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Home Business Law

What Is The Sale Of Goods Act in New Zealand?

Kate Walton by Kate Walton
December 27, 2022
in Business Law
0

The sale of goods act is a complex area of law that has become increasingly relevant in recent years. The Sale Of Goods Act 1996 (SOGA) provides the legal framework for selling goods in New Zealand. It has been amended several times since its inception, and, more recently, in 2013, it was amended to remove the section dealing with the supply of digital goods.

We all know about consumer protection, but what exactly is the sale of goods act? If you sell any product online, you must be aware of the sale of goods act. Otherwise, you risk being fined. The sale of goods act applies to any good you sell online. It’s a big part of the NZ law and applies when you ship stuff overseas. Please give an overview of the sale of goods act and how it affects you when you sell online.

Article Summary show
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Find Out When You Need to Hire a Business Lawyer
Define the sale of goods
How to write a contract for the sale of goods
When does a contract come into effect?
When is a contract deemed binding?
Frequently Asked Questions Sale Of Goods Act
Top 3 Myths About Sale Of Goods Act
Conclusion

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The Sale of Goods Act (1870) is a legal statute that governs the sale of goods in New Zealand. It applies throughout New Zealand and covers private individuals and businesses, including online marketplaces and retailers. It deals primarily with selling consumer products and protects consumers from unfair or misleading conduct on the part of sellers.

Sale Of Goods

Define the sale of goods

The sale of goods act (SGA) covers any commercial transaction that involves the sale of goods and includes all transactions involving the purchase, hires, or lease of goods by an individual or business, whether by way of a purchase order, contract, lease, loan, bailment, exchange, gift, or another arrangement. Sellers under 18 are required to follow SGA, whereas sellers over 18 must comply with SGA.

The SGA only applies to goods sold for money or value.

This includes goods such as:

* Software

* Services

* Services rendered

* Goods sent overseas

* Goods delivered

* Goods supplied

* Items sold on auction sites

* Products offered as samples

* Products sold by way of an online shop

* Digital downloads

* Physical products (i.e., books)

The sale of goods act applies to all online sellers, regardless of whether they are sole traders, a company, or business partners.

How to write a contract for the sale of goods

So, what does the sale of goods act mean for you? Let’s say you sell products online. For example, you sell your eBooks and products on Amazon or other products on a marketplace website like eBay.

To be clear, you are a consumer and are covered under the consumer protection act.  However, the sale of goods act comes into play when you sell something online. The main difference is that you must be very careful when selling products.

You must make sure that you do the following:

  • Selling a product is not illegal.
  • You provide a warranty for the product.
  • You disclose the terms and conditions.
  • You also need to disclose any defects in the product.

This is just a general overview of the sale of goods act. To learn more about the sale of goods act, check out the link below.

When does a contract come into effect?

A contract is an agreement between two parties. In New Zealand, a contract comes into effect once the offer is accepted by the person making the offer. If you sell products, you are legally obligated to deliver the product to your buyer. So you need to make sure you have a contract in place.

This is especially important if you are dealing with a large order. Make sure you have a contract in place before you accept the order. If you are a business that ships internationally, you should also be aware that the sale of goods act can affect you. A contract can be written up or verbal. Either way, it’s essential to have a contract in place before you start accepting orders.

When is a contract deemed binding?

This can be a tricky question. There are many factors to consider, so it’s often best to seek legal advice. A contract is legally binding when there is a meeting of the minds between the parties. That means both parties must be clear about the terms, and the other party must agree.

The meeting of the minds is usually done verbally, and it can also be done in writing. However, a written contract is more formal than a verbal one. One of the key things to watch out for is the time limit. You may lose your legal rights to the contract if you haven’t met all the conditions by a certain deadline.

Frequently Asked Questions Sale Of Goods Act

Q: What’s the difference between the Sale Of Goods Act?

A: The Sale Of Goods Act covers the sale of goods, whereas the Consumer Guarantees Act covers the sale of services.

Q: If a consumer returns something to a store, who has the burden of proof?

A: The store has the burden of proof.

Q: Is there an effective way to get a consumer to pay for a returned item?

A: There are several ways to try and get consumers to pay. Some retailers require you to sign a contract when you buy the product. You may be entitled to return the product under the Sale Of Goods Act if you do not agree to this.

Top 3 Myths About Sale Of Goods Act

1. Buyer’s or Seller’s rights are the same.

2. The buyer has to sue the seller for non-delivery.

3. The buyer can only sue for non-delivery if there has

Conclusion

We’re going to look at the Sale of Goods Act 2020. This law was introduced to protect consumers in the United Kingdom and Australia from poor business practices. The main purpose of the Sale of Goods Act is to stop businesses from selling things below the cost price. When they do this, it’s known as a ‘cheap trick’. Now, the Sale of Goods Act doesn’t apply in New Zealand. But that doesn’t mean you can’t similarly do business. The best way to avoid cheap tricks is to set a fair price for your products. If you can’t do that, you need to ensure you are providing satisfactory service and that your customers are satisfied.

Kate Walton

Kate Walton

I am a lawyer. I love to write blogs on my free time. I like to write about all things related to the law. I have always been a writer and have been writing ever since I was in grade school. I believe that learning should be fun, engaging, and interactive. My articles are written for a general audience and contain basic legal information for those who need a quick reference or refresher.

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