Consumer Rights Act 2015: Goods Contracts Covered and Regulations, Study notes of Law

Download Consumer Rights Act 2015: Goods Contracts Covered and Regulations and more Study notes Law in PDF only on Docsity! Status: This is the original version (as it was originally enacted). Consumer Rights Act 2015 2015 CHAPTER 15 PART 1 CONSUMER CONTRACTS FOR GOODS, DIGITAL CONTENT AND SERVICES CHAPTER 2 GOODS What goods contracts are covered? 3 Contracts covered by this Chapter (1) This Chapter applies to a contract for a trader to supply goods to a consumer. (2) It applies only if the contract is one of these (defined for the purposes of this Part in sections 5 to 8)— (a) a sales contract; (b) a contract for the hire of goods; (c) a hire-purchase agreement; (d) a contract for transfer of goods. (3) It does not apply— (a) to a contract for a trader to supply coins or notes to a consumer for use as currency; (b) to a contract for goods to be sold by way of execution or otherwise by authority of law; (c) to a contract intended to operate as a mortgage, pledge, charge or other security; (d) in relation to England and Wales or Northern Ireland, to a contract made by deed and for which the only consideration is the presumed consideration imported by the deed; 2 Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 Status: This is the original version (as it was originally enacted). (e) in relation to Scotland, to a gratuitous contract. (4) A contract to which this Chapter applies is referred to in this Part as a “contract to supply goods”. (5) Contracts to supply goods include— (a) contracts entered into between one part owner and another; (b) contracts for the transfer of an undivided share in goods; (c) contracts that are absolute and contracts that are conditional. (6) Subsection (1) is subject to any provision of this Chapter that applies a section or part of a section to only some of the kinds of contracts listed in subsection (2). (7) A mixed contract (see section 1(4)) may be a contract of any of those kinds. 4 Ownership of goods (1) In this Chapter ownership of goods means the general property in goods, not merely a special property. (2) For the time when ownership of goods is transferred, see in particular the following provisions of the Sale of Goods Act 1979 (which relate to contracts of sale)— section 16: goods must be ascertained section 17: property passes when intended to pass section 18: rules for ascertaining intention section 19: reservation of right of disposal section 20A: undivided shares in goods forming part of a bulk section 20B: deemed consent by co-owner to dealings in bulk goods 5 Sales contracts (1) A contract is a sales contract if under it— (a) the trader transfers or agrees to transfer ownership of goods to the consumer, and (b) the consumer pays or agrees to pay the price. (2) A contract is a sales contract (whether or not it would be one under subsection (1)) if under the contract— (a) goods are to be manufactured or produced and the trader agrees to supply them to the consumer, (b) on being supplied, the goods will be owned by the consumer, and (c) the consumer pays or agrees to pay the price. (3) A sales contract may be conditional (see section 3(5)), but in this Part “conditional sales contract” means a sales contract under which— (a) the price for the goods or part of it is payable by instalments, and (b) the trader retains ownership of the goods until the conditions specified in the contract (for the payment of instalments or otherwise) are met; and it makes no difference whether or not the consumer possesses the goods. Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 5 Status: This is the original version (as it was originally enacted). (5) In a contract to supply goods a term about the fitness of the goods for a particular purpose may be treated as included as a matter of custom. (6) See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in a contract. 11 Goods to be as described (1) Every contract to supply goods by description is to be treated as including a term that the goods will match the description. (2) If the supply is by sample as well as by description, it is not sufficient that the bulk of the goods matches the sample if the goods do not also match the description. (3) A supply of goods is not prevented from being a supply by description just because— (a) the goods are exposed for supply, and (b) they are selected by the consumer. (4) Any information that is provided by the trader about the goods and is information mentioned in paragraph (a) of Schedule 1 or 2 to the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (SI 2013/3134) (main characteristics of goods) is to be treated as included as a term of the contract. (5) A change to any of that information, made before entering into the contract or later, is not effective unless expressly agreed between the consumer and the trader. (6) See section 2(5) and (6) for the application of subsections (4) and (5) where goods are sold at public auction. (7) See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in a contract. 12 Other pre-contract information included in contract (1) This section applies to any contract to supply goods. (2) Where regulation 9, 10 or 13 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (SI 2013/3134) required the trader to provide information to the consumer before the contract became binding, any of that information that was provided by the trader other than information about the goods and mentioned in paragraph (a) of Schedule 1 or 2 to the Regulations (main characteristics of goods) is to be treated as included as a term of the contract. (3) A change to any of that information, made before entering into the contract or later, is not effective unless expressly agreed between the consumer and the trader. (4) See section 2(5) and (6) for the application of this section where goods are sold at public auction. (5) See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in the contract. 