Consumer rights act 2015- Goods and Services

Question 1

Consumer rights introduction

Answer 1

The Consumer Rights Act (CRA) 2015 applies to all contracts between traders and consumers. It covers all all contracts for good, services, and mixed contracts (Both).

Question 2

CRA 2015- section 9

Answer 2

• Section 9 rules that the goods must be of a satisfactory quality. Which is what a reasonable person would consider satisfactory- s9(2) given the price, description, state and condition, fitness for purpose, appearance and finish, freedom from minor defects-S9(3)
• However, section 9 will not apply if -9(2):
  - The fault is drawn to the consumers attention
  -The consumer examines the goods and this should have
  revealed the fault.
  - Goods supplied by sample and inspection of the sample was inspected.

Question 3

CRA 2015- section 10

Answer 3

• section 10 rules that the goods must be fit for purpose.
• If the buyer makes known a particular purpose for goods, or the purpose is obvious, or the salesperson has recommended the goods, then there is an implied term that the goods were fit for that purpose.
• If the goods were recommended by the trader, the consumer must have relied on the skill and judgement of the trader and it must have been reasonable for them to do this (Baldry vs Marshall)

Question 4

CRA 2015–section 11

Answer 4

• Section 11 rules that the goods must be as described. This can be an implied description.
  
  • Side rule- This section also applies to how the goods are packaged (Moore&Co Ltd)

Question 5

CRA 2015- How may an exclusion clause be incorporated

Answer 5

1- To be valid the exclusion clause must be properly constructed, in that it must be clear and free from ambiguity
2- To be successfully incorporated into the contract, this can be done by:
- Signature (Curtis vs Chemical cleaning)
- reasonable notice (Olley vs Marlborough Court Hotel)
-Previous course of dealing- as long as they were consistent (Hollier vs Rambler Motors)
-Exam tip= only explain and apply the ones that are relevant to the scenario

Question 6

CRA 2015- section 31

Answer 6

• Under section 31, a trader cannot exclude or limit liability with regards to section 9,10,11.

Question 7

Remedies Under CRA 2015 for Goods

Answer 7

• Section 20- Short term right to reject the goods- claim a full refund within 30 days of delivery, must be issued within 14 days, with the trader bearing any costs.
• Section 23- The right to repair or replacement- must be within a reasonable time and without significant inconvenience to the consumer.
• section 24- The right to a price reduction or a final right to reject. This is allowed if after the repair or replacement the goods do not conform to the contract.

Question 8

Consumer rights side rule- privity of contract

Answer 8

• privity of contract- only those who give consideration have rights under the contract (Tweddle vs Atkinson)
• Exception- Contracts (Rights of Third Parties) Act 1999- A person who is not a party to a contract can enforce the contract if he is named in the contract or he gains a benefit from it.

Question 9

CRA 2019- section 49

Answer 9

• Section 49 rules that the service must be carried out with reasonable care and skill. This is the same standard as negligence- skill of an ordinary and competent person.
• The standard is higher for those with special skill and experience (Thake vs Maurice)

Question 10

CRA 2015- section 52

Answer 10

• Section 52 rules that the service must be done within a reasonable time. Where the contract does not specify a time. What is a reasonable time is a question of fact which will depend on the circumstances.

Question 11

CRA 2015- section 57

Answer 11

Section 57 rules that a trader cannot exclude or limit liability with regards to section 49 or section 52.

Question 12

CRA 2015- Remedies for services

Answer 12

• Section 55- the right to require repeat performance- in accordance with the contract. within a reasonable time and without significant inconvenience to the consumer. The trader must also bear any necessary costs.
• Section 56- The right to a price reduction- by an appropriate amount for the trader’s failure to perform. This could be giving a refund, up to the full contract price. This must be given within 14 days.

Question 13

Explain How contract can be discharged under CRA 2015

Answer 13

• The remedies for services do not include discharge of contract
• If a claimant wishes to do this, they must prove that a condition has been breached
• if this is the case, fully explain and apply breach
• Exam tip- always briefly explain this in every services question, regardless if it applies.