Ben travels overseas on holiday. He buys himself a pair of shoes and 9 extra pairs to sell on his return to New Zealand. He advertises the shoes for sale on TradeMe. What is Ben’s legal position? Group of answer choices The sale is not covered by the Consumer Guarantees Act because the manufacturer does not have a place of business in New Zealand. The sales are not covered by the Consumer Guarantees Act because the Act does not cover Internet sales. Ben is subject to the Consumer Guarantees Act and the Fair Trading Act. Ben is only subject to the Consumer Guarantees Act if the manufacturer does not have a place of business in New Zealand.
Question
Ben travels overseas on holiday. He buys himself a pair of shoes and 9 extra pairs to sell on his return to New Zealand. He advertises the shoes for sale on TradeMe. What is Ben’s legal position? Group of answer choices
The sale is not covered by the Consumer Guarantees Act because the manufacturer does not have a place of business in New Zealand.
The sales are not covered by the Consumer Guarantees Act because the Act does not cover Internet sales.
Ben is subject to the Consumer Guarantees Act and the Fair Trading Act.
Ben is only subject to the Consumer Guarantees Act if the manufacturer does not have a place of business in New Zealand.
Solution
Ben is subject to the Consumer Guarantees Act and the Fair Trading Act.
Explanation:
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The Consumer Guarantees Act (CGA) in New Zealand applies to goods and services that are ordinarily purchased for personal, domestic, or household use. This includes goods sold by a trader to a consumer. In this case, Ben is acting as a trader as he is selling the shoes he bought overseas.
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The CGA also applies to goods sold via the internet. Therefore, the fact that Ben is selling the shoes on TradeMe does not exempt him from the CGA.
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The Fair Trading Act (FTA) in New Zealand prohibits misleading and deceptive conduct in trade. This would apply to Ben as he is engaging in trade by selling the shoes.
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The location of the manufacturer is not relevant to whether the CGA or FTA apply. These Acts apply based on the nature of the transaction (i.e., a trade transaction) and the location of the transaction (i.e., in New Zealand), not the location of the manufacturer.
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