Consumer Guarantees under the ACL, Schemes and Mind Maps of Business

Download Consumer Guarantees under the ACL and more Schemes and Mind Maps Business in PDF only on Docsity! Consumer Guarantees under the ACL - Contract – Purchase of an item/service – it does not work or is not as requested Issue: The legal issue in this matter concerns consumer guarantees, specifically that a product has to be acceptable quality // services must be provided with due care and skill, under the Australian Consumer Law. Rules & Application: Section 3(1) ACL provides that a person is taken to have acquired goods as consumer if the amount paid for the goods does not exceed $40,000; or if the price of the goods exceeds $40,000, the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption; or the goofs consisted of a vehicle or trailer acquired for use principally in the transport of goods on public roads. It matters that must be established is that you are a consumer. In this case, the cost of ______is _____ which is less than $40,000, which means you are a consumer within the definition of s 3 ACL // Even if the ____costs more than $40,000, it is goods of a kind ordinarily acquired for personal, domestic or household use and is not bought for resupply and to be used up in trade or commerce. Therefore, _____has the benefit of the statutory guarantees. GOODS Section 54 ACL provides that suppliers and manufacturers guarantee that goods are of acceptable quality when sold to a customer. Section 54 (2) provides that the test is whether a reasonable consumer, fully aware of the goods’ condition (including any defects) would find them: a. Fit for all the purposes for which goods of that kind are commonly supplied b. Acceptable in appearance and finish c. Free from defects d. Safe e. Durable Section 55 states that the consumer specifies the purpose for which they acquire the goods and the consumer relies on the skill or judgement of the supplier, there is guarantee that the goods are fit for the disclosed purpose. _____________may sue for breach of the ACL guarantees that (a) the ______does not comply with its description (s 56); _____(defendant) recommends ________. This is in response to ___(plaintiff)’s explaining that _______[She// He] needs a reliable and functional ______for [commercial// domestics purposes] to be used exclusively in _______. It turns out that ______(i.e. issues // description of _______ appears) and _____does not correspond with the description implied when ____recommends. (b) is not acceptable quality (s54); It is not “fit for all purpose for which goods of that kind are commonly bought” and is not “free from defects” as the ______either ____or failed to _____. (c) is not fit for its disclosed purpose (s 55); Under s 55, ______is in breach of s 55 as the __________is not fit for _____’s disclosed purposes - ______________and ______relies on _______(defendant)’s recommendation. SERVICES // Section 3(1) ACL provides that a person is taken to have acquired goods as consumer if the amount paid for the goods does not exceed $40,000; or if the price of the goods exceeds $40,000, the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption; or the goofs consisted of a vehicle or trailer acquired for use principally in the transport of goods on public roads. It matters that must be established is that you are a consumer. In this case, the cost of ______is _____ which is less than $40,000, which means you are a consumer within the definition of s 3 ACL // Even if the ____costs more than $40,000, it is goods of a kind ordinarily acquired for personal, domestic or household use and is not bought for resupply and to be used up in trade or commerce. Therefore, _____has the benefit of the statutory guarantees. Section 60 ACL provides that suppliers guarantee their services are provided with due care and skill. This means they must: a. Use an acceptable level of skill or technical knowledge when providing the services b. Take all necessary care to avoid loss of damage when providing the services The problem involves _____________, which is a service. Pursuant to s 60 ACL all services must be carried out with due care and skill. The facts state that ____________ but does not attach them securely. Therefore, ____(plaintiff) could argue that ________(defendant) has breached the consumer guarantee of due care and skill under the ACL. Where the non-compliance is a major failure or cannot be remedied by the business, the consumer can reject the goods (that is, return the goods for a refund or a replacement) or require the business to pay to the consumer the difference between the value of goods and the price paid for them: ACL s 260. A failure to comply with a guarantee is a major failure: a. The goods would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of the failure b. The goods depart in one or more significant respects from their description, sample or demonstration model c. The goods are substantially unfit for a purpose for which goods of that kind are commonly supplied and they cannot, easily and within reasonable time, be remedied to make them fit for such a purpose. d. The goods are unfit for a disclosed purpose that was made known to the business and they cannot, easily and within a reasonable time, be remedied to make them fit for such a purpose e. The goods are not acceptable quality because they are unsafe