Consumer Law
This Act applies to all hire-purchase agreements and credit-sale agreements under which the hire purchase price or the total purchase price does not exceed the sum of twenty thousand dollars.
In a hire purchase agreement a trader cannot repossess goods on hire once the hirer has paid more than seventy percent of the cost. However, the goods do not become the property of the hirer until he/she has paid in full.
The Act also provides for the regulation of hire purchase and sale upon credit of goods for matters incidental thereto.
The Act prevents traders from denying the rights of consumers under The Sale of Goods Act with notices or signs such as “NO CASH REFUND”, “NO EXCHANGE OR REFUND ON SALE ITEMS’, or “ALL SALES ARE FINAL”.
Traders cannot escape their liability for personal injury or death resulting from a statement to a contract such as, “WE ACCEPT NO RESPONSIBILITY FOR LOSS OF DAMAGE HOWEVER CAUSED”, as such terms are void and cannot be enforced.
The Act extends the right of the consumer under The Sale of Goods Act to any goods or material provided as part of a service or on hire. For example, if pipes provided and fitted by a plumber are faulty, the consumer should be able to claim compensation from the plumber. The Act also states that a service provider providing a service, for example a hairdresser or mechanic – they must do so:
- With reasonable care and skill
- Within reasonable time – if no specific time has been agreed in advance
- If the price is agreed to in advance, the consumer cannot query later
This is a civil law. Under the Act consumers are entitled to expect that any goods they purchase from a trader:-
ARE OF MERCHANTABLE QUALITY:
This means, they must be reasonably fir for their normal purpose considering the price and how it was described. A new item must not be broken or damaged.
MUST BE AS DESCRIBED:
On the package or a display sign by the seller.
For example, a pair of shoes in a box should not be black if on the box it is marked brown. Shoes made from man-made material should not be called leather.
MUST BE FIT FOR THE PARTICULAR PURPOSE:
If the customer requests a washing machine that can spin dry, it should.
The rights of consumers under this Act are against the trader who sold the consumer the goods not the manufacturer. The precise nature of the settlement the consumer is entitled to is dependent upon the nature of the fault or defect, how soon the fault or defect arises after purchase, and how quickly the consumer complained.
The consumer’s right might be to claim a full refund of the price paid and/or possible compensation for additional losses incurred, if they act quickly. Otherwise the consumer may only be able to collect limited compensation.