Consumer rights Reforming statutory implied conditions and warranties

The market for “lemons”: Quality uncertainty and the market mechanism, The Quarterly Journal of Economics, vol. 84, no. 3 (Aug 1970), pages 488-500.

182 MTAA, page 2.

183 RACV, page 3.

184 ibid., pages 3-4.

185 ibid., page 4.

186 Section 314 Property Agents and Motor Dealers Act 2000 (Qld).

187 Veda Advantage, page 2.

188 Dr Nottage, page 6.

189 PC 2008, vol. 2, page 81.

190 RACV, page 4.

191 LCA, page 8.

192 Veda Advantage, page 3.

193 Hunt & Hunt, page 3.

194 LCA, page 8.

195 See, for example, RACV, pages 2-3; Royal Automobile Club of Queensland [RACQ], page 3.

196 Mr Guden, page 1.

197 RACV, page 2.

198 RACQ, page 3.

199 RACV, page 2.

200 Mr Griggs, page 3.

201 AC Neilson Australia, Aussies’ online spending tops $11 billion, news release, 18 September 2006.

202 For a recent report on the additional risks and problems associated with obtaining redress see Office of Fair Trading 2007, Internet shopping: An OFT market study, London.

203 ibid. The most common barriers to online shopping for consumers relate to distrust in releasing credit card details and preference to physically examine items before purchasing.

204 From a combined reading of sections 4 and 6 of the TPA.

205 Sections 68 of the TPA.

206 Section 52 and 53 of the TPA.

207 Sections 70, 71, 72 and 74 of the TPA.

208 Section 67 of the TPA.

209 Part IV, Division 3 of the Vic FTA.

210 Section 69 of the Vic FTA.

211 Section 70 of the Vic FTA.

212 Section 71 of the Vic FTA.

213 Section 73 and 75 of the Vic FTA.

214 Australian Treasury 2006, The Australian guidelines for electronic commerce, Canberra. Available at: http://www.treasury.gov.au.

215 Australian Direct Marketing Association 2006, Direct Marketing Code of Practice, Sydney. Available at: http://www.adma.com.au.

216 ACCC 2004, Shopping online: rights and obligations when trading over the internet, Canberra. See also sections 68 and 68A of the TPA.

217 Sections 52 and 68 and paragraph 53(g) of the TPA.

218 Sections 68 of the TPA.

219 Hunt & Hunt, page 3.

220 The ACCC reported receiving complaints relating to online trading with issues such as warranty and refund problems. ACCC 2004, Shopping online: rights and obligations when trading over the internet, Canberra.

221 For instance, the ACCC conducted a survey of the top 1,000 Australian consumer websites in 2003 to ascertain how well popular websites recognise consumers’ rights.

222 www.scamwatch.gov.au.

223 In August 2009, the ACCC was appointed as the new ICPEN president.

224 More information about ICPEN is available at www.econsumer.gov.

225 Electronic Commerce (EC Directive) Regulations 2002, regulation 6.

226 ibid., regulation 9.

ibid., regulation 15.

227 Consumer Protection (Distance Selling) Regulations 2000, regulations 3 and 4.

228 ibid., regulation 6.

229 Distance Selling Directive (97/7/EC), Articles 4 and 5.

230 Consumer Protection (Distance Selling) Regulations 2000, regulation 7.

231 ibid., subregulation 8(1)

232 ibid., regulation 8.

233 ibid., regulations 11 and 12 (and regulation 13 for exclusions).

234 ibid., regulation 14.

235 ibid., regulation 17.

236 ibid., regulation 19.

237 The Internet Sales Contract Harmonization Template can be accessed at www.strategis.gc.ca

238 Alberta’s Fair Trading Act (SA 1998); Manitoba’s The Consumer Protection Act (C2000).

239 Sections 1 and 2 of the Internet Sales Contract Harmonization Template.

240 ibid., paragraph 3(1)(a).

241 ibid., paragraph 3(1)(b).

242 ibid., subsection 5(1).

243 ibid., section 5.

244 ibid., subsection 9(1).

245 ibid., section 9.

246 AC Neilson Australia, Aussies’ online spending tops $11 billion, news release, 18 September 2006.

247 Apart from the implied term in section 69 of the TPA which does not exclude goods sold at auction.

248 Sections 52 and 53 of the TPA.

249 Consumer Protection (Distance Selling) Regulations 2000, regulation 5.

250 For example, CAV, Online Shopping and Consumer Protection, http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Computers_Internet_Discussion_Papers/$file/onlineshopping.pdf, accessed 2 October 2009; NSW Office of Fair Trading, Internet shopping, http://www.fairtrading.nsw.gov.au/Consumers/Ways_to_shop/Internet_shopping.html, accessed 2 October 2009; Qld Office of Fair Trading, Online shopping, http://www.fairtrading.qld.gov.au/online-shopping.htm, accessed 2 October 2009.

251 LCA, page 12.

252 Hunt & Hunt, page 3.

253 ibid., pages 3-4.

254 ibid., page 4.

255 ibid.

256 ibid.

257 Australian Industry Group, page 3.

258 AC Neilson’s Online Consumer Report, September 2006.

259 AC Neilson Australia, ‘Aussies’ online spending tops $11 billion, news release’, 18 September 2006.

260 Trade Practices Amendment (Liability for Recreational Services) Bill 2002.

261 See, for example, Civil Liability Act 2002 (NSW), section 5I; Civil Liability Act 2003 (Qld), section 16; Civil Liability Act 1936 (SA), section 39; Civil Liability Act 2002 (WA), section 5P; Wrongs Act 1958 (Vic), subsection 55(3). Inherent risks are defined as risks which cannot be avoided by the exercise of due care and skill.

