OCBA - Consumer guarantees on goods

Which goods are covered?

Goods are covered when sold in trade or commerce and bought by a consumer. Second-hand, leased or hired goods are also covered.

Some consumer guarantees apply regardless of whether the goods are sold in trade or commerce – these are the guarantees that a consumer is buying goods:

with a clear title, unless told otherwise before the sale
with a right to undisturbed possession – no-one has a legal right to take the goods away or prevent them from using the goods
that do not carry any undisclosed securities – the goods do not have any hidden securities or charges.

Trade or commerce means in the course of a supplier's or manufacturer's business or professional activity, including a non-profit business or activity.

A consumer is a person who buys:

any type of goods or services costing up to $40,000, or any other amount set by the Australian Consumer Law in future – for example, a photocopier or cash register
a vehicle or trailer used mainly to transport goods. The cost of the vehicle or trailer is irrelevant
goods or services costing more than $40,000, which are normally used for personal, domestic or household purposes – for example, a car or landscaping design.

The following goods are not normally used for personal, domestic or household purposes:

an airseeder (Jillawara Grazing Co v John Shearer Ltd (1984) ATPR 40-441)
a large tractor (Atkinson v Hasting Deering (Queensland) Pty Ltd (1985) 6 FCR 331)
an industrial photocopier (Four Square Stores (Qld) Ltd v ABE Copiers Pty Ltd (1981) ATPR 40-232 at 43,115).

Which goods are not covered?

Goods not covered by consumer guarantees include those:

bought before 1 January 2011. These are covered by statutory implied conditions and warranties under the Trade Practices Act 1974 and state and territory legislation in force before 1 January 2011
bought from one-off sales by private sellers, such as garage sales and ftes
bought at auctions, where the auctioneer acts as agent for the owner
costing more than $40,000 that a person would normally buy for business use - for example, machinery and farming equipment
a person buys to on-sell or re-supply
a person wants to use, as part of a business, to:
- manufacture or produce something else
- for example, as an ingredient
- repair or otherwise use on other goods or fixtures.

What consumer guarantees apply to goods?

Both supplier and manufacturer guarantee that goods:

are of acceptable quality - they will be safe, durable and free from defects. They will be acceptable in appearance and finish, and do the job that type of thing is usually used for
will match any description given to the consumer
will satisfy any extra promises made about them (express warranties) .

A supplier also guarantees the consumer is buying goods:

fit for any disclosed purpose - the goods will do the job the consumer was told they would
with a clear title, unless the supplier told the consumer otherwise before the sale
a right to undisturbed possession – the supplier promises no-one has a legal right to take the goods away or prevent the consumer from using the goods
that match the sample or demonstration model
that do not have any undisclosed securities – the goods do not have any hidden securities or charges.

A manufacturer guarantees that repairs and spare parts will be available for a reasonable time after purchase.

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Consumer guarantees on goods

On this page

Which goods are covered?

Which goods are not covered?

What consumer guarantees apply to goods?