Consumer Rights and Transactions

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Questions and Answers

For a transaction to be classified as a consumer sale under the Consumer Rights Act, 2015, which of the following criteria must be met?

The sale must be conducted online and not physically in a shop.

The sale must be part of the seller's commercial activity, and involve goods typically for private use or consumption. (correct)

The sale must involve goods that are not commonly available to the public.

The sale must occur between two individuals, where one is acting as a consumer and the other as a trader.

Which of the following scenarios is NOT considered a 'consumer sale' under the Consumer Rights Act, 2015?

Kevin purchases a DVD/Blu-ray player from Smith Electrics for £200.

Food Wholesalers Ltd sells a consignment of bread to a grocery chain store, Trustco.

Mary sells her bicycle to a cycle shop for £75.

Leona, a furniture retailer, buys furniture from a furniture warehouse to resell in her shop. (correct)

The concept of "Caveat Emptor" places the responsibility of ensuring the quality of goods on the buyer.

True

The Consumer Rights Act, 2015 provides consumers with an automatic right to cancel any contract, regardless of the circumstances.

False Signup and view all the answers

The Consumer Rights Act, 2015 allows for the right to repair or replacement of faulty digital content like online games and music downloads.

True Signup and view all the answers

What are the two main components of an agreement, according to the content?

Offer and Acceptance Signup and view all the answers

What does "Consideration" refer to, in the context of a contract?

Something of value exchanged between the parties in a contract. Signup and view all the answers

The term 'service' covers a wide variety of services, including both and -scale work.

large, small Signup and view all the answers

Under the Consumer Rights Act, 2015, if a service is not provided with reasonable care and skill, the consumer is entitled to request that the service be brought into line with the initial agreement, or a refund if this is not practical.

True Signup and view all the answers

What are the two types of terms implied into a contract under the Consumer Rights Act, 2015 ?

Express Terms and Implied Terms Signup and view all the answers

Which of the following is NOT a requirement for goods to meet satisfactory quality standards under the Consumer Rights Act, 2015?

The goods must be priced at the lowest possible value. Signup and view all the answers

Under the Consumer Rights Act, 2015, for which of the following purposes must goods be deemed "fit for purpose"?

For the purpose they are commonly supplied. Signup and view all the answers

In the context of the Consumer Rights Act, 2015, who is responsible for addressing a consumer's complaint about a faulty product?

The retailer who sold the product. Signup and view all the answers

What is the primary purpose of Alternative Dispute Resolution (ADR)?

To resolve disputes between consumers and businesses outside of a court setting. Signup and view all the answers

Which of these options is NOT a type of Alternative Dispute Resolution (ADR)?

Negotiation Signup and view all the answers

Study Notes

Learning Objectives

Discuss consumer transactions and concepts of caveat emptor and caveat venditor
Discuss statutory consumer rights under the Consumer Rights Act 2015

The Consumer Transaction

Based on contract law, a legally binding agreement between consumer and trader
Defines who a consumer and trader are
Both parties have rights and obligations

Consumer Sales

Consumer sales must meet two criteria to apply to the Consumer Rights Act 2015:
- The sale is by a business
- The goods are typically supplied for private use or consumption

Applying the Criteria

Examples of consumer sales:
- Kevin buying a DVD player from a shop
Examples of non-consumer sales:
- A furniture retailer buying furniture from a warehouse to resell
- A food wholesaler selling bread to a grocery store
- Someone selling a bicycle to a cycle shop

The Consumer Transaction (Irene and John)

Irene buys a nearly new car from a business
John buys a similar car privately from a friend
Both experience car problems shortly after the purchase
The Consumer Rights Act 2015 might apply to Irene, but not necessarily to John

How is a Contract Made?

A contract requires an offer and acceptance from at least two parties
An offer is an expression of willingness to enter a binding contract, and must be intended to be binding
There needs to be consideration (an exchange of value). A trader offering goods for free doesn't constitute a contract

Caveat Emptor

Let the buyer beware. If bought goods are faulty and the seller has not misrepresented them, the buyer has no recourse.

Caveat Venditor

Let the seller beware. The seller has responsibility for product quality (a higher standard than caveat emptor)

Changing Your Mind

Consumers generally have no automatic right to cancel a contract
Some specific exceptions apply, like those outlined in the Consumer Contract Regulations 2013

Consumer Rights Act 2015

Aims to make consumer rights clearer and easier to understand and access
Includes the right to clear, honest information, proper value for money, and the right to repair or refund faulty goods
This Act affects digital content, such as the right to repair faulty software, movies etc.

Two New Areas of Law

The Act has introduced rights for digital content
It grants consumers a clear right to repair or replacement of faulty digital content, including online films, games, etc.

The Contract of Sale

Express terms: terms agreed between buyer and seller.
Implied terms, defined by the 2015 Consumer Rights Act

Your Rights

The seller must have the right to sell the products.
Products must be of satisfactory quality, fit for purpose and as described.

Satisfactory Quality

Goods should be satisfactory in quality, concerning description, price and other relevant circumstances, e.g. appearance, finish, and lastingness
Exceptions: obvious or pointed out defects at the time of sale

Fit for Purpose

Goods must be suitable for the purpose described. Must be fit for all common usages and purposes to which they are commonly put and that were discussed at the time of the purchase

As Described

Refers to a product matching the verbal, written or visual description, e.g. on a label, packaging etc.

Supply of a Service

Covers services like repair work, building work etc.
The service must be provided with reasonable care and skill, and at a reasonable price and time.

Sale Goods

Similar rights apply as to products (fit for purpose, satisfactory quality etc)

Attempts to Restrict Your Rights

Retailers cannot restrict consumer rights in quality, fitness, and description

Redress

Retail companies are responsible for resolving issues concerning the products they sell.

Alternative Dispute Resolution

ADR provides mechanisms outside of court for resolving disputes between consumers and businesses
Types of ADR include: mediation, adjudication and arbitration

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Description

This quiz explores key concepts of consumer transactions, focusing on the Consumer Rights Act 2015. Understand the principles of caveat emptor and caveat venditor, along with statutory consumer rights and examples of consumer vs. non-consumer sales.