Lauren Cleveland
Unit 5: Consumer Law
A person buys as a consumer when they do so as an individual and not as a
business. The consumer has less ‘power’ than the business; meaning there is
unequal bargaining power. The law gives more protection to a consumer than
if a business were buying from each other, as two businesses have equal
bargaining power.
Both common law and legislation, The Consumer Rights Act 2015, are aimed to
ensure that consumers are not treated unfairly and have rights to protect
them. However, the act does not cover purchases from private sales, these
items are sold on abases off “sold as seen”. Only protects customers buying
from businesses.
Every ‘sale’ involves a contract where parties agree to do something, this
comes in a form of either an ‘expressed term’ or an ‘implied term’.
Expressed terms are contractual terms that have been specifically stated by
and agreed by both parties at the time the contract is made, these clauses are
set out in writing. If an express term has been broken, there will have been a
breach of contract, subsequently meaning the buyer must return the goods
and recover all money previously paid.
Implied terms in a contract are matters that have not been expressively agreed
between parties, however are automatically expected to be included in the
contract through terms of common law.
In BTEC Applied Law book consumer, business and goods under The Consumer
Rights Act 2015 are defined as:
Section 2, Consumer is somebody buying goods for their own personal use,
(not for business use).
S.2, Business is a person or organisation selling goods or services. A trader
would be acting as a ‘business’.
S.3, Goods are characterised as being any solid, physical item that a person can
touch or handle. Goods can be bought over the counter, by telephone or
online. ‘Goods’ can be both old and new.
The Consumer Rights Act 2015 protects consumers by implying terms into the
consumer contract even if the seller doesn’t want them. There are three main
implied terms:
Section 9: The goods must be of satisfactory quality
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, Lauren Cleveland
Section 10: The goods must be fit for the purpose for which they were bought
Section 11: The goods must be fit the description given to them by the seller
Section 9 CRA 2015; Satisfactory Quality.
Under section 9 of CRA 2015 it states that goods must be of satisfactory
quality. For goods to be of a ‘satisfactory quality’ an objective test is used,
basically meaning would a ‘reasonable person’ (an average person) think the
condition of the goods is ‘satisfactory’, basing it off the price, appearance,
safety and durability of the product.
If a consumer receives a good that is scratched or has inconsistencies in colour
or pattern (cosmetic issue = appearance) this breaches section 9, as it is not
seen to be of satisfactory quality due to appearance. Under the old Sales of
Goods Act 1979 a consumer wouldn’t have been entitled to make a claim.
However, the new and improved statute does allow this which is a benefit to
all consumers.
In the case of J&H Ritchie Ltd v Lloyd Ltd (2007) the consumer was entitled to
reject the goods because he hadn’t been told about the defect and the goods
didn’t work properly. Hence, the seed drill and harrow were then classed as
not satisfactory for use, permitting a rejection of the goods.
However, if the seller informs the consumer of the defect before the purchase
of the goods, a claim can not be made; even if it costs more to repair than they
thought it would. This is shown in the case of Bartlett v Sidney Marcus Ltd
(1965), in which the consumer purchased a car with the knowing information
of it having a clutch problem. C then had no rights under s.9 to claim damages,
that the car wasn’t of ‘satisfactory quality’, as the problem was already raised
to the consumer before sale.
Section 10 CRA 2015; Fit for purpose
Section 10 of CRA 2015 declares goods must be fit for purpose for which they
are made or intended/ the seller describes. Goods that do not work properly
are therefore not fit for purpose which could link to section 9. Hence a
consumer could then claim that both s.10and s.9 CRA 2015 have been
breached.
As long as the buyer can prove at least one implied terms has been broken
they will have rights under CRA 2015.
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