Consumer Contracts Act
The Consumer Contracts Act governs agreements that businesses enter into with you.
The standard terms that businesses offer must be reasonable. For instance, the terms must comply with laws and regulations while not benefitting the business at your expense.
Areas of applicability
The law applies to all standard terms that a business uses when it offers you a product, service or utility (such as electricity).
Areas of non-applicability
The law does not apply if you and the business have set the terms together such that you had the opportunity to affect them. At that point they are no longer standard terms.
Examples of unreasonable terms
- The terms give you weaker rights than you enjoy as stated in the Consumer Sales Act, Consumer Services Act, etc.
- The terms give the business rights that you do not have. For instance, the business is entitled to cancel the agreement but you are not.
- The terms are misleading or unclearly written such that you are unable to understand what rights and obligations you have.
What happens if the business does not follow the law?
- Proofread 10 April 2018