Ch 6 - Consumer Law

Question 1

Outline the terms implied into every consumer contract for the sale of goods under the terms of the
Consumer Rights Act 2015.

Answer 1

Terms implied into every contract under the Consumer Rights Act 2015

(1) implied conditions as to title/right to sell
(2) implied conditions as to description (Section 11)
(3) implied conditions as to sale by sample (Section 13)
(4) implied conditions as to satisfactory quality (Section 9)
(5) implied term that the goods are fit for the purpose intended assuming normal usage.

Question 2

Define the meaning of an unfair commercial practice under the Consumer Protection from Unfair Trading
Regulations 2008 (as amended by the Consumer Protection (Amendment) Regulations 2014)

Answer 2

An unfair commercial practice is defined by the Unfair Commercial Practices Directive 2005 as a practice
that:
(i) fails to meet the standard of ‘professional diligence’;
(ii) materially distorts the economic behaviour of the average consumer.

Question 3

Describe, with examples, what is meant by misleading and aggressive practices

Answer 3

A misleading practice is either a misleading action or a misleading omission.
For example, the product states the incorrect weight or geographical origin.
An aggressive practice is a practice that reduces the freedom of the customer to make a choice or causes
the customer to make a different economic choice.
For example, the shopkeeper forces you to make a purchase before you feel you can leave the shop.

Question 4

List any five of the 31 banned practices under the Regulation. State the possible criminal penalties imposed
for a breach under the regulations.

Answer 4

Five practices include:

(i) falsely claiming that the product has been approved by an authorised body;
(ii) falsely claiming that the product can cure illnesses;
(iii) falsely claiming that the trader is about to cease trading or move premises;
(iv) falsely claiming that the purchase of the product can help you win in games of chance;
(v) claiming that you can win a without awarding any prize.

Question 5

Explain the factors taken into consideration by the Court in determining whether a sales practice is
aggressive.

Answer 5

Factors: in determining whether a practice is aggressive the Court takes into consideration: (1) the language
used by the trader, (2) the timing of the contract, and (3) the location of the contract (4) tactics employed by
seller, e.g., door to door sales man calling at night.

Question 6

Define a contract for the sale of goods, pursuant to the terms of the Consumer Rights Act 2015

Answer 6

Sale of Goods: Section 5 Consumer Rights Act 2015
A contract in which a seller transfers or agrees to transfer ownership of goods to a buyer ‘for a money
consideration called the price’.
Three elements:
(i) Transfer of property in goods (excludes land, shares or a contract for services). The term ‘goods’ covers all
chattels personal, including existing, future, specific and unascertained goods;
(ii) The contract must be for a sale. A transfer of goods by way of a pledge, mortgage or loan (or consumer
credit contracts) is precluded under the Act, as are gifts;
(iii) The goods to be sold must be given a price tag or a price. It may include a trade-in situation provided it
involves a price tag on the new item or a specific allowance for the traded in item.