Legislative control of terms CRA Flashcards
What transactions does the Consumer Rights Act 2015 apply to?
Applies exclusively to business-to-consumer (B2C) transactions.
How are “Trader” and “Consumer” defined under the CRA 2015?
“Trader” is defined as a person acting for purposes related to their trade, business, craft, or profession. “Consumer” is an individual acting mainly outside their trade, business, craft, or profession.
What does Section 65(1) of the CRA 2015 prohibit?
Prohibits terms that exclude or restrict liability for death or personal injury resulting from negligence in B2C transactions.
What is the Fairness Test under the CRA 2015?
Introduces a non-binding nature for unfair terms in consumer contracts, emphasising good faith and the balance of rights and obligations.
How do DG of Fair Trading v First National Bank Plc and Parking Eye Ltd v Beavis relate to the CRA 2015?
Provide judicial interpretations of the fairness test, underlining the need for terms to be transparent and not cause significant imbalance to the consumer’s detriment.
What does Schedule 2 of the CRA 2015 provide? (4 questions?)
An indicative and illustrative list of potentially unfair terms to guide the assessment of contractual fairness.
(Presents questions of;
a. inducement – i.e., did they get a good price because the person can exclude their liability = court will be less willing to interfere.
b. would they reasonably know the existence and extent of term i.e., relevance in the industry.
c. whether term excludes or restricts liability where one condition was not complied with?
d. if they have adapted the goods adopted to a special order.
Are core terms subject to fairness review under the CRA 2015?
Core terms related to the contract’s main subject matter or price are exempt from the fairness assessment if transparent and prominent.
What clarifies the scope of “main subject matter” in contracts, according to the CRA 2015?
The Matei case from the CJEU, defining it as essential obligations characterising the contract.
What is required for terms to be considered transparent and prominent under the CRA 2015?
Terms must be in plain and intelligible language and prominently brought to the consumer’s attention, following the “average consumer” standard.
What is the effect of finding a term to be unfair under the CRA 2015?
Unfair terms are not binding on the consumer, emphasizing consumer protection.
How are provisions on unfair terms enforced under the CRA 2015?
Section 70 grants investigatory and injunctive powers to the CMA and other regulators, enhancing enforcement against unfair terms.
