Essay
D2 evaluate the statutory protection given to a consumer in their dealings with a business and the remedies available.
- Institution
- PEARSON (PEARSON)
Unit 21 BTEC Business Level 3 Extended Diploma
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Evaluate the statutory protection given to a consumerIn this assignment it would be explained how well do the remedies and acts of the
government protect the consumers and resolve a problem in case of breach of
contract.
Therefore the available remedies protects the consumers very well in the case of
breach of contract as the injured party is able to claim for damages and gain some
form of compensation for the loss of the contract;As a result this is an advantage as
it makes sure that the injured party does not lose out but not all the available
remedies are designed to protect the consumers.For example mitigation of loss
protects only the customer by informing the company about any possible issues and
does not let that issue to get worse as the business would have to pay a lot of money
for something that was a customer’s fault but nothing regard to the business.
What constitutes a breach of contract?
A seller’s duty under a contract for the sale of goods or services includes to deliver
the goods in accordance with the terms of the contract. They must also be fit for
purpose and of satisfactory quality. Examples of breaches include:
● the provision of faulty goods;
● a restaurant meal of poor quality;
● the dangerous installation of services;
● failure to deliver goods on time;
● the goods do not comply with the terms of the contract.
The law provides a range of remedies to consumers in these situations.
Statutory protection
A statute is a written law that is linked to a state, territory or nation.As a result the
consumers are always protected by the statutes through Trade Practices Act 1974
, which is a law designed to ensure that sellers comply with the minimum standards
required for their business, making certain practices, such as selling unsafe products
or misrepresentation.The Act also covers situations of market manipulation to
guarantee that consumers have access to a free market of choice and healthy
competition.As a result this act is accessed for those businesses that are operating
in more than one place.For example Vodafone is a multinational company that is
expanded in more than one country.Therefore this act is applied to them in order to
protect consumer and sellers from breach of contract regarding to delivery damages
and misrepresentation situations.
An example of case law is in Victoria Laundry (Windsor) Ltd v Newman Industries
Ltd a laundry contracted to buy a boiler for use in its business. In breach of a term
relating to time of delivery, the boiler was delivered some five months late. The
laundry sued for the loss of the profits it would have earned had the boiler been
delivered at the specified time plus the loss of profits from a dyeing contract it had
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