Merchantable Quality

Merchantable quality used to be a standard implied into contracts as part of the Trade Practices Act. However, the Trades Practices Act has been superseded by the Competition and Consumer Act 2010 [CCA], and the merchantable quality provision has been replaced by a requirement for ‘acceptable’ quality. Acceptable quality means that the goods are fit for all the purposes for which they are commonly supplied, acceptable in appearance and finish, free from defects, safe, and durable. What is acceptable quality is determined by the nature of the goods, their price and any statements made on packaging or representation made about the goods by the supplier. The CCA is consumer law, but affects individual transactions with a value less than $40,000. See also Quality, Acceptable.