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NSW What are the Statutory Warranty Regulations for B2B Service?

Discussion in 'Commercial Law Forum' started by CuriousAboutLaw, 5 September 2016.

  1. CuriousAboutLaw

    5 September 2016
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    I was wondering whether somebody could tell me if there are any regulations around minimum statutory warranty period for B2B service offerings which will exceed AU$ 40k? I understand that the consumer law even for business deals is only applicable up to 40k?

    Thanks for all the inputs.
  2. Victoria S

    Victoria S Well-Known Member

    9 April 2014
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    The ACL is not the only source of rights and obligations for the purchase of goods. The Sale of Goods Act (NSW) remains in force to regulate the sale of goods only (ie not services) by implying certain warranties into contracts for the sale of goods.

    For example, the warranties as to fitness for purpose (where if you make your needs known to the sales person the product they sell you needs to be capable of meeting those needs) and merchantable quality.

    "19 Implied condition as to quality or fitness

    (1) Where the buyer expressly or by implication makes known to the seller the particular purpose for which the goods are required so as to show that the buyer relies on the seller’s skill or judgment, and the goods are of a description which it is in the course of the seller’s business to supply (whether the seller be the manufacturer or not), there is an implied condition that the goods shall be reasonably fit for such purpose:

    Provided that in the case of a contract for the sale of a specified article under its patent or other trade name there is no implied condition as to its fitness for any particular purpose.

    (2) Where goods are bought by description from a seller who deals in goods of that description (whether the seller be the manufacturer or not), there is an implied condition that thegoods shall be of merchantable quality:

    Provided that if the buyer has examined the goods there shall be no implied condition as regards defects which such examination ought to have revealed.

    (3) An implied warranty or condition as to quality or fitness for a particular purpose may be annexed by the usage of trade.

    (4) An express warranty or condition does not negative a warranty or condition implied by this Act unless inconsistent therewith.
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