Introduction to Business Law: Consumer Rights and Remedies Report

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This report provides a comprehensive overview of consumer rights within the framework of business law, focusing on the Consumer Protection Act 1987 and related legislation. It delves into the rights of consumers concerning the sale and purchase of goods and services, emphasizing the importance of implied terms under the Sale of Goods Act 1979. The report examines product liability, outlining the responsibilities of manufacturers and sellers in cases of defective products, and explores various remedies available to consumers when their rights are violated, including compensation and specific performance. Several case studies, such as BSS Group Plc V Makers (UK) Ltd. and Wilkes v Depuy, are used to illustrate the practical application of legal principles and the outcomes of legal disputes. The report also addresses the transfer of property and possession of goods, the remedies available to both buyers and sellers in cases of breach of contract, and the concept of product liability stemming from negligence or willful misconduct. The conclusion summarizes the key aspects of consumer protection and the importance of upholding consumer rights in business transactions.
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INTRODUCTION TO
BUSINESS LAW
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Table of Contents
INTRODUCTION...........................................................................................................................3
Right of Consumers .......................................................................................................................3
Question 1)..................................................................................................................................3
Question 2)..................................................................................................................................5
Question 3)..................................................................................................................................5
Question 4) .................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Business law refers to the process of laws which is mainly designed for business in
relation to carrying the business activities such as entering into contract or buying or selling of
goods and services (Masum and Aziz, 2018). By imposing laws in business resulting in gaining
various advantages regarding building strong relation between the company and its employees
and also with the company and its customers. Present report is based upon the laws relating to
the Consumer protection Act, 1987 which is mainly designed to protect the consumer regrading
securing their rights in respect of purchasing any products or dealing in any services.
Right of Consumers
Question 1)
Answer: In relation to examining the dealing regarding sale and purchase of goods and services,
consumer carry various rights regarding facing any violation or infringement of their right which
can be in expresses or implied terms.
Sale of goods act, 1982:
Under this act, the deal is made between the parties regarding purchasing or selling of
goods and services and such terms is mentioned in the contract or also legally bound on parties
to follow it. Before making any dealing, both the parties sign the sale deed in which they deal
with certain condition regarding undertaking the procedure of buying and selling of goods. Few
agreements are also carried regarding following the condition which is said in form of implied
terms (Sale of Goods Act 1979, 2020). In context of undertaking the matters mentioned under the
Consumer right act, the sale of goods and services must be made on this perspective such as
accurate dealing of products whether the dealing is made either physically or digitally. It also
results in providing the satisfactory quality and also the description which they made regarding
pertaining the particular products must be accurate. If all such aspects is not fulfilled by the
seller, then the consumer can make an appeal under the consumer protection act.
Implied terms:
In respect of implied terms, it is mainly related to buying the goods through the verbal
communication which is attained with the seller regarding purchasing the goods. Thus, in such
aspect's buyer is relying on the seller judgement and skills (Bridge, 2017). Under section 14 of
the sale of goods act, it is stated that buyer must enter into the contract regarding purchasing the
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products through the implied terms. This indicates that both the parties are legally bound to
follow the terms which is similar to the express agreement. In respect of this case, John is relied
on implied terms regarding purchasing the TV from Sarah, the manager of the departmental
store. The implied terms in which this case is stated as the TV carries to be the very high quality,
durable and also carries good value in relation to money.
Legal terms on implied law:
If all the terms which are not mentioned in contract by the company, they deal into the
implied terms which carry the equal rights and duties to be fulfilled similar to the expressed
contract. In terms of legality, the legal terms can be in form of statues, customer or by the
judgement of the courts. In respect of statues, the role of parliament is to make certain implied
terms as compulsory to be followed by the company (Howells and Weatherill, 2017). According
to the customs, it reflects the terms which is mentioned in the contract and can be customized as
per the changes in needs and demands. As per the court, the terms are implied, but they can only
be excluded in respect of carrying the exclusion clause regarding not following the valid terms
under any of the acts.
Advising the rights of Mr John:
In case of John, he purchases the TV by carrying the implied terms regarding purchasing
the TV in terms of having stability, durability and also good value in respect of money. As he
faces the issues regarding not carrying the durability of the TV. John installed the TV and after 3
weeks, the flash and puffs of smoke arises from the TV. He filled the complaint but the store
department provide the evidence regarding not mentioning any such terms regarding defaulting
in TV on expressed contract (Kiraz, 2019). Thus, John carries various rights under the consumer
right act, 1987 in which section 10 stated that it is the duty of the trader to carry complete
knowledges before selling any goods to consumer. It is also stated that the terms which are
satisfactory and acceptable to buyer regarding purchasing the goods is fair in terms of laws.
