Welcome to Townsville Electronics Service Centre

ACL Guarantees

There are nine Guarantees relating to the sale of goods.

Subdivision A—Guarantees relating to the supply of goods

51 Guarantee as to title
52 Guarantee as to undisturbed possession
53 Guarantee as to undisclosed securities etc.
54 Guarantee as to acceptable quality
55 Guarantee as to fitness for any disclosed purpose etc.
56 Guarantee relating to the supply of goods by description
57 Guarantees relating to the supply of goods by sample or demonstration model .
58 Guarantee as to repairs and spare parts
59 Guarantee as to express warranties

51  Guarantee as to title

             (1)  If a person (the supplier) supplies goods to a consumer, there is a guarantee that the supplier will have a right to dispose of the property in the goods when that property is to pass to the consumer.

             (2)  Subsection (1) does not apply to a supply (a supply of limited title) if an intention that the supplier of the goods should transfer only such title as the supplier, or another person, may have:

                     (a)  appears from the contract for the supply; or

                     (b)  is to be inferred from the circumstances of that contract.

             (3)  This section does not apply if the supply is a supply by way of hire or lease.

52  Guarantee as to undisturbed possession

             (1)  If:

                     (a)  a person (the supplier) supplies goods to a consumer; and

                     (b)  the supply is not a supply of limited title;

there is a guarantee that the consumer has the right to undisturbed possession of the goods.

             (2)  Subsection (1) does not apply to the extent that the consumer’s undisturbed possession of the goods may be lawfully disturbed by a person who is entitled to the benefit of any security, charge or encumbrance disclosed to the consumer before the consumer agreed to the supply.

             (3)  If:

                     (a)  a person (the supplier) supplies goods to a consumer; and

                     (b)  the supply is a supply of limited title;

there is a guarantee that the following persons will not disturb the consumer’s possession of the goods:

                     (c)  the supplier;

                     (d)  if the parties to the contract for the supply intend that the supplier should transfer only such title as another person may have—that other person;

                     (e)  anyone claiming through or under the supplier or that other person (otherwise than under a security, charge or encumbrance disclosed to the consumer before the consumer agreed to the supply).

             (4)  This section applies to a supply by way of hire or lease only for the period of the hire or lease.

53  Guarantee as to undisclosed securities etc.

             (1)  If:

                     (a)  a person (the supplier) supplies goods to a consumer; and

                     (b)  the supply is not a supply of limited title;

there is a guarantee that:

                     (c)  the goods are free from any security, charge or encumbrance:

                              (i)  that was not disclosed to the consumer, in writing, before the consumer agreed to the supply; or

                             (ii)  that was not created by or with the express consent of the consumer; and

                     (d)  the goods will remain free from such a security, charge or encumbrance until the time when the property in the goods passes to the consumer.

             (2)  A supplier does not fail to comply with the guarantee only because of the existence of a floating charge over the supplier’s assets unless and until the charge becomes fixed and enforceable by the person to whom the charge is given.

Note:          Section 339 of the Personal Property Securities Act 2009 affects the meaning of the references in this subsection to a floating charge and a fixed charge.

             (3)  If:

                     (a)  a person (the supplier) supplies goods to a consumer; and

                     (b)  the supply is a supply of limited title;

there is a guarantee that all securities, charges or encumbrances known to the supplier, and not known to the consumer, were disclosed to the consumer before the consumer agreed to the supply.

             (4)  This section does not apply if the supply is a supply by way of hire or lease.

54  Guarantee as to acceptable quality

             (1)  If:

                     (a)  a person supplies, in trade or commerce, goods to a consumer; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that the goods are of acceptable quality.

             (2)  Goods are of acceptable quality if they are as:

                     (a)  fit for all the purposes for which goods of that kind are commonly supplied; and

                     (b)  acceptable in appearance and finish; and

                     (c)  free from defects; and

                     (d)  safe; and

                     (e)  durable;

as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable having regard to the matters in subsection (3).

             (3)  The matters for the purposes of subsection (2) are:

                     (a)  the nature of the goods; and

                     (b)  the price of the goods (if relevant); and

                     (c)  any statements made about the goods on any packaging or label on the goods; and

                     (d)  any representation made about the goods by the supplier or manufacturer of the goods; and

                     (e)  any other relevant circumstances relating to the supply of the goods.

