Section 62 of the CPA
S62(1) If supplier agrees to sell particular goods, accept payment in periodic instalments, and to hold those goods until consumer has paid the full price it is a...
S62 (1)(a) Each amount paid by consumer to supplier remains the property of...
The consumer, subject to s65, until the goods have been delivered to consumer.
S62 (1)(b) The particular goods of the lay-by agreement remains at the risk of the...
Supplier until the goods have been delivered to consumer.
S62(2) If a supplier is unable to deliver the goods (1), and consumer has paid full price, the supplier must at the option of the consumer..
(a) supply the consumer with equivalent quantity of goods comparable/superior to the design, description and quality of OG goods
b) refund the consumer -
S 62(2)(b) Refund of the consumer must happen in 1 OF 2 ways..
S62(3) Circumstances beyond the supplier's control is not a defence if..
shortage of goods is due to supplier not carrying out business adequately or diligently. Example lay-by already concluded and then stock ran out.
S 62(4) if consumer cancels the agreement before paying the last instalment OR does not complete payment for the goods on layby within 60 business days after date as agreed upon
The supplier may
a) charge a reasonable termination penalty in respect of those goods, max 1% of full purchase price
b) after deducting any such termination penalty, must refund the consumer any amount paid by the consumer under that agreement.
S 62(5) Consumer may not charge termination fee if...
a) If consumer failed to complete payment due to hospitalisation/death
b) In any other case, unless the supplier informed the consumer of the fact and extent of the penalty before the consumer entered into the lay-by agreement.