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New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Layby sales

36B: Meaning of layby sale agreement

You could also call this:

“What a layby sale is and how it works”

A layby sale agreement is a special way for you to buy things from a shop. Here’s how it works:

You agree to pay for an item over time, not all at once. You can’t take the item home until you’ve paid all or most of the price. You pay for the item in small amounts called instalments. You need to make at least three payments, or two if the agreement says it’s a layby sale.

Remember, if something costs more than $30,000 (or a higher amount set by another law), it can’t be sold as a layby. Also, when you put down the first payment (called a deposit), that counts as one of your instalments.

This way of buying things helps you get items you want without having to pay for everything right away.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156621.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36A: Purpose of Part, or

“This part explains the rules for different ways of buying things”

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36C: Disclosure requirements relating to layby sale agreement, or

“Rules for sellers when making a layby sale agreement”

Part 4A Consumer transactions and auctions
Layby sales

36BMeaning of layby sale agreement

  1. In this subpart, layby sale agreement means an agreement (whether or not described as a layby sale agreement) between a supplier and a consumer for the supply of goods on terms (whether express or implied) that provide that—

  2. the consumer will not take possession of the goods until all or a specified portion of the total price of the goods has been paid; and
    1. the price of the goods is to be paid by—
      1. 3 or more instalments; or
        1. if the agreement specifies that it is a layby sale agreement, 2 or more instalments.

        2. However, a layby sale agreement does not include an agreement for the supply of goods that have a purchase price that is more than $30,000 or, if greater, the amount specified in section 10(1A)(b) of the Disputes Tribunal Act 1988.

        3. For the purposes of subsection (1)(b), a deposit paid by the consumer for the goods is an instalment.

        4. Repealed

        5. Repealed
        Notes
        • Section 36B: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
        • Section 36B(2): amended, on , by section 340(2) of the Tribunals Powers and Procedures Legislation Act 2018 (2018 No 51).
        • Section 36B(2): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).
        • Section 36B(4): repealed, on , by section 57 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).
        • Section 36B(5): repealed, on , by section 57 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).