ACL in Commercial Setting

LAkaMoka on 14/06/2019 - 13:10

Hi Ozbargainers,

So, I'm trying to understand if the Australian Consumer Law is applicable to my situation.
I own a Cafe and am looking to replace our commercial coffee machine since the repair cost on the current machine is just not worth it.
After looking at a few machines and having a chat with sale representatives, there is a common thread that keeps appearing.
Most, if not all, commercial items bought for businesses only have 1 year warranty.
The oven, the coffee grinder, etc, all only have 1 year warranty.

If one of these items break outside the 1 year warranty, will the ACL intervene?
It just seems ridiculous for such a short warranty but then again, it is in a commercial setting.
The items are used a lot more often compared to a normal consumer.
My question is, does the ACL cover commercial settings or is there a different law that governs it.

Thank you for taking the time to respond.

General Discussion

Comments

  • tdrive on 14/06/2019 - 13:30
    +3

    When you buy goods or services for your business which are under $40,000 your business will be considered a consumer and entitled to certain remedies under the consumer guarantees if something goes wrong.

    ACL

    • AkaMoka on 14/06/2019 - 15:26

      Thanks

  • GG57 on 14/06/2019 - 14:04
    +3

    tdrive seems to have resolved this for OP.
    But have you looked at sourcing a machine from your coffee provider, on an agreement to buy a certain quantity of beans / month or year? I thought that is what most cafes do these days.

    • AkaMoka on 14/06/2019 - 15:30
      +1

      Unfortunately, we don't sell enough coffee per week to get that. :(
      I did ask though, lol.

  • bargainhunter87 on 14/06/2019 - 14:07
    +1

    Is there anything wrong with the item? Is it not fit for purpose, or does it breach a specific section of the ACL?

    Simply having high repair cost is not adequate grounds for the ACL to step in. Just seems like a lack of due diligence on your part when purchasing.

    • Typical16-bitEnjoyer on 14/06/2019 - 14:35

      I think you misread OP's post. He/she is replacing a current machine due to high repair costs.

      The ACL question is regarding a potential purchase of a new machine.

  • Typical16-bitEnjoyer on 14/06/2019 - 14:40
    +2

    If one of these items break outside the 1 year warranty, will the ACL intervene?

    OP, unfortunately the ACL is so vague nobody can quantify it. ACCC has even publicly admitted so themselves. Ask 10 people in here how long the ACL should cover a $1000 TV and you'll get 10 different answers.

    It's even more vague with commercial equipment as wear and tear would be the primary cause of a lot of issues. So far ACL is basically used as a "bargaining" tool to make a retailer or supplier play ball and replace or repair faulty products or they'll cop a stern letter from ACCC.

    Apparently amendments are incoming to provide more clarity on cost/timeframe expectations but don't hold your breath.

    • AkaMoka on 14/06/2019 - 15:34

      Thanks, I can't seem to find a lot of info on it, lol.

  • foxmulder on 14/06/2019 - 14:54
    +3

    Commercial equipment get used much more rather than those sold for homes. It's understandable the warranty is much shorter.

    • AkaMoka on 14/06/2019 - 15:32
      +1

      That's what I assume as well.

    • pinchies on 14/06/2019 - 17:09
      +2

      Personally, I disagree with this reasoning - "commercial quality" should be products manufactured to be able to endure more intensive use, and so there should be no reason they would not be engineered to last for a reasonable lifespan. A warranty of 1 year would not give me much confidence.

      I think its more likely that short warranties on commercial products are deliberate to encourage businesses to take up additional service/maintenance plans, which I reckon could be quite lucrative, not unlike extended warranty plans for other consumer items.

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