Is my NZ business liable for manufacturer defects?

• Published date: 28 February 2024
• Law Firm: LegalVision
• Author: Ms Tayler Berridge-Smith

When running a business in New Zealand, several responsibilities apply to the products you sell. You will generally be responsible if your business sells faulty or damaged goods to consumers. Consumer law, such as the Fair Trading Act and the Consumer Guarantees Act, establishes standards for the products you sell. The law requires you to offer a remedy to consumers where products are damaged or faulty. If you sell products from a manufacturer, you will still have to follow consumer laws. This article examines whether your business is liable for manufacturer defects.

Your Obligations Under Consumer Law

When you sell products to consumers in New Zealand, consumer law requires you to meet various guarantees about these products. These guarantees aim to protect consumer interests and maintain consumer standards. When you sell products to consumers, you guarantee that they are:

• fit for purpose. Goods must be fit for their intended purpose. If a consumer purchases a product with a specific purpose in mind, the product should be able to fulfil that purpose;
• shipped on time and in good condition;
• of safe and acceptable quality. Products must be of acceptable quality, which means they should be free from defects, safe, and durable. They should also meet the reasonable...