What it means
Under the Australian Consumer Law, when a consumer guarantee is not met but the problem is not a major failure, it is treated as a minor failure. The business may choose how to fix it within a reasonable time, by repairing the goods, replacing them, or giving a refund. The consumer cannot insist on a refund for a minor failure, but if the business takes too long or refuses, the consumer can have the fault fixed elsewhere and recover the cost, or treat the problem as a major failure and reject the goods.
How it's used
A loose button on a new jacket is a minor failure, so the store may simply repair it rather than refund.