Contracting Out of the Fair Trading Act Nz

Contracting Out of the Fair Trading Act NZ: Is it Legal?

Businesses in New Zealand have the right to contract out of certain laws, including the Fair Trading Act 1986 (FTA). This means that they can limit or exclude liability for breach of the act, but only under certain circumstances. As a copy editor experienced in search engine optimization (SEO), it is important to understand the legal implications of contracting out of the FTA.

What is the Fair Trading Act NZ?

The FTA is a consumer protection law that aims to promote fair trading practices, protect consumers from misleading or deceptive conduct, and provide remedies for consumers who have been harmed by unfair practices. It covers a wide range of commercial activities, including advertising, sales, pricing, and product safety.

What does contracting out of the FTA mean?

Contracting out of the FTA is when a business includes a clause in their contract that limits or excludes their liability for breaching the act. This means that if a customer is harmed by false or misleading information provided by the business, they may not be able to hold the business liable for damages.

When is it legal to contract out of the FTA?

The FTA allows businesses to contract out of liability for certain breaches of the act if they meet certain requirements. For example, a business can contract out if the customer is a business and not a consumer, if the contract is for more than $40,000, or if the business has taken reasonable steps to bring the exclusion clause to the attention of the customer.

However, even if a business meets these requirements, they cannot contract out of liability for certain prohibited conduct, such as making false or misleading representations about a product or service, or engaging in unconscionable conduct.

What are the consequences of contracting out of the FTA?

If a business contracts out of liability for certain breaches of the FTA, they may be able to avoid paying damages to customers who have been harmed by their actions. However, customers may still be able to take legal action against the business for breaches of other laws, such as the Consumer Guarantees Act or the Sale of Goods Act.

Additionally, contracting out of the FTA may harm a business`s reputation if customers feel that they have been unfairly treated or misled. This can lead to a loss of trust in the business, and can ultimately harm their bottom line.

Conclusion

While businesses in New Zealand have the right to contract out of certain laws, including the Fair Trading Act, it is important to do so carefully and only under the circumstances allowed by the act. This can help businesses limit their liability for breaches of the act, but they should also be aware of the potential consequences of doing so. As a professional, it is important to understand the legal implications of contracting out of the FTA and to ensure that any content related to such topics is accurate and compliant with New Zealand law.

Więcej w tej kategorii: