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Essay / Consumer Guarantees Law - 820
After purchasing a good or service, consumers are protected by a series of assurances set out in the Consumer Guarantees Law. The Consumer Guarantees Act aims to promote fair competition and protect the interests of consumers. The law holds the supplier responsible for ensuring that goods or services sold to consumers are reasonably safe, fit for purpose and of satisfactory quality (New Zealand Legislation, 2013). Goods must be fit for their usual purpose, safe to use, durable and must last for a reasonable time, have no minor defects and be acceptable in appearance and finish (Commerce Commission, 2014). Under this Act, suppliers must ensure that services are performed and completed with reasonable care and skill (New Zealand Legislation, 2013). Services must be performed with sufficient precision to meet the specific purpose for which they were provided (Commerce Commission, 2014). They must also be completed within a reasonable time and provided at a reasonable price, if no completion time, price or pricing formula has been agreed beforehand. The Consumer Guarantees Act applies to all goods and services normally purchased for personal or household use and consumption. Goods may include, but are not limited to, clothing, electronic equipment, kitchen appliances and food. Services may take the form of plumbing, repairs, accommodation, banking and utilities such as gas, electricity, telephone and water. The law applies to goods and services sold on credit and to goods rented for use (Consumer Affairs, 2014). In addition, the Consumer Guarantees Act provides that consumers have certain rights of recourse against suppliers and manufacturers if goods or services do not conform to a guarantee. This means...... middle of paper ...... under the Act, and what aspects of the Act exactly concern us. The definition of “supplier” also specifies that an entity is not required to provide services under a contract with the consumer in order to qualify as a “supplier” (Grierson, 2002). This implies that we will have obligations directly to consumers even if we do not have a contract with the consumers for whom we sell equipment or provide repair services. A written agreement is not required to make a supplier responsible for ensuring that the product or service it offers is of “acceptable quality”. Our relationship with consumers is governed by law. In the future, we plan to sell to businesses, and as this is not covered by the Consumer Guarantees Act, we can expect business users of our electronic equipment to negotiate appropriate product warranties in their contract with us..