Sch 2 s 85Obligations and rights of consumers on termination

85 Obligations and rights of consumers on termination

(1) If an unsolicited consumer agreement is terminated in accordance with section 82, the consumer under the agreement must, within a reasonable time:

(a) return to the supplier under the agreement any goods:

(i) that have been received from the supplier under the agreement; and

(ii) that the consumer has not already consumed; or

(b) notify the supplier of the place where the supplier may collect the goods.

(2) The goods become the property of the consumer, freed and discharged from all liens and charges of any description, if:

(a) the consumer gives notice to the supplier under subsection (1)(b); and

(b) the supplier does not collect the goods within 30 days after the termination of the contract.

(3) If:

(a) the agreement is terminated in accordance with section 82 after the end of:

(i) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the agreement was made; or

(ii) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the consumer was given the agreement document relating to the agreement; and

(b) the consumer returns the goods to the supplier, or the supplier collects the goods, under this section; and

(c) the consumer has failed to take reasonable care of the goods;

the consumer is liable to pay compensation to the supplier for the damage to, or depreciation in the value of, the goods.

(4) The compensation is recoverable in a court of competent jurisdiction.

(5) However, the consumer is not liable for any such damage or depreciation attributable to normal use of the goods or to circumstances beyond the consumer’s control.

(6) If:

(a) an unsolicited consumer agreement is terminated in accordance with section 82 after the end of:

(i) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the agreement was made; or

(ii) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the consumer was given the agreement document relating to the agreement; and

(b) prior to the termination, but after the end of that period, a service was supplied under the agreement;