There are 9 consumer guarantees relating to goods. Businesses that sell goods automatically provide the following guarantees:
1. Acceptable quality
The goods are fit for their usual purpose(s), acceptable in appearance and finish, free from defects, safe and durable - taking into account the nature of the goods, the price, any statements about the goods on their packaging, any representations made about the goods by the supplier or manufacturer and any other relevant circumstance.
- An expensive new car is unlikely to be acceptable if it has defects on the bodywork, even though it otherwise runs well.
- A car described as a 'second hand car with a defective clutch' may still be acceptable because of this description and the price paid.
This consumer guarantee does not apply where:
- the reason the goods aren't acceptable was specifically drawn to the consumer's attention before supply was agreed
- the consumer causes the goods to become of unacceptable quality, or fails to take reasonable steps to prevent this, or damages them through abnormal use
- the consumer examines the goods before agreeing to acquire them and this examination should have reasonably revealed that the goods weren't of acceptable quality.
2. Reasonably fit for purpose
The goods are fit for any purpose the consumer discloses to the seller, or for which the business says they are suitable.
A domestic-size lawn mower won't be regarded as unfit for the purpose of mowing acres of long grass on a farm unless the consumer asked for a mower suitable for that purpose, and the supplier recommended that mower.
3. Correspondence with description
The goods will correspond with any description the business gives them.
A seller's website describes a product as having certain features and the consumer relies on the website when buying the product. The seller will fail to comply with this guarantee if the product doesn't have those features.
4. Correspondence with sample or demonstration model
Businesses that supply goods by reference to a sample or demo guarantee that:
- the goods will correspond with the sample or demo in quality, state or condition
- the consumer will have an opportunity to compare the goods with the sample
- the goods are free from any defect that wouldn't be apparent on a reasonable examination of the sample or demo and which make the goods to not be of acceptable quality.
5. Right to sell
The business that supplies the goods has a right to sell those goods.
A car dealer will be liable to a consumer if it sells a car that is owned by a third party, even if the dealer didn't know this.
6. Undisturbed possession
No-one has the right to repossess the goods.
7. Undisclosed securities
The goods are free from any security or charge except those disclosed to the consumer in writing before supply and those created with the consumer's consent.
8. Additional warranties
Business suppliers and the manufacturers of goods that give an express warranty about the goods in order to promote them, guarantee that they will comply with that warranty. For example, if your advertisements say that your products will 'last a lifetime', or that you 'won't be beaten on price', you must honour those statements.
9. Repair facilities and spare parts (only applies to manufacturers)
Repair facilities and spare parts for their goods will be reasonably available to consumers and available for a reasonable time after the goods are sold.
This guarantee applies to the actual manufacturer and to a business that imports goods where the foreign manufacturer doesn't have a place of business in Australia.