Consumer Rights Act 2015 PDF

LEARNING OBJECTIVES Discuss the consumer transaction and concepts of caveat emptor and caveat venditor; and Discuss the statutory rights afforded to the consumer under the Consumer Rights Act, 2015. THE CONSUMER TRANSACTION Based on the law of contract – a legally...

LEARNING OBJECTIVES Discuss the consumer transaction and concepts of caveat emptor and caveat venditor; and Discuss the statutory rights afforded to the consumer under the Consumer Rights Act, 2015. THE CONSUMER TRANSACTION Based on the law of contract – a legally-binding agreement between consumer and trader o Who is a consumer? o Who is a trader? Both parties have rights and obligations CONSUMER SALES For the Consumer Rights Act, 2015 to apply the transaction must satisfy two criteria: consumer sale must be by a seller in the course of a business; and The goods must be of a type ordinarily supplied for private use or consumption. THE CONSUMER TRANSACTION Applying these criteria, which of the following would be considered a consumer sale: Kevin buys a DVD/Blu-ray player from Smith Electrics for £200 Leona, a furniture retailer, buys furniture from a furniture warehouse that she then resells in her shop Food Wholesalers Ltd sells a consignment of bread to a grocery chain store, Trustco Mary sells her bicycle to a cycle shop for £75 THE CONSUMER TRANSACTION Irene and John both wish to purchase cars. Irene buys a nearly new car from Carson Motor Sales for £6,995. John buys a similar model privately from a friend for £6,595. Coincidentally within one month of their purchase, both experience the same problem with their cars and are forced to have repairs done, at considerable cost. Does the Consumer Rights Act, 2015 apply to Irene and John? Explain... HOW IS THE CONTRACT MADE?  Agreement consists of an OFFER and an ACCEPTANCE least two parties are required – the trader and the consumer OFFER is an expression of willingness to contract, made with the intention that it shall become binding, once accepted. There is no contract where there is no CONSIDERATION (eg if the trader offers to supply goods free of charge) CAVEAT EMPTOR Let the buyer beware If bought goods turn out to be faulty in some way, and the seller has not misrepresented them in any way then there is nothing the buyer can do. CAVEAT VENDITOR Let the seller beware Forces the seller to take responsibility for the product higher standard of disclosure than caveat emptor CHANGING YOUR MIND … o The consumer normally has no automatic right to change his mind and cancel a contract = BREACH of contract o automatic right to cancel in some special cases – eg Consumer Contract Regulations, 2013 (Week 7 refers) o Wrongful cancellation of a contract by a consumer entitles the trader to recover reasonable costs CONSUMER RIGHTS ACT, 2015 The Act is a part of the Government’s reform of the UK’s consumer landscape which aims to make it easier for consumers to understand and access their key rights, including: o the right to clear and honest information before you buy; o the right to get what you pay for; and o the right that faults in what you buy will be put right free of charge or a refund or replacement provided. TWO NEW AREAS OF LAW For the first time rights on digital content have been set out in legislation. o The Act gives consumers a clear right to the repair or replacement of faulty digital content, such as online film and games, music downloads and e-books.  New, clear rules for what should happen if a service is not provided with reasonable care and skill or as agreed. The business that provided the service must bring it into line with what was agreed with the customer or, if this is not practical, must give some money back. THE CONTRACT OF SALE Express Terms = Terms agreed by the buyer and the seller Implied Terms = Consumer Rights Act, 2015 implies terms into a contract What do you think are the implied terms in the Consumer Rights Act, 2015? YOUR RIGHTS The person transferring or selling the goods must have the right to do so. All products (physical or digital) must meet the following standards: o Satisfactory quality Goods shouldn't be faulty or damaged when you receive them. You should ask what a reasonable person would consider satisfactory for the goods in question? For example, bargain bucket products won’t be held to as high standards as luxury goods. o Fit for purpose The goods should be fit for the purpose they are supplied for, as well as any specific purpose you made known to the retailer before you agreed to buy the goods. o described The goods supplied must match any description given to you at the time of purchase. SATISFACTORY QUALITY Goods should be of satisfactory quality, taking into account: o the description of the goods; o the price; and o all other relevant circumstances (including appearance, finish, freedom from minor defects, safety and durability) Doesn't apply if a fault is obvious or pointed out to you at the point of sale. FIT FOR PURPOSE Fit for any particular purpose made known to the seller Goods should be fit for all purposes for which they are commonly supplied and do what is claimed of them. The product must really be fit for any purpose you queried and received reassurances about. AS DESCRIBED Refers to any description on the packaging, labels, advert or verbal description made by the trader. Goods will correspond with the description. Sale by sample – correspond with sample as well as description SUPPLY OF A SERVICE The term 'service' covers a wide variety of services including large and small-scale work you might have carried out in your home requiring you to enter into a contract (eg) dry cleaning, entertainment, solicitors, estate agents, accountants, building work or home improvements. Services can be provided alone or they may be provided with goods, for example, the fitting of a new kitchen/bathroom, building/decorating work, double glazing, car repairs. Service contracts are protected by the Consumer Rights Act, meaning that all contracts for services must do the following: o The trader must perform the service with reasonable care and skill. o Information which is said or written is binding where the consumer relies on it. o Where the price is not agreed beforehand, the service must be provided for a reasonable price. o The service must be carried out in a reasonable time. SALE GOODS Same rights apply Does not justify the supply of inferior goods ATTEMPTS TO RESTRICT YOUR RIGHTS Retailers cannot restrict your rights regarding quality, fitness and description. REDRESS Your rights under the Consumer Rights Act are against the retailer – the company that sold you the product – not the manufacturer, and so you must take any claim to the retailer. ALTERNATIVE DISPUTE RESOLUTION  Enables disputes between a consumer and business to be settled via an independent mechanism outside court. Different types of ADR: o Mediation; o Adjudication; and o Arbitration. ADR can be cheaper and quicker for consumers and business to use rather than a dispute through the courts. Consumers will continue to sort out disputes between themselves and a business informally. Consumers will ALWAYS be expected to give traders the chance to address a problem before engaging in ADR. ADR simply gives consumers and business another option for sorting out disputes rather than the consumer having to resort to formal court action. CONSUMER RIGHTS ACT, 2015 - SUMMARY http://www.which.co.uk/consumer-rights/reg ulation/consumer-rights-act?gclid=COOz0cvTr cgCFcOv2wod3PICHQ