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Question 1

Where the failure can be remedied under s18(2) the consumer may:
Select one:
a) Either require the supplier to remedy the failure, or if the supplier fails to remedy the
failure, either have the failure remedied elsewhere and charge the supplier the cost, or reject

the goods
b) Either require the supplier to remedy the failure, or if the supplier fails to remedy the
failure, have the failure remedied elsewhere and charge the supplier the cost, but the
consumer may not reject the goods
c) Require the supplier to remedy the failure, but the consumer may not have the failure
remedied elsewhere and charge the supplier the cost, and may not reject the goods
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Your answer is correct.
The correct answer is: a) Either require the supplier to remedy the failure, or if the supplier
fails to remedy the failure, either have the failure remedied elsewhere and charge the supplier
the cost, or reject the goods
Question 2
Correct
Question text

. If a stranger knocks on your door and when you answer it offers to sell you a set of
encyclopædias, under the Fair Trading Act this would be an example of:
Select one:
a. An unfair contract term
b. A layby sale

c. An uninvited direct sale


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Your answer is correct.
The correct answer is: An uninvited direct sale
Question 3
Correct
Question text

Which is correct?
Select one:
a) Contracting out of the obligations under the Consumer Guarantees Act where the
goods or services are supplied for the personal, domestic or household use of the consumer is

(1) ineffective and (2) an offence under s13(i) of the Fair Trading Act
b) Contracting out of the obligations under the Consumer Guarantees Act where the
goods or services are supplied for the personal, domestic or household use of the consumer is
allowed if the goods and services are valued at $10 or more
c) Contracting out of the obligations under the Consumer Guarantees Act where the
goods or services are supplied for the personal, domestic or household use of the consumer is
a matter to be decided between the parties
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Your answer is correct.
The correct answer is: a) Contracting out of the obligations under the Consumer Guarantees
Act where the goods or services are supplied for the personal, domestic or household use of
the consumer is (1) ineffective and (2) an offence under s13(i) of the Fair Trading Act
Question 4
Correct
Question text

Which is correct?
Select one:
a) In Cooper v. Ashley & Johnson Motors Ltd the Auckland District Court held that a
series of minor defects could accumulate so as to constitute a substantial defect entitling the

buyer to reject the goods.


b) In Cooper v. Ashley & Johnson Motors Ltd the Auckland District Court held that a
series of minor defects could not accumulate so as to constitute a substantial defect
entitling the buyer to reject the goods.
c) In Cooper v. Ashley & Johnson Motors Ltd the Auckland District Court held that a
series of minor defects should be remedied by the consumer.
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Your answer is correct.
The correct answer is: a) In Cooper v. Ashley & Johnson Motors Ltd the Auckland District
Court held that a series of minor defects could accumulate so as to constitute a substantial
defect entitling the buyer to reject the goods.
Question 5
Correct
Question text

The guarantees with respect to the supply of goods under the Consumer Guarantees Act are:
Select one:
a) Title must pass to the buyer; delivery must be within an agreed or reasonable time;
acceptable quality; fitness for a particular purpose; compliance with description; compliance

with sample; price must be as agreed and repairs and spare parts are available.
b) Title must pass to the buyer; delivery must be within an agreed or reasonable time;
acceptable quality; fitness for a particular purpose; compliance with description and
compliance with sample.
c) Title must pass to the buyer; delivery must be within an agreed or reasonable time;
acceptable quality and fitness for a particular purpose.
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Your answer is correct.
The correct answer is: a) Title must pass to the buyer; delivery must be within an agreed or
reasonable time; acceptable quality; fitness for a particular purpose; compliance with
description; compliance with sample; price must be as agreed and repairs and spare parts are
available.
Question 6
Correct
Question text

Which is correct?
Select one:
a) The Consumer Guarantees Act only applies to a supplier, who is in trade and supplies
goods or services of a kind ordinarily supplied for personal, domestic or household use or

consumption, to an end user.


