Victorian Consolidated Legislation

Fair Trading Act 1999 - SECT 32I

Merchantable quality of goods supplied

32I. Merchantable quality of goods supplied



(1) In a contract of supply of goods by a supplier who supplies the goods in
the course of a business, there is an implied condition that the goods are of
merchantable quality.

(2) For the purposes of subsection (1), goods are of merchantable quality if
they are as fit for the purposes for which goods of that kind are commonly
purchased as is reasonable to expect having regard to-

   (a)  the price of the goods; and

   (b)  the terms of the contract of supply; and

   (c)  the apparent condition of the goods when the supply is made; and

   (d)  all other relevant circumstances.

(3) The condition in a contract of supply of goods referred to in subsection
(1) does not extend to-

   (a)  defects of which the purchaser is aware when the supply is made; or

   (b)  if the purchaser has examined the goods or a sample of the goods
        before the contract is made-defects that the examination ought to have
        revealed.