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Business Law > Chapter 5C - Contracts for the Supply of Goods, Digital Contents or Services (before CRA15) > Flashcards

Chapter 5C - Contracts for the Supply of Goods, Digital Contents or Services (before CRA15) Flashcards

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1
Q

Trader

A

A person acting for purposes relating to that person’s trade, business. There may be another person dealing on behalf.

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2
Q

Consumer

A

Individual acting for purposes that are outside their trade

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3
Q

Consumer Rights Act 2015

Section 1 (1) and (2)

A

Section 1(1) applies to contractual agreements between a trader and a consumer for the supply of goods, digital content, or services.

Section 1(2) whether contract is written, oral or implied from the parties’ conducts.

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4
Q

B2C contracts for the supply of goods covered by the Act

Section 3 (2) - definition of supply of goods

A

Deems that supply of goods is:

  • sales contract
  • a hire contract
  • a hire-purchase agreement
  • a contract for the transfer of goods

Excluded:

  • currency exchange deals
  • sales of goods following warrants of control
  • mortgages
  • security arrangements
  • contracts of deed
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5
Q

B2C contracts for the supply of goods covered by the Act

Section 5 - Definition of Sales Contract

Section 8 - Transfer of goods

A

Requires traders to transfer or agree to transfer ownership of the goods to the consumer, and for consumer to agree to pay the agreed price.

There most be a monetary value to the price, but doesn’t necessarily have to be money.

There must be consideration.

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6
Q

B2C contracts for the supply of goods covered by the Act

Section 4 - Ownership of goods

A

Similarly to SOGA79, CRA15 states that:

  • SOGA 79 Section 16 goods must be ascertained
  • SOGA 79 Section 17 that property passes when intended
  • SOGA 79 Section 18 its rules to discern the time of that intention
  • SOGA 79 Section 19 recognises Reservation of Title
  • SOGA 79 Section 20A / 20B protect an interest in bulk unascertained goods.
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7
Q

B2C contracts for the supply of goods covered by the Act

Section 6 - contracts for he hire of goods

A

Denotes that a contract for the hire of goods as transfer of possession and right of use for the time that was established, as long as it’s not a hire-purchase.

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8
Q

B2C contracts for the supply of goods covered by the Act

Section 7 - Hire Purchase tests

A 
Section 7 (2) that goods are hired by the trader to the consumer in return for periodic payments; and Section 7 (3) that ownership transfers if hire terms are complied with and hat 1 of 3 events occur: consumer exercises the option t to buy, contractual party does an act specified in the contract, or an event specified in the contract occurs.
General understanding that it is a period of hire followed by an option to purchase.
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9
Q

Statutory rights for consumers in B2C contracts for the supply of goods

Sections

A

Statutory rights enshrined in the CRA15 following the B2C supply of goods are that the goods are:

  • Section 9 be of satisfactory quality
  • Section 10 be fit for a particular purpose
  • Section 11 be as described
  • Section 13 match what seen in sample
  • Section 14 match any previous seen model
  • Section 17 trader has the right to supply the goods
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10
Q

Statutory rights for consumers in B2C contracts for the supply of goods

Sections 15, 16 and 18

A

Section 15 - position regarding installation by the trader of correctly supplied goods, there installation is incorrectly carried out

Section 16 - position regarding digital content supplied on a defective physical medium (treated similarly as goods not being of satisfactory quality in Section 9).

Section 18 - makes clear that the B2C contract of goods supply may content express terms on the topics.

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11
Q

Enforcement of consumer statutory rights in a B2C supply of goods

Section 19

A

Facilitates the enforcement of breached CRA15 statutory rights and defines the range of remedies: short-term right to reject the goods; right to repair or replacement.
If the above can’t be applied there are other rights, such as discount on a faulty good, recover certain costs, or completely reject the goods

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12
Q

Enforcement of consumer statutory rights in a B2C supply of goods

Sections 20 to 24 - available remedies

Section 22 - Short-term rejection window

A

Section 22 - Short-term rejection window
30 days after the ownership of the possession passes to the consumer and the goods are delivered and trader has advised the consumer that any installation or other action has been done.
If goods are perishable Subsection 4 sets the window of that shorter period.

