Page 48 - English-DBINZ brochure-2019

45 Doing business in New Zealand

ə The goods comply with their description and sample
ə Where the price is not determined, the consumer is not liable to pay more than a reasonable price

ə Repairs and spare parts are reasonably available, subject to certain exceptions
ə If the supplier is responsible for delivery, the goods are received at the time agreed (or within a
reasonable time).

Liability for guarantees
Consumers may have a right of redress against the supplier, manufacturer, or both the supplier and
manufacturer, if goods fail to meet any of the guarantees.
Depending on the circumstances, a consumer’s remedies may include repair (where a defect can be
remedied), replacement, refund, compensation for reduction in value, or compensation for reasonably
foreseeable loss or damage.

Manufacturers are also liable for any express guarantees they give to consumers.
The following persons are also deemed to be manufacturers by the Consumer Guarantees Act:
ə Any person holding itself out to the public as the manufacturer

ə Any person attaching their brand or mark to the goods
ə If the goods are manufactured outside New Zealand and the manufacturer is not in New Zealand, the
importer or distributor of the goods.

Guarantees for the supply of services
The Consumer Guarantees Act sets out the following guarantees in relation to the supply of services:
ə The services are carried out with reasonable care and skill
ə The services are fit for the purpose made known to the supplier by the consumer
ə The services will be completed within a reasonable time
ə The consumer is not liable to pay more than a reasonable price for the service.

Depending on the circumstances, a consumer’s remedies may include remedy of the failure, cancellation
of the contract, compensation for reduction in value, or compensation for reasonably foreseeable loss or
damage.

FAIR TRADING ACT 1986
The purpose of the Fair Trading Act is to contribute to a trading environment in which the interests of
consumers are protected, businesses compete effectively, and consumer and businesses participate
confidently. To achieve this purpose, the Fair Trading Act prohibits unfair conduct and practices,
promotes fair conduct and practices, and provides for the disclosure of consumer information and the
setting of product safety standards.

General rule – no contracting out
The general rule is that contracting out of the Fair Trading Act is not permitted. There is a limited
exception to this rule for business transactions. Specifically, if all parties to the agreement are in trade,
those parties may contract out of the following sections of the Fair Trading Act, if it is fair and reasonable
to do so:
ə Section 9 (misleading and deceptive conduct)
ə Section 12A (unsubstantiated representations)
ə Sections 13 and 14(1) (false and misleading representations).

The agreement to contract out must be in writing.