CGA vs FTA

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networkn

Networkn
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#108177 25-Aug-2012 18:32

Hi There!

I have just had a customer ask me why they would need to purchase a server warranty upgrade since the CGA would protect them anyway. It's the first time in 14 years I've had a business customer ask me that, and I know that the CGA wouldn't allow to goods supplied to a business, and this is what the FTA is for, but I must admit I am not certain of whether the FTA would provide him some comeback on me, if the server failed outside it's initial 3 years.

Is anyone able to shed some light on this please?

sen8or

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#676917 25-Aug-2012 18:45

CGA is "consumer guarantees Act" and does not apply to goods provided for business purposes. Your customer is mistaken.

Definition of a consumer as defined by the act (paraphrased somewhat) -

A natural person obtaining the goods for normal household consumption.

I don't know what "FTA" stands for in your Businesses generally have little protection outside of warranties and or guarantees as businesses are meant to be smarter than the average consumer and not need protecting like they do. If there is a standard warranty on the goods for 3 years (presumabely for hardware) then that is the extent of your legal liability. Ofcourse, a "good business" may look to make some sort of accomodation outside this period for a good customer, but it is on a "good service" basis, nothing else

wellygary

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#676919 25-Aug-2012 18:47

The FTA gives a customer protection agaist mis representation, unless you give the customer an unrealistic representation of performance, I cannot see how the FTA would really apply as a guarantee,

Thats what service contracts are for....

http://m.consumeraffairs.govt.nz/for-consumers/law/the-fair-trading-act-1

networkn

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#676933 25-Aug-2012 19:10

Thanks. I understand he is mistaken re the CGA, that I am clear on. The business "equivalent" is the Fair Trading Act as I understand it, and this protects Businesses and Consumers. I just wasn't sure if the FTA could be used to come back at me in year 4 if he doesn't buy a 4 year warranty because in his mind, the server should last between 4-6 years.

richms

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#683576 9-Sep-2012 21:15

No, the govt expects businesses to be grown up enough to enter into propper contracts and not need the excessive hand holding that the CGA gives to poor defenseless consumers.

Richard rich.ms

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#683579 9-Sep-2012 21:24

The fair trading act covers people telling lies, the sale of goods act covers commercial transactions. Neither would help in this instance.

A lot of of people don't know their rights at all but even worse are the ones who think they do but have no idea...