08 - 12 Intro to Law

Question 1

The CGA applies to..

Answer 1

Both goods and services

Question 2

The CGA now includes

Answer 2

Online transactions

Question 3

Section 2 of CGA defines consumer as..

Answer 3

Any person who acquired goods or services from a supplier (seller of goods or provider of services), will be acquired for personal, domestic or household use.

Question 4

Section 2 of CGA does not apply if acquisition is for..

Answer 4

• Resale
• Consumption in the process of manufacture or production
• Repair

Question 5

Section 2: supplying goods or services to consumer can be by:

Answer 5

• Sale
• Exchange
• Lease
• Hire
• Hire purchase
• Gift
• Grant

Question 6

Act doesn’t apply

Answer 6

S41

• Where goods and services are not supplied in course of trade
• Where goods are supplied by charitable organisation

Question 7

Definition of goods

Answer 7

Personal property of every kind, tangible or intangible

• Goods attached to or incorporated in any real or personal property
• Ships, aircraft, vehicles
• Animals, including fish
• Minerals, trees, and crops
• Electricity and gas
• Water and computer software

Question 8

Guarantee on Acceptable Quality

Answer 8

Section 6: provides guarantee of acceptable quality on goods supplied to consumer.

Section 7: defines acceptable quality. The supplier promises that their goods are of acceptable quality.

Question 9

Definition of Acceptable Quality

Answer 9

According to section 7 this means that they are:
Fit for all purposes for which goods of the type in question are commonly supplied
Acceptable in appearance and finish
Free from minor defects
Safe
Durable
The standard that is used to ascertain the acceptability of goods is based on the reasonable consumer.

Question 10

Reasonable consumers would consider..

Answer 10

• Nature of goods and Price
• Statements on packaging or label
• Representations made by supplier or manufacturer
• Other relevant circumstances

Question 11

Exceptions- defects drawn to consumer’s attention-s7(2) and 7(3)

Answer 11

• If defects are drawn to consumer’s attention before the supply, it’s assumed that the consumer took the goods, inclusive of their defects (s7(2))
• If defects are outlined on notice displayed with goods, supplier is presumed to be aware of those defects - 7(3)

Question 12

Exception – inappropriate use of goods - s7(4)

Answer 12

No failure to comply with the guarantee of acceptable quality if:

• With reference to a reasonable consumer, if the manner or extent of use of the goods was inappropriate
• The goods would otherwise have complied with the guarantee of acceptable quality

Question 13

Other guarantees

Answer 13

S 8 - Guarantee as to fitness for particular purpose
S9 - Guarantee that goods comply with description
S10 - Guarantee that goods comply with sample
S11 - Guarantee as to price
S12 - Guarantee as to repairs and spare parts
S28 provides a guarantee as to reasonable care and skill
S29 provides a guarantee on fitness for particular purpose
S30 provides a guarantee as to time of completion
S31 provides a guarantee as to price

Question 14

Guarantee on Delivery

Answer 14

Section 5A provides for a guarantee on delivery. Goods must be delivered at the agreed place at the agreed time. If no time is agreed on then goods must be delivered within a reasonable time.
Breach of the guarantee on delivery if is substantial, entitles the consumer to reject the goods in accordance with section 18(3).

Question 15

Remedies

Answer 15

Consumer is entitled to the following remedies if goods fail:
Repair or replacement at the expense of the supplier -section 18(2)(a), s19(1)(a) and s19(1) (b).
Where the failure cannot be remedied or is of a substantial character consumer may :
reject the goods (s18(3)(a))
or obtain from supplier damage in compensation for any reduction in value - section 18(3)(b)
Failure of substantial character defined in section 21

Question 16

Remedies, continued..

Answer 16

The right to reject goods must be exercised within a reasonable period, otherwise it may be lost - s20(1)
Consumer who rejects goods must notify supplier - s22(1)
Where possible, a consumer who exercises the right to reject the goods must return the goods - s22(2)
If there are good reasons for failure to return the goods, consumer will not lose his/her remedies - s22(2)
A consumer who rejects the goods may choose either a refund or replacement - s23
Where appropriate, consumer may claim additional or consequential damages - s18(4)

Question 17

No contracting out

Answer 17

There is no contracting out of the Consumer Guarantees Act - s43(1)
Except for business, and in writing - s43(2)

Question 18

Definition of services

Answer 18

S2 - services includes any rights, benefits, privileges , or facilities that are, or are to be, provided, granted or conferred by a supplier under different types of contracts
Excludes the performance of work under a contract of service (ie an employee)

Question 19

Remedies

Answer 19

Section 32 provides for the consumer’s remedies , where the services do not comply with the statutory guarantees

Question 20

What remedies do I have if I buy something that does not work?

Answer 20

Refund/replacement/repair, provided it is reasonable