The Law Handbook 2024

Chapter 7.3: Consumer guarantees 707 that they must be saleable. Goods are of acceptable quality if they are: • fit for all the purposes for which goods of that kind are commonly supplied; • acceptable in appearance and finish; • free from defects; • safe; and • durable, to the standard that a reasonable consumerwho is aware of the goods’ state and condition (including hidden defects) would regard as acceptable, considering the tests set out in section 54(3) of the ACL: • the nature and price of the goods; • any statements on the packaging or labelling; • any representations about the goods made by the supplier or manufacturer; and • any other relevant circumstances relating to the supply of the goods. In short, would a reasonable consumer who knew about the defects at the time of purchase regard these defects as acceptable? The guarantee of acceptable quality does not apply to the following situations: • the defects were drawn to the consumer’s attention before purchase; • the defects were disclosed in a written notice displayed with the goods; • the defects would have been clear if the consumer conducted a reasonable examination before purchase; • the consumer caused the goods to become unacceptable quality or failed to take reasonable steps to prevent them becoming unacceptable quality; • the consumer’s abnormal use damaged the goods (s 54(4)–(6) ACL); • the goods were bought at auction (s 54(1)(a) ACL). If you can’t determine whether goods you have purchased are of acceptable quality, seek legal advice. Goods must be fit for purpose Suppliers guarantee that the goods are reasonably fit for any purpose specified (disclosed) by the consumer or the supplier (s 55 ACL). The goods must be fit for: • any purpose that the consumer made known (expressly or by implication) to the supplier or the person who conducted the sales negotiations; and • any purpose for which the supplier represents that the goods are reasonably fit (s 55 ACL). This guarantee does not apply where the consumer did not rely on, or where it was not reasonable for the consumer to rely on, the skill or judgment of the relevant person. This guarantee does not apply to manufacturers or goods bought at auction. Goods must match their description Suppliers and manufacturers guarantee that goods correspond to their description (s 56 ACL). This includes a description given in an advertisement or catalogue. The guarantee applies even where the consumer inspected the goods before purchase. If goods are supplied by reference to a description and a sample, the consumer guarantees under sections 56 and 57 of the ACL apply. This guarantee does not apply to goods bought at auction. Goods must match any sample or demonstration model Suppliers guarantee that goods supplied by reference to a sample or demonstration model correspond with that sample or demonstration model in quality, state or condition (s 57 ACL). Specifically, there is a guarantee that: • the goods correspond with the sample or demonstration model in quality, state or condition; • the consumer has a reasonable opportunity to compare the goods with the sample; and • the goods are free from any defect that would not be apparent on reasonable examination, or would cause it not to be of acceptable quality. If goods are supplied by reference to a sample or demonstration model and description, the consumer guarantees under sections 56 and 57 of the ACL apply. This guarantee does not apply tomanufacturers or goods bought at auction. Repairs and spare parts Manufacturers guarantee that they will take reasonable action to ensure that repair facilities and spare parts are available for a reasonable period after purchase (s 58(1)