Consumer Guarantees Act 1993

Question 1

What is the purpose of the Consumers Guarantees Act 1993?

Answer 1

Section 1A

Contribute to a trading environment in which-
a) The interests of consumers are protected; and

b) Businesses compete effectively; and
c) Consumers and businesses participate confidently

Question 2

What are two of the main differences between the Sale of Goods Act 1908 and the Consumers Guarantees Act 1993?

Answer 2

The Sale of Goods Act 1908 applies only to contracts of sale of goods. The CGA applies to contracts of both goods and services.

The SOGA applies to all contracts of sale irrespective of who the parties are. The CGA applies where one of the parties is a consumer.

Question 3

What is Section 41 of the CGA?

Answer 3

It is an exemption to the CGA.

It means that nothing in the act apples when things are done not in-trade.

It also means that there is no right of redress against a charitable trust when it is done for the benefit of the person whom is supplied.

Question 4

What three questions must be asked to determine if something falls under the CGA 1993?

Answer 4

Whether we are dealing with goods or services.

Whether they are supply by a supplier or manufacturer.

Whether they are supplied to a consumer.

Question 5

What is included as goods?

Answer 5

Means personal property of every kind (tangible or intangible) , other than money or choses in action

Question 6

Give four examples of services under S2 of the CGA 1993

Answer 6

A contract for the supply of telecommunications, water, gas and electricity

A contract to perform work (such as professional work)

A contract to provide certain facilities.

A contract to provide insurance.

Question 7

Give two examples where some services are excluded.

Answer 7

Services performed as part of an employment relationship.

Services what are not provided as part of a contract. Eg. A state hospital performing medical services.

Question 8

What is a supplier?

Answer 8

A supplier is someone who is in-trade.

A supplier supplies to a consumers.

Question 9

What guarantees as to title are found under S5 of the CGA 1993?

Answer 9

(1) (a) That the supplier has a right to sell the goods.
(1) (b) That the goods are free from any undisclosed security
(1) (c) That the consumer has the right to undisturbed possession.

Question 10

What are two exceptions to undisturbed possession under section 5(1)(c) of the CGA 1993?

Answer 10

1) Where the goods are transferred under hire purchase.

2) Where there is a retention of ownership (Romalpa) clause.

Question 11

What is guaranteed under Section 6 of the CGA 1993?

Answer 11

That the goods supplied will be of acceptable quality.

Question 12

What is meant by acceptable quality?

Answer 12

S7

(a) Fit for all the purposes for which goods of the type in question are commonly supplied.
(b) Acceptable in appearance and finish
(c) Free from minor defects.
(d) Safe
(e) Durable

As a reasonable consumer fully acquainted with the sate and condition of the goods would regard as acceptable having regard to:

(f) The nature of the goods
(g) The price
(h) Any statements on the packaging or label
(ha) Tha later if the supplier and the context in which they are supplied.
(i) Any representation made about the goods
(j) All other relevant circumstances.

Question 13

What is an exemption to the guarantee of acceptable quality?

Answer 13

S7(2)

Where any defects have been specifically drawn to the attention of the consumer.

The goods have been used in a manner or to an extent that is inconsistent with how a reasonable consumer would have and they would have copied if not used in this manner.

Question 14

What is held as a guarantee under Section 8 of the CGA 1993?

Answer 14

Goods must be reasonably fit for a purpose which the consumer makes known to the supplier. The consumer may make this known expressly or implied.

Goods must be reasonably fit for any purpose that the supplier represents they are fit for.

Question 15

What new two exceptions are there under Section 8 (2)?

Answer 15

(a) The consumer does not rely on the suppliers skill or judgment, or
(b) It is unreasonable for the consumer to reply on the supplier’s skill or judgement.

Question 16

What guarantee comes from Section 9 CGA 1993?

Answer 16

Where goods are sold by description, the goods will correspond with the description.

Question 17

What guarantee comes from Section 10 CGA 1993?

Answer 17

That goods supplied from a sample, that the goods correspond with he sample or demonstration model.

That the consumer will have a reasonable opportunity to compare the goods.

Question 18

What guarantee comes from Section 11 CGA 1993?

