(MENAFN- Khaleej Times)

Question: I bought a used car from a resident for Dh10,000, but it broke down within a week. I had to spend an additional Dh10,000 on repairs. I was misled because the mechanics told me that the vehicle had serious engine issues. Can I take legal action against the seller? What are my rights in this situation? Please advise.

Answer: A seller in the UAE is obligated to disclose defects in the item sol. If a buyer later discovers a serious defect that existed prior to the sale and was not disclosed, the law provides remedies, including returning the item or claiming a reduction in price and compensation.

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This is in accordance with Article 543(1) of the Federal Law No. (5) of 1985 Concerning the Issuance of the Civil Transactions Law of the United Arab Emirates, which states,“A sale shall be deemed to have been concluded on the basis that the goods sold are free of any defects, save such as are within the customary tolerance.”

Furthermore, Article 544(1) of the UAE Civil Transactions Law states:

“If an old (pre-existing) defect appears in the goods sold, the purchaser shall have the option, as he wishes, either to return the goods or to accept them at the stipulated price, but he may not keep them and claim for any reduction in price (should possibly be "value") caused by the defect.”

In the UAE, a seller is required to provide the right description of a product to a buyer and should not mislead a buyer while selling a product.

This is in accordance with Article 17 of the Federal Law No. 15 of 2020 on Consumer Protection, amended by virtue of Federal Decree Law No. 5 of 2023, and Article 8 of the Cabinet Decision No. 66 of 2023 Concerning the Executive Regulation of the Federal Law No. 15 of 2020 Concerning the Consumer Protection. This is in accordance with Article 17 of the UAE Consumer Law, which states:

“The advertiser, the supplier and the commercial agent are prohibited from describing the good or service in a manner that contains incorrect data and from making any misleading advertisement in connection therewith.”

Article 8 of the Cabinet Decision No. 66 of 2023 states:

“A description, advertisement, or offering of a commodity or a service shall be deemed deceptive if the same contains a misleading claim whenever it may directly or indirectly create a false or misleading impression to the consumer, in particular if the claim includes one or more of the following elements:

1. Nature, composition, substantial description, constituent elements, quantity, shape, or appearance of the commodity.

2. Source, individuality, authenticity, way of manufacture, production date, expiry date, terms of use, warnings of use, weight, size, number, quantity, measurement, calibration, capacity, benchmark, or any other standards.

3. Country of origin, country of export, or the commodity producer.

4. Terms and procedures of contracting, including after-sale service, warranty, price, and way of payment.

5. Awards, certification, or quality marks.

6. Trademarks, statements, or logos.

7. Characters of commodity or service and the expected results of their use.”

Furthermore, while a seller is selling a product, he/she needs to mention the condition of the said product, and the advertisement should not be misleading to a buyer.

This is in accordance with Article 7 of the Cabinet Decision No. 66 of 2023, which states,“The supplier offering used, renovated or defective commodities that do not result in any harm to the health or safety of the consumer shall apparently and clearly advertise the condition of the commodity on the commodity, as well as at the place where the supplier's activity is practised, in a way that shall not create a false or misleading impression for the consumer. The condition of the commodity shall be described in the concluded contract or the issued invoice.”

Additionally, a buyer may have the right to claim compensation from a seller if the product sold by the seller is defective.

This is in accordance with Article 24 (1) of the UAE Consumer Law, which states,“The Consumer shall have the right to claim compensation for personal or material damages sustained by him as a result of using the Good or Service, in accordance with the legislation in force in the State, and any agreement to the contrary shall be null and void.”

The UAE Ministry of Economy or a competent authority in each emirate is authorised to receive complaints from buyers. This is in accordance with Article 35 of the Cabinet Decision No. 66 of 2023.

Furthermore, Addendum No. 2 of Cabinet Decision No. 66 of 2023 related to the Table of Financial Penalties states that a seller may be imposed with a penalty of Dh100,000 for offering defective used or renovated products.

So if the vehicle had serious engine issues at the time of sale that were not disclosed, you may file a complaint with the competent authority in the emirate that has jurisdiction against the individual who has sold you the car on the grounds that he has misled you by not disclosing to you the condition of the car.

However, if you have a warranty for the said car issued by the seller, then you may only claim under the warranty with the seller if there is a defect or breakdown in the car during the warranty period.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: Readers may e-mail their questions to:... or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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