Consumer Law: Implied Terms, Remedies, and Statutory Provisions Report

This report provides a detailed analysis of consumer law, focusing on the Consumer Rights Act 2015. It examines the legal rules concerning implied terms related to the sale of goods and the supply of services, outlining the standards goods must meet, including satisfactory quality, fitness for purpose, and matching descriptions. The report delves into the statutory provisions regarding the transfer of property and possession, as well as the remedies available to both buyers and sellers in cases of breach of contract. The remedies for consumers include the right to reject goods, the right to repair or replace, and the right to a reduced price, while seller's remedies are also discussed. The report concludes with a case study involving a faulty TV set, applying the Act's provisions to illustrate consumer rights and potential actions against a retailer. The report covers key aspects of consumer protection and contractual obligations.

Running head: CONSUMER LAW
Consumer Law
Name of the Student
Name of the University
Author Note

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Question 1
The legal rules on implied terms relating to the sale of goods and supply of services are as
follows:
The Consumer Rights Act 2015 lays down certain standards that must be met by every
transaction of sale of goods as well as supply of goods that would include hire, hire purchase,
exchange, part exchange and contract for work (Legislation.gov.uk 2019). The statutory
implied terms relating to supply of goods under this Act are:
1. Quality of the goods must be satisfactory. The goods must be of such reasonable
standard that the consumer should be satisfied to make use of it for which he has
purchased the goods. The goods must be up to the appearance and finish that was
promised or advertised. The gods must be free from any minor defects. The safety
feature of the goods must be elaborately explained so that the consumer can abide by
it. Lastly the durability of the product or goods must be maintained and assured
correctly to the consumer without disseminating false information (Faith and Agwu
2018). However, the quality of the goods must be evaluated based on the following
criteria: a) price, b) manufactures advertisement, and c) description.
2. The goods must be fit for the particular purpose for which the consumer purchases
it. The trader is supposed to supply the goods to meet the necessity of the consumer’s
need and specified purpose.
3. The goods so supplied by the trader must match the model number, sample type up as
well as the description that was provided in the advertisement of the goods. In case
the goods does not match the description and get the trader sold it to the consumer, it
amounts to do an offence under the Consumer Rights Act 2015 (Legislation.gov.uk
2019).

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4. The provisions of the Consumer Rights Act 2015 clearly states that installation of the
goods is a part of the contract of sale of goods and it would be the responsibility of the
trader to install such goods. It is needless to mention that the goods must be installed
correctly (Tate 2006.).
5. Section 17 of the Consumer Rights Act 2015 list down the right of the trader to
supply the goods which is an implied term relating to the contract of sale of goods as
well as supply of service (Legislation.gov.uk 2019). It includes contract of hire of
goods and gives the trader the right to transfer the possession of the goods to the
consumer. The trader is given the right to sell the goods when its ownership is
transferred to the consumer. The provision includes the term that the goods will be
free from the encumbrances or charges that are not disclosed to the consumer before
the parties enter into the contract of sale and until the ownership is transferred to the
consumer. In addition, the consumer will have the quite possession of the goods until
disturbed by a person who is entitled to enjoy the goods and it was made known to the
consumer (Faith and Agwu 2018). In case of contract for hire, the consumer shall
enjoy the possession of the goods for the exact time for which the contract was made.
When the trader and the consumer enters into a contract, they shall have a contract
that would that the trader intended that the trader shall transfer his title or the title of
a third party, even if it is limited in nature. It is implied that the encumbrances or
charges that the trader knows and unknown to the consumer has been disclosed by the
trader to the consumer before they entered into the contract (Luzak 2014). When a
contract of sale is made, it is implied that the possession of the consumer would not
be disturbed, neither by the trader nor by any another person claiming any right over
the goods once the contract has been made, unless there are any encumbrances or
charges that was made known to the consumer. In case of contract for hire, the trader

