Sale of goods and services
The law includes minimum terms in all consumer agreements for the sale of goods or services, i.e.:
Those terms include that the goods or services are:
What does this mean for purchasers?
A purchaser of goods or services may be entitled to compensation or a refund if these conditions aren’t met.
The law also provides remedies for people who are injured, or goods and buildings that are damaged by reason of defective goods.
If you need assistance with consumer complaints, we recommend that you look at the website for Consumer Affairs Victoria: www.consumer.vic.gov.au, which sets out a number of fact sheets and provides guidance for resolving consumer complaints.
In some circumstances the law will provide a borrower relief from loan repayments where a credit provider is linked to the supplier of defective goods or services.
In this regard we have assisted a number of clients with advice about their liability to linked credit providers regarding financial advisers and margin lending and the mismanagement of managed investment schemes.
What does this mean for traders and suppliers?
From a trader’s point of view, these conditions can’t be excluded, but:
-
with appropriate attention to your terms of trade with your customers, you can may be able to limit your exposure; and
-
if faced with a claim, you may have rights to be indemnified by an importer or manufacturer.