6 Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 Status: This is the original version (as it was originally enacted). 13 Goods to match a sample (1) This section applies to a contract to supply goods by reference to a sample of the goods that is seen or examined by the consumer before the contract is made. (2) Every contract to which this section applies is to be treated as including a term that— (a) the goods will match the sample except to the extent that any differences between the sample and the goods are brought to the consumer’s attention before the contract is made, and (b) the goods will be free from any defect that makes their quality unsatisfactory and that would not be apparent on a reasonable examination of the sample. (3) See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in a contract. 14 Goods to match a model seen or examined (1) This section applies to a contract to supply goods by reference to a model of the goods that is seen or examined by the consumer before entering into the contract. (2) Every contract to which this section applies is to be treated as including a term that the goods will match the model except to the extent that any differences between the model and the goods are brought to the consumer’s attention before the consumer enters into the contract. (3) See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in a contract. 15 Installation as part of conformity of the goods with the contract (1) Goods do not conform to a contract to supply goods if— (a) installation of the goods forms part of the contract, (b) the goods are installed by the trader or under the trader’s responsibility, and (c) the goods are installed incorrectly. (2) See section 19 for the effect of goods not conforming to the contract. 16 Goods not conforming to contract if digital content does not conform (1) Goods (whether or not they conform otherwise to a contract to supply goods) do not conform to it if— (a) the goods are an item that includes digital content, and (b) the digital content does not conform to the contract to supply that content (for which see section 42(1)). (2) See section 19 for the effect of goods not conforming to the contract. 17 Trader to have right to supply the goods etc (1) Every contract to supply goods, except one within subsection (4), is to be treated as including a term— Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 7 Status: This is the original version (as it was originally enacted). (a) in the case of a contract for the hire of goods, that at the beginning of the period of hire the trader must have the right to transfer possession of the goods by way of hire for that period, (b) in any other case, that the trader must have the right to sell or transfer the goods at the time when ownership of the goods is to be transferred. (2) Every contract to supply goods, except a contract for the hire of goods or a contract within subsection (4), is to be treated as including a term that— (a) the goods are free from any charge or encumbrance not disclosed or known to the consumer before entering into the contract, (b) the goods will remain free from any such charge or encumbrance until ownership of them is to be transferred, and (c) the consumer will enjoy quiet possession of the goods except so far as it may be disturbed by the owner or other person entitled to the benefit of any charge or encumbrance so disclosed or known. (3) Every contract for the hire of goods is to be treated as including a term that the consumer will enjoy quiet possession of the goods for the period of the hire except so far as the possession may be disturbed by the owner or other person entitled to the benefit of any charge or encumbrance disclosed or known to the consumer before entering into the contract. (4) This subsection applies to a contract if the contract shows, or the circumstances when they enter into the contract imply, that the trader and the consumer intend the trader to transfer only— (a) whatever title the trader has, even if it is limited, or (b) whatever title a third person has, even if it is limited. (5) Every contract within subsection (4) is to be treated as including a term that all charges or encumbrances known to the trader and not known to the consumer were disclosed to the consumer before entering into the contract. (6) Every contract within subsection (4) is to be treated as including a term that the consumer’s quiet possession of the goods— (a) will not be disturbed by the trader, and (b) will not be disturbed by a person claiming through or under the trader, unless that person is claiming under a charge or encumbrance that was disclosed or known to the consumer before entering into the contract. (7) If subsection (4)(b) applies (transfer of title that a third person has), the contract is also to be treated as including a term that the consumer’s quiet possession of the goods— (a) will not be disturbed by the third person, and (b) will not be disturbed by a person claiming through or under the third person, unless the claim is under a charge or encumbrance that was disclosed or known to the consumer before entering into the contract. (8) In the case of a contract for the hire of goods, this section does not affect the right of the trader to repossess the goods where the contract provides or is to be treated as providing for this. (9) See section 19 for a consumer’s rights if the trader is in breach of a term that this section requires to be treated as included in a contract. 