Legal responsibility, enforced by civil or criminal courts. of suppliers and A debt that does not have to be paid until some future time. Being allowed to pay later, in the future, for something you are getting now. providers
The ACL (Part 5-5) has special provisions to protect consumers who have purchased goods using finance provided by a ‘linked credit contract’ or ‘bundled credit contract’. This avoids the situation where a client rejects defective goods and returns them to the supplier, but is still liable to a third A person or organisation directly involved in a court case. Parties include the plaintiff or applicant, the defendant, and any third party added to the action, but not independent witnesses. finance provider for the cost of the goods.
A ‘linked credit contract’ is a finance or A contract relating to the giving of credit. where the supplier of the goods and the credit provider have a An agreement that the law will enforce., arrangement or understanding between them, or where the supplier regularly refers customers to the credit provider (s 2 ACL).
The ACL provisions are designed to capture situations where, for example, a car dealer has a finance provider operating at their dealership, or where a supplier recommends or refers a Under the Australian Consumer Law, a person who buys goods or services for less than $40 000 or for personal or home use. to a particular lender. When any of the ACL guarantees are breached, the supplier and the A credit provider who has an agreement with someone selling goods, for example a car. If a customer wants to buy goods but needs to borrow the money, the seller will suggest the buyer go to that credit provider. are each liable for the whole amount of the loss and damage the consumer suffers (s 278 ACL). Generally, the consumer must take any action against the supplier and the linked credit provider jointly (s 279 ACL).
If a consumer returns unsatisfactory goods due to a major problem, the consumer can cancel any services that were provided in connection with the rejected goods. The consumer does not have to make further payments to the seller.
It is important that the consumer can establish a link between the supplier of goods or services and the credit provider. A linked credit provider is not liable if the consumer contracted with the credit provider independently, and was not induced to do so by the supplier of goods or services (s 280(1) ACL). A linked credit provider is also not liable where they had satisfied themselves that the supplier was of good reputation, they had no cause to suspect that the consumer would be entitled to take action for breach of an ACL A binding promise made as reassurance that another person will carry out their legal obligations (e.g. paying a debt). The person making the promise is called a guarantor. If the person being guaranteed fails to pay, the guarantor becomes responsible for the debt., and had no cause to suspect that the supplier could not cover the liability (s 280(2), (3) ACL).
A consumer who cancels the contract for unsatisfactory services must return any goods connected with the Formal delivery of legal documents to a person to tell them there are court proceedings against them which they must defend, or to make sure a witness in a case knows when they have to go to court to give evidence. even if there is no problem with them. If the consumer has paid any money for the goods, the seller must refund the consumer. The consumer must return the goods, unless that would involve a significant cost (in which case the seller must collect the goods).
A linked credit provider who supplies continuing credit (e.g. a credit card) tied to the supply of goods or services is not liable if, given the nature and volume of their business, they had no cause to suspect that a consumer might be entitled to claim A court order for money to be paid to someone to compensate them for a loss suffered as a result of a civil wrong or breach of contract. For example, a person who caused a serious permanent injury to another person can be ordered by the court to pay damages that compensate the injured person for their loss of income from being unable to work. See also aggravated damages; compensatory damages; general damages; liquidated damages; nominal damages; special damages. from the supplier for breach of a guarantee (s 280(4), (5) ACL).