The ACL provides consumers with guarantees regarding the quality, safety, and fitness for purpose of goods and services. These guarantees include:
Guarantee of acceptable quality
Guarantee of fitness for any disclosed purpose
Guarantee of supply of goods by description
Guarantee of supply of goods by sample or demonstration model
Guarantee of title
Guarantee against undisclosed securities
Guarantee of undisturbed possession
Guarantee of AcceptableQuality: Goods must be of acceptablequality, free from defects, safe, and durable.
Guarantee of Fitness for Any DisclosedPurpose: If the consumer discloses a particular purpose for which they are acquiring the goods, the goods must be fit for that purpose.
Guarantee of Supply of Goods by Description: Goods must match the description provided by the seller or manufacturer.
Guarantee of Supply of Goods by Sample or Demonstration Model: Goods must match any sample or demonstration model provided to the consumer.
Guarantee of Title: The consumer must receive clear title to the goods, free from any encumbrances or undisclosedsecurities.
Guarantee Against Undisclosed Securities: Goods must not be subject to any undisclosed securities or charges.
Guarantee of UndisturbedPossession: The consumer must have the right to possess and use the goods without interference.
Under the ACL, a contractual term is void if it is unfair to the consumer.
A term is considered unfair if it:
Causes a significant imbalance in the parties' rights and obligations.
Is not reasonably necessary to protect the legitimate interests of the party advantaged by the term.
Would cause detriment to the consumer if enforced.
Examples of unfair terms may include terms that excessively limit or exclude liability, unilaterally vary the contract, or disproportionately penalize the consumer for breach.
The consumer guarantees provided under the ACL work together to ensure that consumers receive goods and services of satisfactory quality and that their rights are protected in consumer transactions.
These guarantees operate alongside other protections under the ACL, such as the prohibition of misleading or deceptive conduct, unfair contract terms, and unconscionable conduct.
If a consumer's rights under the consumer guarantees are breached, they may be entitled to remedies such as repair, replacement, refund, or compensation, depending on the circumstances of the breach.