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Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

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consumer

What happens when a tradesperson abandons a job?

Key Takeaway

When a tradesperson abandons a job in New Zealand, consumer rights are protected under the Consumer Guarantees Act 1993 and Fair Trading Act 1986. These laws ensure services are completed within a reasonable time and prohibit misleading conduct. Consumers may be entitled to remedies like cancellation of the service or compensation for losses incurred.

Tradesperson Abandons a Job: Consumer Rights in New Zealand

When a tradesperson abandons a job, New Zealand consumer law provides a framework for consumers to understand their rights and obligations. This situation is primarily governed by the Consumer Guarantees Act 1993 (CGA) and the Fair Trading Act 1986 (FTA).

Consumer Guarantees Act 1993 (CGA)

The Consumer Guarantees Act 1993 applies to services supplied to a consumer by a supplier in trade [Source: Consumer Guarantees Act 1993, s 2]. A consumer is an individual acquiring services primarily for personal, domestic, or household use [Source: Consumer Guarantees Act 1993, s 2]. A supplier is a person who in trade supplies goods or services [Source: Consumer Guarantees Act 1993, s 2]. A service includes any work and labour, benefits, privileges, or facilities provided in trade [Source: Consumer Guarantees Act 1993, s 2].

When a service is provided, the CGA guarantees that:

  • The service will be carried out with reasonable care and skill [Source: Consumer Guarantees Act 1993, s 28(a)].
  • The service will be fit for any particular purpose that the consumer made known to the supplier and relied upon [Source: Consumer Guarantees Act 1993, s 28(b)].
  • The service will be completed within a reasonable time if no time for completion was agreed upon between the consumer and the supplier [Source: Consumer Guarantees Act 1993, s 28(c)].
  • The price charged for the service will be reasonable if no price was agreed upon [Source: Consumer Guarantees Act 1993, s 28(d)].

If a tradesperson abandons a job, this typically constitutes a failure to meet the guarantee that the service will be completed within a reasonable time [Source: Consumer Guarantees Act 1993, s 28(c)]. It may also, depending on the circumstances, breach the guarantee of reasonable care and skill if the abandonment leaves the work incomplete or in an unsafe condition [Source: Consumer Guarantees Act 1993, s 28(a)].

Remedies under the CGA

The remedies available to a consumer depend on whether the failure is a minor failure or a substantial failure.

  • Minor Failure: If the failure can be remedied and is not of a substantial character, the supplier must remedy the failure within a reasonable time. If the supplier fails to do so, the consumer can either get the service remedied elsewhere and recover all reasonable costs from the supplier, or cancel the contract for the service [Source: Consumer Guarantees Act 1993, s 30].
  • Substantial Failure: A failure is considered substantial if a reasonable consumer would not have acquired the service if they knew the nature and extent of the failure, or if it makes the service unfit for its common purpose, or if it is unsafe [Source: Consumer Guarantees Act 1993, s 32(2)]. When a tradesperson abandons a job, it often amounts to a substantial failure. In such cases, the consumer may:
    • Cancel the contract for the service [Source: Consumer Guarantees Act 1993, s 32(a)].
    • Obtain damages for any reduction in the value of the service [Source: Consumer Guarantees Act 1993, s 32(b)]. Damages refer to monetary compensation awarded to a person who has suffered loss or injury due to the unlawful act or negligence of another.
    • Obtain damages for any loss or damage to the consumer resulting from the failure that was reasonably foreseeable [Source: Consumer Guarantees Act 1993, s 32(c)].

Fair Trading Act 1986 (FTA)

The Fair Trading Act 1986 prohibits misleading and deceptive conduct by traders [Source: Fair Trading Act 1986, s 9]. Misleading and deceptive conduct is behaviour that is capable of deceiving or confusing. It also prohibits false or misleading representations about goods or services [Source: Fair Trading Act 1986, s 13].

If a tradesperson abandons a job, particularly after making representations about their ability or intention to complete the work, their conduct could potentially fall under the prohibitions of the FTA, especially if there was no genuine intention to complete the work as promised.

Remedies under the FTA

The courts have broad powers to make various orders under the FTA, including:

  • Declaring a contract void in whole or in part, or varying its terms [Source: Fair Trading Act 1986, s 43(2)(a), (b)].
  • Directing the person who engaged in the conduct to pay damages (compensation) to any person who suffered loss or damage as a result of the conduct [Source: Fair Trading Act 1986, s 43(2)(d)].
  • In some cases, the Commerce Commission, which enforces the FTA, may take action resulting in pecuniary penalties (financial penalties) being imposed on the trader [Source: Fair Trading Act 1986, s 40].

When to Seek Independent Legal Advice

Individuals facing complex situations involving a tradesperson abandoning a job, or those requiring assistance with understanding their specific rights and options for dispute resolution, may seek guidance from a qualified legal professional. Further assistance can be obtained from official bodies such as the Commerce Commission or Consumer Protection NZ, or through Community Law Centres for free legal advice.

Key Resources