Do car dealers in the UAE have an obligation to replace defective vehicles?

As per Article 544 of the Civil Transaction law, you have the right to ask for a replacement of the car if the defect is hidden, was not discoverable by the outward appearance and was detected only while using it. 
 
You may notify the company requesting the car replacement and if they refuse, you must file a lawsuit against the company to replace the car even if the company or the garage refuses to admit this defect. In the court, you should request for an expert to check the car and prove the defect and the court will take a decision considering the documents, the situation and the expert’s report.
 
Filing of lawsuit 
As per Article 555 of the Civil Transactions Law the lawsuit should be filed within 6 months from the date of delivery of the car; it states that -

(1) A lawsuit cannot be filed after 6 months of taking delivery of the car, unless the seller himself agrees for a longer period.
(2) The seller shall not adhere to this duration if it is proved that he is hiding the defect, by fraud.

Article 544 of the above law states that -
(1) If an ‘old defect’ appears in the car, the purchaser can either restitute it, or accept it at the nominated price, but he must not retain it and claim the amount of depreciation in price due to the defect.

(2) The defect is considered old if it existed before sale or happened after sale while still under the custody of the seller, before delivery.

(3) The defect occurring upon purchase shall be considered as old if it is based on a previously existing defect, while in custody of the seller.
                      
(4) If an old defect is conditioned and covered up. (It is designed to occult in such a way that it is undiscoverable by the outward appearance, by an ordinary person, it can only be discovered by an expert or while put in use.
 
Article 545 states the instances where the seller is not answerable for the old defect –

If the seller indicates to the purchaser the defect, while selling.
 
(1) If the purchaser accepts the defect during purchase.
 
(2) If the seller makes the sale on the condition that he does not warrant any defect; unless the seller intentionally hides the defect or the purchaser was not in a state of discovering the defect.  
 
(3) If the sale was done by public auction, by order of the judiciary or administrative authorities.
 
So, are you legally entitled to oblige the agent to replace a defective car with a new one? What are the legal procedures that can be taken against the agent in order to replace the car? 

To know more, get in touch with our empanelled lawyers and law firms at The Law Reporters. 

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