Consumer Guarantees Act 1993

Supply of services - Provisions relating to cancellation

36: Failure of substantial character

You could also call this:

“When a service you get has a really big problem”

When you receive a service, there are situations where the failure to meet the guarantee is considered very serious. This is called a ‘failure of substantial character’. Here’s when this happens:

You wouldn’t have bought the service if you knew about the problem beforehand.

The result of the service is not fit for what it’s usually used for, and it can’t be easily fixed in a reasonable time.

If you told the service provider about a specific purpose or result you wanted, and the service doesn’t meet that purpose or achieve that result, and it can’t be easily fixed in a reasonable time.

The result of the service is not safe to use.

If any of these things happen, it’s considered a big problem with the service you received.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM312850.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading

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37: Rules applying to cancellation, or

“How to properly cancel a service contract”

Part 4 Supply of services
Provisions relating to cancellation

36Failure of substantial character

  1. For the purposes of section 32(b), a failure to comply with a guarantee is of a substantial character in any case where—

  2. the services would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of the failure; or
    1. the product of the service is substantially unfit for a purpose for which services of the type in question are commonly supplied and the product cannot easily and within a reasonable time be remedied to make it fit for the purpose; or
      1. where section 29 applies, the product of the service is unfit for a particular purpose, or is of such a nature and quality that the product of the service cannot be expected to achieve any particular result, made known to the supplier and the product cannot easily and within a reasonable time be remedied to make it fit for the particular purpose or to achieve the particular result; or
        1. the product of the service is unsafe.