CRA 2015

Question 1

Section 9

Answer 1

Goods supplied by the trader must be of satisfactory quality

Question 2

S9 (2)

Answer 2

OBJECTIVE TEST - quality of goods must meet the standard that a reasonable person would consider satisfactory

Must be taken into account: any description of goods, the price (or consideration), and other relevant circumstances - including the goods’ state and condition

Question 3

S9 (3)

Answer 3

Goods must be satisfactory in:
(A) fit for all purposes
(B) appearance and finish
(C) freedom from minor defects
(D) safety
(E) durability

Question 4

S9 (4)

Answer 4

When s9 does not apply:

The implied term as to quality does not cover any defect brought to the consumer’s attention before the contract, or if the consumer examines goods before the contract is made and sees any defects the examination revealed

Question 5

Section 10

Answer 5

The contract for the supply of goods is treated as including a term that states:

If a consumer makes known to the trader (expressly or implication) the purpose for which the goods are to be be used, then the goods must be fit for that particular purpose

The term ‘fitness’ requires that a product must absolutely be suitable for a particular role or task.

The consumer relies on the trader’s skill and expertise.

Question 6

S10 (4)

Answer 6

This does not apply if the circumstances show that the consumer does not rely/it is unreasonable for the consumer to rely on the skill or judgement of the trader

Question 7

Section 11

Answer 7

Goods should match any description, model, or sample shown at the time of the purchase

Question 8

S11 (2)

Answer 8

Applies to goods bought by sample, even if majority of goods match their description sample but some don’t.

The noun ‘bulk’ (or ‘majority’) implies an unspecified number but a significant percentage of the entire order.

Question 9

S11 (5)

Answer 9

Protects consumers by outlining that if goods change from their description in any way, it can not be enforced on a consumer without consent

Question 10

Section 20

Answer 10

Short-term right to reject

The consumer has the right to communicate clearly to the trader that they reject the goods, and treat the contract as an end - section 22 outlines the 30 day time limit

Consumers must return goods and receive a full refund within 14 days (beginning the day that the trader agrees that the consumer is entitled to a refund) in the same way the consumer paid, unless expressly agreed otherwise

Question 11

Section 19 (14) and (15)

Answer 11

If a fault is discovered within 6 months of purchase, it is presumed to have been there since purchase/delivery, unless the trader can prove otherwise.

This only applies when the consumer exercises their rights to repair/replace/price reduction, NOT if they exercise the right to reject.

If the fault was discovered after 6 months, the burden is on the consumer to prove that the product was faulty at the time of the purchase/delivery. You have 6 years to take a claim to the small claims court.

Question 12

Section 23

Answer 12

Right to repair or replacement

Question 13

S23 (2) (a)

Answer 13

If the consumer has the right to one repair or replacement of the goods within 6 months, the trader must do so within a reasonable time, without significant inconvenience to the consumer

Question 14

S23 (2) (b)

Answer 14

The trader must bear the necessary costs in doing so

Question 15

S23 (3)

Answer 15

The consumer can’t exercise this right/insist on repair or replacement if this is impossible or disproportionate to other remedies

Question 16

Section 24

Answer 16

Right to price reduction or a final right to reject

Usually applies after the consumer has accepted a repair or replacement under s23, but the repair or replacement was unsuccessful or didn’t conform to the contract

Under s24, the consumer has the right to require the trader to reduce the price by an appropriate amount, or to receive a refund from the trader (the amount of the reduction may be the full amount)

Question 17

Section 28

Answer 17

Delivery

The retailer/trader is responsible for the goods until they are in the possession of the consumer - they’re also liable for the service provided by the couriers they employ

If a retailer fails to deliver within 30 days, the consumer has the right to terminate the purchase and receive a full refund (even if the timing of the delivery wasn’t essential)

Question 18

Section 31

Answer 18

Prohibits traders from excluding or limiting their liability for the supply of goods.

A term of a contract under s9, s10 and s11 to supply goods can not be excluded or restricted by a trader.

Purported exclusions of liability by traders would be rendered wholly ineffective under s31.

Question 19

Section 49

Answer 19

Reasonable care and skill (services)

Every contract to supply a service includes a term that the trader must perform the service with reasonable care and skill.

The standard of care is equivalent to what is expected in a claim of tort negligence.

While ‘reasonable care and skill’ is a relative concept in each case, the adjective ‘reasonable’ implies that the trader must have…

Question 20

Section 50

Answer 20

Information which is said, or written, is binding where the consumer relies on it

Question 21

Section 51

Answer 21

Where the price is not agreed beforehand, the service must be provided for a reasonable price

Question 22

Section 52

Answer 22

Service to be provided within a reasonable time

This section applies where the contract does not expressly fix a time the service must be performed, or how the time is to be fixed

Question 23

S52 (2)

Answer 23

The trader must perform the service within a reasonable time.

