Consumer Rights Act 2015 Study Guide

LawID Update

  • LawID announces important events and achievements:
    • OBLS has been shortlisted for the Lexis University Commercial Impact Award.
    • Launch Date: Attend the launch of the OBLS Bower Bailey Summer Vacation Scheme on 24th February.
    • Event: Apply for a special Coffee & Careers Session at SE-Solicitors Oxford on 25th February, focusing on Banking & Finance Law.

LAW3005 Week 3: Consumer Rights Act 2015

  • Module Leader: Aileen Editha (she/her)
    • Contact: a.editha@brookes.ac.uk

Recap: Elements of a Contract

  • Key Elements:
    • Agreement
    • Legal enforceability
    • Offer
    • Intention to be bound
    • Consideration
    • Promissory estoppel
    • Acceptance

Consumer Rights Act 2015

  • Core Questions:
    • What
    • Why
    • When
    • Who
    • How

What is the Consumer Rights Act (CRA) 2015?

  • The CRA 2015 aims to enhance consumer protections by:
    • Relating to the rights of consumers and their interests.
    • Making provisions regarding investigatory powers for enforcing trader regulation.

Why do we have the CRA?

  • The CRA was established to address issues present in previous laws, which included:
    • Sale of Goods Act 1979
    • Supply of Goods and Services Act 1982
    • Unfair Contract Terms Act 1977
    • Unfair Terms in Consumer Contracts Regulations 1999
  • Problems addressed:
    • Fragmentation of consumer rights.
    • Confusion around existing legal frameworks.
    • Inaccessibility of relevant consumer information.
    • Time-consuming processes to resolve consumer disputes.
  • The CRA is divided into:
    • Part 1
    • Part 2
    • Part 3: Digital content

When does the CRA apply?

  • The CRA applies to several scenarios:
    • Sale (e.g., everyday buying and selling).
    • Hire of goods (e.g., hiring a car).
    • Hire purchase agreements (e.g., financing a car with a deposit followed by installments).
    • Transfer of goods (e.g., contracting services for home renovation).

Who does the CRA apply to?

  • The CRA concerns contracts between a trader and a consumer (B2C).
    • Who is a trader?
    • 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.” (s 2(2))
    • Who is a consumer?
    • Defined as “[…] an individual acting for purposes that are wholly or mainly outside that individual's trade, business, craft or profession.” (s 2(3))
    • Clarification:
    • A consumer is an individual and does not include businesses or partnerships, but can include sole traders who act outside their trade, business, craft, or profession.
    • Case Example: Overy v Paypal (Europe) Ltd [2012] EWHC 2659 (QB)
    • Issue: Whether Overy used PayPal as a consumer or as a sole proprietor of his photography business.
    • Held: Overy was not considered a consumer because he used a business account.

How is the CRA applied?

  • The CRA provides statutory rights even if they are not explicitly included in the contract, previously referred to as implied terms.
  • Statutory Rights for Goods:
    • s 9: Goods to be of satisfactory quality.
    • s 10: Goods to be fit for a particular purpose.
    • s 11: Goods to be as described.
  • Statutory Rights for Services:
    • s 49: Services must be performed with reasonable care and skill.
  • Importantly, these terms cannot be excluded or restricted as per ss 31 and 47.

Goods to be as Described (CRA 2015, s 11)

  • Every contract for the supply of goods by description includes a term that the goods will match the description provided.
  • Case Examples:
    • Harlington & Leinster v Christopher Hull Fine Art [1991] 1 QB 564.
    • Beale v Taylor [1967] 1 WLR 1193.

Goods to be Fit for Particular Purpose (CRA 2015, s 10)

  • Conditions for application:
    • (1) The consumer must make known to the trader (explicitly or implicitly) the particular purpose for which the goods are contracted.
    • (3) The contract includes a term that the goods are reasonably fit for that purpose.
    • (4) The condition does not apply if the consumer does not rely, or it is unreasonable for the consumer to rely, on the trader's skill or judgment.
  • Case Example: Grant v Australian Knitting Mills [1935] UKPC 2
    • The buyer must rely on the seller’s skill and judgement.
    • Specification of purpose may not be necessary when there is only one relevant purpose for which the goods were acquired.

Recap: Consumer Rights Act 2015

  • Core Questions:
    • What
    • Why
    • When
    • Who
    • How

Next Week

  • Reminder of upcoming events at Oxford Brookes University.

Small Group Discussion Guidance (for Section B)

  • Instructions:
    • Read the problem question provided.
    • Identify the key facts related to the problem question.
    • Locate one or two relevant cases applicable to the key facts.
    • Apply the law to the facts—what is your legal answer to the question?
  • Reiteration of Steps:
    • What are the key facts?
    • Find applicable cases.
    • What is your conclusion?