3.6 Layby Sales Act 1971
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The Layby Sales Act sets out a clear set of principles governing goods put on layby. Layby means that a consumer pays instalments towards the cost of the good (and in this way gains title to the good) but does not take possession of the good until the full cost has been paid. Sellers do not necessarily have to physically have the good in their possession during the payment period, but are responsible for that good until it is passed to the consumer. The Act facilitates the “holding” of goods for consumers.
The Layby Sales Act is part of the Sale of Goods Act 1908, but amends this Act to reduce risks to consumers and sellers under layby sales from situations such as insolvency, non-payment and non-collection, where possession remains with the seller.
The Layby Sales Act only relates to consumer retail sales and does not apply to layby sales over $7,500 or to a motor vehicle being sold by a registered motor vehicle trader.
Enforcement
This Act is self-enforcing.