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would have the right to repossess the goods once the tenure of the contract has ended
(Luzak 2014).
6. It is also implied that the consumer shall have a right to enforce the terms of the
goods. The failure to conform to the terms of the contract shall amount to breach of
contract, giving rise to remedies to the consumer. Along with the statutory implied
term of a sale of goods, certain implied terms comes along when the goods do not
conform to the terms of the contract (Ohlhausen and Okuliar 2015.)
As per the given case, Mr. John was told by the store manager that the TV set that he
selected was of high quality, durable and value for money which was also assured by the
manufacturer. Such assurance from the store manager and the manufacturer was the driving
factor that convinced Mr. John to purchase the 42 inch remote control TV set. After he got it
installed by the engineers from the departmental store, the TV worked fined. After three
weeks when the TV set stopped working, Mr. John intimated the departmental store about the
same, to which they informed that they would not take any action pertaining to it as John had
signed the installation document when the installation was done by the engineers which is a
proof that the work was done properly. However, this is incorrect on the part of the store as it
is responsible for the faulty TV set and would be liable to take necessary action as per the
statutory implied terms under the Consumer Rights Act 2015 (Qld). Mr. John can exercise his
rights of a consumer as held in the Act which asks the trader to supply goods that are of good
quality and comes to the use of the consumer for which he purchases it. The TV set was
certainly not free of defects which triggered after functioning for three weeks. Therefore, Mr.
John would be advised to direct the departmental store to take necessary steps either to repair
the TV set or replace it, or he may even reject the product if it is within a specified time
frame.

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Question 2
The statutory provisions pertaining to the transfer of property and possession is dealt
under Section 17 of the Consumer Rights Act 2015 (Qld) (Legislation.gov.uk 2019).
The Act clearly mentions that the trader shall have a right to supply the goods to the
consumer once the contract of sale of goods is brought into effect. It includes contract of hire
of goods and gives the trader the right to transfer the possession of the goods to the consumer.
The trader is given the right to sell the goods when its ownership is transferred to the
consumer. The provision includes the term that the goods will be free from the encumbrances
or charges that are not disclosed to the consumer before the parties enter into the contract of
sale and until the ownership is transferred to the consumer. In addition, the consumer will
have the quite possession of the goods until disturbed by a person who is entitled to enjoy the
goods and it was made known to the consumer. In case of contract for hire, the consumer
shall enjoy the possession of the goods for the exact time for which the contract was made.
When the trader and the consumer enters into a contract, they shall have a contract that would
that the trader intended that the trader shall transfer his title or the title of a third party, even
if it is limited in nature. It is implied that the encumbrances or charges that the trader knows
and unknown to the consumer has been disclosed by the trader to the consumer before they
entered into the contract (Faith and Agwu 2018). When a contract of sale is made, it is
implied that the possession of the consumer would not be disturbed, neither by the trader nor
by any another person claiming any right over the goods once the contract has been made,
unless there are any encumbrances or charges that was made known to the consumer. In case
of contract for hire, the trader would have the right to repossess the goods once the tenure of
the contract has ended (Reich and Micklitz 2014).

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Question 3
The remedies that are available with the buyer and the seller in terms of the contract
for sale of goods has been discussed from section 19 to 32 under the Consumer Rights Act
2015 (Qld) (Legislation.gov.uk 2019).
The consumer has certain remedies against the seller in case the contract for sale
of goods is breach. In case the product does not fit the statutory implied terms, then in that
case the consumer shall be entitled to exercise his right to remedies against the seller
(Newton 2015). The following remedies are available with the consumer:
1. The right to reject for a short period of term
In case the goods does not match the requirement which was assured at the
time of sale, then in that case the consumer shall have the right to reject the goods
until the completion of the first 30 days of the purchase. The short-term period of 30
days to reject the goods does not commence until the consumer is vested with the
ownership as well as the possession of the goods. However, the right to reject the
goods within the short-term does not apply if the product was installed in a wrong
manner. The consumer is entitled to ask for a full refund of the price of the product.
The refund is to be given within the next 14 days when the consumer claims for it. In
case the consumer is not entitled to claim a refund, he shall be liable to claim for
damages.
2. The right to repair or replace
In case of breach of the contract for sale of goods, the consumer may ask the
seller to repair or replace the goods when he has lost the chance to reject it. The claim
for repair or replacement must be made within a reasonable time frame. The seller
must not ask for any extra payment for repairing or replacing the goods. However, the

