COMLAW101 – LAW IN A BUSINESS ENVIRONMENT
CGA REPORT
A. TASK
Write a report (maximum 1,250 words, including any references) to inform an association of SMEs (small
and medium-sized enterprises) of the significance of the Consumer Guarantees Act 1993 for their business
practices and policies.
*The due date for this assignment is Tuesday 12 May at 11.59pm.
*This assignment is based on New Zealand’s commercial law.
B. OBJECTIVES
The Consumer Guarantees Act 1993 (CGA) is an important piece of legislation for businesses. It places
significant obligations on retailers, manufacturers and service providers, including importers and
distributers. Businesses which are unaware of these obligation could find themselves in breach of the law
and facing legal claims by unsatisfied consumers.
It is therefore important for students entering the world of business and commerce to be aware of these
obligations and understand how businesses need to act and respond to customers on the basis of these
obligations.
It is important for businesses to know:
1. Who the CGA applies to
2. The definition of a consumer
3. What guarantees are given to consumers
4. What rights customers/consumers have when they are unsatisfied with the goods or services
5. Whether, and in what circumstances, it is possible to contract out of the CGA
6. The practical consequences of the CGA for business practices
This assignment presents an opportunity to review a piece of legislation that is relevant and important for
business practices, understand that legislation and practically apply that legislation in a business context.
C. DETAILS OF THE TASK
In your report, you should cover the 6 issues listed above. Please note that assignment is intended to
highlight a best practice approach for businesses and so the final issue is of particular importance.
The report should refer to the key sections in the CGA which can be found online at
www.legislation.govt.nz.
In addition the following websites might be helpful:
https://www.consumerprotection.govt.nz
https://www.consumer.org.nz
You are welcome to find information from other sources as well.
Your report should:
a. Set out the obligations and implications for the GCA in a logical flow. The report should be both legally
accurate and user friendly for owners and managers of SMEs.
b. Include key references to the CGA, but do this in a way that does not overwhelm the reader. If a
person reading your report wants to understand the details of the legislation they can look it up using the
reference you give them.
c. Make sure you highlight the practical implications of the CGA – i.e. what a SME has to do to comply with
the obligations contained in the CGA.
to find information from other sources as well.
D. MARKING GUIDE
Accurate and comprehensive presentation of CGA obligations:
• _Who the CGA applies to (8 marks)
• _The definition of a consumer (12 marks)
• _What guarantees are given to consumers (10 marks)
• _What rights customers/consumers have when they are unsatisfied with the goods or services (10
marks)
• _Whether, and in what circumstances, it is possible to contract out of the CGA (10 marks)
• _Practical consequences of the CGA for business practices (20 marks)
Also:
• _Ease of understanding (10 marks)
• _Structure and logical flow (10 marks)
• _Spelling and grammar (10 marks)
E. FORMATTING ETC
• _WORD document
• _1.5 “paragraph spacing”
• _Standard Margins
• _Insert Page Numbers
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