Commonwealth Consolidated Acts

TRADE PRACTICES ACT 1974 - SECT 74D

             (1)  Where:

                     (a)  a corporation, in trade or commerce, supplies goods manufactured by the corporation to another person who acquires the goods for re‑supply;

                     (b)  a person (whether or not the person who acquired the goods from the corporation) supplies the goods (otherwise than by way of sale by auction) to a consumer;

                     (c)  the goods are not of merchantable quality; and

                     (d)  the consumer or a person who acquires the goods from, or derives title to the goods through or under, the consumer suffers loss or damage by reason that the goods are not of merchantable quality;

the corporation is liable to compensate the consumer or that other person for the loss or damage and the consumer or that other person may recover the amount of the compensation by action against the corporation in a court of competent jurisdiction.

             (2)  Subsection (1) does not apply:

                     (a)  if the goods are not of merchantable quality by reason of:

                              (i)  an act or default of any person (not being the corporation or a servant or agent of the corporation); or

                             (ii)  a cause independent of human control;

                            occurring after the goods have left the control of the corporation;

                     (b)  as regards defects specifically drawn to the consumer's attention before the making of the contract for the supply of the goods to the consumer; or

                     (c)  if the consumer examines the goods before that contract is made, as regards defects that the examination ought to reveal.

             (3)  Goods of any kind are of merchantable quality within the meaning of this section if they are as fit for the purpose or purposes for which goods of that kind are commonly bought as it is reasonable to expect having regard to:

                     (a)  any description applied to the goods by the corporation;

                     (b)  the price received by the corporation for the goods (if relevant); and

                     (c)  all the other relevant circumstances.