PURCHASERS AND CONSUMERS KNOW YOUR RIGHTS
- The Sale of Goods Act applies to all contracts where goods are sold, whether they involve consumer or business transactions. It must be pointed out that for the Sale of Goods Act to apply, there must be an actual sale where the goods are transferred from a seller to a purchaser.
- There is an implied condition that the seller must deliver good title to the goods to the purchaser. If it turns out later that the goods were stolen before the seller obtained them, whether the seller knew it or not, the purchaser can get his or her money back.
- If the goods are bought by description or by sample and what is delivered does not match the description or sample, the Sale of Goods Act implies conditions into the contract that permit the purchaser to refuse delivery.
- The Sale of Goods Act requires that when goods are sold by description (which now is taken to mean all mass-produced goods), those goods must be of merchantable quality. This means essentially that the goods must be free of any defects that would render them unusable or interfere with their effectiveness. If they are defective in some way or fail earlier than expected, a condition of the contract has been breached, and a refund can be demanded.
- Consumer protection legislation in its various forms is aimed at policing the marketplace, adjusting the balance between the bargaining position of the consumer and merchant, and establishing recourse for the worst abuses. Consumer refers to someone purchasing a product for his or her own use, not for resale, and usually not for use in a business activity.
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Government agencies are set up to investigate abusive practices and to resolve disputes. Typically, such organizations have the power to investigate, to search and seize records, to assist the consumer to obtain remedies, and to impose fines and other penalties in their own right. Large fines can be effective, but these bodies also often have the right to take away a licence and put the offender out of business.