Consumer Law

Question 1

What does the Consumer Rights Act 2015 apply to?

Answer 1

Contracts between a trader and a consumer, under which a trader agrees to supply goods, digital content or services

Question 2

Which act was used before the CRA 2015?

What did it define the sale of goods as?

How has the SGA 1979 been amended?

Answer 2

Sales of Goods Act 1979

The exchange of tangible goods for money

Now applies to B2B transactions only.

Question 3

Why was the CRA 2015 introduced?

Answer 3

> Due to the expansion in the types of goods consumed in modern society (e.g. digital tech + utilities)
To simplify the law for consumers

Question 4

Which gives greater protection to the consumer, SGA 1979 or CRA 2015?

Answer 4

CRA 2015

Question 5

Define a ‘trader’ and a ‘consumer’

Answer 5

Trader
= person acting for purposes relating to their trade

• can act personally, through another person acting in the trader’s name or on the trader’s behalf

Consumer
= individual acting for purposes that are wholly or mainly outside their trade

Question 6

What term does Section 9 Satisfactory Quality imply?

What factors are taken into account?

Answer 6

Goods are made of satisfactory quality
i.e. they meet the standard that a reasonable person would consider satisfactory

s.9(3):
Description of goods
Price
Fitness for all purposes the good is commonly supplied for
Appearance and finish
Freedom from minor defects
Safety and durability

Question 7

For s.9 Satisfactory Quality to be implied, what must happen?

What is irrelevant as to whether this term is applied?

Answer 7

The seller must sell the goods in the course of a business

Whether it is the seller’s fault that the goods are not of satisfactory quality

Question 8

What are the 2 circumstances under which the s.9 Satisfactory Quality term will not be implied?

Answer 8

1. If defects are brought to the attention of the buyer before the contract is made
   - even if the costs of repairing the defects is more than the buyer thought
2. if the buyer examines the goods before the contract is made, and this ought to reveal the defect
   - NB. the buyer has no obligation to examine the goods

Question 9

Give the names of 3 caselaw examples for s.9 Satisfactory Quality

Answer 9

Bartlett v Sidney Marcus Ltd [1965]

Darren Egan v Motor Services (Bath) [2007]

Wilson v Rickett, Cockerell & Co. Ltd [1954]

Question 10

Give a brief overview of Bartlett v Sidney Marcus Ltd [1965]

Answer 10

Motor dealership sold second-hand Jaguar to the claimant.
Sales Exec told buyer the clutch was defective, but he thought this minor repair would cost £2-3.
They offered to fix the clutch or offer a £25 discount to the buyer.

The buyer bought the car with the discount and arranged for the clutch to be fixed elsewhere.
This cost £84.

He claimed for damages under Satisfactory Goods.

Held:
Not liable for damages as clutch defect had been brought to his attention
= not unsatisfactory quality

Question 11

Give a brief overview of Darren Egan v Motor Services (Bath) [2007]

Answer 11

Claimant bought new Audi from dealership.

He later said it pulled to the left and wanted to reject it.
The defendants ran tests and found no tendency.

Claimant sued for £35,000 under s.14 SGA 1979 Satisfactory Goods.

Held:
According to a reasonable person, the car was of satisfactory quality.

Question 12

Give a brief overview of Wilson v Rickett, Cockerell & Co. Ltd [1954]

Answer 12

Claimant bought bag of coal from defendant.

She put the coal on the fire and a detonator in the coal exploded, burning down her house.

Held:
Goods were not of satisfactory quality.

Question 13

What are the 2 types of goods distinguished in Section 11 Description?

Answer 13

Specific Goods
= goods that are identified and agreed upon at the time of the contract

e.g. a shirt made of cotton with Mickey mouse on

Unascertained goods
= goods not specifically identified at the time a contract of sale is made
= always sold by description

e.g. contract for sale of 100 chairs, if the type of chair is not specified, the seller can supply any type of chairs

Question 14

What is the significance of s.11 Description?

Answer 14

It is a condition.

-> so if it is breached, the buyer can treat the contract as repudiated without having to prove the breach deprived him of substantially the whole benefit

Question 15

What does s.11 (1) state?

What must happen for the s.11 to apply?

Answer 15

Where there is a contract for the sale of goods by description, there is an implied term that the goods will correspond with that description

There must be reliance on the description

Question 16

Give the caselaw examples for s.11 Description

Answer 16

Harlingdon & Leinster Enterprises Ltd. v Christopher Hull Fine Art Ltd. [1991]

Re Moore & Co Ltd and Landauer & Co Ltd [1921]

Question 17

Give a brief overview of Harlingdon & Leinster Enterprises Ltd. v Christopher Hull Fine Art Ltd. [1991]

Answer 17

Claimant bought painting for £6000.
Painting was described in auction catalogue as being by a German artist.

Both parties were London art dealers, but only the buyers were specialised in German paintings (i.e. specialist knowledge!).
Buyers sent an expert employee to inspect the painting, where the sellers said they knew nothing about the paintings or the German artist.
The expert agreed to buy.

After the sale, buyers discovered it was a fake and worth £100.
They rejected the painting under s.11 Description.

Held:
The buyers did not rely on the description as they sent an expert to inspect the painting.
-> description wasn’t an essential term
= s.11 did not apply

Question 18

Give a brief overview of Re Moore & Co Ltd and Landauer & Co Ltd [1921]

Answer 18

Claimant in London bought 3100 tins of peaches from defendants in Australia.
They were described to be packed into cases of 30.

When delivery, some were packed into cases of 24.
The buyers rejected the consignment.

Held:
The buyers could reject all of the tins, as they did not correspond with the description by which they were sold.

Question 19

What does s.11(2) imply?

Answer 19

If a sale is made by sample and description, the bulk of the goods must comply with both the sample and the description

Question 20

What are the 4 remedies stated in s.19 for breach of the CRA 2015?

Answer 20

1. Short term right to reject (s.22)
2. Repair or replace (s.23)
3. Price reduction (s.24)
4. Final right to reject (s.24)

Question 21

What does the ‘short term right to reject’ entitle the buyer to?

Answer 21

A full refund within 30 days

begins day after the transfer of ownership, delivery of goods and completion of contract

Question 22

What does ‘repair or replace’ result in?

Answer 22

The trader must repair or replace the goods..

1. …within a reasonable time and without significant inconvenience
2. …bearing any necessary costs incurred in doing so

Question 23

What does a ‘price reduction’ give the consumer the right to?

Answer 23

1. The trader must reduce the price by an appropriate amount
2. The trader must give a refund for anything already paid above the reduced amount

Question 24

What does the ‘final right to reject’ mean for the trader?

Answer 24

The buyer is not entitled to a full refund as deductions can be made by the trader to take account of any use of the goods which the consumer has had

Question 25

What must happen for a consumer to exercise their right to reject?

Answer 25

They must indicate to the trader that they are rejecting the goods and treating the contract as at an end

Can be done verbally or by conduct

Question 26

What does section 31 state re exclusion?

Answer 26

a trader cannot exclude, limit, or undermine its liability for any of the relevant terms in consumer contracts

Question 27

What new protection re digital content does the CRA 2015 provide?

Answer 27

A consumer has the right to repair or replacement of faulty digital content e.g. music downloads, games, online films, e-books

Question 28

What does the Consumer Protection Act 1987 impose?

What does this allow?

Answer 28

Civil liability

Allows consumers injured by an unsafe/defective product to sue the manufacture for:

• death
• personal injury
• property damage in excess of £275 (must be privately owned)