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Questions and Answers
What is required for a consumer guarantee to apply when goods are supplied by reference to a sample or demonstration model?
What is required for a consumer guarantee to apply when goods are supplied by reference to a sample or demonstration model?
What can a consumer expect regarding repair facilities when purchasing goods?
What can a consumer expect regarding repair facilities when purchasing goods?
Which option describes a minor failure in consumer guarantees?
Which option describes a minor failure in consumer guarantees?
What actions can a consumer take in the case of a major failure?
What actions can a consumer take in the case of a major failure?
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How does a sale by auction impact consumer guarantees?
How does a sale by auction impact consumer guarantees?
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What is the primary condition under which a person does not acquire goods as a consumer?
What is the primary condition under which a person does not acquire goods as a consumer?
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Which condition does NOT contribute to goods being classified as of acceptable quality?
Which condition does NOT contribute to goods being classified as of acceptable quality?
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For what purpose must goods be fit to be guaranteed as such according to section 55?
For what purpose must goods be fit to be guaranteed as such according to section 55?
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What type of sale does NOT grant the consumer guarantees covered under sections 54, 55, and 56?
What type of sale does NOT grant the consumer guarantees covered under sections 54, 55, and 56?
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Which of the following statements is true regarding the guarantee of goods supplied by description?
Which of the following statements is true regarding the guarantee of goods supplied by description?
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Which characteristic is a required element for goods to be deemed fit for purpose under section 55?
Which characteristic is a required element for goods to be deemed fit for purpose under section 55?
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Which of the following best describes the criteria for acceptable quality as stated in section 54?
Which of the following best describes the criteria for acceptable quality as stated in section 54?
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In the event that goods are exposed for sale and selected by the consumer, how is the nature of the supply impacted under section 56?
In the event that goods are exposed for sale and selected by the consumer, how is the nature of the supply impacted under section 56?
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Which of the following defines a 'consumer' under the Consumer Guarantees regime?
Which of the following defines a 'consumer' under the Consumer Guarantees regime?
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What is a primary characteristic of consumer guarantees compared to the Goods Act 1958?
What is a primary characteristic of consumer guarantees compared to the Goods Act 1958?
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Under what conditions do consumer guarantees apply to goods supplied in trade or commerce?
Under what conditions do consumer guarantees apply to goods supplied in trade or commerce?
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What is the significance of the value $100,000 in determining if a purchase qualifies as consumer goods?
What is the significance of the value $100,000 in determining if a purchase qualifies as consumer goods?
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Which scenario would exclude a sale as a consumer guarantee under the sale by auction provisions?
Which scenario would exclude a sale as a consumer guarantee under the sale by auction provisions?
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Which aspect of goods must be satisfied to meet the criteria for acceptable quality under consumer guarantees?
Which aspect of goods must be satisfied to meet the criteria for acceptable quality under consumer guarantees?
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What does 'fitness for purpose' imply regarding consumer goods?
What does 'fitness for purpose' imply regarding consumer goods?
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In the context of the 'Concrete Constructions v Nelson' case, what defines conduct as occurring in trade or commerce?
In the context of the 'Concrete Constructions v Nelson' case, what defines conduct as occurring in trade or commerce?
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Study Notes
Consumer Guarantees Overview
- The consumer guarantee regime protects consumer rights and guarantees the basic quality of goods and services.
- Consumer guarantees are mandatory and cannot be excluded.
- They are enforced through the Australian Consumer Law (ACL).
When do Consumer Guarantees Apply?
- Goods must be supplied "in trade or commerce": This means the supply is in the course of business.
- Goods must be supplied to a "consumer": This is defined in the ACL.
- Goods must not have been supplied by way of auction: This means a sale by auction must be conducted by an agent, as per the definition in section 2 of the ACL.
Threshold Issues: Trade or Commerce
- The term "trade or commerce" was defined in the case of Concrete Constructions v Nelson.
- Conduct occurs in trade or commerce when it has a trading or commercial character.
Threshold Issues: When is a Customer a "Consumer"?
- The term "consumer" is defined in Section 3 of the ACL.
- A consumer is a person who purchases goods:
- For a price less than $100,000, or
- For a price over $100,000, but, where the goods are for personal, domestic, or household use, or are a vehicle or trailer acquired for use primarily on public roads.
Consumer Guarantees: Goods Supplied by Description
- Under Section 56 of the ACL: when goods are sold by description, there is a guarantee they will correspond to that description.
- This guarantee applies even if the goods are selected by the consumer after being exposed for sale or hire.
Consumer Guarantees: Guarantee as to Acceptable Quality
- Under Section 54 of the ACL a consumer is guaranteed that goods are of acceptable quality if:
- They are fit for the purposes goods of that kind are commonly supplied.
- They are acceptable in appearance and finish.
- They are free from defects.
- They are safe.
- They are durable.
Consumer Guarantees: Guarantee as to Fitness for Purpose
- Under Section 55 of the ACL there is a guarantee that goods supplied are:
- Reasonably ft for any disclosed purpose made known to the supplier by the consumer.
- Reasonably fit for any purpose for which the supplier represents that they will achieve.
- However, this guarantee is not applicable if the consumer did not rely on, or it was unreasonable for the consumer to rely on, the supplier's skill or judgement.
Consumer Guarantees: Sample or Demonstration Model
- Section 57 of the ACL guarantees that goods supplied by reference to a sample or demonstration model correspond with the sample or demonstration model in quality, state or condition and are free from defects that would not be apparent on reasonable inspection of the sample.
Consumer Guarantees: Guarantee as to Repairs and Spare Parts
- Section 58 of the ACL guarantees that the manufacturer of the goods will take reasonable steps to ensure repair facilities and spare parts are reasonably available for a reasonable period after the goods are supplied.
Minor Failures
- Minor failures are those that can be repaired or fixed within a reasonable time.
- The seller can choose to offer a refund, replacement or repair free of charge within a reasonable time.
Major Failures
- Major failures are those that cannot be fixed within a reasonable time.
- The consumer can choose to:
- Return the product and ask for a refund.
- Return the product and ask for a replacement.
- Keep the product and ask for compensation for the drop in value caused by the non-compliance.
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Description
Explore the essential components of consumer guarantees under Australian Consumer Law (ACL). This quiz covers the definition of goods, the application of guarantees, and the criteria defining a consumer. Test your knowledge on how these guarantees protect consumer rights.
