Exemption clauses and unfair terms

Question 1

what is an exclusion clause

Answer 1

excludeor limit liability of a party

Question 2

what does the unfair contract terms act 1977 apply to

Answer 2

use of exemption clauses in contracts between 2 businesses.

Question 3

which act gives consumers protect regarding unfair terms and exclusion clauses.

Answer 3

the consumer rights act 2015

Question 4

what are the two type of unfairness within law

Answer 4

• procedural fairness- relates to the way in which a term in a contract is agreed.
• substantive fairness- relates to the weight of the obligation imposed.

Question 5

for an exclusion exclusion clause to be binding what must it be

Answer 5

1. incorporated into the contract as a term
2. pass the test of construction
3. must not be rendered unenforceable by the statutory provision in the unfair contract terms act 1977 or consumer rights act 2015.

Question 6

what are the requirements of incorporating an exclusion term

Answer 6

• signature (L’estrange v gaucob)
• notice (chapelton v barry)
• previous course of dealings

Question 7

what is the test of construction

Answer 7

refers to the ability of the exclusion clause to cover the loss which has occured-
- construed on its natural and ordinary meaning (George Mitchell v finney lcok seeds 1983)

Question 8

what does the unfair terms act 1977 do

Answer 8

The Unfair Contract Terms Act (UCTA) 1977 regulates contracts by limiting the extent to which one party can avoid liability through use of exclusion clauses such as disclaimers. It applies to exclusion terms within the majority of contracts, including notices that would bring into existence contractual obligations.

Question 9

what does the consumer rights act 2015 do

Answer 9

The Act gives consumers a clear right to the repair or replacement of faulty digital content, such as online film and games, music downloads and e-books. The law here had been unclear and this change has brought us up to date with how digital products have evolved.

Question 10

what is the reasonableness test within the UCTA

Answer 10

s 11 (1) ucta states- clause might be unreasonable in one contract but not another

Question 11

what is a significane imbalance

Answer 11

where a term puts the consumer in a worse position than h or she is un under national law

Question 12

how is good faith assessed

Answer 12

asking if the average consumer would have agrees to the term.