Legislation

Question 1

What is consideration?

Answer 1

Value given by both parties e.g supplier agrees to sell goods to customer then supplier is agreeing to deliver the goods and customer is agreeing to pay for goods

Question 2

What consideration must be ?

Answer 2

It must be sufficient but need not be adequate

Question 3

Type of contracts

Answer 3

A void contract
A voidable contract
An unenforceable contract
A frustrated contract

Question 4

What is the void contract?

Answer 4

It is one that cannot be enforced by law

Question 5

What is the voidable contract ?

Answer 5

It is a valid contract that can be nullified - One party is bound to a
contract but the other party is not, so can withdraw from the contract

Question 6

What is the unenforceable contract ?

Answer 6

It is one that is valid but if one party withdraws from the contract
the courts of law will not enforce them to meet the requirements of
the contract

Question 7

What is the frustrated contract?

Answer 7

It occurs if an unforeseen event either renders contractual obligations
impossible or radically changes the party’s principal purpose for entering into the contract

Question 8

Frustrated contracts could occur in the following circumstances….

Answer 8

1) item or building essential to the contract is destroyed though
no fault of either party
2) A law is passed subsequent to the formation of the contract which makes the contract illegal
3) A person or group under contract becomes unavailable though
death, illness or unavailability

Question 9

What is the contract?

Answer 9

It is a legally binding agreement between two parties

Question 10

4 ways an offer can be terminated

Answer 10

1) Revocation: means an offer is cancelled
2) Lapse of a specified time period
3) Counter offer: will be a rejection of fre original offer as a new is made
4) Acceptance will end the offer and form contractual obligations

Question 11

Trade Descriptions Act 1968 & 1972
- describe them

Answer 11

The 1968 Act makes it a criminal offence to apply a false or misleading description to goods and services
the 1972 Act requires that certain imported products should have their country of origin clearly displayed

Question 12

Unfair Contract Terms Act 1977

Answer 12

To ensure that unfair terms Are not included in the small print. Indemnity clauses ( business protect against its own negligence - seem to be unfair) are also covered
It is not possible for business to incorporate terms into a contract that would exclude themselves from legal liability for defective goods
This applies to business to business contracts

Question 13

Sale and Supply of Goods Act 1994

Answer 13

This Act governs contracts for the sale of goods
This applies to business to business contracts

Question 14

Sale and supply of Goods Act 1994 says that all products have to be …

Answer 14

Satisfactory quality
1) Be safe
2) Last for a reasonable amount
of time
3) be fit for their intended purpose
4) Have nothing wrong with them

Question 15

Consumer Rights Act 2015

Answer 15

This applies a business to consumer contract
It is offered more protection then businesses

Question 16

Late Payment of Commercial Debt ( Interest ) Act 1998

Answer 16

It gives small businesses the right to charge interest to larger companies who take a long period of time to pay them
The rate of interest is 8% , above the back of England’s base rate

Question 17

Late payment of Commuraice Debt (Interst) Act 1998
- Statutory compensation

Answer 17

up to £999.99 = £ 40.00
£ 1000 - £9999.99 = £ 70.00
£ 10000 + = £ 100.00

Question 18

Data Protection Act 2018

Answer 18

To restrict the use of data that is held about individuals
Tor apply to the storage of data of our customers and for credit customers

Question 19

Data Protection Act 2018 principles

Answer 19

1) Information must be processed lawfully I fairy and in a transparent manner
2) used for the declared purpose only
3) Limited to the data needed for the declared purpose
4) Accountk and up to date
5) Not supt for longer than necessary
6) Held securely
7) The Data Controller is accountable for compliance

Question 20

Data Protection Act 2018
Rights of the Data Subject

Answer 20

1) Right to be informed about the collection and use of their data
2) Right to access the data
3) Right to rectification of inaccurate data
4) Right to erasure ie the right to be forgotten
5) Right to restrict processing
6) Right to dath portability ie to obtain and reuse their data
7) Right to object
8) Rights in relation to automated decision making and profiling

Question 21

The Consumer Credit Act protects individuals who buy goods or services on their credit card for….

Answer 21

Over £100 but not more than £30000

Question 22

Consumers Credit Act

Answer 22

It regulates most agreements for granting credit. These include credit
sales agreements where ownership passes to the purchaser straight away on purchase and also hire purchase agreements where the consumer pays instalments to hire the item but will only take
ownership when the final instalments has been paid

Question 23

Data protection Act - principles

Answer 23

1) Lawfulness , fairness , and transparency
2) Purpose limitation
3) Data minimisation
4) Accuracy
5) Storage Limitation
6) Integrity and confidentiality
7) Accountability

Question 24

What is the invitation of treat?

Answer 24

Invitation of treat is an invitation by the seller of the goods for the buyer to make an offer to buy them at that price

Question 25

What is the coercion ?

Answer 25

Coercion isthe act or process of persuading someone forcefully to do something that they do not want to do.

Question 26

Under Data Protection what is meant by a data subject ?

Answer 26

An individual whose data is held

Question 27

Trade Description Act

Answer 27

Sellers are not allowed to make a false or
misleading statement otherwise it is a
criminal offence

Question 28

Unfair Contract Terms Act

Answer 28

Terms in a contract must be reasonable
and excluding certain terms will
automatically be declared void.

Question 29

Sale of Goods Act

Answer 29

Seller must have good title to the goods
and they must be of satisfactory quality, fit
for purpose and as described.

Question 30

Trade Descriptions Act

Answer 30

That it is a criminal offence to apply a false or
misleading description to goods and services and to give a false or misleading indication of the price
of the goods or services. You may have to comment on whether a scenario is in breach of this act

Question 31

Unfair Contract Terms Act

Answer 31

That unfair terms cannot be part of a contract

Question 32

Sale and Supply of Goods Act

Answer 32

When the Act applies, when title to the
goods pass, what conditions can be attached and the key terms of “satisfactory quality”, “fit for
purpose”, “as described’’

Question 33

Consumer Rights Act

Answer 33

That this Act applies in business to consumer contracts, and offers
more protection to consumers, including making any exclusion clause caused by negligence void.

Question 34

Consumer Credit Act

Answer 34

This Act gives additional rights to an individual (including sole traders and
small partnerships) entering into a credit agreement with a business.

Question 35

Nate is in a bookshop. He chooses a book and goes to pay for it. What part of the contact is
this?

Answer 35

Offer

Question 36

Which one of the following is a way in which an offer can be brought to an end, in contract
law?
1-Counter-offer
2-Intention to create legal relations
3- Lapse after 1 month
4- Payment of consideration

Answer 36

Counter-offer - this is a rejection of the original offer as a new offer is made

Question 37

Anita agrees with her brother that she will sell him her laptop for £100. She later sells her
laptop to someone else instead. Complete the sentence below
Anita’s brother cannot sue for breach of contract because….

Answer 37

There was no intention to create legal relations