Which of the following is an example of a term/clause attempting to “contract out” under the Consumer Guarantees Act 1993 (CGA): Group of answer choices A clause/term in a contract that states that the businesses is liable only up to $150 for any loss or damage A clause/term in a contract that states that the businesses is not liable beyond the amount paid for the good or service A clause/term in a contract that states that the businesses is not liable for any loss or damage All the other options are examples of attempts to contract out of the CGA
Question
Which of the following is an example of a term/clause attempting to “contract out” under the Consumer Guarantees Act 1993 (CGA): Group of answer choices
A clause/term in a contract that states that the businesses is liable only up to $150 for any loss or damage
A clause/term in a contract that states that the businesses is not liable beyond the amount paid for the good or service
A clause/term in a contract that states that the businesses is not liable for any loss or damage
All the other options are examples of attempts to contract out of the CGA
Solution
All the other options are examples of attempts to contract out of the CGA
Explanation:
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The Consumer Guarantees Act (CGA) in New Zealand provides consumers with a range of guarantees about the goods and services that they buy for personal use. These guarantees cannot be contracted out of by businesses unless it is fair and reasonable to do so.
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A clause/term in a contract that states that the business is liable only up to $150 for any loss or damage is an attempt to limit the business's liability, which is an attempt to contract out of the CGA.
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A clause/term in a contract that states that the business is not liable beyond the amount paid for the good or service is also an attempt to limit the business's liability, which is an attempt to contract out of the CGA.
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A clause/term in a contract that states that the business is not liable for any loss or damage is an attempt to completely exclude the business's liability, which is an attempt to contract out of the CGA.
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Therefore, all these options are examples of attempts to contract out of the CGA.
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