Commonwealth Numbered Acts

TRADE PRACTICES AMENDMENT ACT 1977 No. 81 of 1977 - SECT 44

44. After section 75 of the Principal Act the following section is inserted in
Part V:- Rescission of contracts.
''75A. (1) Where-

   (a)  a corporation supplies goods to a consumer in the course of a
        business; and

   (b)  there is a breach of a condition that is, by virtue of a provision of
        Division 2, implied in the contract for the supply of the goods, the
        consumer is, subject to this section, entitled to rescind the contract
        by-

   (c)  causing to be served on the corporation a notice in writing signed by
        him giving particulars of the breach; or

   (d)  causing the goods to be returned to the corporation and giving to the
        corporation, either orally or in writing, particulars of the breach.

''(2) Where a consumer purports to rescind under this section a contract for
the supply of goods by a corporation, the purported rescission does not have
any effect if-

   (a)  the notice is not served or the goods are not returned within a
        reasonable time after the consumer has had a reasonable opportunity of
        inspecting the goods;

   (b)  in the case of a rescission effected by service of a notice, after the
        delivery of the goods to the consumer but before the notice is served-

        (i)    the goods were disposed of by the consumer, were lost, or were
               destroyed otherwise than by reason of a defect in the goods;

        (ii)   the consumer caused the goods to become unmerchantable or
               failed to take reasonable steps to prevent the goods from
               becoming unmerchantable; or

        (iii)  the goods were damaged by abnormal use; or

   (c)  in the case of a rescission effected by return of the goods, while the
        goods were in the possession of the consumer-

        (i)    the consumer caused the goods to become unmerchantable or
               failed to take reasonable steps to prevent the goods from
               becoming unmerchantable; or

        (ii)   the goods were damaged by abnormal use.

''(3) Where a contract for the supply of goods by a corporation to a consumer
has been rescinded in accordance with this section-

   (a)  if the property in the goods had passed to the consumer before the
        notice of rescission was served on, or the goods were returned to, the
        corporation-the property in the goods re-vests in the corporation upon
        the service of the notice or the return of the goods; and

   (b)  the consumer may recover from the corporation, as a debt, the amount
        or value of any consideration paid or provided by him for the goods.

''(4) The right of rescission conferred by this section is in addition to, and
not in derogation of, any other right or remedy under this Act or any other
Act, any State Act, any law of a Territory or any rule of law.''.