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In two situations, suppliers or manufacturers can limit their liability for non-compliance with a consumer guarantee.

First, the CCA allows the suppliers of recreational services to include terms in their contracts that exclude, restrict or otherwise modify their liability for death, personal injury (physical or mental) or illness resulting from non-compliance with a consumer guarantee relating to services. However, they cannot do this in relation to property damage or loss, or in respect of significant personal injury caused by the supplier's reckless conduct.

Second, if the goods or services supplied are not normally acquired for personal, domestic or household use or consumption, the ACL allows suppliers to contractually limit their liability to:

  • repairing or replacing the goods or reimbursing the consumer for repairing or replacing the goods
  • resupplying the services or paying the costs of having the services supplied again.

However, such a term will not be effective if the supplier's reliance upon it is unfair or unreasonable.