As a business owner, your sale of goods terms and conditions document is vital. It sets out the terms on which your business will provide goods to customers. Generally, customers will accept these terms before each purchase they make. If you sell goods online, these terms and conditions are usually made available at checkout before a customer completes their order and at the bottom of your website. If you are selling goods offline, the terms and conditions may be attached to your invoices or purchase orders before the customer finalises their order. As part of the terms and conditions, you should include provisions regarding the customer’s rights under Australian Consumer Law. This article will provide an overview of the various aspects to address in such provisions.
What is the Australian Consumer Law?
The Australian Consumer Law (ACL), found in the Competition and Consumer Act 2010 (Cth), details a set of guarantees that all consumers are entitled to whenever they purchase goods or services.
In relation to goods, these guarantees include that:
- the goods are of acceptable quality;
- goods match any description or samples;
- are fit for purpose; and
- you will honour any express warranties regarding the goods.
If you do not meet any of these guarantees, the consumer is entitled to:
- repair;
- replacement; or
- refund of the goods.
The consumer or supplier will have the discretion to choose the particular remedy, depending on the unique circumstances of the case.
ACL in your Terms and Conditions
You should have provisions in your terms and conditions letting your customer know that nothing in your document excludes or limits their legal rights under the ACL.
In this clause, you may also wish to:
- exclude any other warranties or conditions that the ACL does not guarantee;
- exclude any warranties or conditions you will not provide;
- detail how the customer is to submit a claim under the ACL to you. For example, providing evidence of the product defect and proof of purchase;
- how the customer is to return faulty products and any costs they must bear;
- whether you will refund return delivery costs; and
- whether you will cover dispatch costs of the repaired or replacement goods if their claim under the ACL is valid.
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Warranties
Depending on the nature of your business, you may also wish to include additional warranties, such as defect warranties. These go above and beyond the ACL requirements and may provide your customers with peace of mind. Remember, if you provide any express warranties, the ACL compels you to comply with them.
For example, suppose you are a pram manufacturer. In that case, you may wish to provide an additional warranty against defects that confirms your prams will be free from defects for 2 years from the date of purchase. If any fault, error or defect is found in the pram within that time, you will repair, replace or refund the cost of the pram to the customer.
You should also clarify the following terms for any additional warranties:
- the period during which it applies;
- the goods to which it applies;
- what the customer must do if they wish to claim under warranty;
- a detailed explanation of how to process a claim; and
- the situations you will not provide the additional warranty.
Disclaimer
You should also include a detailed disclaimer to clarify to the customers that it is their responsibility to ensure that all goods are appropriate for their use and the situation.
For example, suppose you are selling herbal teas online. In that case, you may wish to include in your sales terms and conditions any information about the teas published on your website:
- is for general information purposes only;
- does not take into account the customer’s health conditions; and
- if the customer has an existing health condition, they should consult a medical professional before consuming the tea.
As a franchisor, you must not engage in misleading and deceptive conduct. We explain what it is and how to avoid it. On the whole, your terms and conditions documents must meet ACL requirements. In addition to this, your business may elect to offer customers additional warranties. When doing so, you must detail any accompanying requirements carefully, as the ACL compels you to comply with them. Furthermore, your business should include any disclaimers establishing the customer’s responsibilities. If you need help drafting a sale of goods terms and conditions document, our experienced consumer lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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