The Fair Trading Act 1986 (FTA) was amended last month to ban businesses from engaging in unconscionable conduct. When introducing the legislation at its first reading, Minister David Clark said that it was “necessary to deal with a very small minority of businesses that take advantage of the vulnerabilities and lack of bargaining power of consumers or other businesses”. This update explains the new law, considers some Australian cases where the equivalent law has been applied and suggests some steps businesses can take to avoid breaching the new law.

Changes to the Fair Trading Act 1986 (FTA) are now in force which mean that all standard form business to business contracts with an annual threshold value under $250,000 (including GST) will be subject to the same unfair contract terms rules that already apply to business to consumer contracts. This article provides a brief summary of the application of the unfair contract terms rules to B2B contracts. For more detail please see our top 10 things to think about article here.

 

Franchisors should be aware that changes to the Fair Trading Act 1986 (FTA ) are now in force which mean that all standard form business to business contracts with an annual threshold value under $250,000 (including GST) will be subject to the same unfair contract terms rules that already apply to business to consumer contracts. Set out below is a brief summary of the application of the unfair contract terms rules to franchise documentation. For more detail, please see our top 10 things to think about article here.

Last month courts in both New Zealand and Australia imposed significant penalties on companies and individuals for breaching cartel laws. In imposing the sentences both courts referred to the need to deter possible offenders from engaging in cartel conduct. The large penalties – including jail in the Australia case - are a timely reminder for NZ businesses. This update discusses the cases and a brief recap on New Zealand cartel laws and their penalties.

As COVID-19 spreads and the number of cases around the world climbs, businesses need to take definitive action now to address what is shaping up to be the most significant challenge for some time.

The Minister of Commerce and Consumer Affairs and the Minister for Small Business have today released a discussion paper about whether there is a need for increased protections for businesses and consumers against unfair commercial practices. 

Do you know the principles the Courts apply when interpreting contracts?  These principles were recently considered by the Court of Appeal in GTV Holdings Ltd v Harris [2018] NZCA 95, a case involving the sale of a business.  The same principles apply to other contracts but are often misunderstood and lead to conflict.