Purpose: To explain the law and to identify how the law relates to a current commercial activity

Learning outcome/s being assessed:

• Describe relevant legal rules pertaining to commercial activities.

• Discuss how law may impact upon the way in which business is conducted.

• Demonstrate the techniques used to interpret commercial law cases and legislation

Task:

The Consumer Guarantees Act 1993 ("the CGA") only applies in relation to supplies of goods and services to "consumers".

You are employed by a retail business and your manager has asked you to provide guidance in relation to the situations when the obligations under the CGA must be complied with by the business.

Your task is to provide a brief report which explains the meaning of the term "consumer" in the CGA. Your report must:

1. Outline the relevant definition of "consumer" in the Consumer Guarantees Act 1993;

2. Explain how the definition operates in relation to goods which have mixed uses (private and commercial uses);

3. Explain whether the CGA applies to businesses which acquire goods of a kind ordinarily obtained for personal, household or domestic use;

4. Refer to the guidance given by the Court of Appeal in relation to the meaning of "consumer" in the case of Nesbit v Porter [2000] NZLR 465; and

5. In the conclusion, assist your manager in determining when buyers are covered by the "consumer" definition by providing 3 hypothetical examples of sales of particular goods to particular buyers and briefly explain whether the buyers of these goods would be "consumers".