Warranty Obligations for Hardware Sellers

The Trade Practice Act 1974 (Cth) and various State consumer protection laws provide for a number of warranties to be implied into contracts entered into by corporations and other entities with ‘consumers’.  Further, consumers may also be able to obtain remedies from manufacturers or importers of goods even if the goods were purchased from a retailer.  Many of these warranties cannot be excluded by contract.  The exact nature and extent of the warranties, who is a ‘consumer’ and who can be liable varies from State to State, and specific legal advice should be sought.

Broadly, the warranties that a supplier (and manufacturer/importer) of goods that are under $40,000 includes:

• goods will comply with applicable standards;
• goods will be of a merchantable quality (they must have a level of quality and performance that would be reasonable to expect given their price and description);
• goods will be fit for the purpose for which they were made, or a purpose that was made known to the seller prior to the purchase; 
• goods will match their description;
• spare parts and repair facilities are reasonably available.  What is “reasonable” depends on the circumstances.