consumer guarantees act

After they have purchased a good or a service, consumers are protected by a series of assurances stated in the Consumer Guarantees Act. The Consumer Guarantees Act is designed to foster fair competition, and to protect the interests of consumers. The Act holds the supplier responsible for ensuring that the goods or services sold to consumers are reasonably safe and fit for purpose, and of satisfactory quality (New Zealand Legislation, 2013). Goods must be suitable for their usual function, safe to use, durable and must last for a reasonable time, have no minor defects, and acceptable in look and finish (Commerce Commission, 2014). Under this Act, suppliers must guarantee that the services are performed and completed with reasonable care and proficiency (New Zealand Legislation, 2013). Services must be carried out with sufficient precision fit for the specific purpose they were supplied for (Commerce Commission, 2014). They must also be completed within a reasonable time and provided at a reasonable price, if no time for completion, or price or pricing formula has been agreed beforehand. The Consumer Guarantees Act applies to all goods and services normally bought for personal or household use and consumption. Goods may include but are not limited to apparels, electronic equipment, kitchen appliances, and food. Services may be in the form of plumbing, repairs, accommodations, banking, and utilities such as gas, electricity, telephone, and water. The Act applies to goods and services sold on credit and goods hired out for use (Consumer Affairs, 2014). Also, Consumer Guarantees Act provides that consumers have certain rights of redress against suppliers and manufacturers if goods or services fail to comply with a guarantee. This mean...

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... in terms of the Act, and what aspects of the Act exactly relate to us.

The definition of “supplier” also clarifies that an entity does not have to supply services under a contract with the consumer in order to be classified as a “supplier (Grierson, 2002). This implies that we will owe duties directly to consumers even if we do not have a contract with the consumers for who we sell equipment or provide repair services. A written agreement is not required to render a supplier responsible for ensuring that the product or service they offer is of “acceptable quality.” Our relationship with the consumers is governed by the Act. In the future, we plan to sell to businesses, and because it is not covered in the Consumers Guarantees Act, we can expect that business users of our electronic equipment will negotiate for suitable product guarantees in their contract with us.