BTC1110 Study Guide - Final Guide: Bmw M54, Consumer Protection
15 Jun 2018
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Consumer protection
The first issue is whether A is a consumer.
S3(1) defines a person who acquires goods that cost less than $40,000, or if more, the goods are of a kid ordinarily
acquired for personal, domestic or household use or consumption.
S3(2) says that a person is not a consumer if the goods regardless of price are acquired for resupply, or using up in
production or in the repair of other goods.
Vehicles and trailer are also under the guarantee irrespective of cost, provided they are mainly used to transport
goods
Case: Law v GWS Machinery 324
A farm worker acquired a tyre for the purpose of using it on his tractor because the G was not used up as a process
of podutio o aufatue o of epaiig, o teatig othe goods o fitue
The second issue is if the statutory guarantee of acceptable quality been breached?
Under S54(1), where a supplier supplies goods of a consumer in trade of commerce, there is a guarantee that the
goods are of acceptable quality.
Goods are of acceptable quality if they are:
• Fit for all purpose for which goods are commonly supplied
• Aeptale i appeaae ad fiish, fee fo defets, safe, duale…as a easoale osue, full
acquainted with the state and condition of the goods regard as acceptable having regards to
o The nature of the goods,
o Price
o Statement on labels or packaging
o Representations by supplier
o Any other relevant circumstances
Under S54(2)(a), Guarantee if acceptable quality means goods are fit for all the purpose for which goods are
commonly supplied
Under S54(3)(d) acceptable depends on the representations made by the supplier of the goods and other relevant
matters.
Under s56, where good are sold by description, the goods must correspond to the description
The third issue is had the guarantee of fitness for any disclosed purpose been breached?
Under s55(1), it requires that G are reasonably fit for disclosed purpose & for any purpose which supplier represents
that they are reasonably fit
Case: Merke Sharp v Peterson (326)
‘isk did ot ho ufitess fo the dislose pupose of usig the dug
The patiet had ot epessl o ipliedl ade ko a pupose
S55(2) requires that G are fit for disclosed purpose made know to supplier during pre-contractual negotiations that
the goods are required for a particular purpose and the consumer reasonably relies on the skill and judgement of
the suppliers s55(3)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The first issue is whether a is a consumer. S3(1) defines a person who acquires goods that cost less than ,000, or if more, the goods are of a kid ordinarily acquired for personal, domestic or household use or consumption. S3(2) says that a person is not a consumer if the goods regardless of price are acquired for resupply, or using up in production or in the repair of other goods. Vehicles and trailer are also under the guarantee irrespective of cost, provided they are mainly used to transport goods. Under s54(1), where a supplier supplies goods of a consumer in trade of commerce, there is a guarantee that the goods are of acceptable quality. Under s54(2)(a), guarantee if acceptable quality means goods are fit for all the purpose for which goods are commonly supplied. Under s54(3)(d) acceptable depends on the representations made by the supplier of the goods and other relevant matters.
