Consumer Rights Act 2015

1. What does the CRA 2015 do?

The Consumer Rights Act 2015 (CRA 2015) brings together rights and remedies available to consumers when making a contract with a business.

2. What does it apply to?

The Act applies to contracts and notices between a ‘consumer’ and a ‘trader’.

3. What is a consumer?

A consumer means “an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession.”

4. What is a trader?「」

A trader is defined as “a person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf”.

5. What is a mixed contract?

“Mixed contracts” are those involving the supply of both goods and services, such as a car service where parts are fitted.

6 (OIR). What rights do mixed contracts attract?「」

In such contracts, under the Act, the service element of the contract attracts service rights and remedies (s.49, s.52), the goods elements attract goods rights and remedies (s.9, s.10, s.11).

7 (OIR). What does s.9 CRA 2015 state?

S.9 of the CRA 2015 states that every contract to supply goods is to be treated as including a term that the quality of the goods is satisfactory.

8 (OIR). How is satisfactory quality defined?

The Act then defines satisfactory quality as being where the goods meet the standard that a reasonable person would consider satisfactory, taking account of any description of the goods, the price and all the other relevant circumstances.

9 (OIR). What does the ‘quality of goods’ include?

The Act goes on to explain that the quality of goods includes their state and condition and takes into account the fitness for all the purposes for which goods of that kind are usually supplied and their durability; the goods’ appearance and finish; the goods’ freedom from minor defects and the safety of the goods.

10 (OIR). What happened in Shine v General Guarantee Corp?「」

In Shine v General Guarantee Corp, a car that was found to have been submerged in water was not of satisfactory quality.

11 (OIR). What does s.10 state?

S.10 of the CRA 2015 states that goods should be fit for purpose.

12 (OIR). What happens if a purpose for the goods has been made known?

If, before the contract is made, the consumer makes known to the trader (expressly or by implication) any particular purpose for which the consumer is contracting for the goods there is an implied term that the goods are reasonably fit for that purpose, whether or not that is a purpose for which goods of that kind are usually supplied.

13 (OIR). What happened in Crowther v Shannon Motor Company?「」

In Crowther v. Shannon Motor Company, a car was not fit for its purpose (namely being driven on a public road) when the engine seized up after 3 weeks.

14 (OIR). What does s.11 state?

S.11 of the CRA 2015 states that every contract to supply goods by description is to be treated as including a term that the goods will match the description.

15 (OIR). What happened in Re Moore and Landauer?「」

In Re Moore & Landauer, a contract for the sale of 3,100 tins of peaches described the tins as being packed in cases of 30. When they arrived, the tins were packed in cases of 24 although the agreed overall number of tins was supplied. The purchaser was entitled to reject the goods as they were not as described.

16 (OIR). What happens if the goods do not conform to the contract?

If the goods do not conform to the contract because of a breach of any of the rights under the CRA 2015 then the appropriate remedies available to the consumer are as follows.

17 (OIR). What can the consumer do under s.20?

There is a short-term right to reject under s.20 within thirty days; this entitles the consumer to a full refund.

18 (OIR). What can the consumer do under s.23?

If the consumer chooses not to exercise this then there is the right to repair or replacement under s.23.

19 (OIR). What can the consumer do under s.24?

If for any reason this is not satisfactory then there is the right to a price reduction or the final right to reject under s.24.

20 (OIR). What happens where the consumer seeks to exercise their rights under s.23 or s.24?

Where the consumer seeks to exercise their rights under s.23 or s.24, s.19(14) and (15) states that if a breach of the statutory rights (for example faulty goods) arises within 6 months of delivery it is presumed to have been present at the time of delivery. The trader can seek to prove otherwise.

21 (OIR). What happens if a good’s fault develops after the first 6 months?「」

If a fault develops after the first 6 months, the burden is on the consumer to prove that the product was faulty at the time of delivery.

22 (OIR). What does s.49 say about services?

S.49 CRA 2015 states that a contract to supply a service is to be treated as including a term that the trader must perform the service with reasonable care and skill.

23 (OIR). What amounts to reasonable care and skill?

For what amounts to “reasonable care and skill” the principles of negligence are generally used and it will vary according to the standards within a profession.

24 (OIR). What was decided in Bolam in relation to s.49?「」

In Bolam, it was decided that professionals should be compared to a responsible body of opinion from within the same profession.

25 (OIR). What does s.52 state?「」

S.52 CRA 2015 applies to a contract to supply a service, and states that the service has to be performed within a reasonable time where the contract does not expressly fix the time for the service to be performed, and does not say how it is to be fixed. What is a reasonable time is a question of fact.

26 (OIR). What happens if s.49 or s.52 is breached?

If the services are not performed with reasonable care and skill, then there are rights under s.55 and s.56 of the CRA 2015.

27 (OIR). What does s.55 state?

The right to repeat performance under s.55 is a right to require the trader to perform the service again, to the extent necessary to complete its performance in accordance with the contract.

28 (OIR). What happens if the right under s.55 is demanded?

If the right is demanded, and assuming that performance is not impossible, the trader must then provide it within a reasonable time and without significant inconvenience to the consumer.

29 (OIR). What rights come under s.56?

The right to a price reduction under s.56 CRA 2015 is the right to require the trader to reduce the price to the consumer by an appropriate amount for the trader’s failure to perform the contract.

30 (OIR). When is s.56 available?「」

This right is only available if repeat performance is impossible or has not been done within a reasonable time or without significantly inconveniencing the consumer.