CONSUMING MATTERS

March 2001

PRODUCED BY

THE CONSUMER AND TENANT RESOURCE CENTRE OUTER EAST

FUNDED BY THE CONSUMER AND BUSINESS AFFAIRS VICTORIA

LEASE BREAKING

A tenancy lease is a legally binding document. Both the landlord and tenant are bound to the agreement unless one of them breaches specific sections of the Residential Tenancies Act.

If a tenant needs to move out prior to the termination of the lease they may be able to. However, they may incur costs including; advertising costs, a reletting fee if an estate agent is involved and rent until new tenants move in. Landlords must take steps to minimise their loss caused by the lease break. If they don't, then they may not be entitled to compensation for their total loss. Similarly, if a landlord wants to take back a rented house before the expiry of the lease and the tenant agrees to move out, then compensation should be paid. This may be the cost of the removalist and utility reconnection fees at a new house. The tenant does not have to agree to vacate if they wish to remain in occupancy.

The extent of the compensation that either party has to pay will depend on how far the lease still has to run and the reason for the lease break. The amount may have to be decided by the Residential Tenancies List of the Victorian Civil and Administrative Tribunal if an agreement can't be reached.

WARRANTIES & MORE WARRANTIES!

What do they all mean? Voluntary/express warranties are typically supplied by the manufacturer and often referred as a Manufacturer's Warranty. This is an additional warranty over and above the one given to consumers by law. Voluntary warranties may have restrictions and it is important for consumers to read all documentation carefully. Extended warranties usually have to be purchased separately or are built into the purchase price. These warranties either extend the voluntary warranty period or offer a warranty where a voluntary warranty is not supplied.

Then there are Statutory Warranties which are also known as implied warranties. Consumers are automatically protected under the Trade Practices Act regardless of whether or not the seller or manufacturer chooses to supply a voluntary warranty with the goods or services. Voluntary warranties cannot be used to exclude the statutory rights given by the Trade Practices Act. Statutory warranty rights cannot be limited in any way, even if the consumer does not return the manufacturer's guarantee card that was supplied with the goods. Consumers must remember that the statutory warranty is different to the voluntary/ manufacturer's warranty. If goods are bought at auction there is no Statutory Warranty. The seller only has to supply goods with a clear title. If a manufacturer's warranty is offered with auctioned goods then only the terms and conditions of that warranty apply.

A Statutory Warranty means that goods must be of merchantable quality, fit for the purpose, match the description or sample shown and must be free from defects. If they do not meet all these conditions then the consumer has the choice of the remedy. The remedy could be a refund, compensation, repair or replacement but it will depend on the circumstances. Consumers may be entitled to only a partial refund if the fault develops after the goods have had some use. It has to be determined what is reasonable, depending on how much use, how old and what price was paid. A voluntary warranty can be valuable if it offers a replacement after 12 months of use whereas the Statutory Warranty may be a little less clear. As more time elapses a repair may be considered a reasonable remedy under a Statutory Warranty. In the situation where a repair is considered a reasonable remedy, whether it be voluntary or a statutory warranty, there is an obligation that the manufacturer will be able to supply parts for a reasonable period. If they don't, consumers who suffer damage/loss as a result of non-supply of parts may claim compensation. This obligation is above and beyond any voluntary obligation placed on goods by the manufacturer.

It is important to remember that goods do not have to be returned with the original packaging to obtain a refund and if faulty goods have to be returned to the place where they were bought, any freight costs should be borne by the seller. If the retailer insists the consumer gets the goods to the manufacturer and the consumer incurs freight costs, this is considered a consequential loss that can be claimed from the retailer/manufacturer directly or through the Victorian Civil and Administrative Tribunal.

If you would like more information on warranties just ring the Centre on 9761 0288 and an ACCC publication can to sent out to you.

CONSIGNMENT SELLING

Have you bought something from a store, to find out later that it was there on consignment and when you went back to seek a refund or warranty you were told by the trader 'bad luck - they're not my goods - I don't have to do anything about them'.

This is completely untrue - goods sold on consignment - whether the consumer knows they're on consignment or not is irrelevant. These types of sales are protected by all consumer legislation.

Your contract is with the store you bought the goods from and therefore they must honour any refund or warranty obligations given to you by consumer legislation.

CHAIN LETTERS

YOU ARE ABOUT TO MAKE AT LEAST $200,000 IN 90 DAYS OR LESS WITH A 100% MONEY BACK GUARANTEE!

Does this sound familiar? There are numerous schemes being advertised that promise instant wealth for little effort. Letters appear in the mail box personally addressed that resemble chain letters.

Consumers are urged to send money to people named in the letter and to place their own name on the list. They are then assured that the money will come rolling in! Schemes that appear too good to be true usually are! There isn't an instant formula to wealth creation. Most of these schemes only make the instigators rich.

INFORMATION KITS AVAILABLE

The Centre has the following information kits which can be posted out free of charge: Building, Home Buyer, Scams and Repairs, Tenancy - Landlord and Tenant, Trader, Baby/Safe Toys, Buying a Car, Computer Info and Consumer Transactions.

PETS IN TENANCY

The Residential Tenancies Act 1997 doesn't say anything about keeping pets on rented premises. If you have a pet or intend to get a pet you should make sure the landlord agrees before renting the property.

Landlords can refuse to rent their property to a tenant with a pet. Even if you have the landlord's consent to having a pet, problems sometimes arise. If your pet is causing a nuisance or damaging the rented property, the landlord can give you a Breach of Duty Notice stating that you must stop your pet from doing this. If you don't fix the problem within 14 days the landlord can apply to the Tribunal for a Compliance Order.

If a tenant's pet is endangering the safety of neighbours, eg your dog has attacked the neighbour's children, the landlord can give the tenant an Immediate Notice to Vacate and follow this up with an application to the tribunal for possession.

If the landlord finds that you have a pet, they may tell you that you will be evicted if you do not get rid of your pet. This is not necessarily true and you should contact the Consumer and Tenant Resource Centre on 9761 0288 for more information.

GUEST SPEAKERS

The Centre offers free consumer and/or tenancy talks to organisations. We can tailor a talk to your needs giving you valuable information on your rights and responsibilities.

We are now taking bookings for this year, ring early on 9761 0288 to secure the date of your choice.