Question

Matt is an ardent fan of the Star Wars movie series. When the latest episode of the series was released on DVD, he was one of the first customers to buy a copy for $50 from a retail store. He was not happy with the quality of the DVD. The pictures of a few scenes in the movie is grainy and blurry. Apart from this issue, the DVD plays smoothly. He brought the DVD back to the retail store and demanded a refund. The store refused to accept the return of, or give a refund for the DVD. The store manager said that the defects could not be remedied.

ADVISE Matt, with reference to relevant statutory provisions and case law, his rights and remedies under the Consumer Guarantees Act 1993. Assume that the Act applies to the transaction and that there is no contracting out of the Act.

(ii) Would your answer be different if Matt had bought the DVD for $10 from a secondhand store and there is a sticker on the storage case indicating that the DVD is an ex-rental item

USE NZ LAW acts and legislation

Answer 1

i. The Consumers Guarantees Act protects consumers by allowing them to seek repairs, replacements of refunds when goods are defective, and setting minimum guarantees for all products and services.

It is mentioned that the Act applies to the transaction, which means that Matt is a consumer within the meaning of the Act.

It is expected that consumers are sold goods which are free from defects.

In the given situation, the store admits that the product is defective, but also asserts that the defect cannot be remedied. A replacement too would not help, as the entire batch of the DVDs must be suffering from the same defect. The only resolution would be return of the product, and a refund of the price, which the store is refusing to do in the given situation.

Therefore, Matt should approach the Disputes Tribunal or the District Court for a resolution.

ii. The answer would not change. The Act applies to used products too. But the position might be different if there is a sticker on the storage case indicating that the DVD is an ex rental item, as the consumer is made aware and prepared that the software of the DVD might not be as good as new.