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Fair Trading Act 1986

Consumer transactions and auctions - Layby sales

36C: Disclosure requirements relating to layby sale agreement

You could also call this:

“Rules for sellers when making a layby sale agreement”

When you’re buying something through a layby sale, the seller needs to give you a written agreement. This agreement must be easy to read and understand. The seller must give you a copy of this agreement when you start the layby.

The agreement needs to have some important information on the first page. This includes a clear description of what you’re buying, and a summary of your right to cancel the layby. It also needs to say if there’s a charge for cancelling, and if so, how much it is or how it’s worked out. The seller’s name, address, phone number, and email address should also be on the first page.

The agreement must show the total price you’ll pay for the item. It also needs to have the date on it.

These rules don’t apply to some types of layby agreements that are covered by other laws about credit contracts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156623.

Topics:
Money and consumer rights > Consumer protection
Business > Fair trading
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36B: Meaning of layby sale agreement, or

“What a layby sale is and how it works”

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36D: Further disclosure if requested by consumer, or

“You can ask the seller for more details about your layby sale agreement, and they must provide it for free”

Part 4A Consumer transactions and auctions
Layby sales

36CDisclosure requirements relating to layby sale agreement

  1. A supplier must ensure that—

  2. every layby sale agreement entered into by that supplier—
    1. is in writing; and
      1. is expressed in plain language; and
        1. is legible; and
          1. is presented clearly; and
            1. complies with the requirements of subsection (2); and
            2. a copy of the agreement is given to the consumer at the time the agreement is entered into.

              1. The requirements referred to in subsection (1)(a)(v) are that—

              2. the following information is set out on the front page of the agreement:
                1. a clear description of the goods to be supplied under the agreement; and
                  1. a summary of the consumer's right to cancel the agreement under section 36F(1); and
                    1. whether or not a cancellation charge will be imposed; and
                      1. if a cancellation charge is to be imposed, either the amount of the charge (if a fixed charge is to be imposed) or a clear description of how the charge will be calculated; and
                        1. the supplier's name, street address, telephone number, and email address; and
                        2. the total price payable under the agreement is disclosed in the agreement; and
                          1. the agreement is dated.

                            1. This section and section 36D do not apply to a layby sale agreement that is a consumer credit contract to which subpart 2 of Part 2 of the Credit Contracts and Consumer Finance Act 2003 applies (which relates to required disclosure).

                            Notes
                            • Section 36C: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
                            • Section 36C(3): inserted, on , by section 58 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).