Price v Sports Marine Ltd is a cited
case in
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
regarding liability
exclusion clause
An exclusion clause is a term in a contract that seeks to restrict the rights of the parties to the contract.
Traditionally, the district courts have sought to limit the operation of exclusion clauses. In addition to numerous common law rules limi ...
s which are generally prohibited for non business transactions under section 43 of the
Consumer Guarantees Act 1993.
Background
The Price's owned a 17 ft
Searay boat, which they placed with Sports Marine to sell on their behalf. The Price's agreed to a non liability clause with Sports Marine.
Whilst the boat was at Sports Marine, one of their staff damaged the boat during the
test run, damage which Sports Marine argued that the non liability clause stopped them for being liable. The Prices argued that the CGA makes such clauses unenforceable regarding consumer transactions.
Held
The clause was a breach of section 32(c) of the CGA.
References
New Zealand contract case law
1996 in case law
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