Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Schedule 1AA: Transitional, savings, and related provisions

You could also call this:

“Rules for changing old contracts and how new rules work”

This schedule outlines rules about unfair contract terms in small trade contracts. It explains that sections 26B to 26E of the Fair Trading Act don’t apply to contracts made before the commencement date, unless they were changed or renewed after that date. These sections also don’t apply to certain insurance agreements.

If you change or renew a contract after the commencement date, it’s treated as a new contract under sections 26B to 26E. The schedule defines important terms like “commencement date,” “relevant insurance agreement,” and “specified date.” The specified date is either 1 April 2025 or an earlier date set by the Governor-General.

The Governor-General can set an earlier date for the “specified date” by making an Order in Council. This order is considered secondary legislation and must follow specific publication rules.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS737837.

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

51: Application of Act to goods that are, or may be, exported to China, or

“Rules about being honest when sending things to China”

Next

Schedule 1: Enactment amended, or

“This schedule lists changes made to another law”

1AATransitional, savings, and related provisions Empowered by s 2A

1Provision relating to Fair Trading Amendment Act 2021

1Unfair contract terms in standard form small trade contracts

  1. Sections 26B to 26E do not apply to the following contracts (which, accordingly, are not small trade contracts and must be disregarded when determining which contracts form part of a trading relationship for the purposes of those sections):

  2. a contract entered into before the commencement date and not varied or renewed on or after that date:
    1. a relevant insurance agreement.

      1. If a contract entered into before the commencement date is varied or renewed on or after that date and is not a relevant insurance agreement, the contract (as varied or renewed) must be treated for the purposes of sections 26B to 26E as a new contract entered into on the date of the variation or renewal.

      2. In this clause,—

        commencement date means the date on which sections 26B to 26E come into force

          relevant insurance agreement means—

          1. a contract of insurance (as defined in section 7 of the Insurance (Prudential Supervision) Act 2010) entered into before the specified date, including as varied or renewed at any time; or
            1. a new contract that has the effect of operating as a renewal of a contract described in paragraph (a) or this paragraph, including as varied or renewed at any time

              specified date means—

              1. 1 April 2025; or
                1. if an earlier date is specified under subclause (4), that date.

                2. The Governor-General may, by Order in Council, specify a date for the purposes of paragraph (b) of the definition of specified date in subclause (3).

                3. An Order in Council made under subclause (4) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                Notes
                • Schedule 1AA clause 1: inserted, on , by section 21 of the Fair Trading Amendment Act 2021 (2021 No 32).