Thus, by applying for the compensation and recovery of losses which is faced by John, can liable
to get compensation for the losses incurred regarding providing default goods from the
departmental store.
Case study:
From the above stated case, it is supported with the relevant case relating to the BSS
group Plc V Makers (UK) Ltd. [2011] EWCA Civ 809 in which the violation of section 14 of the
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sale of goods act, is stated regarding not following the terms as it carried the implied way
regarding dealing in any business activities. The issues are raised between the BCC and maker
regarding purchasing of the pipes and adaptors and after installing the pipes, the crises arises
regarding damaging the property (BSS group Plc V Makers (UK) Ltd. [2011], 2017). Maker files
the complaint against BCC regarding providing default goods which resulting in causing
damages to property. As BCC claimed that nothing specific is mentioned in contract regarding
paying compensation after the goods is installed or its successfully working during the time of
installation. According to the judgement of the courts, it is stated that whether the contract is
made in form of implied terms, the parties are liable to perform the contract in respect of paying
compensation to the party who suffer losses.
Question 2)
Answer: In context of matters related to the transfer of the property or possession of goods, it
mainly related to undertaking the ownership of the property regarding buying or purchasing of
goods or services. In these aspects, the possession is undertaken regarding getting custody of the
particular objects and in return the rights are secured regarding getting security from any
unlawful acts. In this case, the right of the TV is acquired by John regarding purchasing or
entering into the contract with the Sarah, the store manager.
In respect of statutory provision, the transfer of goods which is made in respect of
entering into the contract regarding purchasing of any goods, then in such case the implied term
is carried to be valid if it is made in respect of quality or fitness. From this perspective, Mr John
carry the rights regarding undertaking statutory provision in relation to entering into the contract
with the clear terms and conditions (Weber, 2016). The terms may be implied or expressed or
whether the term may be implied in law or implied in facts. In this case, John carries the implied
terms in facts which resulting in carrying strict liability to the Sarah regarding following the
terms which they said in respect of selling the goods. Thus, John is liable to get compensation for
the losses incurred.
Question 3)
Answer: Remedies refers to the right which is given to the buyers regarding facing breach in
pertaining the terms of the contract whenever express or implied. In case of examining the
buyers remedies regarding purchasing of goods and services under the contract act, it is stated
under section 57 of the contract act that in case of breach committed regarding dealing with any
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goods, buyers can demand for the money regarding facing losses (Shears, 2016). The damages
which can be demanded by buyers regarding not delivering the goods within the set time period
or damages which they faced in terms of warranty or guaranty, or they can demand the specific
performances regarding performing the contract instead of violation of the terms (Consumer
Rights Act 2015, 2020). In such aspects, buyer can demand the remedies from seller regarding
committing breach in following the condition mentioned in the sales agreement.
In case of seller, they carry the remedies against buyer regarding mentioning the terms
under section 55 of the sale of goods act. The breach which arises in respect of not paying the set
prices which is decided between the parties or also not accepting the delivery when the deal is
made regarding purchasing of particular products (Riefa and Willett, 2018). In such aspects, the
remedies is made available to the seller regarding taking action against the buyers for paying
money for the damagers incurred. It is explained by undertaking the case of Colley V. Overseas
Exporters [ii], in this case the issues is raised regarding not getting timely delivery of orders. But
seller made the delivery within the set time period and thus the issues is raised by the sailor
regarding getting defects in reaching within the set time period (COLLEY V OVERSEAS
EXPORTERS: 1921, 2020). Thus, the seller is not obliged to pay compensation for the losses
incurred.
The remedies are available to both buyers and seller regarding facing following situation
such as in case of anticipatory breach. In this breach is undertaken regarding refusing to perform
the contract for further perspective as before the date of delivery or wait till the contract is
performed by either of the party (Giliker, 2017). This is supported with the case study of the
Hochster v De la Tour[xxii] as in this case one party refuse to perform the contract before the
date of performing the contract is undertaken (Hochster v De la Tour, 2020). Thus, in this aspect
the plaintiff party oppose the defendant party to pay damages for the losses incurred.
Question 4)
Answer: Product liability refers to carrying the liability regarding facing any damages for the
losses incurred. In case of injury or breach committed through any of the products, then seller is
liable to pay damages for the losses incurred. Thus, law is mainly imposed on all person such as
manufactures, suppliers, dealer or distributors which are providing goods and services to
customer (Holmes, 2018). Consumer carries the right regarding filling claims under the
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consumer protection act if they are facing any breach or violation of their right regarding
pertaining to particular products.
