What do CGA provide to businesses?
Outlines on what they must provide to customers when selling their products/services
What are 5 things the CGA does not cover?
1) Goods bought for business/commercial use
2) Goods bought through private sale
3) Goods bought for resale in trade
4) Goods used in a production process
5) Goods given by a charitable organisation
What is the CGA
As statute made by the NZ parliament that outlines what a consumer can expect when they buy a product/service from a business
What is the CGA’s purpose?
Protect the interests of consumers, allow businesses to compete effectively, and make consumers/businesses participate in sales confidently
Definition of consumer
A person that acquires goods/services from a business for personal, household use or consumption
What are the 8 CGA Guarantees?
1) Goods are of acceptable quality
2) Goods match description/sample
3) Services are carried out with reasonable care/skill
4) Supplier has the right to sell the good
5) A third party doesn’t have a undisclosed right to the good
6) Goods are delivered when agreed/within reasonable time if not specified
7) Repairs/Spare parts are available unless specified
8) Cost of good/service is reasonable where not stated in a contract
What is a warranty?
Guarantee that the supplier will replace/repair faulty products for a set period of time
What is a warranty in relation to the CGA and it’s operations?
A warranty exist alongside the consumer’s rights under the CGA. The warranty may be greater/less than rights afforded by the CGA but doesn’t affect the operation
What are the 5 guarantees of acceptable quality
1) Fit for purposes the good is commonly supplied for
2) Acceptable in appearance/finish
3) Free from minor defects
4) Safe for consumption/usuage
5) Durable
Acceptable quality will reflect the consumer’s understanding of the (6)
1) Nature of the good
2) Price of good/service
3) Statements made on packaging/labelling
4) Representations made by the supplier/manufacturer
5) Nature of supplier/context of sale
6) All other relevance information
What are the 4 exceptions to acceptable quality?
1) Goods used in a manner that is not consistent with how a reasonable consumer would use it
2) Any defects drawn to attention before sale
3) Consumer modifies a product which caused it to fail
4) Loses the product/ Willingly/Accidently breaks it
What is fit for purposes?
Product must be adequate for the purpose that the consumer has purchased it for
What does fit for purposes reflect?
It reflects what a customer tells the business how they intend to use the product and what the business said about the product
What are exceptions to fit for purposes? ( 2 )
Consumer did not rely on the supplier’s skill/judgement or Unreasonably relying on the supplier’s skill or judgement when not appropriate
What is the guarantee of reasonable care/skills?
When a service is supplied, It must be reasonable fit and of nature/quality and reasonably expected to achieve the reusult/purpose the consumer tells the supplier.
What are 2 exceptions to the guarantee of reasonable skill/care? ( same for FFP and AC )
Consumer doesn’t rely on the supplier’s skill or judgement or unreasonably relies on the supplier’s skill/judgement
What are the rights a consumer has when a good/service doesn’t comply with CGA Guarantees and what are the steps they should take to redress?
1) Contact the supplier and give them the opportunity to remedy it.
2) Consumer is likely asked to return the good + provide evidence of fault
3) Consumer should not attempt to fix it themselves unless absolutely necessary
This is to provide the business a fair opportunity to remedy the issue.
What are the 5 things a business ire required to do when a consumer asks them for a remedy?
1) Repair the good
2) Replace the good with a identical good/service
3) Provide a refund when supplier cannot be reasonably expected to repair the good
4) Curing any defects in the ownership of the good
5) Provide the remedy within reasonable time
What are the steps the consumer should take when the business fails to remedy a CGA breach?
1) Talk to specifically the manager
2) Contact the head office, if the business has one
3) Keep record/notes of any discussions with the business
4) Get a second opinion regarding the fault with a second business
5) Write a letter to the business with description of the problem, desired remedy and why you should be entitled to the remedy
6) If none of the above works, consumer should consider making a claim to the disputes tribunal
What does consequential damage/loss caused by defective good/services mean?
A consumer can obtain compensation from a supplier for any loss/damage resulting from a failure of a good/service where reasonably foreseeable
What does “reasonably foreseeable” mean?
A reasonable consumer should be able to anticipate the result of an action
What can a business do when repairing a defective good?
They can provide a temporary replacement good to reduce the consequential loss of the consumer
