[PDF] Business Law case study

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Analysing and advising Mr John on the legal rules on implied terms defined in Consumer
Rights Act, 2015..........................................................................................................................1
QUESTION 2...................................................................................................................................3
Analysing and advising Mr John over the statutory provisions related with transfer of property
and possession.............................................................................................................................3
QUESTION 3...................................................................................................................................4
Evaluation of statutory provisions related with remedies under sales of goods act pertaining to
buyer ans seller............................................................................................................................4

QUESTION 4...................................................................................................................................5
Provisions of the product liability over faulty goods..................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The Consumers Rights act, 2015 has provided protection to the consumers under the law
and also gives number of rights and remedies to the consumers. The rights includes the actions
and remedies that can be taken for fault in food, digital content of product, no match of the
services agreed and provided, unfair terms in contract and others. For the present report a
discussion over the applicability of provision of Consumer Rights Act, 2015 is done. The
assignment is carried out to depict the implication of implied terms to sales transection between
Sarah and Mr John. This report includes advise given to Mr John under implied terms of sales of
goods and supply services and through application of statutory provisions on transfer of property
and possession. Also, remedies are presented as per sale of god contract and statutory provision
applicable to faulty goods.
QUESTION 1
Analysing and advising Mr John on the legal rules on implied terms defined in Consumer Rights
Act, 2015
Issue: Mr John bought a high end TV from Miss Sarah and pay full price of the same. Miss
Sarah got installed the TV at house of John which was selected by him. 1 week after installation
TV, there was a flash and puff of smoke coming out from the back of TV. The store of Sarah is
rejecting to take responsibility of the faulty TV.
Rules:
The consumer rights Act, 2015
Section 5, sales contract:
A contract is referred as a sale contract where the trades agree to transfer the ownership
in the good to the consumer and the buyer pays or agrees to pay the price for the product.
There are certain statutory rights under sales of goods contract, these include:
Section 9 -18:
All these sections define certain rights of the consumers when purchase goods which
includes that goods must of the satisfactory quality, and fit for the particular purpose of its
purchase. The goods match the description given by the seller and match the sample shown to
buyer (Consumer Rights Act 2015, 2018). The product must be a match to a model seen or
examined and installation shall be done as pert of conformity of the goods with in the sales
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contract and the trader have a right to supply the goods to buyer. After passing of 30 days the
consumer do not have a legal right to get a full refund of the product price when the goods have
developed certain faults. This rights of refund is not applicable to those gods which are bough as
downland for example music, fames or application.
Section 20: Short term right to Reject of the faulty products-
Under the consumer rights act a consumer have a legal right to reject the goods that are of
unsatisfactory quality and unfit for the purpose or not as described by the buyer. The customer is
full refund and is required to file an urgent compliment for the fault in the product.
This right to reject a product with a fault given to a consumer is imitated to 30 days. This
means a consumer can take an action for a faulty good within 30 days from taking ownership of
the product (Time limit for short-term right to reject, 2018). The 30 days starts from the first day
after the ownership of possession of the good has been transferred the consumer, the goods have
been delivered the buyer or the product have been installed at the place required by the buyer. On
rejection of a product by a consumer a refund can be claimed including return of the items
handed over in exchange of part exchanges, within 14 days of agreement by the seller over the
entitlement of refund.
Section 63: Unfair terms-
The sections of Consumer Rights act 2015 define certain terms in the sales contract of
goods, inserted by the seller which are imposed on the buyer without being informed to the
shopper. These terms include fees and charges hidden in the small print, something that tries to
limit your legal rights, disproportionate default charges, excessive early termination charges
(Contract terms which may or must be regarded as unfair, 2018). For this the remedies are
available as complaining to the trader. Where trader disagree to the facts of the unfair terms in
the contract the buyer can seek legal remedy for breaking the terms of the sales contract. One of
the lase remedy available in this context is taking the seller to the court and let court decide over
the fairness of the contractual terms inserted by seller in the sale of goods contract.
Application:
As per the section 5 of the Consumer rights act 2015, the transaction between Sarah's
shop and Mr John is a sales contract for the purchase of flat screen 42 inches remote control TV
set, as it is had all elements of a valid contact that is offer, acceptant, consideration and intention
of creation of legal relation (Ohlhausen and Okuliar, 2015). The TV was purchased by John with
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trusting the statement made by store manager Sarah as it is a durable, very high quality and a
good value for money product. With the purchase of the TV the sales contract was made it
automatically gave the rights of buyer to John as mentioned in section 9-18 of the Consumer
Rights Act 2015. The TV bought from Sarah 's store showed a fault after 1 week of its purchase
and this directly give rise to short term right of John as a consumer to reject the TV. This gave
rise to the right of John as a consumer to claim a remedy as the statutory rights under the goods
contract are not met. The statutory rights were to use the TV for long term without any default
and issues as it was stated to be durable and high quality.
The right is entitled to John as 30 days after getting the ownership of the product have not
been passed yet. Moreover, with application of the section 63 of Consumer Rights act 2015, the
terms entered in the documents or sales contract signed by John at the time of buying the TV is
referred as unfair term. The condition entered by the store of Sarah as store accepts no
responsibility for the malfunctioning of goods once supplied and installed. This term is directly
disproportionating the default charges.
Conclusion:
From the above application of the sections and rules of the Consumer Rights Act, 2015 it
can be stated that the goods purchased by John showed a default within 30 days time frame so he
is entitled to claim a remedy under section 63 of rejecting the goods. Moreover, he can also
claim a reedy against the store to keep aside the contract as three is an inclusion of unfair term in
the sales contract. This can be stated that asp er the provision of the Consumer Rights Act, John
can seek legal remedy to set aside the sales contract and also to exercise his short term right to
reject the faulty TV to the store where Sarah is store manager.
