Question

Consumer Law ( please write the references of detail at the end )

Consumer guarantees under the ACL apply to contracts for the supply of goods and services to a ‘consumer’. Who is a ‘consumer’ under the ACL?

Explain the rule that goods must be of acceptable quality.

Explain the rule that goods must be reasonably fit for any disclosed purpose

Answer 1

1) As per Australian Consumer Law (ACL), Consumer is any person or business who:

• Buy goods or services for a price below $40,000.
• If the price of goods and services purchased is more than $40,000, it should be for domestic and personal use of the consumer.
• Goods are the transport vehicles which are used for business purpose.

2) The Rule of ACL which provides that goods must be of acceptable quality can be explained as below:

• Sec 54(4) explains that if there is any peril of defect in the goods to be supplied it should be bought to the notice of consumer before supplying the goods.
• Sec 54(6) explains that there should not be any abnormal use of the goods in order to guarantee acceptable quality.
• Sec 54(7) provides that goods should be properly examined and analyzed before supplying it to the consumers.

3) The Rule or provision of ACL which provides that goods should be reasonably fit for any disclosed purpose explains that, as per Sec 55(1) of ACL the goods that is to be supplied to the consumer should be reasonably fit for a purpose which is disclosed by the consumer. This simply means that in order to meet the guarantee of acceptable quality it is required that the purpose of purchase is disclosed by the consumer at the time of order.