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Consumer Guarantees Act Essay

936 words - 4 pages

After they have purchased a good or a service, consumers are protected by a series of assurances stated in the Consumer Guarantees Act. The Consumer Guarantees Act is designed to foster fair competition, and to protect the interests of consumers. The Act holds the supplier responsible for ensuring that the goods or services sold to consumers are reasonably safe and fit for purpose, and of satisfactory quality (New Zealand Legislation, 2013). Goods must be suitable for their usual function, safe to use, durable and must last for a reasonable time, have no minor defects, and acceptable in look and finish (Commerce Commission, 2014). Under this Act, suppliers must guarantee that the services ...view middle of the document...

Purpose of the Act
The Consumer Guarantees Act 1993 introduced into New Zealand a new system of rights of consumers and remedies with respect to operations that concern the delivery of goods and services by the suppliers and manufacturers (Hawes, Finn & Hampton, 2007). On the whole, the purpose of the Act was to ensure that consumers receive a greater degree of security than was previously present. It instituted a number of statutory guarantees upon the supply of certain goods and services to consumers, and provided rights for consumers to demand suppliers and manufacturers to rectify cases of goods or services not complying with the guarantees (Hawes, Finn & Hampton, 2007). With regard to the supply of goods to consumers, the guarantees imposed deal with label, quality, suitability for purpose, conformity with description and sample, price, repairs and spare parts, and express guarantees (Hawes, Finn & Hampton, 2007).
It can be assumed from the statement above that consumer protection ensures that businesses do not cheat consumers in any way and that they are not put at a disadvantage especially when they have already made their payment. A business that sells electronic equipment, and provides service and repair is clearly not exempted from the constraints set forth in the Consumer Guarantees Act, which denotes that the company is bound by legal obligations to deliver goods and services that will meet the expectations of the customer based on the expressed information provided to them prior to selling, and the standards set forth in the Act. Whereas, it is the ultimate goal of a business to increase its profit and minimize its expenses, the Consumer Guarantees Act ensures that the business also prioritizes customer complaints of the products it provides. In this regard, the business is accountable for ensuring that all aspects of the business are regulated in a manner that...

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