South Australian Consolidated Acts

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FAIR TRADING ACT 1987 - SECT 24

24—Restitution

        (1)         Where a contract to which this Part applies is rescinded under this Division, restitution must be made by the parties to the contract as follows—

            (a)         the supplier must return or refund to the consumer any consideration or the value of any consideration given by the consumer under the contract or a related contract or instrument;

            (b)         the consumer must—

                  (i)         return or refund to the supplier any goods or the value (as at the date of supply) of any goods received from the supplier under the contract; and

                  (ii)         pay to the supplier the value of any services supplied under the contract up to the time of rescission (but not including the value of any such services supplied under a prescribed contract before the expiration of the cooling-off period in contravention of this Part).

        (2)         Where the consumer makes goods available for collection by the supplier at the place at which they were received from the supplier for the period of 28 days from the date of rescission of the contract and the supplier fails to collect the goods before the expiration of that period, the consumer will be taken to have made restitution in respect of those goods as required by subsection (1) and the goods become the property of the consumer free of any other right or interest.

        (3)         Where the consumer returns goods to the supplier under this section but has failed to take reasonable care of the goods, the consumer is liable to pay compensation to the supplier for the damage to or depreciation in the value of the goods, but the consumer is not liable for any such damage or depreciation attributable to normal use of the goods or circumstances beyond the control of the consumer.

        (4)         Where restitution of goods is not possible (because the goods have been consumed or affixed to land, because a third party has acquired an interest in the goods, or for any other reason), the impossibility of restitution of the goods is not a bar to rescission under this Division but, in that event, the consumer is liable to pay to the supplier the value of the goods as at the date of supply.

        (5)         The obligations imposed by this section may be enforced by action in any court of competent jurisdiction.

        (6)         A court convicting a supplier of an offence against this Part is competent to make orders, on the application of the prosecutor, for the enforcement of obligations imposed by this section.

        (7)         A person who fails to comply with an order under subsection (6) is guilty of an offence.

Maximum penalty: $10 000.



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