Contract Law: Consumer Rights

Question 1

What is rescission?

Answer 1

A remedy that is made at the discretion of the judge to put both parties back into their pre contractual positions.

Question 2

What are express terms?

Answer 2

Terms that are specifically agreed between parties.

Question 3

What are implied terms?

Answer 3

Terms that are implied in the contract.

Question 4

What is a condition?

Answer 4

A term in the contract that is central to the contract if it is breached, the contract may be repudiated as shown in Poussard V Spiers and Pond 1876.

Question 5

What is a warranty?

Answer 5

A term in the contract that is minor. Damages can be claimed for the breach of warranty but the contract is not ended because the main purpose of the contract will contribute to be performed as shown in Bettini V Gye 1876.

Question 6

What is an innominate term?

Answer 6

A term not defined as a condition or warranty- the court has to decide whether how severe the consequences of the breach of the term were as shown in Hong Kong Fir shipping Co LTD V kawasaki Kisen Kaisha 1962

Question 7

What is a representation?

Answer 7

Statement made by one party to the contract that induces the other party to enter into the contract- it is established into in court
if the representation was untrue, the legal issue to remedy would be misinterpretation.

Question 8

A representation may become a term depending on…

Answer 8

• The importance attached to representation as shown in Couchman V Hill 1947
• Special knowledge of skill of the person making a statement as shown in Oscar Chess V Williams 1957
• Time lag between making the statement and making the contract as shown in Routledge V Mackay 1957
• whether there is a written contract as shown in Routledge V Mackay1957

Question 9

What is the business efficacy test?

Answer 9

• Courts will imply a term into a contract if the term is necessary to make sure that the work is on the basis of business.
• is the term necessary to make the contract effective.
• if parties to the contract had thought about it. would they have argued that the suggested term was obviously going to be in the contract?

Question 10

What is the officious bystander test?

Answer 10

• Had an officious bystander been present at the time the contract was made and had suggested that such a term should be included, it must be obvious that both parties have agreed to it as shown in Shirlaw V Southern Foundries.

Question 11

What is the Consumer Rights Act 2015? (rights for goods purhased)

Answer 11

Replaced the sale of Goods Act 1979.
States all goods should be….
- s9 - of satisfactory quality which is judged by what a reasonable person would consider satisfactory.
- s10- fit for the purpose they are supplied for
- s11- as described by matching any descriptions or samples shown at the time of the purchase.

Question 12

What are the remedies under the Consumer Rights Act 2015 for goods?

Answer 12

The claim must be against the retailer.
s20- the consumer has a legal right to reject goods that are not of satisfactory quality, unfit for purpose or not as described to get a full refund within the 30 days of purchase.
- s23- give the retailer one opportunity to repair or replace any goods outside the 30 days of purchase
- if the fault is discovered after 6 months, the burden is on the consumer.

Question 13

What are the rights for delivery under the Consumer Rights Act 2015?

Answer 13

-S28 - the retailer is responsible for the goods until they are in possession of the consumer.
if the retailer fails to deliver within 30 days, the consumer has the right to terminate the purchase and get a full refund.

Question 14

What are the rights for supply of services under the Consumer Rights Act 2015?

Answer 14

• S49- the trader must perform the service with reasonable care and skill.
• S50- information which is said or written is binding whether the consumer relies on it.
  S51- where the price is not agreed beforehand, the service must be provided for a reasonable price.
  S52- unless a timescale has been agreed, the service must be carried out within a reasonable time.

Question 15

What are the remedies for the supply of services under the Consumer Rights Act 2015?

Answer 15

The claim must be against the trader.
-S55- the trader should either redo the element which is inadequate or perform the whole service again at no extra cost.
-S56- where repeat performance is not possible, the consumer can claim a price reduction- the refund must be within 14 days.

Question 16

What are unfair terms?

Answer 16

Under S62 an unfair term under the act is not binding on the consumer- if they think a term is unfair the should complain to the trader e.g. fees and charges hidden in small print.

Question 17

What is the Consumer Contract Regulations 2013?

Answer 17

Covers the sales of goods online, over the phone and brings into force the Consumer Rights Directive and Distance Selling Regulations.

Question 18

What should a trader provide under the Consumer Contracts Regulations 2013?

Answer 18

• A description of the goods, service and include how long the commitment will last.
• The total price
• How the consumer will pay and when
• Additional delivery charges and other costs
• Details of who pays the cost of returning items if there is a right to cancel.
• Details of any right to cancel
• Information about the seller such as address, contract info
• Information on the compatibility of digital content.

Question 19

What are the cancelling rights under Consumer Contracts Regulations 2013?

Answer 19

• Right to cancel up to 14 days after order placement.
• Further 14 days to send goods back
• Further 14 days for trader to give refund from the date they receive the goods.

Question 20

What are the exceptions for the rules of cancellation?

Answer 20

• CD, DVD or software if the seal has seal has been broken on the wrapping.
• Perishable items
• Tailor made/ personalised items

Question 21

What is repudiation?

Answer 21

Ending of a contract.