If the product has a defect as defined by the Consumer Protection Act, the consumer is entitled to compensation. In the first instance, the consumer can demand that the defect be repaired or the product be replaced with one that is defect free. The seller must do this within a reasonable period and without any essential inconvenience to the consumer. The repair may not, for example, incur any transportation or spare part costs to the consumer. If the repair of the defect or exchange for a defect free product does not come into question, or if the seller does not undertake this within a reasonable period, the consumer can demand a reduction in price corresponding to the defect. Rescinding the sale is normally only the final option and the consumer can demand this as an alternative to a reduction in price if the defect is not minor in nature. The consumer does not need to accept a gift certificate from the firm as compensation, nor a completely different product in place of a refund of the purchase price.
Disputes about delay or price are usual, particularly if the delivery times, the price or the payment have not been agreed precisely and in writing. In the case of delay, it is reasonable to give the seller a certain amount of additional time first. If the product is not delivered or the work is not carried out within the period of extra time given the consumer can demand that the sale is rescinded. There is no basis in law for getting a price reduction because of delay, but this may be discussed as an alternative to rescinding the sale. If nothing has been agreed about the price, as a general rule the consumer must pay a reasonable price asked by the seller. If the price has clearly been agreed, the agreement is binding. In some cases and with justifiable grounds a seller may exceed the price estimate by a certain amount, to a maximum of 15%.
In addition to other compensation, the consumer may be entitled to compensation for damages caused as a result of a defect or delay in the product or service. Typical compensation for damages includes the travel, postage and telephone costs incurred in sorting a matter out. If a new washing machine turns out to be defective, a consumer can demand compensation for the installation costs that have been paid unnecessarily. No financial compensation can be obtained for poor service, disappointment or mental suffering. An agreement may provide that the seller or performer of a service must pay a fixed compensation for delay in delivery. If the delay in delivery causes the buyer financial harm that is greater than the fixed compensation, the consumer can demand compensation for the financial harm that is greater than the fixed compensation. However, the consumer cannot obtain both forms of compensation.