Commercial and Corporation Law - Assignment PDF

Commercial and corporation law

Customers play a very significant role in the market therefore for safeguarding and security of
their interest; the government imposes various laws for the manufacturer, trader as well as for
customers. The manufacturers or the traders are not allowed to make the promotion of the
product in such a way which may mislead the consumer (Blakeney, 2016). They are not allowed
to make false advertisement of the product, and in situations where the product did not contain
the characteristics which are prescribed in the advertisement, then the manufacturer/ trader will
be legally liable for the damages.
The government of New Zealand approves the Fair Trading Act 1986 to recognize the legal
responsibility of the manufacturer and the trader of the country. The primary reason for the
approval of this Act to prohibit the manufacture and the trader to sell the product by making the
falsified statement about the product (O’Sullivan, 2015). According to this Act, the
manufacturer/trader has to disclose all the related and important information about the product to
its customer. Since there are many products which are very dangerous for children therefore by
the implementation of this Act, manufacturer and the trader, have to tell all the information to
reduce the risk of containing harm to the customer. Along with this, the manufacturer is
responsible if the product does not meet its quality standards which are set by the industries so
that the customer gets the product as per the prescribed quality norms (Howells, 2018). The
government also make the consumer information standards which are mandatory to comply by
all the manufacturer/trader of the country (Wilson, 2016). Moreover, there are some products
whose sale has been prohibited in the country, therefore if any manufacturer/trader indulged in
the sale of such product,s then it is considered as illegal sale.
In addition to this, the government had approved the Consumer Guarantee Act 1993 No 91.
Under this Act, the product must be similar to the sample products which are distributed by the