If you sell goods

You must make certain that the goods you sell fulfill certain conditions and warranties which are implied under the Trade Practices Act. You must be sure that goods:

• are of merchantable quality-that is, goods need to reach a basic level of quality given the price of the goods and any description that is provided with the goods
• are fit for the purpose or job that the consumer made known to you or that are self-evident
• match any description or sample given to the consumer whether in promotional material, over the phone, in person, on a website or on labelling or packaging
• are free from defects and faults.

You must also be sure that any goods you sell are clear of finance or encumbrances not disclosed to the consumer so that the consumer can have free title to the goods.

If you provide a service

If you provide a service you are obliged to carry it out with due skill and care. You must also make sure that any materials you provide as part of this service are fit for the purpose.

If you fail to meet any of these obligations, then the consumer has the right to have the service repeated or to seek payment for the cost of having it supplied again by someone else. The consumer may also be entitled to claim compensation for expenses they have incurred as a result, such as loss or damage.

Refunds

You do not have to refund a customer's money if they do not have proof of purchase (eg. a receipt), they just changed their minds, if they have damaged the goods, or they knew about a fault beforehand (eg. factory seconds).