Law2 Part2 - Consumer Protection

Question 1

Outline the FAIR TRADING ACT 1986

Answer 1

The purpose of the FTA is to stop unfair competition. It increases consumer protection by requiring information about product and services to be true.

Question 2

Outline the CONSUMER GUARANTEES ACT 1993

Answer 2

The purpose of the CGA is to establish minimum standards for goods and services which are purchased by consumers. It gives remedies against suppliers of goods and services and manufacturers who fail to meet the guaranteed standards.

Question 3

What is the starting point for the FAIR TRADING ACT 1986 and CONSUMER GUARANTEES ACT 1993

Answer 3

NO CONTRACTING OUT OF THESE ACTS for domestic consumers but may be possible if the consumer is in trade

Question 4

What does contracting out mean?

Answer 4

Putting in clause that says that “one or both acts don’t apply” in contractual terms ( FAIR TRADING ACT 1986, , CONSUMER GUARANTEES ACT 1993)

Question 5

Explain what is mean by the Acts aim to be complementary

Answer 5

• Fair Trading Act provides pre‐sale protection by regulating promotional conduct (adverts, brochures, webpage pop‐ups, etc)
• The Consumer Guarantees Act provides post‐sale protection, i.e. after the sale of goods or provision of services when the consumer has used them.

Question 6

In the FAIR TRADING ACT 1986 –section 9:

• s.9. “No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive”

Who does this apply to?

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Answer 6

Only relates to those in trade (businesses acting as businesses)

Conduct is being regulated - info business has supplied about transaction

standard being applied is of being misleading or deceptive or likely to mislead or deceive

Question 7

What are the aims of the Consumer Guarantees Act 1993?

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Answer 7

–Offers protection for contracts for the purchase of goods and services. Sets out minimum standards for goods and services.
–It is efficient, protection is automatic and can’t be avoided.

Question 8

What is the application of the Consumer Guarantees Act 1993?

Answer 8

Act applies when goods and services are supplied by a supplier or manufacturer to a consumer

Question 9

What does the CONSUMER GUARANTEES ACT 1993 create?

Answer 9

guarantees and remedies when goods and services are supplied by a supplier or manufacturer to a consumer

Question 10

In terms of the CONSUMER GUARANTEES ACT 1993, what does the Guarantees for Goods by suppliers include?

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Answer 10

1. Guarantee as to title i.e. right to sell
2. Guarantee as to acceptable quality –safe, durable
3. Guarantee as to fitness for purpose
4. Guarantee as to price i.e. a reasonable price if no price is mentioned.

Question 11

In terms of the CONSUMER GUARANTEES ACT 1993, what does the Guarantees for Goods by Manufacturers include?

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Answer 11

1. Guarantee of acceptable quality
2. Guarantee as to repairs and spare parts
3. Express guarantees

Question 12

In terms of the CONSUMER GUARANTEES ACT 1993, what does the Guarantees for Goods by services include?

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Answer 12

1. Guarantee as to reasonable care and skill
2. Guarantee as to fitness for particular purpose
3. Guarantee as to time of completion
4. Guarantee as to price

Question 13

QUESTION
What guarantees under the Consumer Guarantees Act were breached?

A civil engineer gets a contract for a bridge to cross a wide rural water‐race, which cuts across the driveway to the farmer’s home and garage. The brief stipulates that the bridge must be able to carry domestic cars and motorbikes. Although no time was specified for completion in the contract the farmer felt a year was a long time to wait for the engineering drawings.

The first time the bridge is used by the farmer driving his newSUV over the bridge, the bridge collapses. Initial investigations indicate the bridge failed because it lacked a central pillar which was required because of the width of the water‐race.37

Answer 13

Key points

1. Is the farmer acting in trade?
   Running farm is business. If acting as trade, possible to contract out in CONSUMER GUARANTEES ACT 1993.
2. Since private house, might not be acting in trade.

Assume CONSUMER GUARANTEES ACT 1993 applies.

3. What has to eng. been contracted to do?
   Is the person providing a plan for someone else to follow? Or are they responsible for building bridge?

Taken year to act

Talking about guarantee for services

Purpose mentioned

So may have failed reasonable care and skill

Need to confirm if plans were at fault or builder