Implied terms B2B

Question 1

Which laws concern implied terms in B2B transactions: SoGA? (10)

Answer 1

s12

s12(2)a

s12(2)b

s13

s14(2)

s14(2)a

s14(2)b

s14(2)c

s14(3)

s15

Question 2

s12?

Answer 2

seller must have right to sell

Question 3

s12(2)a

Answer 3

goods free from encumbrance

Question 4

s12(2)b

Answer 4

B right to enjoy quiet possession

Question 5

s13

Answer 5

goods must correspond with description

Question 6

s14(2)

Answer 6

where course of business, goods must be of satisfactory quality

Question 7

s14(2A)

Answer 7

satisfactory quality must meet standard of the reasonable person, concerning description of goods price, and other circumstances

Question 8

s14(2B)

Answer 8

quality of goods includes

a. fitness for all purposes
b. appearance and finish
c. freedom from minor defects
d. safety
e. durability

Question 9

s14(2C)

Answer 9

s14(2) not fulfilled where the issue is drawn to the buyers attention

Question 10

s14(3)a

Answer 10

where seller sells to buyer in course of business, and the buyer makes their particular purpose for the goods known to the seller, there is an implied term that the goods should be reasonably fit for purpose

Question 11

s15

Answer 11

goods must correspond with sample

Question 12

What is the main case concerning s14(2), “in the course of business”? What rule is established?

Answer 12

Stevenson v Rogers 1999

one sale is sufficient for goods to be considered in the course of business

Question 13

Which case concerns the usability of goods? Rule?

Answer 13

Bernstein v Pamsom Motors

goods can still be of unsatisfactory quality where goods are usable or reparable

Question 14

Which case concern s14(2B)? (3)

Answer 14

Egan v Motor Services (Bath)

Grenfell v Meyrowitz

Jewson v Kelly

Question 15

Facts of Grenfell v Meyrowitz?

Answer 15

importance of looking at “technical meaning” of safety

eye glass was described as a safety glass

safety glass does not always guarantee safety to the buyer

held in this case, the glass was tougher than ordinary glass, so considered to be sufficiently safe

Question 16

Which cases concern durability? (2)

Answer 16

Murrell v Joseph

Thain v Anniesland

Question 17

Facts of Murrell v Joseph

Answer 17

goods should be durable enough to stay in a durable state until delivered

Question 18

Facts of Thain v Anniesland

Answer 18

a second hand car of such an age is not expected to be very durable - no breach of implied term as to durability

Question 19

Which cases concern description and price? (2)

Answer 19

Roger v Parish 1987

Bartlett v Sidney Marcus

Question 20

What rule is established in Roger v Parish?

Answer 20

Higher standard expected from higher priced goods

Question 21

What rule is established in Bartlett v Sidney Marcus?

Answer 21

you cannot expect the same quality from second hand goods as new goods

Question 22

Which cases concerns s14(3)? (4)

Answer 22

Priest v Last

Aswan Engineering v Ludpine

Slater v Finning

Ashington Piggeries 1972

Question 23

Gooley v Perry

Answer 23

b has no obligation to make inspection; can make “cursory” rather than detailed inspection and will not lose claim

Question 24

Facts of Aswan Engineering v Ludpine

Answer 24

the more specific or unusual the purpose, the more specific the buyer has to be

Question 25

Facts of Priest v Last

Answer 25

particular purpose of the buyer can be made known either expressly or impliedly - but must be BEFORE contract entered into

Question 26

Facts of Slater v Finning

Answer 26

Buyer did not indicate that they required the special features of the boat

Question 27

Facts Ashington Piggeries case 1972

Answer 27

buyer specified they required the goods for animal feed, but did not specify that it was particularly mink feed they required this was held to be within a broad range of purposes

Question 28

Which case concerns section 14(2C)

Answer 28

Gooley v Perry

Question 29

What rule is established in s14(2C)?

Answer 29

s14(2) not fulfilled if issue drawn to the attention of the buyer

Question 30

What rule is established in s14(3)

Answer 30

Where buyer makes particular purpose known to the seller, there is an implied term that the goods will be reasonably fit for particular purpose there must also be reliance on the seller

Question 31

What two case concern reliance under s14(3)? Facts?

Answer 31

Harlingdon v Leinster - seller admitted they were no art expert, and buyer was, so no reliance Jewson v Kelly - purpose of buyer so particular, there could be no reliance

Question 32

Can any implied terms be excluded? Relevant laws?

Answer 32

Sections 12-15 SoGA can be excluded According to S6 - UCTA Implied term must be fair and reasonable - s11(1) Test to be applied is found in schedule 2

Question 33

Explain the rules regarding sale by description, with cases

Answer 33

Ashington Piggeries - Description is the commercial characteristics of the goods Reardon Smith Lines v Hansen Tangen - Description must identify essential parts of the goods Harlingdon v Leinster - there must be reliance on seller