Insights & Articles

This article explores a legal case heard by the New Zealand Court of Appeal, specifically regarding a dispute involving the supply of a building cladding product. The case involved two building owners who initiated legal proceedings against the German-based manufacturer and New Zealand-based distributors. The building owners alleged that the product was faulty and posed risks to their buildings, leading to potential loss and expense.

In an age where time is of the essence and personal schedules are tightly packed, the reliability of transportation services is paramount. Late departures by trains, buses, flights, and other means of transportation have become a common concern for consumers around the world. The rights of consumers when faced with tardy departures are not to be taken lightly.

The Fair Trading Amendment Act 2021 ("Amendment Act") has made recent amendments of the Fair Trading Act 1986 with some terms being extended to small business contracts that will come into force on 16 August 2022.

A recent decision in the High Court of New Zealand has provided the first instance of the Courts using the Fair Trading Act 1986 ("FTA") to declare specific terms in a standard form consumer contract unfair, and therefore unenforceable. The decision in Commerce Commission v Home Direct Limited1 was made pursuant to sections in the FTA which were introduced in 2013 and give the Commerce Commission power to apply to the District Court or High Court for a declaration that a term in a standard form consumer contract is unfair.

The Privacy Act 2020 ("new Act") came into force in 2020, replacing the Privacy Act 1993. The purpose of the new Act was to overhaul New Zealand's existing privacy of personal information regulatory framework and bring it into line with internationally recognised privacy obligations and standards. Section 22 of the new Act sets out 13 information privacy principles ("Privacy Principles"). In this article, we focus on new developments in relation to Privacy Principle 1 ("PP1"), which addresses the purpose of collection of personal information.

Companies that provide goods or services on standard terms (including credit terms) should be regularly having a legal health check of their terms and their practices for ensuring the terms they are using accurately reflect their business practices, meet all of their requirements and cover off their key risks – as well as ensuring they are appropriately brought to the attention of customers or clients so that they are valid, enforceable or binding.

Non-Executive or Passive Directors and Directors' Duties: The Courts Take no Excuses for a "Hands Off" Approach

In accordance with Section 131 of the Companies Act 1993 ("Act"), directors have a duty to act in good faith and in what they genuinely believe to be the best interests of the company. While it may be expected that directors should always behave in such a manner, and not place their personal interests ahead of the company's, various judgments have explored the extent of this duty and provided more information about the considerations director should take account of when exercising their powers.

The Ministry of Business, Innovation and Employment (MBIE) has released a discussion document late last year, inviting public consultation on an important subject affecting a large sector of New Zealand's working public: self-employed 'independent contractors', and companies and people who engage the services of such independent contractors, not just in the course of business, but even in some cases individual consumers utilising those services, for example ordinary member of the public using a 'ride sharing' platform. The deadline for members of the public to provide their feedback to MBIE expires at 5.00 pm on 14 February 2020.