Supply Of Goods And Services Law 2009

Question 1

Cue Card 1: Scope & Purpose
Supply of Goods and Services (Jersey) Law 2009

Answer 1

Applies to onerous contracts for sale of goods or supply of services entered into on/after 1 Sept 2009.
Introduces implied warranties: title, description, sample, quality/fitness.
Intended to clarify and modernize buyer protections in Jersey, partly overlapping/replacing customary law rules.
Key Tension: Customary law of vices cachés vs. statutory implied warranties.
Article 23(2)(a) states no warranty of quality/fitness “despite any rule of customary law,” suggesting the statute overrides.
Article 95(2) preserves customary law unless “inconsistent” with the Act.

Question 2

Cue Card 2: Implied Warranties (Goods)

Answer 2

Satisfactory Quality
Article 23(3): For sales “in the course of business,” goods must be of satisfactory quality (reasonable person test).
Defects discovered by reasonable inspection are excluded from coverage.
Fitness for Particular Purpose
If buyer makes known a specific purpose, there is an implied warranty the goods suit that purpose (unless it was unreasonable for the buyer to rely on the seller).
Private Sales
Also covered by the Law, but seller’s liability for defects depends on whether the seller was aware of those defects.
Often more limited protection than vices cachés, which may not require knowledge.

Question 3

Cue Card 3: Implied Warranties (Services)

Answer 3

Warranty of Care & Skill
Providers must exercise reasonable care and skill.
Time for Performance
If not specified, the law implies performance within a “reasonable time.”
Continuity with Pre-Existing Case Law
Reflects what courts already implied from Pothier’s influence and established precedents.

Question 4

Cue Card 4: Exclusion & Limitation Clauses

Answer 4

General Rule (Article 91)
Parties can, by express term or “course of dealing,” exclude or vary the statutory implied warranties.
However, this right is restricted by subsequent Regulations.
The 2010 Regulations
Designed to prevent abuse of exclusion clauses, especially against consumers.
Regulation 3: Certain implied warranties (like title, disclosure of defects) cannot be excluded.
Regulation 4: In consumer contracts, sellers cannot exclude liability for satisfactory quality, description, or matching sample.
In business-to-business contracts, such exclusions must be fair and reasonable to be valid.
Fair & Reasonable Test
Regulation 7: Considers circumstances known at contract formation.
The party relying on the exclusion clause must prove it is fair and reasonable.

Question 5

Cue Card 5: Interaction with Vices Cachés

Answer 5

Statutory Override?
Article 23(2) suggests the 2009 Law supersedes customary law.
Article 95(2) says customary rules still apply if not inconsistent.
Practical Effect: Vices cachés remains relevant if the Law does not apply (e.g., real property, certain private transactions, or pre-2009 contracts) or if the statutory requirements (like seller knowledge in private sales) are not met.
Advantages of Vices Cachés
Under customary law, seller knowledge of defects may not always be required.
Can potentially extend to sub-buyers or entire distribution chains.
Especially relevant where the statutory regime does not offer a remedy.

Question 6

Cue Card 6: Key Takeaways
Statutory vs. Customary

Answer 6

The 2009 Law & 2010 Regulations largely codify and update warranty protections for consumers/businesses, often limiting the use of exclusion clauses.
Consumer Protection
Strongest under these statutes; many implied warranties cannot be excluded or can only be excluded if “fair and reasonable.”
Business-to-Business
Exclusions possible, but must meet the fairness/reasonableness test.
Remaining Role of Vices Cachés
Survives to fill gaps (e.g., certain private or real property sales) and may provide additional recourse if statutory warranties do not apply or are excluded.