When does the Consumer Guarantees Act (CGA) apply?

Prepare for the New Zealand Consumer Law Exam. Enhance your knowledge with multiple choice questions, detailed explanations, and study resources. Get ready to ace your test!

The Consumer Guarantees Act (CGA) applies whenever goods or services are supplied to a consumer, making this option the correct choice. The CGA is designed to protect consumers by ensuring that the products and services they receive meet certain guarantees, such as being of acceptable quality, fit for purpose, and matching their description.

This legislative framework is specifically oriented towards consumer transactions, meaning it encompasses both the sale of goods and the provision of services to individual consumers. The Act is applicable regardless of where the goods are sourced, so long as they are supplied to a consumer.

In contrast, the other options do not fully capture the scope of the CGA. For example, suggesting that it only applies to business purchases ignores the fact that the Act is specifically tailored to protect individual consumers. Likewise, stating that it only concerns imported products or is limited to commercial transactions fails to acknowledge the Act’s comprehensive application to all consumer transactions, whether local or international. These distinctions are crucial for understanding the protections offered under the CGA.

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