Sale of Goods and Services, and Consumer Protection Flashcards
Conditions to form a contract for the Sale of Goods
1) A contract (either written or verbal)
2) A sale of goods
3) A transfer of property (ownership) of the goods
4) Money consideration (price)
Types of goods
- Specific and ascertained goods
- Unascertained and generic goods
Romalpa / ‘retention of title’ clause
The seller retains ownership of the goods until they are paid for in full, but the buyer is allowed to take possession of the goods
Sale of Goods: implied terms
- Seller has the right to sell
- Description
- Satisfactory quality
- Fit for purpose
- Model, sample and installation
Buyer’s remedies - consumers (when the goods you buy are not complying with those implied items)
For goods:
- Rejecting goods and money back (30 days)
- Right to repair or replacement (within 6 months)
- If repair or replacement is unsuccessful then final right to reject or price reduction
For services:
- Repeat the service or price reduction
Protection if there is no contract
Law of tort offers several options:
(1) The tort of negligence
- Manufacturer owes a duty of care to the ultimate consumer. However, there must be a BREACH of that duty of care and DAMAGE RESULTING from that breach
- The claimant must show negligence by the defendant
- Liability is NOT STRICT LIABILITY as FAULT MUST be shown
(2) Consumer protection
- Consumer legislation imposes STRICT LIABILITY for products
- The consumer DOES NOT need to show fault because of a breach of a duty of care
- Consumer ONLY needs to show that the product was defective, and that it CAUSED DAMAGE
General Product Safety Regulation 2005 (based on EU Directives)
No producer shall supply or place a consumer product on the market unless the product is safe
Trade description legislation
Imposes criminal liability for a false description of goods or services
