Deck 17: Statutory Consumer Guarantees and the Australian Consumer Law

Question 1

In relation to the consumer guarantee of acceptable quality, which of the following statements is NOT true?

A) The guarantee imposes strict liability on the supplier.
B) Goods must remain acceptable for a reasonable time after sale.
C) 'Acceptable' means they must be reasonable for the purpose described.
D) The test of acceptability is subjective based on the consumer's description.

Answer 1

D

Question 2

Which of the following signs is unlawful under s 64 of the Australian Consumer Law?

A) We replace but do not refund.
B) No refunds.
C) No refund if you change your mind.
D) We repair or replace but do not refund.

Answer 2

B

Question 3

Which of the following is NOT a difference between the Sale of Goods Acts and the Australian Consumer Law?

A) The remedy under the Sale of Goods Acts is for breach of contract whereas the Australian Consumer Law provides statutory remedies.
B) The Sale of Goods Acts apply to non consumer transactions whereas the Australian Consumer Law does not.
C) The implied conditions and warranties in the Sale of Goods Acts can be excluded, whereas the Australian Consumer Law guarantees can't.
D) The Sale of Goods Acts are administered by state and territory Departments of Fair Trading whereas the Australian Consumer Law is administered by the ACCC.

Answer 3

D

Question 4

For the Australian Consumer Law to apply, there must be a supply of goods or services to a consumer, by a supplier or manufacturer, in trade or commerce.

Question 5

Do you consider that the remedies now available to consumers under the Australian Consumer Law are adequate?

Question 6

What are the implied guarantees that must be included in every agreement by a manufacturer to supply goods to a consumer?

Question 7

Which of the following is NOT a consumer guarantee applying to goods under the Australian Consumer Law?

A) The consumer will obtain the same title that the supplier has.
B) The goods are free of any charge or encumbrance.
C) The supplier has the right to dispose of the goods.
D) The consumer shall have undisturbed possession of the goods.

Question 8

Which of the following services are NOT covered by the consumer guarantees in the Australian Consumer Law?

A) Telecommunications.
B) Electricity.
C) Gas.
D) All of the above.

Question 9

Section 64 of the Australian Consumer Law prevents a consumer from agreeing to exclude, restrict or modify their consumer guarantee rights in any way.

Question 10

The Australian Consumer Law replaces the Sale of Goods Acts in all states and territories.

Question 11

When will a purchaser of goods NOT be considered a 'consumer' under the Australian Consumer Law?

A) If they purchase a commercial road vehicle valued at more than $40,000.
B) If they purchase goods for personal or domestic use valued at more than $40,000.
C) If they purchase goods valued at less than $40,000 for use in the course of a small business.
D) If they purchase goods valued at less than $40,000.

Question 12

Under the Australian Consumer Law, who is a consumer?

Question 13

If goods can only be used for one purpose, they will be unacceptable if they are not fit for that purpose.

Question 14

The test of acceptable quality of goods is an objective test of the reasonable consumer.

Question 15

Under the Australian Consumer Law goods supplied to a consumer in trade or commerce must be:

A) Correspond with any description or sample.
B) Of acceptable quality.
C) Fit for any disclosed purpose.
D) All of the above.

Question 16

When will a buyer of defective goods NOT be protected under the Australian Consumer Law?

A) If the defect was brought to their attention by the supplier.
B) If the buyer caused the damage to the goods.
C) If the buyer examines the goods and fails to discover an obvious defect.
D) All of the above.

Question 17

The Australian Consumer Law applies to all consumer transactions involving a sale of goods but not goods on exchange or lease.

Question 18

There is an implied guarantee in every sale of goods that the seller has the right to sell the goods.

Question 19

If a seller does not have title to the goods at the time of transfer, then there is a total failure of consideration.

Question 20

Why was the plaintiff successful in obtaining a full refund in the case of Rowland v Divall [1923] 2 KB 500?

A) Because he had only had the car for four months.
B) Because the seller had no right to sell him the car.
C) Because the owner had no right to sell him the car.
D) Because the true owner had made a claim against him.

Question 21

Why was the plaintiff unsuccessful in the case of: Southern Cross Homes (Broken Hill) Inc v Chapman (1999) SASC 491?

A) The goods were not fit for the purpose but were made to the consumer's specifications.
B) The goods were made to the consumer's specifications.
C) The goods were fit for the purpose but not made to the consumer's specifications.
D) The goods were not fit for the purpose specified.

Question 22

When will the consumer guarantee as to correspondence with description NOT apply?

