Page updated on: Friday April 23, 2010
The Contractual Remedies Act applies to all contracts. Importantly for consumers, it confers a right to be compensated where one party in pre-contractual negotiations made a misrepresentation about the goods to the other party which they relied on in their decision to enter the contract. In the case of a serious misrepresentation, you may have the right to cancel the contract or to apply to the Court for damages or another form of relief. The Act can be viewed at legislation online.
The Consumer Guarantees Act gives consumers guarantees about the goods or services they purchase from someone in trade.
For detailed information on the Act, including to whom and when the Act applies, the guarantees for goods and services set out in the Act, and information on the remedies that a trader must provide if a guarantee is broken, see the Ministry of Consumer Affairs website. The Act can be viewed at legislation online.
The Fair Trading Act covers all advertising and selling of goods and services by people in trade, and does not cover private sales.
Broadly, the Act prohibits misleading and deceptive conduct, false representations and unfair practices. Misleading or deceptive conduct is conduct that leaves you with a false impression about the goods or services offered by someone in trade. A false representation is when you are provided with untrue information about the goods or service. An unfair practice is a selling method which is misleading or unfair.
While the Commerce Commission enforces the Fair Trading Act, someone seeking compensation for loss suffered as a result of a breach of the Act can take a civil action against the trader through the District Court or the Disputes Tribunal.
For more information on the Fair Trading Act, particularly for more information on what is prohibited by the Act, the enforcement of the Act and what to do if you have been misled, see the Ministry of Consumer Affairs website. The Act can be viewed at legislation online.
The Credit (Repossession) Act 1997 governs the process that a creditor must follow when they repossess goods under any secured loan or hire purchase agreement.
A creditor may repossess goods from you if you default under the terms of the agreement, or if the creditor has reasonable grounds to believe that the goods have been or will be destroyed, removed or concealed.
There are six steps to the repossession process which are outlined on the Ministry of Consumer Affairs website, along with additional information on the Credit (Repossession) Act, including a list of definitions of words used in the Act, and information about guarantors and repossession agents.
A hire purchase agreement is one whereby you can take the goods home and pay for them in instalments. A consequence of this is that the finance company or shop that provided the money to pay for the goods (to whom your installments repay) have a security interest in the goods until you have made the final repayment.
Hire purchase sales of consumer goods are governed by the Credit Contracts and Consumer Finance Act 2003. see the Ministry of Consumer Affairs website.