18 JULY 2012
The Australian Consumer Law (ACL) deems suppliers to give certain guarantees in relation to the goods and services they provide from 1 January 2011. This includes guarantees relating to acceptable quality, matching description, fitness for purpose and complying with point-of-sale statements made about the goods, in place of the implied terms we were all familiar with.
Generally speaking, these guarantees apply to transactions with “consumers” and cannot be excluded. A “consumer” is a person who buys:
1. any type of goods or services costing up to $40,000; or
2. any type of goods or services costing more than $40,000 which are normally used for personal, domestic or household purposes.
It is an offence under the legislation to mislead consumers about their rights in relation to these guarantees. This has important implications for standard trading term documents. For example, a term excluding certain terms or limiting liability may be misleading where the relevant guarantee is one that cannot be excluded by law.
The ACL also gives consumers an express statutory right to receive compensation for consequential loss. It is possible however, for suppliers to limit liability in their standard trading terms, where the goods are not used for personal, domestic or household purposes and it is fair and reasonable to do so. The limitation must only apply to goods or services used for business purposes.
We would be pleased to assist you in reviewing and/or updating your standard trading terms to address the risks and obligations created by the ACL.
You are a valued Kinneally Miley contact, for more information related to this Legal Update please contact us.
[contactsbox] [leftcolumn]Contact Partner: Francesca Petroccitto
Direct Telephone : 07 3210 5771
Mobile Telephone : 0402 293 644
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