Principles of consumer protection

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SALE OF GOODS AND SIMPLE CONTRACT

Consumer protection laws are designed to ensure fair trade competition and the free flow of truthful information in the marketplace.

The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and may provide additional protection for the weak and those unable to take care of themselves.

Consumer Protection laws are a form of government regulation which aim to protect the rights of consumers.

Unfair Contract Terms

  • Unfair Contract Terms Act 1977 is an act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. 

    They are intended to provide broad protection for consumers, and business practices which are likely to distort consumers' decisions regarding their purchases generally fall within this act. 

    Certain kinds of unfair term can have that distorting effect, for instance through misleading consumers about their rights.

  • Under contract law, the money you give in exchange for the goods is referred to as the “consideration”.  

    For a contract to take place there must be agreement between the parties.  

    This requires an offer made by one party and acceptance by the other party.

  • An important point about contracts is that they do not have to be written.  They do not even have to be spoken. 

    A customer picking up something in a supermarket and walking to the checkout is making an offer to the shop, and that offer is implied by his behaviour.

  • When one party to a contract fails to carry out his part of the agreement, the other party can take legal action against him for breach of contract.  

    So if a business has a customer who is failing to pay, they can take him to court.

  • When one party makes a misrepresentation to the other, the contract is void.

The Sale of Goods Act 1979

is an act of the Parliament of the United Kingdom which regulates English contract law and UK commercial law in respect of goods that are sold and bought. The Sale of Goods Act performs several functions. 

The Act lays down a small number of compulsory legal rules, but these restrictions are minimal: the bulk of the Act is concerned with an array of presumptions and implied terms, which aim to reflect the commercial expectations in the most commonly agreed sales contracts. 

In the absence of contrary agreement these terms will govern a contract within the Act's remit. The Act applies to contracts where ownership of goods is transferred or agreed to be transferred for a monetary.

Imagine you are about to enter into a contract for the purchase of some goods.  

What might you be concerned about?

  • You may want the goods delivered for a particular occasion or date

  • Are the goods stolen, i.e. does the seller have a right to sell the goods?

  • You would expect the goods to be the same type and quality as the description or any sample

  • The goods should be reasonable quality and suitable for their purpose

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