business law

CONSUMER GUARANTEES ACT 1993

Purpose

To increase consumer power

To create minimum standards for goods and services (guarantees)

Definition of Consumer A consumer is:

s 2 (1) (a) - A person acquiring goods/ services ordinarily acquired for personal, domestic or household use or consumption.

s 2 (1) (b) – Goods/services are NOT for resale, trade use in manufacture or trade use in repair of buildings.

Guarantees for Goods

s 6

s 7

s 8

s 9

s 10

s 11

Supplier (retailer) must guarantee goods are of acceptable quality.

N/B: Any discussion of S 6 must be further clarified with reference to S 7 (i.e what does acceptable quality mean?)

S 7(1)(a) –(e)

Goods are of acceptable quality if they are:

(a) fit for all purposes for which good is commonly supplied.

(b) acceptable in appearance & finish.

( c) free from minor defects

(d) safe

(e) durable

(f)-(h) look at nature of the good and price…

Goods must be fit for the particular purpose that:

(1) the consumer has made known expressly or by implication to the supplier or retailer.

(2) the supplier (retailer) has represented it to be.

Goods must comply with the description given.

Goods must comply with any sample or demonstration model in quality or description.

Payment of a reasonable price where the price has not been fixed by contract.

Guarantees for services are covered under sections 28 – 31. For more details refer to the Library database.

28 Guarantee as to reasonable care and skill

29 Guarantee as to fitness for particular purpose

30 Guarantee as to time of completion

31 Guarantee as to price