Document ID: chunk:federal_register_of_legislation:C2004A02005:body:0:p7
Version: federal_register_of_legislation:C2004A02005
Segment Type: other
Provision Reference: 
Character Range: 14464–17144

(a) a corporation, in trade or commerce, supplies goods manufactured by the corporation to another person who acquires the goods for re-supply;
    (b) a person (whether or not the person who acquired the goods from the corporation) supplies the goods (otherwise than by way of sale by auction) to a consumer;
    (c) the goods are not of merchantable quality; and
    (d) the consumer or any person who derives title to the goods through or under the consumer suffers loss or damage by reason that the goods are not of merchantable quality,
the corporation is liable to compensate the consumer or person who so derives title to the goods for the loss or damage and the consumer or person who so derives title to the goods may recover the amount of the compensation by action against the corporation in a court of competent jurisdiction.
"(2) Sub-section (1) does not apply—
    (a) if the goods are not of merchantable quality by reason of—
       (i) an act or default of any person (not being the corporation or a servant or agent of the corporation); or
       (ii) a cause independent of human control,
    occurring after the goods have left the control of the corporation;
    (b) as regards defects specifically drawn to the consumer's attention before the making of the contract for the supply of the goods to the consumer; or

    (c) if the consumer examines the goods before that contract is made, as regards defects that the examination ought to reveal.

    "(3) Goods of any kind are of merchantable quality within the meaning of this section if they are as fit for the purpose or purposes for which goods of that kind are commonly bought as it is reasonable to expect having regard to—

    (a) any description applied to the goods by the corporation;
    (b) the price received by the corporation for the goods (if relevant); and
    (c) all the other relevant circumstances.

Actions in respect of non-correspondence with samples, &c.
"74e. (1) Where—
    (a) a corporation, in trade or commerce, supplies goods manufactured by the corporation to another person who acquires the goods for re-supply;
    (b) a person (whether or not the person who acquired the goods from the corporation) supplies the goods (otherwise than by way of sale by auction) to a consumer;
    (c) the goods are supplied to the consumer by reference to a sample;
    (d) the bulk of the goods does not correspond with the sample in quality or the goods have a defect, rendering them unmerchantable, that is not, or would not be, apparent on reasonable examination of the sample; and
    (e) the consumer suffers loss or damage by reason that the bulk does not correspond with the sample