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13
Q

Enforcement of consumer statutory rights in a B2C supply of goods

Section 24(5) price reduction

A

Defines that when price reduction or final rejection of goods can take place, after one repair or replacement

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14
Q

CRA15 Statutory right being breached - and remedies that apply
Section 9 Goods to be of satisfactory quality

A
  • short term right to reject the goods (Sections 20-22)
  • the right to repair or replacement (Section 23)
  • the right to price reduction or the final right to reject (Section 24)
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15
Q

CRA15 Statutory right being breached - and remedies that apply
Section 10 Goods to be fit for a particular purpose

A
  • short term right to reject the goods (Sections 20-22)
  • the right to repair or replacement (Section 23)
  • the right to price reduction or the final right to reject (Section 24)
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16
Q

CRA15 Statutory right being breached - and remedies that apply
Section 11 Goods to be as described

A
  • short term right to reject the goods (Sections 20-22)
  • the right to repair or replacement (Section 23)
  • the right to price reduction or the final right to reject (Section 24)
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17
Q

CRA15 Statutory right being breached - and remedies that apply
Section 12 Conformity with contract information provided

A
  • the right to recover costs incurred, up to the contract price (Section 19(5))
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18
Q

CRA15 Statutory right being breached - and remedies that apply
Section 13 Goods to match a sample

A
  • short term right to reject the goods (Sections 20-22)
  • the right to repair or replacement (Section 23)
  • the right to price reduction or the final right to reject (Section 24)
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19
Q

CRA15 Statutory right being breached - and remedies that apply
Section 14 Goods to match a model seen or examined

A
  • short term right to reject the goods (Sections 20-22)
  • the right to repair or replacement (Section 23)
  • the right to price reduction or the final right to reject (Section 24)
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20
Q

CRA15 Statutory right being breached - and remedies that apply
Section 15 Incorrect installation of goods (by trader or under trader’s responsibility

A
  • the right to repair or replacement (Section 23)

- the right to price reduction or the final right to reject (Section 24)

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21
Q

CRA15 Statutory right being breached - and remedies that apply
Section 16 Goods not conforming to contract if digital content doesn’t conform

A
  • short term right to reject the goods (Sections 20-22)
  • the right to repair or replacement (Section 23)
  • the right to price reduction or the final right to reject (Section 24)
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22
Q 
CRA15 Statutory right being breached - and remedies that apply 
Section 17 (1) Trader to have the right to sell or transfer the goods or to transfer possession
A
  • the right to reject (Section 20)
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23
Q 
CRA15 Statutory right being breached - and remedies that apply 
Section 17 (2) and (5) Goods to be free from any charge or incumbrance not disclosed or known
A
  • Statutory remedies do not apply but consumers may claim damages (Sections 19 (9) and (10)
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24
Q 
CRA15 Statutory right being breached - and remedies that apply 
Section 17 (2) (3) (6) and (7) Consumer to enjoy quiet possession of the goods
A
  • Statutory remedies do not apply but consumers may claim damages (Sections 19 (9) and (10)
25
Q

Other rules regarding B2C contracts for the supply of goods covered by the Consumer Rights Act 2015

A

Generally uses SOGA79 as a basis.

CRA15 provisions relate to the supply of goods other than sales contracts.

26
Q

Other rules regarding B2C contracts for the supply of goods covered by the Consumer Rights Act 2015

Section 25 Delivery of wrong goods quantity (similar to SOGA79 Section 30)

A
  • Accept short amount and at the contract rate, or reject
  • Accept contract amount and reject extra amount
  • Accept contract + extra amount and pay at contract rate, or reject
27
Q

Other rules regarding B2C contracts for the supply of goods covered by the Consumer Rights Act 2015

Section 26 Delivery by Instalments (similar to SOGA79 Section 31)

A
  • Consumer not obliged to accept non-contract instalment delivery
  • If the consumer agrees, the contract proceeds on the agreed basis
  • Issues with an Individual instalment attract a range of contract law remedies
  • Longer term issues to be resolved case-by-case
28
Q

Other rules regarding B2C contracts for the supply of goods covered by the Consumer Rights Act 2015

Section 28 and 29

A

Section 28 Delivery of goods and Section 29 Passing of risk.

29
Q

B2C contracts for the supply of digital content covered by the Act

Sections it covers

A

Content must have an associated money price; or supplied free with something else that has a price (Section 33).

Section 34 states it must be of satisfactory quality.
Section 35 states it must be fit for purpose
Section 36 states it must be as described
Section 41 states the trader has the right to supply it

30
Q

B2C contracts for the supply of a service covered by the Act

A

Contracts for education and apprenticeship are excluded by Section 48(2).
A ‘service’ is not highly defined, but Section 53 states that service sector-specific law to take precedence.