10 Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 Status: This is the original version (as it was originally enacted). (7) From the time when the right is exercised— (a) the trader has a duty to give the consumer a refund, subject to subsection (18), and (b) the consumer has a duty to make the goods available for collection by the trader or (if there is an agreement for the consumer to return rejected goods) to return them as agreed. (8) Whether or not the consumer has a duty to return the rejected goods, the trader must bear any reasonable costs of returning them, other than any costs incurred by the consumer in returning the goods in person to the place where the consumer took physical possession of them. (9) The consumer’s entitlement to receive a refund works as follows. (10) To the extent that the consumer paid money under the contract, the consumer is entitled to receive back the same amount of money. (11) To the extent that the consumer transferred anything else under the contract, the consumer is entitled to receive back the same amount of what the consumer transferred, unless subsection (12) applies. (12) To the extent that the consumer transferred under the contract something for which the same amount of the same thing cannot be substituted, the consumer is entitled to receive back in its original state whatever the consumer transferred. (13) If the contract is for the hire of goods, the entitlement to a refund extends only to anything paid or otherwise transferred for a period of hire that the consumer does not get because the contract is treated as at an end. (14) If the contract is a hire-purchase agreement or a conditional sales contract and the contract is treated as at an end before the whole of the price has been paid, the entitlement to a refund extends only to the part of the price paid. (15) A refund under this section must be given without undue delay, and in any event within 14 days beginning with the day on which the trader agrees that the consumer is entitled to a refund. (16) If the consumer paid money under the contract, the trader must give the refund using the same means of payment as the consumer used, unless the consumer expressly agrees otherwise. (17) The trader must not impose any fee on the consumer in respect of the refund. (18) There is no entitlement to receive a refund— (a) if none of subsections (10) to (12) applies, (b) to the extent that anything to which subsection (12) applies cannot be given back in its original state, or (c) where subsection (13) applies, to the extent that anything the consumer transferred under the contract cannot be divided so as to give back only the amount, or part of the amount, to which the consumer is entitled. (19) It may be open to a consumer to claim damages where there is no entitlement to receive a refund, or because of the limits of the entitlement, or instead of a refund. (20) Subsection (21) qualifies the application in relation to England and Wales and Northern Ireland of the rights mentioned in subsections (1) to (3) where— Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 11 Status: This is the original version (as it was originally enacted). (a) the contract is a severable contract, (b) in relation to the final right to reject, the contract is a contract for the hire of goods, a hire-purchase agreement or a contract for transfer of goods, and (c) section 26(3) does not apply. (21) The consumer is entitled, depending on the terms of the contract and the circumstances of the case— (a) to reject the goods to which a severable obligation relates and treat that obligation as at an end (so that the entitlement to a refund relates only to what the consumer paid or transferred in relation to that obligation), or (b) to exercise any of the rights mentioned in subsections (1) to (3) in respect of the whole contract. 21 Partial rejection of goods (1) If the consumer has any of the rights mentioned in section 20(1) to (3), but does not reject all of the goods and treat the contract as at an end, the consumer— (a) may reject some or all of the goods that do not conform to the contract, but (b) may not reject any goods that do conform to the contract. (2) If the consumer is entitled to reject the goods in an instalment, but does not reject all of those goods, the consumer— (a) may reject some or all of the goods in the instalment that do not conform to the contract, but (b) may not reject any goods in the instalment that do conform to the contract. (3) If any of the goods form a commercial unit, the consumer cannot reject some of those goods without also rejecting the rest of them. (4) A unit is a “commercial unit” if division of the unit would materially impair the value of the goods or the character of the unit. (5) The consumer rejects goods under this section by indicating to the trader that the consumer is rejecting the goods. (6) The indication may be something the consumer says or does, but it must be clear enough to be understood by the trader. (7) From the time when a consumer rejects goods under this section— (a) the trader has a duty to give the consumer a refund in respect of those goods (subject to subsection (10)), and (b) the consumer has a duty to make those goods available for collection by the trader or (if there is an agreement for the consumer to return rejected goods) to return them as agreed. (8) Whether or not the consumer has a duty to return the rejected goods, the trader must bear any reasonable costs of returning them, other than any costs incurred by the consumer in returning those goods in person to the place where the consumer took physical possession of them. (9) Section 20(10) to (17) apply to a consumer’s right to receive a refund under this section (and in section 20(13) and (14) references to the contract being treated as at an end are to be read as references to goods being rejected). 