AURALA001
Comply with legal aspects of a service and repair contract in an automotive workplace


Application

This unit describes the performance outcomes required to act within legal and ethical boundaries of a service and repair contract when dealing with customers, implement measures to avoid disputes, and resolve disputes that do occur.

It applies to those working in the automotive service and repair industry.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.


Elements and Performance Criteria

Elements

Elements describe the essential outcomes.

Performance Criteria

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold and italicised text is used, further information is detailed in the range of conditions section.

1. Interpret service and repair contract

1.1 Legal obligations of all parties involved in a valid service and repair contract are identified

1.2 Legal liabilities of repairer performing work without a valid service and repair contract are identified

1.3 Regulatory bodies with authority to inspect the workplace if the customer takes legal action are identified

1.4 Workplace service and repair contract is analysed to determine relevant legal compliance requirements

2. Comply with service and repair contract requirements

2.1 Procedures are implemented to advise customers of the terms of contract into which they are entering

2.2 Procedures are implemented to ensure staff only use valid service and repair contracts

2.3 Procedures are implemented to minimise liability or customer claims in relation to bailment

3. Establish service and repair warranty requirements

3.1 Warranties document is developed detailing requirements

3.2 Procedures are implemented to ensure staff are aware of warranty requirements

3.3 Warranty requirements are documented and stored according to workplace procedures

4. Enforce service and repair contract requirements

4.1 Workplace policy on payment terms for services provided are implemented according to workplace procedures

4.2 Workplace legal rights and obligations when selling or disposing of uncollected vehicles or goods are identified and observed as required

4.3 Legal procedures to recover payment when a customer defaults are identified and implemented as required

5. Conduct dispute resolution processes

5.1 Procedures to minimise disputes with customers are implemented

5.2 Workplace records are maintained to support outcomes in any customer disputes

5.3 External sources of assistance in dispute resolution are identified

5.4 Outcomes of customer disputes and resolutions are analysed to develop procedures to avoid future disputes

Evidence of Performance

Before competency can be determined, individuals must demonstrate they can perform the following according to the standard defined in the unit’s elements and performance criteria, range of conditions and foundation skills:

comply with the legal aspects of service and repair contracts with three different customers, in which the work must involve:

an abandoned vehicle

a vehicle kept as bailment

customer dissatisfaction due to failed installed parts.


Evidence of Knowledge

Individuals must be able to demonstrate knowledge of:

types and purpose of contracts, including:

key phases of contract, including:

offer

acceptance

consideration

oral and written contracts

key components of Australian Consumer Law (ACL) relating to legal and ethical requirements of contracts and service agreements, including:

damages arising from breach of contracts

reasonable costs

proof of transaction

delays in delivery and non-supply

charge back

contracts with minors

unfair contract terms

loss or damage to consumer property

misleading or deceptive conduct

warranties

dispute resolution

key features of automotive service and repair contracts, including:

terms of the relationship, including:

acknowledgements and agreements from customer

definitions

rights, responsibilities and obligations of the service provider and principal, including:

level of performance and services being provided

authority in respect of the vehicle, including entering and test driving the vehicle

guarantees and warranties

lien to secure payment

abandonment of vehicle

liability

privacy

jurisdiction of the contract

business processes, including:

pricing

payment and invoicing

returns policies.


Assessment Conditions

Assessors must satisfy NVR/AQTF assessor requirements.

Competency is to be assessed in the workplace or a simulated environment that accurately reflects performance in a real workplace setting.

Assessment must include direct observation of tasks.

Where assessment of competency includes third-party evidence, individuals must provide evidence that links them to having complied with the legal aspects of a service and repair contract in an automotive workplace, e.g. correspondence between customer and business.

Assessors must verify performance evidence through questioning on skills and knowledge to ensure correct interpretation and application.

The following resources must be made available:

automotive repair workplace or simulated workplace n

commercially realistic range of automotive service and repair contracts

three different customers with the service and repair contract issues specified in the performance evidence.


Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential to performance and are not explicit in the performance criteria.

Skills

Description

Learning skills to:

identify sources of information, assistance and expert knowledge to expand knowledge, skills and understanding relating to legal and ethical business dealings.

Reading skills to:

interpret:

textual and numerical information in product or service documentation relating to contractual agreements

original equipment manufacturer (OEM) or authorised agency’s service and repair agreements

vehicle specifications and job requirements.

Writing skills to:

legibly and accurately complete:

dispute resolution forms and legal action plans outlining customer’s statutory rights and settlement options

vehicle warranty documents and reports.

Oral communication skills to:

communicate ideas and information to customers and supervisors relating to legal and ethical business dealings

participate in verbal exchanges using active listening and questioning techniques to gather, clarify and confirm customer information and feedback.

Numeracy skills to:

use mathematical ideas and techniques to count and measure.


Range Statement

This section specifies work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. Bold italicised wording, if used in the performance criteria, is detailed below.

Warranties document must:

meet legal requirements

comply with workplace policies

not compromise customer consumer guarantees

be written in plain language.


Sectors

Regulatory or Legal


Competency Field

Common