31
Q

B2C contracts for the supply of a service covered by the Act

Statutory rights enshrined in the CRA15 concerning B2C supply of a service

A

Statutory rights enshrined in the CRA15 concerning B2C supply of a service are that a service must be performed:

Section 49 with reasonable care and skill
Section 51 with reasonable price
Section 52 with a reasonable time

32
Q

B2C contracts for the supply of a service covered by the Act

Section 50 - supplied information is term

A

This Section makes the information supplied under Consumer Contracts Regulations 2013 a term of the contract. As well as anything said or written by or on behalf of the trader, if the consumer relies upon it before or after entering the contract.

This is to ensure seller complies with all that is agreed in relation to the contract.

33
Q

B2C contracts for the supply of a service covered by the Act

Remedies under general contract rules

A

Section 55 right to require to repeat performance at the trader’s cost

Section 56 right to price reduction if Section 55 is not complied with or if repeat performance is not possible.

34
Q

B2C contracts for the supply of a service covered by the Act

CRA15 Statutory right being breached and statutory remedies that apply

Section 49 Service not performed with reasonable care or skill

A
  • Sections 54 and 55 The right to ask for repeat performance
  • Sections 54 and 56 If above is impossible, or not done in a reasonable time or significant inconvenience, the right to a reduction in price
35
Q

B2C contracts for the supply of a service covered by the Act

CRA15 Statutory right being breached and statutory remedies that apply

Section 52 Service not performed within a reasonable time

A
  • Sections 54 and 56 The right to a reduction in price
36
Q

B2C contracts for the supply of a service covered by the Act

CRA15 Statutory right being breached and statutory remedies that apply

Section 50 Service not performed in-line with information provided concerning the service

A
  • Sections 54 and 55 The right to ask for repeat performance
  • Sections 54 and 56 If above is impossible, or not done in a reasonable time or significant inconvenience, the right to a reduction in price
37
Q

B2C contracts for the supply of a service covered by the Act

CRA15 Statutory right being breached and statutory remedies that apply

Section 50 Service not performed in-line with information provided concerning the trader

A
  • Sections 54 and 56 The right to a reduction in price
38
Q

B2C contracts for the supply of a service covered by the Act

Section 57 - exclusion of liability

A

Section 57 contains provisions that ensure traders are not able to restrict or exclude liability or statutory rights.

39
Q

Unfair Terms in B2C contracts for the supply of goods, digital content or a service covered by the Act and Unfair Consumer Notices

A

Before CRA15 unfair consumer contract terms were covered by the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999.

The CRA15 now performs this role after the 1st October 2015.

40
Q

Unfair Terms in B2C contracts for the supply of goods, digital content or a service covered by the Act and Unfair Consumer Notices

CRA15 Section 62(4) and 62(6): Unfairness definition

A

If contrary to good faith, it causes imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.

41
Q

Unfair Terms in B2C contracts for the supply of goods, digital content or a service covered by the Act and Unfair Consumer Notices

CRA15 Sections 61 and 62(1) and (2)

A

Where Section 61 applies to contracts of employment and apprenticeship, and notices between employers and employees regarding respective rights., Sections 62(1) and (2) state that unfair contract terms and unfair consumer notices are not binding, unless the consumer chooses to rely on them.

42
Q 
Assessment of Fairness of a B2C contract term 
Section 62(5)
A
  • account the nature of the subject matter of the contract
  • refer to the circumstances existing when the terms was agreed
  • refer to other contract terms, or if any other contract on which it depends
43
Q

Assessment of Fairness of a consumer notice Section 62(7)

A
  • account the nature of the subject matter of the contract
  • refer to the rights and circumstances existing when the rights or obligations to which it relates to arose
  • refer to the terms of any contract on which it depends
44
Q

UCTA 77

Section 63 - unfair terms

A

This section states a list of terms that are deemed unfair.

45
Q

UCTA 77

Section 64(1) - exclusion of fairness assessment

A

This Section doesn’t allow assessment for fairness of a transport or prominent B2C term where it specifies the main subject matter of the contract, or if assessment provides appropriateness of price paid in comparison with the goods. Unless the term is ‘grey listed’.

46
Q

UCTA 77

Section 65 - excluding negligence liability

A

Considers the situation where a trader attempts to restrict their negligence liability.

Similarly to before CRA15, terms that attempt to exclude liability for personal injury or death are void.

47
Q

UCTA 77

Aspects of law that continue in CRA15

A

Section 67 contracts will continue if practicable in every other respect without the non-binding clauses

Section 68 there must be transparency in the language used for the written terms or consumer notice

Section 69 ambiguous statements will be given the meaning that is the most beneficial to the consumer (contra preferentem)

Section 71 allows court to exam B2C contract terms for fairness even if not directly the issue of the case

Section 72 ensures contracts which follow-on from the main B2C contract are covered by the B2C rules, in order to protect the consumer.

