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Court Orders Dealership to Pay Compensation for Broken-Down Car

A Buenos Aires court upheld a ruling ordering a car dealership to pay a customer compensation for a used car that broke down shortly after purchase. The court declared a warranty exclusion clause invalid.


Court Orders Dealership to Pay Compensation for Broken-Down Car

Buenos Aires, Dec 10 (NA) -- The National Appeals Court in Commercial Matters (Section F) condemned the dealership RPM Móviles S.R.L. to compensate a buyer for selling her a used car that, despite being advertised as an 'excellent unit, selected and in optimal condition,' broke down just ten blocks from the dealership.

According to the Argentine News Agency, the ruling establishes that advertising creates liability for the provider because it generates expectations and trust in the consumer, and allows them to claim that what was advertised is fulfilled.

The buyer, Daiana Natalia Diantonio, purchased a Fiat 500 that was listed on Mercado Libre. However, the compensation for loss of use was revoked, as the buyer owned two other vehicles in her name at the time of the incident.

A few days after delivery, the vehicle suffered major mechanical failures and problems with the audio system.

Nullity of Clause: The court declared the nullity of a clause in the sales contract that excluded the warranty for hidden defects and the seller's liability. The ruling recalled that the legal warranty (Art. 11 of Law 24.240) is of public order and cannot be waived by the consumer.

Advertising and Contract: The details contained in the advertising, regardless of the medium of dissemination, are integrated into the consumer's contract.

Burden of Proof: The 'theory of dynamic burdens' (Art. 53 LDC) was applied, which requires the provider, being in a better position, to prove that the vehicle was in optimal conditions at the time of sale, which was not accredited by the dealership.

Compensation and Exclusion The court confirmed the condemnation for material and moral damages.