Page:Australian Competition and Consumer Commission v Valve Corporation (No 3).pdf/21






 * (c) free from defects; and


 * (d) safe; and


 * (e) durable;

as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable having regard to the matters in subsection (3).

47 There are separate provisions concerning when goods will not fail to be acceptable quality, and matters to which regard must be had in determining acceptable quality. I will refer to those later in these reasons.

48 Section 259 is concerned with failures of compliance. Different conditions are imposed on whether the goods can be rejected for major, or non-major, failures of compliance. Section 259 provides:

Action against suppliers of goods

(1) A consumer may take action under this section if:


 * (a) a person (the supplier) supplies, in trade or commerce, goods to the consumer; and


 * (b) a guarantee that applies to the supply under Subdivision A of Division 1 of Part 3-2 (other than sections 58 and 59(1)) is not complied with.

(2) If the failure to comply with the guarantee can be remedied and is not a major failure:


 * (a) the consumer may require the supplier to remedy the failure within a reasonable time; or


 * (b) if such a requirement is made of the supplier but the supplier refuses or fails to comply with the requirement, or fails to comply with the requirement within a reasonable time–the consumer may:


 * (i) otherwise have the failure remedied and, by action against the supplier, recover all reasonable costs incurred by the consumer in having the failure so remedied; or


 * (ii) subject to section 262, notify the supplier that the consumer rejects the goods and of the ground or grounds for the rejection.

(3) If the failure to comply with the guarantee cannot be remedied or is a major failure, the consumer may:


 * (a) subject to section 262, notify the supplier that the consumer rejects the goods and of the ground or grounds for the rejection; or


 * (b) by action against the supplier, recover compensation for any reduction in the value of the goods below the price paid or payable by the consumer for the goods.