Answer 18

Where goods are supplied, the consumer is not required to pay the supplier more than a reasonable price for the goods in any case where the price for the goods is not:

(a) Determined by the contract
(b) Left to be determined in a manner agreed by contract,
(c) Left to be determined by the course of dealing between parties.

Question 19

Can you sue for a breach of Section 11?

Answer 19

No a consumer should just refuse to pay more than a reasonable price.

Question 20

What redress is available under S18 of the CGA 1993?

Answer 20

If the problem can be fixed, the consumer can require the supplier to repair it.
OR

If the problem is a substantial one which cannot be fixed, the consumer may reject the goods.
AND

Irrespective of whether the consumer chooses to have the goods repaired, or to reject the goods, the consumer can claim damages.

Question 21

What can be done if a supplier fails or refuses to repair a product under Sec 18?

Answer 21

Get the goods fixed elsewhere and charge the supplier the cost, or

Reject the goods.

Question 22

What may a supplier do to remedy under S19?

Answer 22

A supplier may repair goods

Replace the goods

Provide a refund.

Question 23

What is meant by failure of substantial character?

Answer 23

Section 21 CGA 1993.

The goods would not have been acquired by a reasonable consumer fully acquainted with the failure

The goods depart from 1 or more significant respects from the description or sample

They are substantially unfit for purpose for which that type of goods is commonly supplied.

The are not acceptable quality because they are dangerous.

Question 24

What is meant by rejecting the goods?

Answer 24

Notifying the supplier that the consumer is rejecting the goods and the grounds for the rejections.

This means the goods are returned.

Question 25

What are four reasons a consumer cannot reject goods?

Answer 25

S20(1)
(a) The right is not exercised in a reasonable timeframe

(b) The goods have been disposed of
(c) The goods were damaged after delivery
(d) The goods have been attached to real or personal property and cannot be detached without damaging them.

Question 26

What four things are taken into consideration under S 20 with respect to a reasonable timeframe?

Answer 26

S20(2)

(a) The type of goods
(b) The use to which a consumer is likely to put them
(c) The length of time for which it is reasonable for them to be used.
(d) The amount of use to which it is reasonable for them to be put before the defect becomes apparent.

Question 27

What does Section 12 say with respect to parts

Answer 27

Section 12 requires a manufacturer to take reasonable action to ensure that repair facilities and spare parts for goods manufactured by them are available for a reasonable period.

Question 28

What is an exemption to S 12?

Answer 28

If the manufacture takes reasonable steps to advise consumers before goods are supplied that spare parts are no available. S42

Question 29

What does S13 guarantee.

Answer 29

It ensures that manufacturers honour express guarantees.

Question 30

What is the primary remedy against manufacturers?

Answer 30

Money to compensate for a reduction in the value of the goods which result from the failure.

Any other loss or damage which was reasonably foreseeable.

Question 31

What is the guarantee under S28 of the CGA with respect to suppliers?

Answer 31

There is a guarantee that services supplied to a consumer, it will be carried out with reasonable care and skill

Question 32

What is the guarantee under S29 of the CGA

Answer 32

any product resulting from a service, must be:

(a) reasonably fit for any particular purpose that the consumer makes known or that is clear from the circumstances and
(b) of such a nature and quality that it can reasonably be expected to achieve any particular result that the consumer specifically requires or that is clear from the circumstances.

Question 33

What is the guarantee under S30 of the CGA?

Answer 33

The services will be completed within reasonable timeframe except with the re is a:

Fixed tim but he contract

Left to be fixed in a manner agreed by contract or

Left to be determine by the course of dealings between the parties.

Question 34

What are two defences available to suppliers under S33?

Answer 34

That the breach was the fault of an independent person.

That the cause was outside of human control.

Question 35

What remedies are available for breaches by suppliers?

Answer 35

If the failure can be remedied: the consumer can require the supplier to remedy the failure in a reasonable time. If the supplier doesn’t do this, the consumer can get it fixed elsewhere and claim the cost of doing so. The consumer may also be able to cancel the contract.

If the failure can’t be remedied or is of a substantial character: the consumer can cancel the contract or claim a reduced price.

For both types of failure: the consumer can claim damages in addition to the remedies outlined above.