Speedo Motoring v Ong Gek Sing: Lemon Law, Second-Hand Car, Consumer Protection

In Speedo Motoring Pte Ltd v Ong Gek Sing, the High Court of Singapore heard an appeal from the Small Claims Tribunal regarding the sale of a second-hand car. Ong Gek Sing (the Buyer) sued Speedo Motoring Pte Ltd (the Seller) under the Consumer Protection (Fair Trading) Act after discovering a defect in the hybrid battery. The High Court dismissed the appeal, finding that the Lemon Law applied and that the Seller was liable for partial reimbursement of the repair costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal Dismissed

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding the applicability of the Lemon Law to a second-hand car sale. The court dismissed the appeal, finding the law applicable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Speedo Motoring Pte LtdAppellantCorporationAppeal DismissedLostLee Chay Pin
Ong Gek SingRespondentIndividualClaim Allowed in PartPartial

3. Judges

Judge NameTitleDelivered Judgment
George WeiJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Lee Chay PinChambers Law LLP

4. Facts

  1. The Buyer purchased a second-hand Lexus GS 450 Hybrid Super Lux from the Seller for $138,000.
  2. The car was a 2008 model, registered in Singapore on 30 April 2009, and had two previous owners.
  3. The Buyer opted out of an extended warranty offered by the Seller.
  4. The Seller sent the Vehicle for an STA evaluation test, which gave it an overall “B” grading.
  5. The Buyer was later informed that the car had not been serviced by Borneo Motors since 7 March 2011.
  6. The Buyer noticed a warning on the Vehicle’s instrument panel, indicating an error with the hybrid system.
  7. The hybrid battery was found to be defective and needed replacement.

5. Formal Citations

  1. Speedo Motoring Pte Ltd v Ong Gek Sing, Small Claims Tribunal Appeal No 1 of 2013, [2014] SGHC 71

6. Timeline

DateEvent
Vehicle registered in Singapore
Sales Agreement signed
STA Evaluation Report completed
Buyer took delivery of the Vehicle
Vehicle sent for servicing at Borneo Motors
Warning appeared on the Vehicle’s instrument panel
Hybrid system warning appeared again
Buyer contacted the Seller
Buyer contacted the Seller again
Buyer replaced the defective hybrid battery and the front rotor discs
Buyer replaced all four tyres
Seller applied for leave to appeal to the High Court
Seller filed its Notice of Appeal
Appeal heard before the court
Judgment reserved

7. Legal Issues

  1. Applicability of Consumer Protection (Fair Trading) Act
    • Outcome: The court held that the Consumer Protection (Fair Trading) Act applied to the sale of the second-hand vehicle, despite the buyer opting out of an extended warranty.
    • Category: Substantive
  2. Breach of Implied Condition of Satisfactory Quality
    • Outcome: The court found that the vehicle was not of satisfactory quality at the time of delivery due to the defective hybrid battery.
    • Category: Substantive
  3. Jurisdiction of Small Claims Tribunal
    • Outcome: The court held that the Small Claims Tribunal did not exceed its jurisdiction as the claim was within the monetary limit.
    • Category: Jurisdictional
    • Related Cases:
      • [1996] 1 SLR(R) 731

8. Remedies Sought

  1. Monetary Compensation
  2. Reimbursement of Repair Costs

9. Cause of Actions

  • Breach of Contract
  • Violation of Consumer Rights

10. Practice Areas

  • Commercial Litigation
  • Consumer Law

11. Industries

  • Automotive

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Mohammed Akhtar and others v Schneider and anotherHigh CourtYes[1996] 1 SLR(R) 731SingaporeCited to distinguish the case based on the remedy sought, which was rescission of the contract.
Compact Metal Industries Ltd v PPG Industries (Singapore) LtdHigh CourtYes[2006] SGHC 242SingaporeCited for the principles in ascertaining the standard of satisfactory quality in section 14 of the Sale of Goods Act.
National Foods Ltd v Pars Ram Brothers (Pte) LtdCourt of AppealYes[2007] 2 SLR(R) 1048SingaporeCited to endorse the principles in ascertaining the standard of satisfactory quality in section 14 of the Sale of Goods Act.
Bramhill v EdwardsN/AYes[2004] 2 LI Rep 653N/ACited for the burden of proof in alleging that the goods are not of satisfactory quality.
Bartlett v Sidney Marcus LtdEnglish Court of AppealYes[1965] 1 WLR 1013England and WalesCited by the Seller to argue that the vehicle was of satisfactory quality as it was in roadworthy condition. The court distinguished this case.
Business Applications Specialists Ltd v Nationwide Credit Corporation LtdEnglish Court of AppealYes[1988] RTR 332England and WalesCited to show that the decision in Bartlett must be treated with great circumspection.

13. Applicable Rules

Rule Name
O 59 r 18A of the Rules of Court (Cap 332, R 5, 2006 Rev Ed)

14. Applicable Statutes

Statute NameJurisdiction
Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 5 of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 5(3) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 5(4) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 2 of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 13 of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 13(1) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 13(2) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12B of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12B(1) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12A(4) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12A(4)(a) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 13 of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 14 of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 15 of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 12B(1)(b) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12B(3) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12B(4) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12B(4)(a) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12B(4)(b) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12A(3) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 14(2) of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 14(2A) of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 14(2B) of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 14(2C) of the Sale of Goods Act (Cap 393, 1999 Rev Ed)Singapore
s 12C of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12D(1) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12D(1)(b) of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 12F of the Consumer Protection (Fair Trading) Act (Cap 52A, 2009 Rev Ed)Singapore
s 39(2)(a) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 12(1) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 22(1) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 28(1) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 28(4) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore
s 12(4) of the Small Claims Tribunal Act (Cap 308, 1998 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Lemon Law
  • Consumer Protection (Fair Trading) Act
  • Satisfactory Quality
  • Hybrid Battery
  • Second-Hand Car
  • STA Evaluation
  • Implied Condition
  • Wear and Tear

15.2 Keywords

  • Lemon Law
  • Second-Hand Car
  • Hybrid Vehicle
  • Consumer Protection
  • Defective Goods

16. Subjects

  • Consumer Law
  • Sale of Goods
  • Motor Vehicle Law

17. Areas of Law

  • Consumer Protection Law
  • Contract Law
  • Sale of Goods