Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


High Court Tells Daewoo It Breached The Law

High Court Tells Daewoo It Fundamentally Breached The Law

In a decision released earlier this week, Justice Wild of the High Court in Wellington stated that Daewoo `fundamentally breached the licensing regime in the [Motor Vehicle Dealers] Act, and the detailed requirements applying to it.' Justice Wild has referred the matter back to the Motor Vehicle Dealers Licensing Board.

Daewoo's lawyers argued that the Board erred in finding Daewoo guilty of misconduct. Justice Wild disagreed saying that the Motor Vehicle Dealers Act `achieves its purpose of protecting the interests of consumers by requiring every person carrying on business as a motor vehicle dealer to be licensed under the Act.' In this regard the judge believed that the Motor Vehicle Dealers Institute (MVDI) were right to bring the Daewoo matter before the Board.

`The issues of this case became very blurred. Like Daewoo, the media and the general public MVDI felt that the law was outdated. However, regardless of whether the law is right or not, MVDI has a statutory function and therefore must apply the law. After all, the law is the law' says MVDI Executive Director Steve Downes.

Justice Wild agreed, saying, `Daewoo's two senior managers, Messrs Vidak and Horn were experienced and well aware of the requirements of the Act, and formulated and then embarked upon Daewoo Direct knowing all along that it did not comply with the Act. Daewoo was carrying on unlicensed dealing around New Zealand outside Auckland.'

The matter has been referred back to the Board as the judge believes the initial decision to cancel Daewoo's license to be overly harsh. `The Board has a wealth of expertise and experience which the Court lacks and therefore it is inappropriate for the Court to `second guess' the Board's specialist expertise' said Justice Wild.

The High Court proceedings came about as a result of the Motor Vehicle Dealers Licensing Board's (the Board) decision in January this year which cancelled Daewoo's motor vehicle dealers license. Interim relief was granted by the High Court in February which allowed Daewoo to trade in the Auckland area until a substantive hearing.

On 1 July this year the Motor Vehicle Dealers Amendment Act 1999 (the `Daewoo Amendment') was passed. This allows new motor vehicle business to be conducted anywhere in New Zealand, provided the person carrying on the business has at least one licensed place of business in New Zealand. The amendment comes into effect 13 September 1999.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news