Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Layby sales

36H: Effect of cancellation of layby sale agreement

You could also call this:

“What happens when you end a layby agreement”

If you cancel a layby sale agreement, the seller must give you back all the money you paid right away. But if you cancel for certain reasons, the seller might keep a small amount as a cancellation fee. If you haven’t paid enough to cover this fee, you might need to pay the rest. The seller can’t ask for any other money or try to punish you in any other way for cancelling, except for getting this cancellation fee.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156629.

Topics:
Money and consumer rights > Consumer protection
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36G: Cancellation of layby sale agreement by supplier, or

“When a shop can stop your layby agreement”

Next

36I: Bankruptcy, receivership, liquidation, or voluntary administration of supplier: completion of layby sale agreement, or

“What happens to your layby purchase if the shop goes broke?”

Part 4A Consumer transactions and auctions
Layby sales

36HEffect of cancellation of layby sale agreement

  1. If a layby sale agreement is cancelled under section 36F or 36G, the supplier—

  2. must immediately repay to the consumer all money paid to the supplier under the agreement, less (in the case of cancellation under section 36F or 36G(a)) any cancellation charge that is payable; and
    1. is, if the amounts paid by the consumer under the agreement are insufficient to cover the cancellation charge (if any), entitled to recover the balance of that charge from the consumer as a debt; and
      1. is not entitled to damages, or to enforce any other remedy, in relation to the cancellation, except as provided for in paragraphs (a) and (b).

        Notes
        • Section 36H: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).