Class notes
Consumer Rights Act 2015
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Detailed explanation of the Consumer Rights Act 2015. Includes problems with the Sale of Goods Act 1979 and supporting case law.
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The Consumer Rights Act 2015Note: SGA 1979 used to be the main source of consumer protection in the UK. Its now only active for
B2B and C2C; so purely private sales. The CRA 2015 took over a lot of the work of SGA 1979 in
relation to consumers.
Problem areas with the SGA 1979
What about ‘work and materials’
Robinson v Graves [1935]
Case Facts
The claimant, an artist, was commissioned (i.e., hired) to paint a portrait in exchange for money by
the defendant. The defendant changed their mind when the painting was nearly complete. The
claimant wanted to recover the money they had put into the painting under the SGA 1893. However,
this required the agreement to be in writing, which it wasn’t.
Case Decision
The Court of Appeal held that this was a contract for the claimant’s skill as an artist (i.e., a work and
materials contract) and not a contract for the sale of goods i.e., the finished portrait.
Point to Take Away
Work and materials contracts (services) fall outside of the Sale and Goods Act. This case prompted
Parliament to create the Supply of Goods and Services Act 1982 to cover this situation. The SGSA
1982 is still active but only in relation B2B and C2C.
Computer Software
St Albans City & District Council v International Computers Ltd [1997]
Case Facts
The defendants supplied the claimants with a computer software system for administering the
collection of the Community Charge. The software was defective; resulting in the claimants
collecting far less than they expected. The claimant made a claim under the Sales of Goods Act 1979.
Note: A community charge was a tax (in the UK), introduced by the Conservative government in
1990 (1989 in Scotland), levied (i.e., imposed) locally on every adult in a community. It was replaced
in 1993 by the council tax.
Case Decision
The software was intangible so it could not come under the definition of goods under the Sale and
Goods Act. The disc was tangible, but the problem was with the software not the disk. This created a
ridiculous situation. If the disk was faulty, you could bring action under the SGA but not the
software, which is what you purchased the disk for in the first place.
Note: the law still protects the council (in terms of breach of contract) but easier to make claim
under Sale of Goods Act.
Point to Take Away
Example of the issue with the SGA when it came to computer software.
, London Borough of Southwark v IBM UK Ltd [2011]
Case Facts
The claimants and defendants entered into a contract with one another concerning the purchase of
data management software. The software was a combination of the defendants’ software, and the
software of a third party provided under licence. The project was abandoned, and the claimants
brought action for the software being unfit for purpose under the Sale of Goods Act 1979.
No - no 'transfer' of property occurred as it
was software due to it being licensed
Case Decision
The SGA 1979 did not apply as no transfer of property had occurred as it was licensed software.
Point to Take Away
Example of the issue with the SGA when it came to computer software.
Statements on what was wrong
‘Currently the consumer protection regime (i.e., system) is unclear, overly complex and in need of
updating to reflect the myriad (i.e., multitude) of different purchases made by today’s consumers,’
(Which?, 2012)
‘Consumers struggle to enforce their rights because UK consumer law is unnecessarily complex,
ambiguous in places and has not kept up with technological developments.’
(‘Consultations on Consumer Rights’: BIS, 2013)
Consumer Rights Act 2015
Overview: a “simple modern framework”
The CRA 2015 applies where a business (a 'trader') supplies goods, digital content, or services to a
consumer.
SGA 1979 implies conditions into consumer contract as to the standard of goods / services. CRA
2015 does the same but makes these standards statutory rights that consumers are entitled to.
s.12 CRA 2015 Pre‑contract information (i.e., what you are told before you enter the contract) has
become implied term of the contract e.g., details on payment, delivery and after‑sales service.
The CRA is primarily about consolidating and clarifying the existing law, rather than creating new
law. Most of the Acts that it supersedes (e.g., the Sale of Goods Act 1979 and the Supply of Goods
and Services Act 1982) remain in force. Their effect is limited to business-to-business (B2B) contracts
and consumer-to-consumer contracts (C2C).
Note: purely private sales (e.g., one-off purchase from eBay seller – any more than one off would
probably fall under s.14) fall outside s.14 SGA 1979.
BIG CHANGE!! Consumers can now request a refund right away without asking for any repair or
replacement for tangible goods.
BIG CHANGE!! Regulates the supply of digital content as if these are tangible goods.
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