TASK 3: STATUTORY CONSUMER PROTECTION
P6: Explain the law with respect to consumer protection in a given situation.
There are legislation which protects consumer from unfair selling from business. The legislation protects consumers from misleading description of products which induced them to buy the product or faulty products.
Here are the legislation which protects consumers for the sale and supply of goods and services.
SALE OF GOOD 1979
This legislation protects consumers on all types of consumer contract.
S (2): The definition for sale of goods act: contracts which seller agrees to transfer the good or products to the buyer in return for money. The definition of “goods” in sales of good 1979 are tangible items like food, clothing
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Sellers have the right to pass the ownership for the product they sold. If the seller fails to give the good to the other party who already paid for the product or pass the ownership to the buyer then the contract is breach.
For example: Rowland V Diwall (1923) - claimant bought a car for £334 from defendant. He bought the car and fixed it and sold it for £400. However, two months later it was return to owner as the claimant did not title of ownership for the car. The ownership for the goods remain to the defended. Claimant had to return £400 back to customer.
2.) Description
S13- implied condition that goods have to match the description of the product. The description of product could include the size of the product, origins, colour and how the packaged is pack.
For example, if the seller tries to changes the description of product to induce buyers to buy the product or fails to match the description of the product then the contract is breach.
3.) Fitness and quality
S14 – implied condition that goods that are sold to consumers must have satisfactory quality. Therefore, if the goods did not have satisfactory quality, the buyer is able to reject the product and claim damages by asking
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This legislation protects business like hairdresser or gardening. The law supply of goods and services 1983 doesn’t only cover goods but also service. For example, when entering a mobile phone contract the supply of goods contract apply and cover both phone and service. The phone will have to match the description they stated like the size of the product and phone should also have satisfactory quality. The service for phone contract will be the telephone service of the company. Contracts for goods and services 1982 includes contracts for hire goods, hairdressing and building maintenance work.
Implied term for supply of goods and service (implied conditions)
S7 - seller has the right to transfer the property to the buyer.
S 8– goods and services description should match the goods and services provided to consumers.
S9- when people goods are hired to customers they must have satisfactory
First, when a creditor (ICE) extends credit to a debtor (Top Quality) and takes a security interest in some property of the debtor, Top Qualities inventory in this case, it is called a secured transaction. The inventory is then considered collateral for the financing that ICE provided for Top Quality, which was made clear in the financing statement that ICE filed. Any secured transactions where personal property is used as collateral is governed by Article 9 of the Uniform Commercial Code. The UCC was revised in 2001 to better adhere to modern times, and since this case took place from 2007 to 2009, we will be applying the revised edition. There are many sections of Article 9 that should be considered when examining this case. First, the filing of a financing statement, form UCC-1 in Article 9, should be confirmed as filed with the appropriate state office. Once this has been done, confirming the attachment of Top Quality’s inventory to ICE, we can then look to confirm that the initial sale to Chrisman was paid in full to Top Quality, which it was. If this were not the case, ICE would be entitled to the remaining sale proceeds. Now we move on to the requirements of a buyer in the ordinary course of business, per Article 9 of the UCC. According the textbook, “A buyer in the ordinary course of business who purchases goods from a merchant takes the goods free of any perfected or unperfected security interest in the merchant’s inventory, even if the buyer knows of the existence of the security interest” (Cheeseman). The textbook then continues to explain that this rule is necessary because buyers would be reluctant to purchase goods if the merchant creditors could recover the goods if the merchant defaulted on the loans owed to secured creditors. These statements come from the Revised Article 9, section 320(a). This is based on the idea that the buyer purchases in good faith, meaning that they are
The role of law reform has responded rather effectively to a certain extent in protecting the rights of consumers. This is evident in the legal responses introduced to address issues of credit, marketing innovation and technology. These law amendments has effectively increase the protection of the rights of consumers to a certain extent, however loopholes still exist. Due to the increasing range of goods and services continues to grow and the failure of existing laws, the role of law reform has been significant in protecting the rights of consumers. Consumer laws were created to prevent deceitful activities, or unfair business practices, as well as serving a protection for weaker parties who are unable to protect themselves. However, laws were later reformed to enable customers to transact with confidence and protect suppliers, consumers from inappropriate business conduct and to reflect changed community values and circumstances.
