Problem Solving - Consumer Law

Andre was looking for a good, small, second-hand car. He finds one, a 2018 Mazda 2,at Lion Auto in Wellington. A week later he collects the car and drives off with his friend for a short holiday in Taupo. On the second day of their stay at lunchtime, Andre and his friend decide to try a highly recommended restaurant. As they are being seated, Andre receives a call from Lion Auto advising him that he will have to pay an extra $500 for the Mazda as Lion Auto has not yet fully paid the dealer who supplied the car. Lion Auto explains that ownership of the car cannot be passed on to Andre until the extra $500 is paid.

Andre is furious but worse is yet to come. On the way home to Auckland, the car breaks down and the AA service person says there are serious faults with the engine which one would never expect in a 2018 model Mazda.

Andre comes to you for advice.

Identify the legal issues, set out and apply the relevant legislation and case law and reach a conclusion based on the law. Give reasons for your application of the law.