consumer rights act 2015

intro

• applies if:

  • trader + consumer

  • make a contract

  • under which trader is to supply goods and/or services to the consumer

• CRA puts into a single place all the statutory rights a consumer is entitled to and protected by

• trader may be shown to have breached contract by applying implied obligations under CRA

definitions

• contract- Act applies whether contract is

  1. written

  2. oral

  3. implied from conduct of parties

  4. or some mixture of these

• trader- a person acting for purposes relating to their:

  1. trade

  2. business

  3. craft

  4. profession

• consumer- an individual acting for purposes wholly or mainly outside their t,b,c,p

  • a company cannot be a consumer, as not an individual

• scope of the act- Act applies to contracts for:

  1. goods

  2. digital contract

  3. services

     • mixed contract = contract involving more than one of these

types of contracts

• contracts for supply of goods

• contracts for supply of services

contracts for supply of goods

CRA applies to all contracts for supply of goods, including

1. sale

2. hire

3. hire-purchase

4. transfer

   • exchanged for consideration other than price

contracts for supply of good

implied term one

• s9 satisfactory quality

  • s9(1)- implied term in every contract for supply of goods that they will be of satisfactory quality

  • s9(2)- SQ means would reasonable person call it satisfactory, given

    1. price

    2. description

    3. relevant circumstances

  • s9(3)- SQ includes:

    1. state

    2. condition

    3. fitness for all common purposes

    4. appearance/finish

    5. freedom from minor defects

    6. safety of goods

    7. durability

defences to satisfactory quality

• s9(4)- defences

  1. fault drawn to consumers attention before contract made

  2. consumer should have made examination before contract

     • which should have revealed fault

  3. goods supplies by sample

     • fault revealed by any reasonable examination of sample

contracts for supply of good

implied term two

• s10 fitness for particular purpose

  • s10(3)- implies a term that if consumer impliedly/expressly makes it known to trader, they want the goods for a particular purpose, the goods must be fit for that purpose

    • even when purpose is not for which goods are usually supplied

  • however, abnormal sensitivity must be made known to trader

    • if it is not then as long as goods are fit to purpose for most people, no breach of requirement

    → Griffiths V Peter Conway LTP

contracts for supply of good

implied term three

• s11 goods as supplied

  • s11(1)- implies a term that when goods are supplies by description, they must match:

    1. implied- goods on display

    2. reference to model examined/seen by consumer

    3. website provides info on main characteristics

  • any description should be precisely complied with

    • can extent to matters such as packaging which can lead to harsh results

      → Re Moore + Landauder

contracts for supply of good

when are remedies available?

• consumer can still use any normal contract remedy,

  • e.g. damages

    • especially if there is any consequential loss

• s19 good which do not conform to the contract at

  • Any failure to conform with terms of contract that becomes apparent within six months from the date the goods were delivered is presumed to have existed at the time of delivery

  • if trader breached one of the implied terms, makes remedies available:

contracts for supply of good

remedies types

1. s20- consumer has short term right to reject goods + claim full refund

   • within 30 days of delivery

   • shorter if the goods are perishable

   • return:

     • trader must bear any reasonable costs of returning goods

     • should be given within 14 days

2. s23- consumers right to claim free repair / replacement

   • if consumer doesn’t exercise s20

   • replacement:

     • must be identical

     • impossible if same make/model unavailable

     • must be done in reasonable time

   • after repair/replacement:

     • consumer can still exercise short term right to reject

     • 30 days restarts

3. s24- consumers right to price reduction/final right to reject and claim refund

   • if s23 doesn’t bring about satisfaction to consumer

   • if one of three situations exists with repair/replacement:

     1. after one, goods don’t conform to contract

     2. consumer cannot exercise right because both impossible or disproportionate to trader

     3. consumer has requested but trader not done so within reasonable time / without significant inconvenience to consumer

contracts for supply of services

• performance of task, not delivery of goods

• implied term 1

• s49- reasonable care + skill implied in contract

  • test whether supplier is:

    • exercising ordinary skill

    • of ordinary competent person

    • with reasonable care + skill

  • standard is higher if supplier holds self having any special skills/expertise

    • if reached higher level of care + skill then consumer can’t claim

    → Thake V Maurice

contracts for supply of services

• performance of task, not delivery of goods

• implied term 2

• s52- reasonable time implied in contract

  • what is a reasonable time is a question of fact

  • only when contract doesn’t fix time or state how time will be fixed

contracts for supply of services

• performance of task, not delivery of goods

• when are remedies used?

• only if C wants to carry on with contract

• if not then common law damages are used for remedies

  • especially for consequential loss

contracts for supply of services

• performance of task, not delivery of goods

• types of remedies

1. s55- right to repeat performance

   • trader must:

     • repeat to extent necessary to bring service up to compliance

     • bear any cost

   • must be:

     • within reasonable time

     • without significant inconvenience to consumer

   • cannot use if impossible

2. s56- right to price reduction

   • can only use when s55 repeat is:

     • impossible

     • not completed within reasonable time

     • not without significant inconvenience to consumer

   • may result in refund up to full contract price

   • refund must be:

     • within 14 days

     • by same method as original payment

   • consumer must not be subject to any fee

exclusion clauses

• CRA controls exclusion/limitation clauses in consumer/trader contracts

• prohibits term excluding liability for

  • s31 → sale of goods

    • s9, s10, s11

  • s57 → supply of services

    • s49, s52

  • s65 → liability for death or personal injury resulting from negligence