A) Whether or not the seller normally deals in goods of that description.
B) Where the consumer has seen the goods but relies on the seller's description.
C) Only when the seller normally deals in goods of that description.
D) Where the consumer has not seen the goods and relies on the seller's description.

Question 23

In relation to the supply of goods, when will a failure to comply with a consumer guarantee be considered a major failure?

A) If the goods are substantially unfit for the purpose for which goods of that nature are commonly supplied.
B) If the goods are significantly different from their description or sample.
C) If the goods are unfit for a disclosed purpose or unsafe.
D) All of the above.

Question 24

Why was the manufacturer found liable in the case of: Drummond v Van Ingen (1887) as App Cas 284?

A) The defect was only minor and the quality was the same as the sample.
B) The cloth was equal to the sample but contained a defect that could not be discovered by reasonable inspection.
C) The cloth was equal to the sample but contained a defect that was discovered on inspection.
D) The cloth did not correspond with the sample.

Question 25

Where goods are sold by description, description goes to both identity and quality of goods.

Question 26

Which of the following factors have to be taken into account in determining 'acceptability'?

A) Whether the purpose for the goods had been made known to the seller.
B) Price.
C) The description applied to the goods.
D) All of the above.

Question 27

In the context of a sale by sample the buyer will not be considered to have accepted the goods until they have had the opportunity to examine them.

Question 28

The guarantee of fitness for purpose applies regardless of anything that happens after the goods are sold.

Question 29

In relation to the consumer guarantee of correspondence with sample, which of the following statements is NOT true?

A) The goods must be free from any defect which would not be apparent on reasonable examination.
B) The seller must supply the buyer with a sample of the goods.
C) The buyer must be given a reasonable opportunity to compare the bulk with the sample.
D) The bulk of the goods must correspond with the sample in quality, state or condition.

Question 30

The guarantee that spare parts and repair facilities must be reasonably available applies to the supplier as well as the manufacturer.

Question 31

In relation to the consumer guarantee of fitness for purpose, which of the following statements is NOT true?

A) The goods must be supplied in trade of commerce.
B) The consumer must, either expressly or by implication, make known the intended purpose of the goods.
C) The consumer must rely on the skill and judgment of the supplier.
D) The consumer must request the goods under their trade name or patent.

Question 32

Which of the following remedies are available to a consumer for a major failure to comply with a consumer guarantee?

A) Rejection of the goods, plus compensation and damages for any foreseeable loss.
B) Rejection of the goods or compensation plus damages for any foreseeable loss.
C) Rejection of the goods or compensation.
D) Rejection of the goods, plus compensation or damages for any foreseeable loss.

Question 33

What is the difference between a sale by sample and a sale by description?

Question 34

Which of the following is NOT a consumer guarantee in relation to the supply of services to a consumer?

A) The services will be supplied within a reasonable time.
B) The services will be of acceptable quality.
C) The services will be rendered with due care and skill.
D) The services will be reasonably fit for any disclosed purpose for which they are supplied.

Question 35

Where goods are sold by description, there is an implied guarantee that the goods will correspond with the description.

Question 36

If the supplier of goods fails to comply with a consumer guarantee which is not a major failure, a consumer may:

A) Require the supplier to remedy the failure.
B) Immediately reject the goods.
C) Seek compensation.
D) Immediately have the failure remedied elsewhere.

Question 37

To which of the following services do the consumer guarantees relating to the supply of services apply?

A) Doctors.
B) Architects.
C) Contracts of insurance.
D) All of the above.

Question 38

Which of the following will NOT protect a manufacturer from liability for a breach of the consumer guarantee of fitness for purpose?

A) If the consumer did not rely on the skill or judgment of the manufacturer.
B) If it was caused by something outside human control after it left the manufacturer.
C) If it was cause by something outside human control during manufacture.
D) If it was caused by someone else.

Question 39

In Grant v Australian Knitting Mills [1936] AC 85, why was Grant entitled to sue the retailer under Sale of Goods legislation?

Question 40

Why was claim for damages caused by contaminated mink food unsuccessful in the case of: Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441?

A) The food had been made to the plaintiff's specifications.
B) The food still conformed to its description in spite of the contamination.
C) The defendant's were not responsible for the contamination.
D) None of the above.

Question 41

In some cases the liability of a manufacturer for breach of the consumer guarantees extends beyond the original consumer.

Question 42

A consumer affected by a breach of a consumer guarantee may sue both the supplier and the manufacturer.