Guarantee as to title, undisturbed possession and undisclosed securities

Sections 51 – 53 apply to all transactions, whether in trade or commerce (buying from a business) or a private sale. The guarantees provide that a supplier has the right to sell the goods, that the consumer will have undisturbed possession (free from someone trying to reclaim the goods) and free from any security not informed to them. The cause of action is against the seller, so in a private transaction the purchaser must sue the seller of the goods.

Guarantee as to Acceptable Quality

Section 54 of the ACL provides that goods supplied in trade or commerce must be of acceptable quality.

This means that all goods supplied to consumers must be:

These characteristics are subject to the ‘reasonable consumer’ test, which means that a reasonable consumer would regard goods as acceptable.

Other factors taken into account include price, nature of the goods and any representations made about the goods prior to sale. Goods with defects that are drawn to the attention of the consumer prior to purchase (such as “seconds”) are considered to be acceptable.

How long this guarantee lasts is a matter for each particular type of good. Further information about this is found under Remedies.

Guarantee as to Fitness for Purpose

Section 55 of the ACL provides that goods supplied in trade or commerce must be reasonably fit for the purpose made known by the consumer to the supplier. Not all consumers expressly state the purpose, so goods must be fit for their normal or common use.

Guarantee as to the Supply of Goods by Description or Sale by Sample

Section 56 of the ACL provides that goods supplied in trade or commerce must correspond with their description. Section 57 provides that goods sold by reference to a sample must match that sample and that consumer must be given a reasonable chance to compare the goods with the sample.

Guarantee as to Spare Parts

Section 58 of the ACL states that manufacturers must take reasonable steps to ensure that repairs and spare parts are available for a reasonable length of time, depending on the circumstances and nature of the goods.