Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Layby sales

36E: Risk in goods

You could also call this:

“When you buy something in parts, the shop looks after it until you finish paying”

When you buy something through a layby sale, the seller keeps the items safe until you finish paying and take them home. This means that if anything happens to the items while they’re still with the seller, it’s the seller’s problem, not yours. Even if there’s another rule that says something different, this rule about the seller being responsible for the items is the one that counts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156625.

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

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”

Next

36F: Cancellation of layby sale agreement by consumer, or

“You can cancel a layby sale before taking the items home”

Part 4A Consumer transactions and auctions
Layby sales

36ERisk in goods

  1. Goods to which a layby sale agreement relates remain at the supplier's risk until property in the goods is transferred to the consumer and the consumer takes possession of those goods.

  2. To avoid doubt, this section overrides section 148 of the Contract and Commercial Law Act 2017.

Notes
  • Section 36E: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).
  • Section 36E(2): amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).