Buying from a dealer

If you buy goods for personal or household use from a second-hand trader and then discover them to be faulty, you have rights under the Consumer Guarantees Act. It says goods must be of acceptable quality when sold. If the goods aren't, you can take them back. If the problem is minor, the second-hand dealer may choose to repair or replace the item or refund your money. For major defects, it's entirely up to you whether you accept a refund or ask for a replacement.

If the dealer doesn't repair the item within a reasonable time, or refuses to repair it, replace it or even refund your money, you can have the repairs done elsewhere and recover the costs (plus incidental costs) from the dealer.

What is acceptable quality?

It is what a reasonable consumer would expect and will depend on the price, age and condition, and any information you are given concerning the items. Naturally the standard will be lower for second-hand goods than with new.

For example, when a fridge costs $50, it's a reasonable indication that it doesn't have much life left in it, especially if you were told it was cheap because of a specific fault. If, however, you paid $500 for the fridge, you could reasonably expect it to last a lot longer.

Or again, if you bought a second-hand washing machine for $500 and the retailer said it was a great machine and had been fully overhauled, you could reasonably expect it to last longer than a $50 machine.

Take time to check and test goods before buying them. Items that look good but seem inexpensive may well have hidden defects.

Selling on behalf of others

Second-hand dealers often sell on behalf of private sellers. The fact that they are acting for third parties does not allow them to dodge the Consumer Guarantees Act. If the goods are faulty, the dealer must accept responsibility.

Dealer warranties

The Consumer Guarantees Act applies regardless of any other warranties or guarantees a dealer may offer. A dealer can't "contract out" of the Act by offering a guarantee that is less than you would receive under the Act. Neither can they remove or reduce your rights by putting up signs such as "No refunds" or "As is, where is".

Can anyone set up as a second-hand dealer?

Under the Secondhand Dealers and Pawnbrokers Act, dealers must be licensed. This includes scrap-metal merchants. Applications are seen by police, and licences issued by a Licensing Authority appointed by the Minister of Justice. Licensing doesn't apply to charity shops selling donated goods.

Dealers must sight approved photo ID and record the contact details and signature of everyone selling them goods, as well as the details of the goods.

Some items must be held for a month by the dealer before they can be sold. These include electronic goods, bicycles, cameras, watches and jewellery.

If a dealer buys or is offered any goods for sale that they know or suspect are stolen, they must report that fact to the police.