When purchasing goods, what must a seller do according to the Consumer Guarantees Act?

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!

Under the Consumer Guarantees Act, a seller is required to disclose any known defects when selling goods. This responsibility is rooted in the Act's aim to promote fair trading practices and ensure that consumers are not misled about the products they are purchasing. By disclosing known defects, sellers fulfill their obligation to provide goods that are of acceptable quality and fit for purpose, thus allowing consumers to make informed decisions.

Disclosing known defects aligns with the consumer's right to receive accurate information about the product, ensuring transparency in the transaction. This requirement plays a crucial role in building trust between sellers and consumers and upholds the integrity of the marketplace.

Other choices such as offering a price discount, providing free delivery, or ensuring items are branded, while potentially beneficial for attracting customers or enhancing sales, are not mandated under the Consumer Guarantees Act. They do not directly address the quality or suitability of the goods for which the Act is specifically designed to protect consumers.

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