What does “trade” encompass according to the CGA?

The definition of "trade" within the context of the Consumer Guarantees Act (CGA) in New Zealand is broad and comprehensive, which is why "any activity related to the supply of goods or services" is the correct answer. The CGA is designed to protect consumers in various commercial interactions by ensuring that their transactions are fair and that the goods and services provided meet certain guarantees.

This inclusive definition covers not just formal commercial transactions but extends to any exchange where goods or services are offered, regardless of whether those activities are conducted by large corporations or small entrepreneurs. The law acknowledges that consumers engage with a wide range of suppliers, and this wide-reaching understanding of "trade" allows for adequate consumer protection across all sectors.

Other choices are more restrictive and do not reflect the legislation's intent. For instance, limiting "trade" solely to commercial and industrial activities overlooks the numerous consumer interactions that don't fall neatly into those categories. Similarly, defining it only to licensed businesses would exclude many informal but still legally relevant transactions, such as those by sole traders or unregistered entities. Focusing solely on food and beverage transactions is too narrow and ignores the multitude of other goods and services that are equally subject to consumer rights under the CGA. Hence, the correct answer embodies