Exclusion clauses- Statutory controls

Question 1

What are the two main statutory controls?

Answer 1

1. The unfair contract terms act 1977
2. The Consumer Rights act 2015

Question 2

Why was the unfair contract terms act 1977 introduced?

Answer 2

1. introduced to give customers greater protection
2. removes inequalities in bargaining strength

Question 3

What does the Unfair contract terms act 1977 relate to?

Answer 3

Business to business contracts.

Question 4

Which two ways does the unfair contracts terms act 1977 work?

Answer 4

1. It makes a clause unenforceable (void)
2. It makes the clause subject to a reasonableness test (this will not necessarily end the contract).

Question 5

What exclusions and limitations are made void by the unfair contracts terms act 1977?

Answer 5

s2 (1)

Question 6

S2 (1) (UCAT)?

Answer 6

A person cannot exclude liability for death or personal injury caused by negligence.

Question 7

What are the exclusions depending for their validity for a test for reasonableness?

Answer 7

-S2 (2)
-S3

Question 8

S2 (2) UCAT?

Answer 8

-In the case of loss/ damage, a person cannot exclude or restrict liability for negligence except when the term or notice satisfies the test for reasonableness.

Question 9

S3 UCAT?

Answer 9

-Imposes a reasonableness test to contracts where one party is subject to the others standard written terms of business.

Question 10

Which section aids the definition for the reasonableness test?

Answer 10

s11 (1)

Question 11

s11 (1)

Answer 11

-‘the term shall have been a reasonable and fair one to be including having regard to the circumstances which were, or ought reasonably to have been, known to or in the contemplation of the parties when the contract was made’

Question 12

Who does the consumer rights act 2015 protect?

Answer 12

-the rights of consumers who enter contracts with traders.

Question 13

Which sections concern exclusion clauses in the consumer rights act 2015?

Answer 13

-S31
-S57
-S65
-s62

Question 14

S31 CRA?

Answer 14

-Prevents excluding liability for S9,10 and S11

Question 15

S57 CRA?

Answer 15

-Prevents excluding liability for S49, S50 and S52

Question 16

S50 CRA?

Answer 16

-gives contractual force to anything written/ said by traders to consumers where the consumer takes that representation into account in making decisions about the contract.

Question 17

S65 CRA?

Answer 17

-Prohibits the use of exclusion and limitation clause that try to limit liability for negligence that causes death or personal injury.

Question 18

S62 CRA?

Answer 18

-All terms in consumer contracts must be fair.
-Includes a ‘fairness test’ on enforceability of terms/ customer notices.
-the main subject matter of contract/ terms that set the price only except from test of fairness if they are ‘transparent and prominent’
-grey list.

Question 19

What is meant by the grey list?

Answer 19

-Written by the government considering terms that mat be considered unfair
-schedule 2

Question 20

S50 CRA?

Answer 20

-gives contractual force to anything written/ said by traders to consumers where the consumer takes that representation into account in making decisions about the contract