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BTC1110 (3)
Lecture

BTF1010:Commercial Law: Consumer Rights & Supply of Goods and Services

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Department
Business Research
Course
BTC1110
Professor
Mark Bender
Semester
Fall

Description
Chapter 9: Consumer Rights and The Supply of Goods and Services Consumers’ rights against the suppliers of goods: Supply to a consumer:  Definition of a consumer (s3 of the ACL)  3(1): A person is taken to have acquired particular goods as a consumer if, and only if: o a) the amount paid or payable for the goods, did not exceed  i) $40,000; or  if a greater amount is prescribed for the purposes of this paragraph – that greater amount; or o b) the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption; or o c) the goods consisted of a vehicle or trailer acquired for use principally in the transport of goods on public roads  (2) However, subsection (1) does not apply if the person acquired the goods or held himself or herself out as acquiring the goods: o a) for the purpose of re-supply; or o b) for the purpose of using them up or transforming them, in trade or commerce:  i) in the course of a process of production or manufacture; or  ii) in the course of repairing or treating other goods or fixtures on land  acquired for ordinary personal, domestic or household use : ostrich egg incubator Crago v Multiquip Pty Ltd [1998] Statutory guarantees relating to supply of goods: o the supplier has a right to sell or dispose of the property in the goods: s51 o the buyer has the right to undisturbed possession of the goods: s52 o the goods are free from any security, charge or encumbrance not disclosed in writing before the contract was made: s53 o the goods are of acceptable quality: s54 o the goods are fit for any disclosed purpose, and for any purpose for which the supplier represents that they are reasonably fit: s55 o where the goods are sold by description, the goods correspond with the description: s56 o where goods are sold by references to a sample or demonstration model, the goods correspond with the sample or demonstration model in quality, state or condition: s57 o the supplier will comply with any express warranty given or made by the supplier: s59 (2) o note: except for the first 3 guarantees, all other guarantees apply only where there is a supply to a consumer ‘in trade or commerce’  The ACL does not apply to private sales or sales by auction  Sale by auction is defined in s2 and is limited to traditional auctions using an auctioneer Guarantee of acceptable quality:  The consumer has an action against the supplier where the goods are not of acceptable quality: s54 of the ACL.  54(1) If: o a) a person supplies, in trade or commerce, goods to a consumer; and o b) the supply does not occur by way of sale by auction; o there is a guarantee that the goods are of acceptable quality.  (2) Goods are of acceptable quality if they are as: o a) fit for all the purposes for which goods of that kind are commonly supplied; and o b) acceptable in appearance and finish; and o c) free from defects; and o d) safe; and o e) durable; o as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable having regard to the matters in subsection (3).  (3) The matters for the purposes of subsection (2) are: o a) the nature of the goods; and o b) the price of the goods (if relevant); and o c) any statements made about the goods on any packaging or label on the goods; and o d) any representation made about the goods by the supplier or manufacturer of the goods; and o e) any other relevant circumstances relating to the supply of the goods.  The supplier is not responsible for defects pointed out to the consumer before sale, nor if the defects were caused by the consumer’s carelessness.  See Grant v Australian Knitting Mills [1935] for acceptable quality Guarantee of fitness for any disclosed purpose:  If the consumer makes known the purpose for which goods are required and the consumer relies on the seller’s skill in choosing the appropriate goods, then the consumer has an action against the supplier if the goods are not reasonably fit for that purpose: s55 of the ACL  55(1) If: a) a person (the supplier) supplies, in trade or commerce, goods to a consumer; and b) the supply does not occur by way of sale by auction; there is a guarantee that the goods are reasonably fit for any disclosed purpose, and for any purpose for which the supplier represents that they are reasonably fit.  (2) A disclosed purpose is a particular purpose (whether or not that purpose is a purpose for which the goods are commonly supplied) for which the goods are bei
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