...nd Services Act 1973 (TAS), Fair Trading Act 1999 (VIC), Fair Trading Act 1987 (NSW), Fair Trading Act 1989 (Qld), Fair Trading Act 1987 (SA), Consumer Transactions Act 1972 (SA), Manufacturer’s Warranty Act 1974, Fair Trading Act 1987 (WA), Consumer Affairs Act 1971 (WA), Door to Door Trading Act 1987 (WA), Consumer is
The following is an analysis of a business situation between a supplier and a specific buyer of their product where the validity of a contract, and potential breach of contract is to be considered. Included in the analysis is the statement of facts, relevant legal rules of law, as well as a biblical perspective that can be considered in coming to a resolution and optimal outcome that will be mutual beneficial for both parties.
Australian Businesses must guarantee products and services they sell, hire or lease if the prices are under $ 40,000
Legal Studies Essay Joey Agerholm Exclusion clauses determine the liability of something that might go wrong within a contract. They are used by sellers as an attempt to avoid or limit their liability. The seller has the advantage over the buyer who must agree to the clauses to purchase the product/service. Because of the buyers disadvantage the court takes such cases, involving exclusion clauses, very seriously, and the content of the clauses are carefully interpreted. With the current Trade Practises Act and the Fair Trading Act the standard form of business contract is adequate and effective in protecting the buyer. The Trade Practise Act is the most effective legislation for the protection of the consumer. It implies to the following situations:- - “A promise by the seller that the buyer will become the owner” If a car dealer breaks a promise or part of a contract, for example that he has the right to sell a car, and the car is stolen then although the buyer will have to give the car back he/she will get her money back. - “ A promise by the seller that goods will fit the description supplied by the seller” In this case the buyer is protected if the seller makes a promise, which is a condition of the contract, describing the product, and when the buyer receives the product, it does not match the description. - “ A promise where the seller is made aware of the purpose for which the goods are required, that the goods will be reasonably fit for that purpose” This condition is implied when the buyer makes the purpose of the goods needed known to the seller, and the buyer then relies on the seller’s judgement in providing the correct product. For example it would not be reasonable if you made the seller aware that you wished to purchase something suitable for mowing the average suburban backyard and you were sold a tractor. - “A Promise that goods are of merchantable quality” According to this act a good is considered to be merchantable if they are suitable for the prospect for which other similar goods are sold, involving the description applied to them, the price and any other relevant information. This act does however does not protect the consumer if he/she has examined the product and missed any defects that should have been seen or if the seller made him/her aware of the defect prior to the purchase of the product.
The provisions for suppliers of products is to require them to provide proportionally equal assistance to all competing resellers of their products (Dufresne 1972). An example would be an instance in Lakeland, Florida consisting of ‘free’ offers of an established brand’s toothbrush with the corresponding brand’s toothpaste (Dufrense 1972). However, the 1971 ‘free’ guide only allows for situations in which the offer is proper, and if no sale has been made prior (Dufrense 1972). The 1971 ‘free’ guide addresses that when a new product or service is being introduced, it must be at the same price for which it was promoted for (Dufrense 1972). This means it would not be permissible in this instance to sell the toothbrush or toothpaste for any cost other than ‘free’ because when the supplier decided to sell the toothbrush when it came out as new as ‘free,’ The Lakeland example addresses how the supplier would then be required to offer the special promotion to all drug stores, grocery stores, and other miscellaneous shops in which are competing in and around Lakeland promoting the brand to be sold (Dufrense
Were the items specially manufactured goods? Is the defendant to blame since the items cannot be sold at any other location? Is the verbal agreement for the sale of goods more than $500 enforceable?
Both the common law and the statutory law have recognized the weaker position of consumers. It is well established an exclusion clause will be valid and enforceable only if it is incorporated in the contract, use clear wordings and does not contravene statutory limits. In order to limit the unfairness resulting from exclusion clauses, the courts have developed certain principles such as the doctrine of non est factum in signature cases, ‘red ink-red hand’ principle in relation to ‘onerous or unusual’ terms, contra proferentem rule when interpreting ambiguous exclusion clauses and ‘fundamental breach’ principle.
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
Implied terms – they are not expressed but they are adopted as “obvious” an individual must comply with (e.g) if buying a product and it is not in a good taste the consumer has the right to return it to the owner for exchange or refund.
'subject to this Act, when goods are sold by a person who is not their
Thus, consumer protection laws, prohibit unfair or defective acts from being practiced by companies.
...der to ensure that the quality of its products is upheld (Grover & Vriens 2006, p. 147).
...ough legal are not just ordinary merchandises. Information must not be manipulated and, right and ample information and warnings must be provided so customers will be guided accordingly.