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chance of the consumer may be revoked if he fails to claim for the remedy within the
reasonable time.
3. The right to reduced price and finally reject
In case the consumer loses his right to repair or replace which he probably had failed to
exercise or otherwise, within a reasonable time, the consumer may ask for a reduced price
from the seller or may finally reject the goods. However, the price reduction claimed by the
consumer should be reasonable and must be appropriate, depending on the circumstances
(Newton 2015).
The consumer would be liable to ask for compensation for the losses that he may have
incurred for the inconvenience. The compensation amount would include the loss or damage
of property that may have occurred due to such goods.
Seller’s Remedy
A seller would have a remedy against the buyer in case the buyer was made aware of
the defects of the goods and the buyer was let to examine the goods before the contract for
sale was made. The seller would not be liable to pay compensation to the buyer if he changes
his mind to purchase it. The seller would not be made to provide damages in case the buyer
choose to use the product for any a purpose other than which it was made for. In addition, the
seller would not be held liable to pay compensation in case the goods fail to work due to wear
and tear after a reasonable amount of time as directed by the Consumer Rights Act 2015
(Qld).
Apart from the remedies available under the Consumer Protection Act, buyers and
sellers also have certain remedies available under the Sale of Goods Act 1979 (Razman
2014).

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Question 4
The product liability statutory provisions for faulty goods is governed by the
Consumer Protection Act 1987. The producers can be held liable for compensating for the
defect of the products that may have cause loss or injury to the consumer (GOV.UK 2019).
Section 3 of the Consumer Protection Act 1987 states that a products is said to be defective if
it fails to provide safety to the consumer which was expected at the time he made the
purchase. Therefore, in case the product has certain defect, be it manufacturing defect or a
defect that has occurred while installation, the seller would be liable to compensate the
consumer (GOV.UK 2019).

8CONSUMER LAW
References
Consumer Protection Act 1987
Consumer Rights Act 2015 (Qld)
Faith, D.O. and Agwu, E., 2018. A review of the effect of pricing strategies on the purchase
of consumer goods. International Journal of Research in Management, Science &
Technology (E-ISSN: 2321-3264) Vol, 2.
GOV.UK (2019). Product liability and safety law. [online] GOV.UK. Available at:
https://www.gov.uk/guidance/product-liability-and-safety-law [Accessed 27 Apr. 2019].
Legislation.gov.uk (2019). Consumer Rights Act 2015. [online] Legislation.gov.uk. Available
at: http://www.legislation.gov.uk/ukpga/2015/15/contents [Accessed 27 Apr. 2019].
Luzak, J.A., 2014. To withdraw or not to withdraw? Evaluation of the mandatory right of
withdrawal in consumer distance selling contracts taking into account its behavioural effects
on consumers. Journal of consumer policy, 37(1), pp.91-111.
Newton, C.D., Bank of America Corp, 2015. System and method for consumer protection.
U.S. Patent 9,177,317.
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.
Razman, M.R., 2014. Sale of Goods Act, 1957: The role of statutory implied terms towards
food and environmental sustainability. Research Journal of Applied Sciences, 9(9), pp.624-
628.
Reich, N. and Micklitz, H.W., 2014. Economic law, consumer interests and EU
integration. European consumer law, pp.1-65.
Sale of Goods Act 1979
Tate, J.C., 2006. Ownership and Possession in the Early Common Law. American Journal of
Legal History, 48(3), pp.280-313