12 Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 Status: This is the original version (as it was originally enacted). (10) That right does not apply— (a) if none of section 20(10) to (12) applies, (b) to the extent that anything to which section 20(12) applies cannot be given back in its original state, or (c) to the extent that anything the consumer transferred under the contract cannot be divided so as to give back only the amount, or part of the amount, to which the consumer is entitled. (11) It may be open to a consumer to claim damages where there is no right to receive a refund, or because of the limits of the right, or instead of a refund. (12) References in this section to goods conforming to a contract are to be read in accordance with section 19(1) and (2), but they also include the goods conforming to the terms described in section 17. (13) Where section 20(21)(a) applies the reference in subsection (1) to the consumer treating the contract as at an end is to be read as a reference to the consumer treating the severable obligation as at an end. 22 Time limit for short-term right to reject (1) A consumer who has the short-term right to reject loses it if the time limit for exercising it passes without the consumer exercising it, unless the trader and the consumer agree that it may be exercised later. (2) An agreement under which the short-term right to reject would be lost before the time limit passes is not binding on the consumer. (3) The time limit for exercising the short-term right to reject (unless subsection (4) applies) is the end of 30 days beginning with the first day after these have all happened— (a) ownership or (in the case of a contract for the hire of goods, a hire-purchase agreement or a conditional sales contract) possession of the goods has been transferred to the consumer, (b) the goods have been delivered, and (c) where the contract requires the trader to install the goods or take other action to enable the consumer to use them, the trader has notified the consumer that the action has been taken. (4) If any of the goods are of a kind that can reasonably be expected to perish after a shorter period, the time limit for exercising the short-term right to reject in relation to those goods is the end of that shorter period (but without affecting the time limit in relation to goods that are not of that kind). (5) Subsections (3) and (4) do not prevent the consumer exercising the short-term right to reject before something mentioned in subsection (3)(a), (b) or (c) has happened. (6) If the consumer requests or agrees to the repair or replacement of goods, the period mentioned in subsection (3) or (4) stops running for the length of the waiting period. (7) If goods supplied by the trader in response to that request or agreement do not conform to the contract, the time limit for exercising the short-term right to reject is then either— (a) 7 days after the waiting period ends, or Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 15 Status: This is the original version (as it was originally enacted). (11) In subsection (10) the first 6 months means 6 months beginning with the first day after these have all happened— (a) ownership or (in the case of a contract for the hire of goods, a hire-purchase agreement or a conditional sales contract) possession of the goods has been transferred to the consumer, (b) the goods have been delivered, and (c) where the contract requires the trader to install the goods or take other action to enable the consumer to use them, the trader has notified the consumer that the action has been taken. (12) In subsection (10)(a) “motor vehicle”— (a) in relation to Great Britain, has the same meaning as in the Road Traffic Act 1988 (see sections 185 to 194 of that Act); (b) in relation to Northern Ireland, has the same meaning as in the Road Traffic (Northern Ireland) Order 1995 (SI 1995/2994 (NI 18)) (see Parts I and V of that Order). (13) But a vehicle is not a motor vehicle for the purposes of subsection (10)(a) if it is constructed or adapted— (a) for the use of a person suffering from some physical defect or disability, and (b) so that it may only be used by one such person at any one time. (14) An order under subsection (10)(b)— (a) may be made only if the Secretary of State is satisfied that it is appropriate to do so because of significant detriment caused to traders as a result of the application of subsection (10) in relation to goods of the description specified by the order; (b) may contain transitional or transitory provision or savings. (15) No order may be made under subsection (10)(b) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament. Other rules about remedies under goods contracts 25 Delivery of wrong quantity (1) Where the trader delivers to the consumer a quantity of goods less than the trader contracted to supply, the consumer may reject them, but if the consumer accepts them the consumer must pay for them at the contract rate. (2) Where the trader delivers to the consumer a quantity of goods larger than the trader contracted to supply, the consumer may accept the goods included in the contract and reject the rest, or