Comments on: Law reform for online auctions http://www.burgess.co.nz/law/law-reform-for-online-auctions A blog on law and technology issues in New Zealand Wed, 08 Feb 2012 08:24:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Guy Burgess http://www.burgess.co.nz/law/law-reform-for-online-auctions/comment-page-1#comment-6431 Guy Burgess Mon, 06 Sep 2010 12:09:20 +0000 http://www.burgess.co.nz/law/?p=797#comment-6431 Hi David. The Consumer Guarantees Act (which applies when you buy most household things from shops) doesn't apply to auctions (though the Govt is looking to change this) or private sales. But the Sale of Goods Act 1908 does: http://www.legislation.govt.nz/act/public/1908/0168/latest/DLM173958.html. That includes some basic warranties and conditions of sale that are "implied" into all sales, unless something else is expressly agreed. The normal rule is that "risk passes with property". With an online auction, typically as soon as an auction has closed the sale is complete, and the winning bidder the owner of the goods and carries the risk for them (including delivery risk - provided the seller sends it in a reasonable time, to the correct address, etc). But there are lots of "ins and outs" that will include buyer / seller questions and other instructions / comments made before the sale closes. Yes the seller is responsible for properly packing and posting the item, but I would say there is no obligation to assist with a claim against the carrier (though again it would depend on exactly what had been agreed between the buyer & seller). You are quite right there is room for debate. The Govt is currently overhauling some of the old law in this area, so hopefully that will improve some things. Hi David. The Consumer Guarantees Act (which applies when you buy most household things from shops) doesn’t apply to auctions (though the Govt is looking to change this) or private sales. But the Sale of Goods Act 1908 does: http://www.legislation.govt.nz/act/public/1908/0168/latest/DLM173958.html. That includes some basic warranties and conditions of sale that are “implied” into all sales, unless something else is expressly agreed.

The normal rule is that “risk passes with property”. With an online auction, typically as soon as an auction has closed the sale is complete, and the winning bidder the owner of the goods and carries the risk for them (including delivery risk – provided the seller sends it in a reasonable time, to the correct address, etc). But there are lots of “ins and outs” that will include buyer / seller questions and other instructions / comments made before the sale closes. Yes the seller is responsible for properly packing and posting the item, but I would say there is no obligation to assist with a claim against the carrier (though again it would depend on exactly what had been agreed between the buyer & seller).

You are quite right there is room for debate. The Govt is currently overhauling some of the old law in this area, so hopefully that will improve some things.

]]> By: David Burgess http://www.burgess.co.nz/law/law-reform-for-online-auctions/comment-page-1#comment-6429 David Burgess Fri, 27 Aug 2010 13:12:34 +0000 http://www.burgess.co.nz/law/?p=797#comment-6429 A bit off topic but .... I see one of the biggest problems with online auctions being that the top bidder and the seller enter into a binding agreement. The seller has been led to believe that he is 'responsible for ....' and there the confusion begins and never ends. Every seller has a different version of what responsible means. And every buyer has different expectations. One big issue is regarding the posting of items. Every courier company has small print to describe exactly what their responsibility covers - but the online sellers don't. What are the minimum requirements under existing laws for domestic sellers who do not mention any conditions of responsibility in their auctions? Are they just responsible for packing, posting the item to the correct address and keeping a receipt or are they responsible for assisting any claim against the carrier or are they responsible for the actual delivery. Do they have to pay out of their own pocket for things outside of their control - outside of the carriers control? I think there is room for huge debate. Far too much room. How do we solve this. A bit off topic but …. I see one of the biggest problems with online auctions being that the top bidder and the seller enter into a binding agreement. The seller has been led to believe that he is ‘responsible for ….’ and there the confusion begins and never ends. Every seller has a different version of what responsible means. And every buyer has different expectations.

One big issue is regarding the posting of items. Every courier company has small print to describe exactly what their responsibility covers – but the online sellers don’t.

What are the minimum requirements under existing laws for domestic sellers who do not mention any conditions of responsibility in their auctions? Are they just responsible for packing, posting the item to the correct address and keeping a receipt or are they responsible for assisting any claim against the carrier or are they responsible for the actual delivery. Do they have to pay out of their own pocket for things outside of their control – outside of the carriers control?

I think there is room for huge debate. Far too much room. How do we solve this.

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