48
Q

Other UK Acts, Regulations and EU Directives, and their influence

Unfair Contract Terms Act 1977
Sections 6 and 7 - for the sale and supply of goods

A

These 2 sections impact on the sale and supply of goods and hire purchase.

Consumer law is then replaced by CRA15, contracts dated 1st October 2015

  • any contract for sale, supply or HP cannot exclude by any express term, or some other agreement, the implied condition that the seller has the right to sell the goods
  • it can also not exclude any express term or agreement, the implied warranty of freedom from encumbrances and entitlement to quiet possession of the goods
  • Consumer contracts for the sale or HP of goods, or for the supply of working materials, before CRA15, cannot restrict liability for breach of implied conditions
  • Non-consumer contracts for the sale or HP of goods, or for the supply of working materials, can restrict liability for breach of implied conditions, provided that the exclusion clause is reasonable.
49
Q

Other UK Acts, Regulations and EU Directives, and their influence

Unfair Terms in Consumer Contract Regulations 1999

A

Provide further protection to consumers where contracts are governed by standard term/standard form contracts imposed by the business upon consumers.
Specially if consumer hasn’t had the chance to negotiate the notice.

These regulations originated in the EU Law.

50
Q

Other UK Acts, Regulations and EU Directives, and their influence

Supply of Goods (Implied Terms) Act 1973

A

For HP and it mirrors the SOGA79 sections regarding: title, supply by description, fitness for stated or usual purpose and correspondence with sample.

This act no longer applies since CRA15.

51
Q

European Union Law and how it works in practice in English Law

A

Unfair Terms in Consumer Contract Regulations 1999 originated in European Union Law.
The UK already had the UCTA77, these Regulations came along to harmonise the law amongst State Members.

The the UK passed the CRA15, which incorporated a great number of EU Directives

52
Q

Sale and Supply of Goods to Consumers Regulations 2002

A

For contracts up the 30th of September 2015, incorporating EU Sale of Consumer Goods and Associated Guarantees Directive.
It applies to the sale of goods, hire and hire purchase between businesses and consumers.

Consumers are defined as people buying for purposes not related to their trade, business or profession.

These Regulations don’t apply to second hand goods sold at auctions, where consumer attended in person,

53
Q

Sale and Supply of Goods to Consumers Regulations 2002

Who can the consumer sue?

A

When goods ae faulty, consumer can obtain direct legal remedy against the retailer, not against the manufacturer.
There are additional rights if the goods were purchased by credit card.

54
Q

Sale and Supply of Goods to Consumers Regulations 2002

Expectations

A

Consumers are entitled to goods of satisfactory quality. If discovered at moment of sale, purchaser can complain.

Legal remedy is not to be expected in respect of:

  • fair wear and tear
  • misuse or accidental damage
  • if they decide they no longer want them
  • faults which the consumer was aware before the sale or which should have been evident on reasonable inspection
55
Q

Sale and Supply of Goods to Consumers Regulations 2002

Remedies

A
  • full refund, if within reasonable time of sale
  • reasonable amount of compensation (damages) for up to 6 months from the date of sale.

Consumers may choose repair or replacement, but seller can decline if disproportionate price in comparison to the alternative remedy.

56
Q

Sale and Supply of Goods to Consumers Regulations 2002

Proving the fault

A

Consumer needs to demonstrate the goods were faulty at the time of sale, if they choose to request a full compensation or refund. This also applies if the 6 moths from date of sale have passed.

If a consumer returns goods within the 6 months from date of sale, it is assumed they were faulty at the time of sale and refund , repair or replacement are granted. Unless seller can prove the goods were satisfactory at the time of sale.

Remedies also available if:

  • installation by retailer was not satisfactory
  • installation instructions had serious shortcomings
  • where goods don’t match the public statements by the retailer, manufacturer, importer or producer. Specially if commissioned product.
57
Q

The Consumer Protection from Unfair Trading Regulations 2008

A

These Regulations implement the EU Unfair Commercial Practices Directive 2005, aimed to harmonise consumer practices in the EU against dishonest business practices.

These prohibit sales of untruthful claims, or half-truths, omissions, aggressive selling.

The Regulations are enforced by the Competition and Markets Authority (formerly OFT).

58
Q

The Consumer Contracts Regulations 2013

A

EU Regulations created to harmonise central features of consumer relationships:

  • clarity of information when making a purchase
  • restriction upon excessive fees (i.e. credit card surcharges)
  • standardised 14 day cancellation period for distance sales

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