may reject all of the goods. (3) Where the trader delivers to the consumer a quantity of goods larger than the trader contracted to supply and the consumer accepts all of the goods delivered, the consumer must pay for them at the contract rate. (4) Where the consumer is entitled to reject goods under this section, any entitlement for the consumer to treat the contract as at an end depends on the terms of the contract and the circumstances of the case. 16 Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 Status: This is the original version (as it was originally enacted). (5) The consumer rejects goods under this section by indicating to the trader that the consumer is rejecting the goods. (6) The indication may be something the consumer says or does, but it must be clear enough to be understood by the trader. (7) Subsections (1) to (3) do not prevent the consumer claiming damages, where it is open to the consumer to do so. (8) This section is subject to any usage of trade, special agreement, or course of dealing between the parties. 26 Instalment deliveries (1) Under a contract to supply goods, the consumer is not bound to accept delivery of the goods by instalments, unless that has been agreed between the consumer and the trader. (2) The following provisions apply if the contract provides for the goods to be delivered by stated instalments, which are to be separately paid for. (3) If the trader makes defective deliveries in respect of one or more instalments, the consumer, apart from any entitlement to claim damages, may be (but is not necessarily) entitled— (a) to exercise the short-term right to reject or the right to reject under section 19(6) (as applicable) in respect of the whole contract, or (b) to reject the goods in an instalment. (4) Whether paragraph (a) or (b) of subsection (3) (or neither) applies to a consumer depends on the terms of the contract and the circumstances of the case. (5) In subsection (3), making defective deliveries does not include failing to make a delivery in accordance with section 28. (6) If the consumer neglects or refuses to take delivery of or pay for one or more instalments, the trader may— (a) be entitled to treat the whole contract as at an end, or (b) if it is a severable breach, have a claim for damages but not a right to treat the whole contract as at an end. (7) Whether paragraph (a) or (b) of subsection (6) (or neither) applies to a trader depends on the terms of the contract and the circumstances of the case. 27 Consignation, or payment into court, in Scotland (1) Subsection (2) applies where— (a) a consumer has not rejected goods which the consumer could have rejected for breach of a term mentioned in section 19(3) or (6), (b) the consumer has chosen to treat the breach as giving rise only to a claim for damages or to a right to rely on the breach against a claim by the trader for the price of the goods, and (c) the trader has begun proceedings in court to recover the price or has brought a counter-claim for the price. (2) The court may require the consumer— Consumer Rights Act 2015 (c. 15) PART 1 – Consumer contracts for goods, digital content and services CHAPTER 2 – Goods Document Generated: 2022-06-01 17 Status: This is the original version (as it was originally enacted). (a) to consign, or pay into court, the price of the goods, or part of the price, or (b) to provide some other reasonable security for payment of the price. Other rules about goods contracts 28 Delivery of goods (1) This section applies to any sales contract. (2) Unless the trader and the consumer have agreed otherwise, the contract is to be treated as including a term that the trader must deliver the goods to the consumer. (3) Unless there is an agreed time or period, the contract is to be treated as including a term that the trader must deliver the goods— (a) without undue delay, and (b) in any event, not more than 30 days after the day on which the contract is entered into. (4) In this section— (a) an “agreed” time or period means a time or period agreed by the trader and the consumer for delivery of the goods; (b) if there is an obligation to deliver the goods at the time the contract is entered into, that time counts as the “agreed” time. (5) Subsections (6) and (7) apply if the trader does not deliver the goods in accordance with subsection (3) or at the agreed time or within the agreed period. (6) If the circumstances are that— (a) the trader has refused to deliver the goods, (b) delivery of the goods at the agreed time or within the agreed period is essential taking into account all the relevant circumstances at the time the contract was entered into, or (c) the consumer told the trader before the contract was entered into that delivery in accordance with subsection (3), or at the agreed time or within the agreed period, was essential, then the consumer may treat the contract as at an end. (7) In any other circumstances, the consumer may specify a period that is appropriate in the circumstances and require the trader to deliver the goods before the end of that period. (8) If the consumer specifies a period under subsection (7) but the goods are not delivered within that period, then the consumer may treat the contract as at an end. (9) If the consumer treats the contract as at an end under subsection (6) or (8), the trader must without undue delay reimburse all payments made under the contract. (10) If subsection (6) or (8) applies but the consumer does not treat the contract as at an end— (a) that does not prevent the consumer from cancelling the order for any of the goods or rejecting goods that have been delivered, and