b) The Consumer Guarantees Act only applies to a supplier, who is in trade and supplies
goods (but not services) of a kind ordinarily supplied for personal, domestic or household
use or consumption, to an end user.
c) The Consumer Guarantees Act only applies to a supplier, who is in trade and supplies
goods or services of a kind ordinarily supplied for personal, domestic or household use or
consumption, to an end user. The Act also applies to houses built after 1993.
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Your answer is correct.
The correct answer is: a) The Consumer Guarantees Act only applies to a supplier, who is in
trade and supplies goods or services of a kind ordinarily supplied for personal, domestic or
household use or consumption, to an end user.
Question 7
Correct
Question text

The Commerce Commission may issue and infringement notice


Select one:
a. Only in the case of breaches of the Consumer Guarantees Act.
b. In the case of any breach of the Fair Trading Act so long as it is not too serious

c. Only with respect to specified offences


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Your answer is correct.
The correct answer is: Only with respect to specified offences
Question 8
Correct
Question text

Which is correct?
Select one:
a) Section 41 of the Consumer Guarantees Act states that the provisions of the Act will
not apply to contracts where the goods or services are not supplied in trade; or where goods
or services are supplied by a charitable organisation for the principal purpose of benefitting

the recipient.
b) Section 41 of the Consumer Guarantees Act states that the provisions of the Act will
not apply to contracts where the goods or services are not supplied in trade; or where goods
or services are supplied by a charitable organisation unless this is for the principal purpose
of benefitting the recipient.
c) Section 41 of the Consumer Guarantees Act states that the provisions of the Act will
not apply to contracts where the goods or services are not supplied in trade, and where goods
or services are supplied by a charitable organisation for any purpose or consideration.
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Your answer is correct.
The correct answer is: a) Section 41 of the Consumer Guarantees Act states that the
provisions of the Act will not apply to contracts where the goods or services are not supplied
in trade; or where goods or services are supplied by a charitable organisation for the principal
purpose of benefitting the recipient.
Question 9
Correct
Question text

Where the failure of a consumer guarantee cannot be remedied or is of a substantial character


s18(3) the consumer may either:
Select one:
a) Reject the goods, or obtain damages for any loss in the value of the goods. In either

case the consumer may obtain damages for consequential losses.


b) Reject the goods, or obtain damages for any loss in the value of the goods. In neither
case may the consumer obtain damages for consequential losses.
c) Reject the goods, or obtain damages for any loss in the value of the goods. Damages
for consequential losses are only available where the loss is too remote to be foreseeable.
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Your answer is correct.
The correct answer is: a) Reject the goods, or obtain damages for any loss in the value of the
goods. In either case the consumer may obtain damages for consequential losses.
Question 10
Correct
Question text

Which is correct?
Select one:
a) In Nesbit v Porter the Court of Appeal said that the definition of “consumer” clearly
contemplated that some types of goods could be acquired for either private or commercial
use. Evidence had shown that about 20% of buyers of Navaras buy them for private use, so
therefore the Nesbits’ purchase was not an unusual or uncommon event. The Act therefore

applied.
b) In Nesbit v Porter the Court of Appeal said that the definition of “consumer” clearly
contemplated that some types of goods could be acquired for either private or commercial
use. Since very few people bought the Navara for private use the purchase of these trucks
was not covered by the Act
c) In Nesbit v Porter the Court of Appeal said that the definition of “consumer” clearly
stated that the Act only applied to types of goods that were always acquired for a purely
private use.
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Your answer is correct.
The correct answer is: a) In Nesbit v Porter the Court of Appeal said that the definition of
“consumer” clearly contemplated that some types of goods could be acquired for either
private or commercial use. Evidence had shown that about 20% of buyers of Navaras buy
them for private use, so therefore the Nesbits’ purchase was not an unusual or uncommon
event. The Act therefore applied.

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