Consumer Contracts Flashcards
purpose of consumer rights act
contains specific terms implied by statute to consumer contracts
consumer is protected by statutory rights
rights in the form of:
s1(1)
- terms implied to ensure certain minimum standards
- consumer remedies
- controls on exemption clauses to ensure a trader doesn’t side step its obligations
contract
act applies whether contract is written, oral, implied from conduct, or mixture
trader
“person acting for purposes relating to their trade, business, craft or profession, whether acting personally or through another person acting in the traders name or on the traders behalf”
consumer
“individual acting for purposes that are wholly or mainly outside that individuals trade, craft or profession”
company cannot be a consumer as it’s not an individual
scope of the act
the act applies to contracts for goods, digital content, and services
if involving more than one, it is a mixed contract
two parts of CRA
(1) contract for supply of goods
(2) contract for supply of services
(1) contract for supply of goods
- applies to…
applies to:
- sale of goods (exchanged for money)
- hire of goods
- hire-purchase agreements
- transfer of goods (exchanged for consideration)
(1) contract for supply of goods
- terms subsections
s9 satisfactory quality
s10 fit for purpose
s11 goods to be as described
s9 satisfactory quality
s9(1) the goods will be of satisfactory quality
s9(2) SQ = the goods are what a reasonable person would consider satisfactory given the price, description, all other relevant circumstances
s9(3) SQ includes their state and condition:
(a) fitness for all common purposes
(b) appearance and finish
(c) freedom from minor defects
(d) safety of the goods
(e) durability
s9(4) EXCEPTIONS to SQ
(a) defect drawn to customers attention before contract made
(b) customer makes examination before contract and examination should have revealed the defect
(c) goods are supplied by sample, and the defect would have been revealed by reasonable examination of the sample
s10 fit for purpose
goods should be fit for all common purposes (for which goods of that kind are usually supplied)
?
s10(3) UNLESS purchaser has a particular sensitivity that is known to the seller, as long as fit for normal people there will be no breach
(Baldry v Marshall)
where purchaser has an abnormal sensitivity not known to the seller, as long as fit for purpose for most people no breach (Griffiths v Peter Conway)
s11 goods to be as described
s11(1) “every contract to supply goods by description is to be treated as including a term that the goods will match the description
- results can be harsh
Beale v Taylor
description includes:
- D given where goods are on display and customer self selects
- goods which describe themselves
- packaging (Re Moore v Landauer)
(1) contract for supply of goods
- remedies
s20 short term right to reject
s23 right to repair or replacement
s24 right to price reduction or final right to reject
- goods which don’t conform to the contract at any time within 6 months from delivery are presumed to have not complied with terms on day of delivery
- customer can still use normal contract remedies eg damages
s20 short term right to reject
reject goods and claim full refund
within 30 days of delivery
- shorter if goods are perishable
trader must bear any reasonable cost of returning goods
refund given within 14 days
s23 right to repair or replacement
if s20 not exercised, can claim free repair of replacement
replacement would have to be identical (can’t use if same make and model no longer available)
done in reasonable time and without significant inconvenience to customer
after repair/replacement, consumer can still exercise s20
s24 right to price reduction or final right to reject
The consumer can exercise either the final right to reject and claim a refund or a right to a price reduction if one of the following three situations exists:
(1) After one repair or replacement, the goods do not conform to the contract
(2) The consumer cannot exercise the right to a repair or a replacement because both are impossible or disproportionate
(3) The consumer has requested a repair or a replacement, but the trader has not done so within a reasonable time and without significant inconvenience to the consumer.
(2) contract for supply of services
- applies to…
performance of a task rather than delivery of goods
(2) contract for supply of services
- terms subsections
s49 reasonable care and skill
s52 performance within a reasonable time
s49 reasonable care and skill
s49 implies term that the trader will perform service with reasonable care and skill
Wilson v Best Travel
same standard as for negligence
test wether the supplier is exercising ordinary skill of an ordinary competent person supplying that particular service
higher standard if supplier hold himself out as having reasonable skill or expertise (Thake v Maurice)
s52 performance within a reasonable time
s52 trader will perform service within a reasonable time
reasonable = question of fact
only applies if contract doesn’t fix a time
(2) contract for supply of services
- remedies
s55 right to require repeat performance
s56 right to price reduction
also normal contract remedies
s55 right to require repeat performance
trader must repeat performance:
(1) to the extent necessary to comply with the contract
(2) within a reasonable time and without significant inconvenience to the consumer
(3) must bear any costs such as materials and labour
s56 right to price reduction
require trader to reduce the price by an appropriate amount and receive a refund for anything above the reduced amount that has already been paid for
only if repeat performance is impossible or hasn’t been done in reasonable time/without significant inconvenience
refund within 14 days, by same method of original payment, not subject to a fee
