Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Layby sales

36G: Cancellation of layby sale agreement by supplier

You could also call this:

“When a shop can stop your layby agreement”

If you’re buying something through a layby sale agreement, the seller can only cancel it in certain situations. They can cancel if you break an important part of the agreement. They can also cancel if something happens that they can’t control, which means they can’t get the item you want anymore and can’t find a good replacement. Lastly, they can cancel if they stop doing business, unless it’s because of the special situation mentioned in section 36I(1) of the law. These are the only reasons a seller is allowed to cancel a layby sale agreement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156628.

Topics:

Money and consumer rights > Consumer protection

Business > Fair trading

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

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

36H: Effect of cancellation of layby sale agreement, or

“What happens when you end a layby agreement”

Part 4A Consumer transactions and auctions
Layby sales

36GCancellation of layby sale agreement by supplier

A supplier may cancel a layby sale agreement only if—
the consumer has breached a material term of the agreement; or
owing to circumstances beyond the control of the supplier,—
1. the goods to which the agreement relates are no longer available; and
2. no satisfactory substitute goods can be reasonably obtained; or
the supplier has ceased trading (other than in the circumstances described in section 36I(1)).

Notes

Section 36G: inserted, on 17 June 2014, by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).