What is required for parties to contract out of the CGA according to Section 43?

In New Zealand, the Consumer Guarantees Act (CGA) provides consumers with certain guarantees regarding the quality and suitability of goods and services. However, there are circumstances under which parties can contract out of these guarantees. According to Section 43 of the CGA, one essential requirement is that all parties involved in the agreement must be in trade. This means that both the supplier and the consumer must be engaged in commercial activities, ensuring that the CGA is not protecting an individual who is not operating in a trade context where they could be expected to have some level of commercial acumen.

This requirement promotes fairness and responsibility in business transactions, as it assumes that parties who are in trade have the knowledge and resources to negotiate terms that are appropriate for their business activities. As a result, they are in a better position to avoid or waive the protections afforded by the CGA freely.

The other options, such as requiring the agreement to be verbal, the involvement of a charitable organization, or the need for only regulatory approval, do not meet the criteria established by the CGA. These factors do not account for the nature of the parties' engagement in trade, which is the key consideration within this legal framework. Thus, stating that all parties must be in trade