In respect of getting faulty goods similar as in the case study of the John, they can file the
complaint against the Sarah in return of demanding compensation for the losses incurred or
exchanges of the products with providing the best quality TV (Giliker, 2017). The issues
regarding product liability occurs in respect of negligences or wilful committing of illegal
activity. Thus, in such manner liability is incurred to the consumer regarding applying for
compensation for the damages faced in preferring any particular products.
This is explained with particular case study as in case of Wilkes v Depuy [2016] EWHC
3096 (QB), As the case reflect the judgement made under sec 3 of the consumer protection Act,
1987 as the issues is raised between the Wilkes and DePuy regarding providing defects goods
which results in facing damages to Wilkes. As Wilkes purchased the goods from the DePuy the
manufacture of the stipulated goods, But due to his negligence, the goods which the Wilkes
received is defective and for which perspective, he had to face major losses (Wilkes v DePuy
(2016), 2020). Thus, in this the judgement which is made by judges is regard to carrying the
product's liability in regarding delivering goods to consumer. For these aspects DePuy is liable to
pay compensation for the losses incurred as the consumer is obliged to get compensation under
the consumer protection act.
CONCLUSION
From the above study, the report conclude the matters relating to the right of the
consumer protection which is provided to the consumer regarding facing any issues in respect of
violation of their rights. It is also examined that whether the contract is made in form of implied
terms, it carries the same legality which is maintained for the expressed contract. In respect of
carrying the statutory provisions regarding examining the remedies of buyer and seller, they
carry various rights in respect of injection, stoppage or applying to court for specific
performance in the contract. Thus, the consumer right are secured in contract, if any of the
condition are not excluded in the terms of contract.
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REFERENCES
Books and Journals
Bridge, M., 2017. The UK Supreme Court decision in The Res Cogitans and the cardinal role of
property in sales law. Sing. J. Legal Stud. p.345.
Giliker, P., 2017. Regulating contracts for the supply of digital content: the EU and UK response.
In EU Internet Law. (pp. 101-124). Springer, Cham.
Giliker, P., 2017. The Consumer Rights Act 2015–a bastion of European consumer
rights?. Legal Studies. 37(1). pp.78-102.
Holmes, G., 2018. Sale by Description-Interpretation and Ambiguities. Ct. Uncourt. 5. p.2.
Howells, G. and Weatherill, S., 2017. Consumer protection law. Routledge.
Kiraz, S. E., 2019. Third Party's Intellectual Property Rights and the Seller's Liability Under the
United Nations Convention on International Sale of Goods (CISG) and the Sale of Goods
Act (SGA) (Doctoral dissertation, University of Leicester).
Masum, A. and Aziz, H. H. H. A. A., 2018. Consumer Protection and the Bruneian Sale of
Goods Act 1994: With Special Reference to Quality and Fitness of Goods.
Riefa, C. and Willett, C., 2018. Enforcement and Effectiveness of Consumer Law in the UK.
In Enforcement and Effectiveness of Consumer Law. (pp. 673-695). Springer, Cham.
Shears, P., 2016. The Consumer Protection Regulations in the UK: The Story So Far. European
Business Law Review. 27(1). pp.177-193.
Weber, F., 2016. The law and economics of enforcing European consumer law: A comparative
analysis of package travel and misleading advertising. Routledge.
Online
BSS group Plc V Makers (UK) Ltd. [2011]. 2017. Online. Available through:
<https://www.casemine.com/judgement/uk/5a8ff71c60d03e7f57ea7aa9>.
COLLEY V OVERSEAS EXPORTERS: 1921. 2020. Online. Available through:
<https://swarb.co.uk/colley-v-overseas-exporters-1921/>.
Consumer Rights Act 2015. 2020. Online. Available through:
<http://www.legislation.gov.uk/ukpga/2015/15/contents/enacted>.
Hochster v De la Tour. 2020. Online. Available through:
<https://www.casebriefs.com/blog/law/contracts/contracts-keyed-to-murphy/breach-of-
contract-and-permissible-remedial-responses/hochster-v-de-la-tour-2/>.
Sale of Goods Act 1979. 2020. Online. Available through:
<http://www.legislation.gov.uk/ukpga/1979/54>.
Wilkes v DePuy (2016). 2020. Online. Available through:
<https://www.clydeco.com/insight/article/wilkes-v-depuy-2016>.
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