CL: Statutory Rights, Buying Online & Consumer Remedies

Statutory Rights in Sale of Goods - CRA

Goods to be of satisfactory quality – s.9

Similarities with SGA:
- Objective test: what a reasonable person considers to be of satisfactory quality
- Factors taken into account: price, description, other relevant circumstances – s. 9(2)
- Aspects of the quality of goods, s. 9(3)
- Exceptions, s. 9(4)

- Additional Protection in respect of public statements s.9(5), including advertising and labelling s. 9(6)
- Exceptions, s. 9(7) – the seller has rectified misinformed statements, you cannot rely on s.9

Goods to be fit for purpose – s. 10

 Goods need to be reasonably fit for the purpose, 10(3)
 Consumer needs to rely on skill or judgement trader, and this cannot be unreasonable, s. 10(4)
 S. 10(2) deals with a situation when a store acts as a credit broker – if offered to pay in
installments/in a set amount of date, the store sells goods to finance companies and fee is paid to
the company, consumer enters agreement with the company.

Goods to be as described – s.11

 Note s. 11(4): Information provided by the trader about the main characteristics of the goods under
Schedules 1 and 2 Consumer Contract Regs = treated as a term of the contract

S. 11 is linked to S. 12 - Other pre-contract information to be provided under the Regs treated as a

term of the contract - Different remedy if breached!
Consumer Remedies – CRA

- Short term right to reject not offered in the EU – used in UK to boost consumer’s confidence if an
item is damaged/faulty
- RTROR helps to boost the company’s reputation as it builds the perception that the company cares
about their consumers and look to provide aid for them if a product is fault

Short Term Right to Reject

- The right to reject – s. 20 – can treat contract as at an end (REPUDIATING) – 30-day time limit –
traders are given an exact period, gives clarity and certainty.
- Consumers encouraged to use their right to reject rather than seek a replacement
 Duties parties, s. 20(7)
- Consumer must return the goods or make them available to the trader
- Trader must refund the consumer

 Refund must be given without undue delay and within 14 days, s. 20(15)
- Partial rejection, s. 21
- Time limit for exercising the short term right to reject:
Usually 30 days, s. 22(3) – an agreement to shorten this period is not binding on the consumer,
s22(2)
Perishable goods, s.22(4) - Some goods are perishable, legislation in place to prevent the right to
reject once
Time limit suspended when consumer asks goods to be repaired or replaced, s.22(6)
Right to Repair/Replace Goods
Trader’s obligations, s. 23(2):
- Must do so within a reasonable time and without significant inconvenience to the consumer
- Must bear the costs incurred in doing so

Exceptions, s.23(3):
- It is impossible
- It would be disproportionate
- Factors taken into account, s. 23(4)
- Must give trader a reasonable time, s23(6)-(7)

Right to Price Reduction and Final Right to Reject

 S 24 (5) Consumer who has right to price reduction/final right to reject can only exercise 1 not
both, and only if:
- After one repair/replacement, goods do not conform to the contract
- Because of s 23 (3) the consumer can neither require repair or replacement
- The consumer has sought repair/replacement, but it’s not been done within a reasonable time
and without significant inconvenience to the consumer
- Refund may be reduced by amount to take account of use consumer has had of the goods since
delivery – s 24 (8)
- BUT not (usually) during first 6 months, s.24(10) – suggests that the product was always faulty

Consumers Buying Online – The Regs

 “The Regs” –The Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013 – SI No 3134 - implement the majority of the provisions in the Consumer
Rights Directive (Directive 2011/83/EU on Consumer Rights)
 The Regs apply to contracts between consumers and traders – see Reg 4 for definitions
 Regs (like the Directive) distinguish between different types of contracts – on-premises, off
premises and distance, Reg 5
 Online contract = “distance contract”
 Still relevant as the UK can enforce law which isn’t in line with their law

Consumers Buying Online – Right to Cancel

 Nothing must be wrong with the good to be cancelled when ordering online – boosts commerce
 Regs apply to contracts between trader and consumer re goods, services, and digital content
 Some contracts governed under the Regs have no right to cancel – see next slide

Right to cancel a distance [or off-premises] contract under the Regs – Part 3
 Consumer can cancel the contract without giving any reason, Reg 29
 Normal cancellation period is 14 days of goods coming into physical possession of
consumer/person (other than carrier) identified by consumer, Reg 30(3)
 This can be extended up to 12 months – Reg 31
 Consumer must notify the trader of the decision to withdraw within the cancellation period, Reg
32
 If the contract is cancelled then the trader must reimburse the consumer without “undue
delay”, including cost of delivery (unless consumer chose more expensive method) and without
charging a fee (but if value of goods reduced can make a deduction), Reg 34
Consumers Buying Online – Right to Cancel
 Exceptions to the right to cancel:
- Reg 27: certain medical/healthcare products
- Reg 28, examples:
- Made to customer’s specification or clearly personalized
- Supply of goods liable to deteriorate or expire rapidly
- Sealed goods - hygiene reasons, audio/video/software - if unsealed
- Goods become mixed

Consumers Buying Online – Information Requirements

 The Regs put obligations on the trader to provide the consumer with certain information before
the distance contract is entered into
 Reg 13 – Key information that must be provided - Requirements set out in Schedule 2 and
includes information re the right to cancel, trader’s details, price etc.

 If information required by the Regs is not provided:

- Then the time period for cancellation is extended, up to a maximum of an additional year (Reg
31)
- Provision of the pre-contractual information (other than detail/nature of goods itself) is treated
as a term of the contract - Statutory Right under CRA s12 and if breached gives consumer right
to recover the costs of the breach (up to price paid)
- Online contracts – additional requirement - must make it clear obligation to pay – Reg 14 – if not
complied with, consumer not bound by order

Points to Consider
- Identify status of the parties
- Consumer s. 2(3) CRA and reg. 4 CCR
- Trader s. 2(2) CRA and reg. 4 CCR
- Is it a distance contract – reg. 5 CCR
- Consider the right to cancel first
- Consider exceptions, timing issues - information provided by the trader
- Consider how a consumer can exercise it and what the trader’s obligations are
- Consider breach of an express term – innominate term
- Consider whether the consumer’s statutory rights are breached under the CRA
- Consider the relevant remedies taking into account their limitations