1E9Ct5D

Consumer Guarantees ActThe Consumer Guarantees Act 1993sets minimum guarantees about goodsand services ordinarily purchased forpersonal or household use, from sellersin trade.Guarantees in relation to goods includethat they will be of acceptable quality,comply with description/sample, andbe reasonably fit for any particularpurpose the consumer makes knownand for any particular purpose for whichthe supplier represents they are or willbe fit.Guarantees in relation to servicesinclude that they will be performedwith reasonable care and skill, fit for thepurpose supplied for and completedwithin a reasonable time.Sellers cannot contract out of theirobligations under the ConsumerGuarantees Act except in relation togoods or services which are purchasedfor the purposes of a business. TheAct sets out various remedies forconsumers against suppliers andmanufacturers when the guaranteesare not complied with.Credit Contracts and ConsumerFinance ActAnother area of law designed to protectNew Zealand consumers is the CreditContracts and Consumer Finance Act2003. This Act requires a creditor whoenters a “consumer credit contract” toprovide a written disclosure statement toconsumers containing certain specifiedinformation about the terms of thecontract.The Act also allows consumers to havethe terms of a credit contract varied for“hardship” reasons and gives power tothe courts to examine and, if appropriate,vary the terms of an “oppressive” contract.A credit contract is defined as a contractunder which credit is or may be provided.Credit is provided where someone isgiven the right to defer payment ofa debt, or incur a debt and defer itspayment. A credit contract also includesthe right to defer payment for thepurchase of property, goods or services(for example, a hire purchase agreement).The Act also places restrictions on theway the creditor can apply interest on thecontract and sets out rules and guidelinesfor fees, payments, extended warrantiesand cancellations.Penalties include statutory damages,fines of up to $30,000, and prohibitionfrom providing consumer credit. TheCommerce Commission is responsible forthe enforcement of the Act.Commerce Act (anti-competitivepractices and pricing controls)Anti-competitive practicesThe purpose of the Commerce Act 1986is to promote competition in markets.Therefore that Act prohibits agreementswhich substantially lessen competitionin a market, such as agreements to fixprices, carve out market conduct orabuse a dominant market position.Co-ordinated conduct prohibited bythe Commerce Act includes:(a) agreements that substantiallyreduce competition in a market;(b) agreements that exclude or restrictdealings with a competitor; and(c) agreements that fix, maintain orcontrol prices (cartels).Unilateral conduct prohibited by theCommerce Act includes:(a) a business or individual taking19