Every time you purchase goods and services, you are entering into a contract with the seller. The Trade Practices Act implies certain promises into all consumer contracts that you make, which are often referred to as your 'statutory rights'. They could also be referred to as implied warranties and conditions.
Statutory rights are your rights by law and cannot be refused, changed or limited by the seller.
There are two type of statutory rights—statutory conditions and statutory warranties. For most consumers, the difference between conditions and warranties only becomes important when a decision is being made about the appropriate remedy if something goes wrong.
You will find more about remedies (such as repairs, exchanges and refunds) in this section.
Statutory conditions are the essential terms of a contract—they 'make or break' the deal. If a statutory condition is breached, you may be entitled to a refund.
Statutory warranties are also important, but they are not regarded by law as essential terms of the contract. Breaking a statutory warranty may, however, give rise to other remedies.
Statutory conditions (goods)
The Trade Practices Act implies the following statutory conditions into consumer contracts:
The goods must be of merchantable quality. That is, they must meet a basic level of quality and performance, taking into account their price and description. They also should be free from defects that were not obvious to you at the time of purchase.
The goods must be fit for their purpose. That is, they should do what they are supposed to do and be suitable for any purpose that you might have made known to the supplier.
The goods must match the description you were given or the sample you chose from. For example, any carpet laid must be the same quality and colour as the sample you chose from.
You must receive clear title to the goods, including goods bought at auction. In other words, you can expect to own the goods outright and any restriction on ownership should be explained to you beforehand.
Statutory warranties (services)
The Trade Practices Act implies the following statutory warranties into consumer contracts:
Services must be carried out with due care and skill.
Any materials supplied in connection with the services must be reasonably fit for the purpose for which they were supplied.
You are entitled to enjoy quiet possession of the goods and to own the goods outright. No money should be owing on the goods you have acquired (unless this is disclosed to you), and no one who tries to claim title to the goods through the supplier should disturb your quiet possession of the goods.
As a consumer, you have responsibilities too. These warranties may not apply if:
you did not make clear what you wanted done
you insisted on having the service carried out in a particular way and you did not like the result
you asked that the materials be used in a way they would not ordinarily be used and you did not like the result
the agreement involves the transportation or storage of goods for your business purposes or relates to a contract of insurance.
What about second hand goods and goods bought at auction?
Second hand goods
Statutory rights apply whether the goods are new, 'seconds' or second-hand. While you can expect that goods or services will meet the basic requirements outlined above, you should be prepared to take reasonable account of factors like price and age. For example, you could expect a second-hand vacuum cleaner to work without any repairs if it has been sold for the purpose of vacuuming, but it may not be expected to last as long, or perform to the same standard as a new one.
Goods bought at auction
Apart from implied rights in relation to clear ownership rights, the statutory rights above do not cover goods bought at auction.
