Section 138 Federal Competition and Consumer Protection Act 2018

Section 138 of the Federal Competition and Consumer Protection Act 2018 is about Liability for breach of implied obligations by law. It is under Part XVI (Duties of Manufacturers, Importers, Distributors and Suppliers of Goods and Services) of the Act.

(1) Liability for breach of the obligations arising from a seller’s implied undertaking as to title not be excluded or restricted by reference to any contract term.

(2) As against a person dealing as a consumer, liability for breach of the obligations arising from seller’s implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose, shall not be excluded or restricted by reference to any contract term.

(3) As against a person dealing otherwise than as a consumer, the liability specified in subsection (2) may be excluded or restricted by reference to a contract term only if the term satisfies the requirement of reasonableness.