Disputes Tribunal NZ Faulty Goods and Consumer Rights — Defending a Claim

When a Buyer Claims Faulty Goods

You sold something — privately or through a small business — and the buyer says it was defective. They've filed a Disputes Tribunal claim, and now you're the respondent. The Tribunal handles these disputes regularly, and claims up to $60,000 NZD fall within its jurisdiction (raised from $30,000 in January 2026).

The legal framework depends on whether you're a "supplier in trade" (a business) or a private seller. The distinction matters because the Consumer Guarantees Act 1993 (CGA) applies to goods sold in trade but not to private one-off sales.

Business Sellers and the Consumer Guarantees Act

If you sold the goods in trade as part of a business — including a small or side business — the CGA applies. Under the Act, goods must be:

• Of acceptable quality (safe, durable, free from minor defects, acceptable in appearance)
• Fit for any particular purpose the buyer made known to you
• Matching any description, sample, or demonstration model

If the goods fail one of these guarantees, the buyer may have a right to redress. Where a failure can be remedied, the buyer may require you to remedy it within a reasonable time; you may do so by repairing or replacing the goods, and a refund is an option if you cannot reasonably be expected to repair them. If the failure cannot be remedied or is substantial, the buyer may reject the goods or claim damages for any reduction in value.

Your defence might rest on showing the goods met the guarantees when sold, that the buyer caused the fault through misuse, or that the buyer knew about the issue before purchasing.

Private Sellers

If you sold goods privately (a car to a neighbour, furniture on Trade Me, equipment through a marketplace listing), the CGA doesn't apply. The relevant law is the Contract and Commercial Law Act 2017, and the standard is different: the goods must match any description you gave, and you can't make misleading representations about their condition.

"Sold as is" carries weight in a private sale, especially if the buyer had an opportunity to inspect. But misrepresenting the condition — saying the car had no mechanical issues when you knew about a gearbox fault — creates liability even in a private sale.

Building Your Defence

Whatever your selling position, evidence is everything:

Sale records. The listing or advertisement (what you described), any messages with the buyer before the sale, the receipt or proof of payment, and any written disclaimers or "as is" notes.

Product condition. Photos taken before the sale showing the item's condition. Service records if relevant (a car's WoF history, maintenance receipts). Any expert reports on the item's condition.

Buyer's conduct. Did they inspect the item before buying? Did they use it in a way that could have caused the fault? Did they wait an unreasonable time before complaining? A buyer who drove a car for six months before claiming the brakes were defective at the time of sale faces a harder evidential hurdle than someone who found a fault within days.

The fault itself. If you can show the fault didn't exist when you sold the item, or arose from the buyer's actions, that undermines their claim. An independent assessment or repair quote from a qualified specialist can establish whether the fault is a manufacturing defect, wear and tear, or misuse damage.

At the Hearing

Present your evidence chronologically: the sale, the buyer's inspection opportunity, the agreed price and condition, and what happened after the sale. The Referee will ask questions directly — be prepared to explain how the item was described, what the buyer knew, and why you believe the fault wasn't your responsibility.

If the buyer's claim has merit but the amount is excessive, you can concede partial liability while disputing the amount. The Referee can adjust the order accordingly.

For a structured approach to defending consumer and faulty goods claims, with evidence preparation worksheets and hearing-day checklists, see the NZ Disputes Tribunal Response Guide.

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