QUESTION 2
Analysing and advising Mr John over the statutory provisions related with transfer of property
and possession
Issue: How and when the ownership and possession in the goods are transferred to Mr John
under the sales contract?
Rule:
As per the provision of the of sales of goods act 1979, the ownership and title of the
goods passes when the parties to the sale have an intention to pass the same. The buyer and seller
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agree that the title of the goods under the sales contract will pass to the buyer when the product
has been shipped from the premise of the seller. Or when the goods require an installation the tile
of the goods transfers to the buyer when the goods is installed at the place of shopper. The seller
owns the contract of the goods till the time of payment for the goods has been received in full.
The possession and ownership gets transferred to the buyer under the sale contract with making
full payment (Sidak, 2016). The risk in the property also gets transferred with partner of the
property in the goods. Rather, the concept of possession of goods is different from the concept of
ownership, when the possession of the goods is transfer to a person the property in goods is not
transferred the buyer does not get the ownership of the product rather the right to use and earn
money from such good is given. The ownership remain with the seller only. The title many be
transferred on a future date after making all the payment such cases includes lease and hire
purchase.
Application and conclusion:
With applicability of the above rules related with transfer of property and possession it
can be stated that the buying TV from Sarah was a sale contract and in this John get full
possession of the TV and its ownership when its was installed at his place by making full
payment for purchase of the TV. The risk also got transferred to John with getting the property in
TV.
QUESTION 3
Evaluation of statutory provisions related with remedies under sales of goods act pertaining to
buyer ans seller
Remedies available to Seller under Sales of Goods act, 1979:-
The remedies available to seller under the sales of goods act can be of two types, money
claims from the buyer for price damages or for breach of contract and claim against the goods for
their proceed in order to provide security (Sale of Goods Act 1979 - Duties, Rights and
Remedies, 2018). One other remedy is of specific performance of the contract. The sellers have a
right to sue buyer for price and for damages for non-acceptance under this act.
Remedies available to buyer under Sales of Goods act, 1979:-
The buyer under the provision of sales of goods Act, 1979 is made availability of the
remedies which includes reject and refuse payment of faulty goods, to claims damages for non
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delivery of the goods, to monetary damages when gods are accepted but not as per the
description or have a fault in the product (Brennanand Schenkel, 2017). For the breach of
contract by the seller the buyer have remedies claim monetary compensation, to repudiate the
contract and to call for specific performance.
QUESTION 4
Provisions of the product liability over faulty goods
The product liability can be defined as to held a responsible person liable for the
defective or dangerous goods. Under the consumer law the manufacturer or the seller is held
liable for placing a defective product into the hands of a consumer. The responsibility for a
defect in the product which causes injury lies on all the seller in the distribution chain of the
product (Canavan, Twigg-Flesner and MacQueen, 2016). The responsibility is compulsorily
imposed on the manufactures, distributor and suppliers for an injury caused by faulty product
irrespective of the contractual limitations. For a defect in the product the responsible party is
held liable for the damages under the consumer protection act (CPA) or the common law of
negligence. An action under the CPA or for negligence can be brought for death, personal injury
and damage caused to private property as the result of a product defect. Neither type of action
can be used to compensate for pure economic or consequential loss.
CONCLUSION
From the above report it can be concluded that sales contract between John and Sarah's
store contained an unfair term to the contract where store rejects to take any liability for any fault
in the product sold and installed. Also, John has a right to exercise his short term right to reject
the TV as 30 days have not been passed from taking the ownership in the TV from the store.
Moreover, it can be articulated that there have been different provision available for transfer of
property and possession of the TV to John. The statutory remedies available to buyer under sales
contract are enforcing terms of the goods, partial rejection, short term rejection, rights to repair
or replace and right to price reduction of final right to reject the good. The provisions related
product liabilities related with faulty goods have also been included-in the report.
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REFERENCES
Books and Journals
Ohlhausen, M. K. and Okuliar, A. P., 2015. Competition, consumer protection, and the right
[approach] to privacy. Antitrust Law Journal .80(1). pp.121-156.
Sidak, J. G., 2016. Does the Telephone Consumer Protection Act Violate Due Process as
Applied. Fla. L. Rev. 68. p.1403.
Brennan, M. W. and Schenkel, C. O., 2017. Telephone Consumer Protection Act: Key
Challenges and Protection for Utilities. Natural Gas & Electricity. 34(1). pp.8-12.
Canavan, R., Twigg-Flesner, C. and MacQueen, H., 2016. Atiyah and Adams' Sale of Goods.
Pearson Higher Ed.
Online
Contract terms which may or must be regarded as unfair. 2018. Available through
:<http://www.legislation.gov.uk/ukpga/2015/15/section/63/enacted>.
Time limit for short-term right to reject. 2018. Available through
:<http://www.legislation.gov.uk/ukpga/2015/15/section/22/enacted>.
Consumer Rights Act 2015. 2018. Available through :<https://www.which.co.uk/consumer-
rights/regulation/consumer-rights-act#who-should-you-claim-against>.
Sale of Goods Act 1979 - Duties, Rights and Remedies. 2018. Available through
:<http://www.articles.scopulus.co.uk/Sale%20of%20Goods%20Act%201979%20-
%20Duties,%20Rights%20and%20Remedies.htm>.
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