Who Is a Consumer?
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Date
2011
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Te Herenga Waka—Victoria University of Wellington
Abstract
The paper examines the justifications for consumer laws and focuses on what constitutes a consumer. Several approaches to defining consumers are considered and it appears that each of them contains weaknesses. From this analysis it is suggested that New Zealand courts and tribunals should apply a multi-factor approach with additional guidelines to correct unjustified outcomes of the test in s 2 Consumer Guarantees Act 1993. Then, the consumer definition in s 2 is further examined and criticised. The current scope of protection under the Act is not broad enough and it should be reformed. Also, it is advocated that the consumer definition in s 2 should be harmonised with other consumer laws. It is further concluded that small businesses should not be protected by consumer laws. However, founders of new businesses who enter into a loan contract still appear to be worthy of consumer protection and should thus be protected.
Description
Keywords
Consumer protection and its justifications, Consumer definitions, Consumer Guarantees Act 1993, Protection of small businesses