South Australian Consolidated Acts

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CONSUMER TRANSACTIONS ACT 1972 - SECT 6

6—Conditions and warranties to be implied in consumer contracts

        (1)         In every consumer contract for the sale of goods there is—

            (a)         an implied condition on the part of the supplier that in the case of a sale the supplier has a right to sell the goods, and that in the case of an agreement to sell the supplier will have a right to sell the goods at the time when the property is to pass; and

            (b)         an implied warranty that the goods will be free from any charge or encumbrance in favour of a third party not declared or known to the consumer before or at the time when the contract is made.

        (2)         In every consumer contract for the sale or supply of goods there is an implied warranty that the consumer will have and enjoy quiet possession of the goods for so long as the consumer is not in default under the contract.

        (3)         In every consumer contract for the sale or supply of goods by description there is an implied condition that the goods will correspond with the description, and if the contract is made by reference to sample as well as description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

        (4)         In every consumer contract for the sale or supply of goods there is an implied condition that the goods are of merchantable quality but no such condition is implied—

            (a)         as regards defects in goods of which the supplier or an agent of the supplier could not reasonably have been aware at the time the contract was made; or

            (b)         if the consumer has examined the goods or a sample of the goods, as regards defects that the examination ought to have revealed.

        (5)         For the purposes of this section goods are of merchantable quality if they are as fit for the purpose for which goods of that description are ordinarily used as is reasonable to expect having regard to the following considerations:

            (a)         the price of the goods and the terms and conditions of the relevant consumer contract and the circumstances surrounding the formation of the contract; and

            (b)         the apparent condition of the goods.

        (6)         If the consumer expressly, or by implication, makes known to the supplier, or a servant or agent of the supplier the particular purpose for which the goods are required, so as to show reliance on the supplier's skill or judgment and the goods are of a description which it is in the course of the supplier's business to supply, there is an implied condition in the consumer contract that the goods are reasonably fit for that purpose.



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