warranties and any other warranties, and prescribed information (s 34(1)(a)-(f)). Failure to put the statutory warranty in the contract does not prevent the warranty operating (s 43(5)).
Pre-sale disclosure and warranty duties: for used motor vehicles offered for sale or exchange, traders must display a pre-sale disclosure statement complying with regulations (s 37(1)); content and form are regulated under s 62 and the regulations. Statutory warranty applies to warrantied vehicles as defined (s 42) and requires fit-for-purpose and working-order commitments depending on new or used status (s 43). Statutory warranty duration is limited, commencing on delivery and ending at the earliest of 3 months, 3,000 km, or other enumerated events (s 44).
Encumbrance and title duties: before purchase, accepting a vehicle on trade-in or consignment, a trader must ask whether the vehicle is subject to any encumbrance and search the motor vehicles securities register (PPSR) (s 35(2)). If an encumbrance is present, the trader must discharge it on purchase or acceptance on trade-in; consignment sales must condition proceeds being applied to discharge encumbrances (s 35(3)). On sale of a used vehicle, the trader must pass title free from all encumbrances, except where the sale is by a trader acting on consignment (s 36).
Advertising and representation duties: a licensed trader must not make claims in advertisements they know to be false or misleading, must not advertise unavailable vehicles as for sale, must disclose fuel consumption only from the Australian Fuel Consumption Guide and specify the source, must not advertise prohibited financing methods (s 29). Traders must not conceal or misrepresent vehicle condition, year, model designation, or availability, or misstate amounts constituting consideration (s 30). Odometer duties require verification if there are reasonable grounds to doubt accuracy, written disclosure to prospective purchasers of verified facts and reasons, and recording of readings on transfer documents (s 31).
Director rights and powers: the Director may investigate applications and licence-holders (s 11), obtain police reports (s 8, s 19B), suspend or cancel licences (ss 20-21), issue replacement licences (s 19), maintain a register and publish licence lists (s 27), and make determinations to cancel deemed registrations (s 19A). The Director also has delegated regulatory functions via the regulations (s 62) and can provide the transport and revenue agencies with applicant details (s 12).
Consumer rights and remedies: consumers of warrantied vehicles have statutory warranty protection (ss 42-46), the right to seek rescission of contracts in specified circumstances in the Magistrates Court within prescribed timeframes (s 55), civil recovery of loss or damage (s 57), and access to compensation orders in criminal proceedings (s 56). Consumers may also request enforcement action that can lead to injunctions from the Supreme Court (s 54).
Procedural protections: before cancellation the Director must give the licensee an opportunity to make submissions (s 21(2)). Review of reviewable decisions by the Director is available to aggrieved persons in the Tasmanian Civil and Administrative Tribunal (s 26).