Fair-Trading Act or the Consumer Guarantees Act
Example, one of part two, presents a case scenario that involves the Fair-Trading Act or the Consumer Guarantees Act. The case scenario above consists of a conflict between Hana and EZLay Carpets firm that had supplied her with the carpets (O’Sullivan, 2018). Hana wanted to choose a particular company that was willing to quote a lower price for the mats that she required. Hana chose a firm that was willing to supply her with carpets for an amount worth $10,250. Despite this offer, she later realized that the carpets that were delivered to her were of low quality (O’Sullivan, 2018). Due to their low quality, Hana declined to pay for them, which was contrary to the laid down plans of the EZLay Carpets firm. The firm demanded their payment of the carpets, but Hana did not accept it at all. To defend herself, Hana raised a complain that the carpets were of poor quality. The EZLay Carpets did not have time to negotiate with her, which drew many problems leading to a conflict between the two parties.
This case scenario requires the application of the Consumer Guarantees Act, whereby the two parties should enter into communication with one another to conclude (O’Sullivan, 2018). The Consumer Guarantees Act offers protection for the customers to allow the replacement and repairs of faulty goods originating from the firms (O’Sullivan, 2018). In this case scenario, Hana’s rights seem not to be catered for since the firm that delivered fake carpets demand their payment instead. According to the act, Hana is innocent and should not pay for the counterfeit rugs despite what the EZLay Carpets firm is demanding. The firm is being advised not to charge Hana any fee for their poor-quality goods and. In conclusion, according to the Customer Guarantees Act, Hana should not pay for the poor-quality carpets delivered to her by the EZLay Carpets firm (O’Sullivan, 2018). The firm should also reproduce good quality carpets and sell them to Hana instead.
O’Sullivan, T. (2018). Enforcement and Effectiveness of Consumer Law in New Zealand. In Enforcement and Effectiveness of Consumer Law (pp. 415-432). Springer, Cham.