Consumer’s Rights and Remedies



Manufacturer's warranties
You may offer your own warranty or guarantee with the products you manufacture or import. This is called an express guarantee and it is additional to the guarantees given in the Consumer Guarantees Act. It does not replace or override the guarantees given in the Act.

You must honour any express guarantees you give. A consumer can claim compensation from you if you fail to honour an express guarantee. If the goods are sold while still under an express guarantee the new owner will be able to claim. This applies to goods sold by a trader or in a private sale.


Compensation
A consumer can get compensation from you if you breach any of the guarantees in the Consumer Guarantees Act. The consumer can ask you to pay the amount that the goods have dropped in value because of the problem.

eg, Linda buys a new fridge-freezer and discovers that the auto-defrost doesn't work. Linda paid $1700 for the fridge-freezer. Other models that don't have auto-defrost cost $1500. Linda claims $200 from the manufacturer.

Loss in value is worked out using either the average retail price or the price the customer paid, whichever is the lower.
eg, Linda paid $1700 for her fridge-freezer but the average retail price was $1600. Linda will only be able to claim the difference between the reduced value and $1600.

Note: Where there is a manufacturer's express guarantee the consumer must give you the chance to repair or replace the goods if your express guarantee promises that the goods will be repaired or replaced when a problem arises. But the consumer can claim compensation from you if you refuse to repair or replace or do not do so within a reasonable time.


Damage or loss (consequential loss)
You are responsible for any extra loss or damage the consumer suffers because of the problem with the goods (consequential loss).
eg, a tapedeck develops a fault and ruins the tape it is playing. You must pay for the tape as well as compensating the consumer for the problem with the tapedeck.

You are also responsible for any other reasonable costs the consumer may face because of the problem with the goods.
eg, a dryer breaks down and the repair takes a week. The consumer can claim the cost of drying their washing at the laundromat for that week.

Your responsibility is limited to loss or damage that could have been reasonably expected to result from the failure. You are not liable for losses that are not foreseeable.
eg, a car assembled in the USA develops a serious oil leak. The manufacturer will be liable for the cost of replacing the oil-stained paving stones in the consumers' driveway. If the consumer's dog ran through the oil patch and onto the carpet the manufacturer will not be liable. This is unforeseeable damage.