Secondhand Dealers and Pawnbrokers Act 2004

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MichaelNZ

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Topic # 242271 18-Oct-2018 19:30

Do computer suppliers engaging in selling exlease equipment have to be licensed?

My reading of the Act suggests maybe. Industry peers think not. I can't find any info addressing this matter on the DOJ website or anywhere via Google.

surfisup1000

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Reply # 2110641 18-Oct-2018 19:52

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I had a quick read....

secondhand dealer means a person—
(a) who buys (other than for personal use or enjoyment or as a gift), sells, exchanges, or otherwise deals in secondhand articles or scrap metal; and
(b) who is not a pawnbroker or the employee of a secondhand dealer and pawnbroker

And...

The following are articles for the purposes of this Act:

(f) computer hardware, software, and other computer-related items:

And , bound by the following...

Secondhand dealers engaged in business to be licensed
(3)For the purposes of this Act, a person is presumed (in the absence of evidence to the contrary) to be engaged in business as a secondhand dealer if the person—
(a)on 6 or more different days within a 12-month period—
(i)buys secondhand articles or scrap metal for purposes other than personal use or enjoyment or as a gift; or
(ii)sells or exchanges secondhand articles or scrap metal that was acquired by the person for purposes other than personal use or enjoyment or as a gift; or
(b)within a 12-month period, obtains revenue of more than $2,000 from the sale of secondhand articles or scrap metal that was acquired by the person for purposes other than personal use or enjoyment or as a gift.
(4)For the purposes of this Act, the following are not engaged in business as secondhand dealers when selling secondhand articles or scrap metal:
(a)a registered auctioneer selling secondhand articles or scrap metal in the course of the registered auctioneer’s business:
(b)a charitable or non-profit organisation that sells secondhand articles or scrap metal, but only if—
(i)no article, and none of the scrap metal, sold is acquired by the organisation by purchase or for valuable consideration; and
(ii)any proceeds of sale are used solely for the purposes of the organisation:
(c)an Internet auction provider:
(d)an agent of the Crown:
(e)any other prescribed person.
(5)Acquiring secondhand articles as trade-ins when selling new goods does not of itself indicate that a person is engaged in business as a secondhand dealer.
(6)A person who carries on business as a secondhand dealer without holding a licence commits an offence and is liable on conviction to a fine not exceeding $20,000.

Seems clear, but it is surprising as there would be a lot of companies out there (and people) who would would unknowingly be second hand dealers....

The law looks poorly written in my view. Business to business is different to the likes of cash converters etc.

MichaelNZ

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Reply # 2110642 18-Oct-2018 19:55

surfisup1000:

Seems clear, but it is surprising as there would be a lot of companies out there (and people) who would would unknowingly be second hand dealers....

The law looks poorly written in my view. Business to business is different to the likes of cash converters etc.

That's the problem as I see it. Clearly the Act is intended to cover a certain style of business but is possibly wide enough to ensnare others.

Goosey

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Reply # 2110643 18-Oct-2018 19:57

I dont think this act applies to IT companies who sell off their ex lease equipment that they orignally suppied on lease to whomever.... UNLESS they are buying from external sources to then resell (e.g. accept people walking in and buying their old goods to then on sell).

MichaelNZ

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Reply # 2110644 18-Oct-2018 20:00

Goosey:

I dont think this act applies to IT companies who sell off their ex lease equipment that they orignally suppied on lease to whomever.... UNLESS they are buying from external sources to then resell (e.g. accept people walking in and buying their old goods to then on sell).

There is a moderately sizeable industry in New Zealand of companies who sell exlease equipment purchased from the companies who leased it who are typically finance companies who make their money from calculations - they don't really care what the stuff is.