While ‘reasonable time’ is a relative concept in each case, the adjective ‘reasonable’ insists that the trader must perform the supply of the service within an appropriate time.

Question 24

S52 (3)

Answer 24

What is a reasonable time for the service to be performed is a question of fact in each case

Question 25

Section 55

Answer 25

Right to repeat performance

If the right is demanded and it’s not impossible, the trader must perform the service again, to the extent necessary to complete its performance in conformity with the contract

Question 26

S55 (2)

Answer 26

If the consumer require such repeat performance, the trader:
(A) must do so within a reasonable time and without significant inconvenience to the consumer
(B) must bear any necessary costs incurred in doing so, including labour and material

Question 27

S55 (4)

Answer 27

The question of what is a reasonable amount of time and what is significant inconvenience is decided by:
(A) the nature of the service, and
(B) the purpose of the service

Question 28

Section 56

Answer 28

Right to price reduction

This right reduces the price to the consumer by an appropriate amount (for the trader’s failure to perform the contract) - the service fell below the requisite standard

The trader may have to give a refund of the full contract price.

The price reduction/refund must be received by the consumer within 14 days, and the consumer has 30 days to contact the trader about this price reduction. Refund must given using the same means of payment as the consumer used when paying for the service.

Question 29

S56 (3)

Answer 29

A consumer who has the right to repeat performance (under s55) is only entitled to a price reduction when:
(A) completion by repeat performance is impossible
(B) if the consumer has asked for a repeat performance, but the trader is in breach of the requirements to do so within a reasonable time, and without significant inconvenience to the consumer

Question 30

Section 57

Answer 30

Exclusion clauses

Prohibits traders from excluding or limiting their liability for the supply of services.

A term of a contract under s49 for the supply of services can not be restricted or excluded by a trader.

Purported exclusions of liability by traders would be rendered wholly ineffective under s57.

Question 31

Section 62

Answer 31

Require to for contract terms and notices to be fair

An unfair term or notice is not binding on the consumer. If a consumer thinks a term is unfair, they should complain to the trader.

Key terms of a contract may be assessed for fairness, unless they are prominent and transparent.

Question 32

Examples of unfair terms under s62

Answer 32

-fees and charges hidden in small print
-something that tries to limit the consumer’s legal rights
-disproportionate default charges
-excessive early termination charges

Question 33

S62 (3)

Answer 33

This does not prevent the consumer from relying on the term or notice (if they choose to do so)

Question 34

S62 (4) & (5)

Answer 34

(4) a term is unfair if it causes a significant imbalance in the parties’ rights and obligations under the contract, to the detriment of the consumer

(5) whether a term is fair is to be determined:
(A) taking into account the nature of the subject matter of the contract, and
(B) by reference to all the circumstances existing when the term was agreed (and to all other terms of the contract and any other contract on which it depends)

Question 35

S62 (6) & (7)

Answer 35

(6) same as terms but for notices

(7) same but for notices
(A)
(B)

Question 36

Section 65

Answer 36

Bar on the exclusion or restriction of negligence liability

Question 37

S65 (1)

Answer 37

A trader can not rely on a term inserted into a consumer contract or notice which excludes or restricts their liability for death or personal injury resulting from negligence

Question 38

S65 (2)

Answer 38

Where a term of a consumer contract or notice purports to exclude or restrict a trader’s liability for negligence, a person is not to be taken to have voluntarily accepted the risk merely because the person agreed to, or knew about, the term or notice

Question 39

S65 (3)

Answer 39

Under s65, ‘personal injury’ includes any disease or impairment of physical or mental condition

Question 40

S65 (4)

Answer 40

Under s65, ‘negligence’ means breach of:
(A) any obligation to take reasonable care, or exercise reasonable skill, in the performance of a contract where the obligation arises from an express or implied term
(B) common law duty to take reasonable care or exercise reasonable skill
(C) common duty of care imposed by ola 57

Question 41

What is CRA 2015?

Answer 41

The cra 2015 was introduced due to imbalance of power between the trader and consumer.

It offers robust protection to consumers, ensuring that goods and supply of services meet statutory standards.

Cra 2015 implies terms into contracts for the supply of goods and services. If any of these terms are breached by the trader, the consumer’s rights to reject the goods/services are enforceable under common law.

Question 42

What are goods?

Answer 42

‘Goods’ refers to physical and tangible items

Question 43

What are the supply of services?

Answer 43

The supply of services is a performance by a person of a specific skill operating a business, which involves physically carrying out an act