             (4)  If:

                     (a)  goods supplied to a consumer are not of acceptable quality; and

                     (b)  the only reason or reasons why they are not of acceptable quality were specifically drawn to the consumer’s attention before the consumer agreed to the supply;

the goods are taken to be of acceptable quality.

             (5)  If:

                     (a)  goods are displayed for sale or hire; and

                     (b)  the goods would not be of acceptable quality if they were supplied to a consumer;

the reason or reasons why they are not of acceptable quality are taken, for the purposes of subsection (4), to have been specifically drawn to a consumer’s attention if those reasons were disclosed on a written notice that was displayed with the goods and that was transparent.

             (6)  Goods do not fail to be of acceptable quality if:

                     (a)  the consumer to whom they are supplied causes them to become of unacceptable quality, or fails to take reasonable steps to prevent them from becoming of unacceptable quality; and

                     (b)  they are damaged by abnormal use.

             (7)  Goods do not fail to be of acceptable quality if:

                     (a)  the consumer acquiring the goods examines them before the consumer agrees to the supply of the goods; and

                     (b)  the examination ought reasonably to have revealed that the goods were not of acceptable quality.

55  Guarantee as to fitness for any disclosed purpose etc.

             (1)  If:

                     (a)  a person (the supplier) supplies, in trade or commerce, goods to a consumer; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that the goods are reasonably fit for any disclosed purpose, and for any purpose for which the supplier represents that they are reasonably fit.

             (2)  A disclosed purpose is a particular purpose (whether or not that purpose is a purpose for which the goods are commonly supplied) for which the goods are being acquired by the consumer and that:

                     (a)  the consumer makes known, expressly or by implication, to:

                              (i)  the supplier; or

                             (ii)  a person by whom any prior negotiations or arrangements in relation to the acquisition of the goods were conducted or made; or

                     (b)  the consumer makes known to the manufacturer of the goods either directly or through the supplier or the person referred to in paragraph (a)(ii).

             (3)  This section does not apply if the circumstances show that the consumer did not rely on, or that it was unreasonable for the consumer to rely on, the skill or judgment of the supplier, the person referred to in subsection (2)(a)(ii) or the manufacturer, as the case may be.

56  Guarantee relating to the supply of goods by description

             (1)  If:

                     (a)  a person supplies, in trade or commerce, goods by description to a consumer; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that the goods correspond with the description.

             (2)  A supply of goods is not prevented from being a supply by description only because, having been exposed for sale or hire, they are selected by the consumer.

             (3)  If goods are supplied by description as well as by reference to a sample or demonstration model, the guarantees in this section and in section 57 both apply.

57  Guarantees relating to the supply of goods by sample or demonstration model

             (1)  If:

                     (a)  a person supplies, in trade or commerce, goods to a consumer by reference to a sample or demonstration model; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that:

                     (c)  the goods correspond with the sample or demonstration model in quality, state or condition; and

                     (d)  if the goods are supplied by reference to a sample—the consumer will have a reasonable opportunity to compare the goods with the sample; and

                     (e)  the goods are free from any defect that:

                              (i)  would not be apparent on reasonable examination of the sample or demonstration model; and

                             (ii)  would cause the goods not to be of acceptable quality.

             (2)  If goods are supplied by reference to a sample or demonstration model as well as by description, the guarantees in section 56 and in this section both apply.

58  Guarantee as to repairs and spare parts

             (1)  If:

                     (a)  a person supplies, in trade or commerce, goods to a consumer; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that the manufacturer of the goods will take reasonable action to ensure that facilities for the repair of the goods, and parts for the goods, are reasonably available for a reasonable period after the goods are supplied.

             (2)  This section does not apply if the manufacturer took reasonable action to ensure that the consumer would be given written notice, at or before the time when the consumer agrees to the supply of the goods, that:

                     (a)  facilities for the repair of the goods would not be available or would not be available after a specified period; or

                     (b)  parts for the goods would not be available or would not be available after a specified period.

59  Guarantee as to express warranties

             (1)  If:

                     (a)  a person supplies, in trade or commerce, goods to a consumer; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that the manufacturer of the goods will comply with any express warranty given or made by the manufacturer in relation to the goods.

             (2)  If:

                     (a)  a person supplies, in trade or commerce, goods to a consumer; and

                     (b)  the supply does not occur by way of sale by auction;

there is a guarantee that the supplier will comply with any express warranty given or made by the supplier in relation to the goods.