262 ACCC 2002, submission to the principles-based review of the law of negligence.

263 LCA, page 11.

264 See, for recent summaries of the reforms that have occurred, Australian Government 2006, Available and affordable: Improvements in liability insurance following tort law reform in Australia, and Australian Government 2004, Reform of liability insurance law in Australia.

265 Subsection 68A(1) of the TPA.

266 Paragraph 68A(1)(a) of the TPA.

267 Subsection 68A(2) of the TPA.

268 Dr Nottage, pages 6-7.

269 LCA, page 10.

270 ibid.

See Contact Energy v Jones[2009] 2 NZLR 830 at [101] where Miller J held that by insisting that electricity be defined as a good, the legislature opted for strict liability for retailers.

271 Auctions are not excluded from section 69 of the TPA, but are excluded from sections 70, 71 and 72.

272 For example, see the Victorian FTA.

273 Subsection 41(3) of the CGA.

274 See regulation 5 of the Consumer Protection (Distance Selling) Regulations 2000.

275 AIG, page 2; Freehills, page 10; AFC, page 10.

276 LCA, page 9.

277 See AC Neilson Australia, ‘Aussies’ online spending tops $11 billion’, news release, 18 September 2006.

278 ibid. The AC Neilson Online Consumer Report found that eBay had the greatest retail share of traders in the online retail market, with 57 per cent of online shoppers having made a purchase using eBay.

279 Rudd, the Hon K, ‘Joint Statement with Prime Minister John Key on Strengthened Trans-Tasman Cooperation’, media release, 3 March 2009.

280 MCCA 2008, joint communiqué of the Ministerial Council on Consumer Affairs meeting, Hobart, 15 August 2008.

th The Minister for Competition Policy and Consumer Affairs, the Hon Dr Craig Emerson MP, subsequently extended the reporting date to 30 October, in order to facilitate more comprehensive consultation in the development of CCAAC’s report.

281 Includes Manufacturers’ Warranties Act 1974 (SA), which specifically provides for non excludable manufacturer warranties.

282 The implied terms of title, encumbrance and quiet enjoyment still apply to private sales in jurisdictions where the other warranties do not.

283 In the Fair Trading Act 1999 (Vic), the implied terms of quality and fitness and regarding service need to be in the course of business, otherwise the implied terms will apply to private sales.

284 Under the TPA and the state and territory legislation, the provisions implying terms are either limited to ‘consumers’ or to certain types of contracts. In the TPA and WA legislation a ‘consumer’ is a buyer of goods and services the price of which does not exceed $40,000 or (if the price exceeds $40,000) where the goods or services are of a kind ordinarily acquired for personal, domestic or household use. In Victoria, the implied terms apply to certain contracts but the effect of their application is the same as under the TPA. In NSW the implied terms only apply to goods or services of a kind ordinarily acquired for personal, domestic or household use and in SA the provisions apply to contracts for the supply of goods and services which do not exceed $40,000. In the NT, the definition of ‘consumers’ is broad but the implied terms cannot be excluded, limited or restricted in the case of goods or services of a kind ordinarily acquired for personal, domestic or household use.

285 The CTA and Regulations list certain services that are captured by the CTA, however, not all services of qualified architects or engineers may be captured.

286 The MWA includes direct liability against manufacturers, but the CTA does not.

287 Contact Energy Ltd v Jones [2009] 2 NZLR 830 at [2].

288 Subsection 2(1) CGA.

289 Nesbit v Porter [2000] 2 NZLR 465.

290 ibid. at 473 [29] (Blanchard J, who delivered the judgment of the Court).

291 Consumer Guarantees Amendment Act 2003 (NZ).

292 (1998) 6 NZBLC 102 at 555.

293 Subsection 41(3) CGA.

294 Subsection 41(1) CGA.

295 Section 7 CGA. See Stephens v Chevron Motor Court [1996] DCR 1; Norton v Hervey Motors Ltd (1996) 5 NZBLC 104, 204; and Cooper v Ashley & Johnson Motors Ltd [1997] DCR 170.

296 Subsection 7(2) CGA.

297 Subsection 7(4) CGA.

298 Section 8 CGA.

299 Subsection 8(2) CGA.

300 Section 9 CGA.

301 Section 10 CGA.

302 Section 11 CGA.

303 Section 12 CGA. Note the exception in section 42 CGA.

304 Section 28 CGA. See Fraser, ‘The Liability of Service Providers under the Consumer Guarantees Act’ (1994) 16 NZULR 23.

305 Section 29 CGA.

306 Section 30 CGA.

307 Section 31 CGA.

308 Sections 25 and 26 CGA.

309 Contact Energy Ltd v Jones [2009] 2 NZLR 830 at [73] (per Miller J).

310 Paragraph 18(2)(a) CGA.

311 Paragraph 18(2)(b) CGA.

312 Paragraph 18(3)(a) CGA.

313 Paragraph 18(3)(b) CGA.

314 Paragraph 32(a) CGA.

315 Paragraph 32(b) CGA.

316 Sections 18(4), 27(1(b), and 32(c) CGA.

317 Section 2-313 UCC.

318 Section 2-314 UCC.

319 Section 2-315 UCC.

320 Section 103 MMWA.

321 Kurer, M, Codoni, S, Gunther, K, Santiago Neves, J and Teh, L (eds.) 2002, Warranties and Disclaimers: Limitation of Liability in Consumer-Related Transactions, page 149. [check]

322 Canadian Commercial Law Guide, 1999 CCH Canadian Limited, page 3557. See also M, Kurer, S, Codoni, K, Gunther, F, Santiago Neves and L, Teh, at page 156.

323 The content of this Appendix is based on the National Education and Information Advisory Taskforce Baseline Study for Statutory Warranties and Refunds, August 2009.