GCSE law Consumer Contract B144_2

GCSE law Consumer Contract B144_2

1. Contract law

   • Basic elements of a contract
     • Agreement
       • Acceptance
         • must be made in good time Montfiore v Ramsgate Hotel. 
       • Offer
         • Must not have a problem with multiple acceptance or will be invitation to treat.  Carlil v Carbolic SmokeBall Co - because the advert restricted the number of acceptances 
         • Not an invitation to treat
           • Fisher v Bell - goods in shop window Partridge v Crittenden - advert in a magazine  
   • Implied terms
     • Sale of Goods Act
       • Durability
       • Satisfactory Quality
         • Safety
       • As described
       • Fit for Purpose
       • Remedies
         • Replacement Repair Refund 
     • Supply of Goods and Services
       • reasonable care and skill
       • reasonable price if not agreed in advance
       • Reasonable timescale
       • Remedies
         • Partial refund if you have had some benefit from the service Should give the contractor a chance to correct the work 
     • Evaluation
       • Customers can get the price of their faulty goods refunded.  No need to have a written contract of sale for this - terms are implied in EVERY CONTRACT The rules will encourage businesses to make their products safe and durable. Goods must be as described - encourages fair promotion and advertising.  
   • Terms of the contract
     • assumptions
       • Assumed that domestic arrangements will not be legally binding and COMMERCIAL arrangements will be legally binding
     • legal intent
     • Exchange of value
     • Consideration
     • mere representations
       • words used in negotiation which do not form part of the contract
     • Warranties
       • minor terms if breached, the consumer gets compensation but the rest of the contract can still operate.
     • conditions
       • absolute terms. if a condition is breached the whole contrcat will fail
     • misrepresentation
       • ' information' given during negotiation Induced you into signing the contract and was false Will void the contract "spice girls v aprilla" 

2. Negligence Law

   • basic elements of negligence
     • foresiight
       • means the defendant could have foreseen the damage
     • Duty of care
       • Donoghue v Stevenson
         • snail in ginger beer   Case created a duty of care between manufacturers and their suppliers  
         • foresight
           • the D can foresee that C will be affected
         • proximity
           • there is some kind of connection between claimant and defendant eg - teacher-student Driver- other road user Manufacturer - consumer 
         • fair just and reasonable
           • it is fair and reasonable to impose a duty of care on the defendant
     • Breach of duty
       • did the defendant act as a 'reasonable person'? Experts judged against standards of reasonable experts EG doctor should act like a reasonably skilled doctor  
     • Foreseeable damage
       • should the defendant have been able to predict the sort of damage that has arisen?
     • possible defendants
       • manufacturers suppliers repairers wholesalers assemblers retailers
     • EVALUATION
       • hard for consumers to find out and PROVE IN COURT who is responsible for a defective product. hard to know who is liable Hard to know how the defect was caused - prove a breach. 
   • Product liability law
     • Consumer can claim from any part of the supply chain
       • producer eg - manufacturer, supplier, retailer, assembler, repairer,  wholesaler importer own-brander - someone who puts their own brand on a product made by someone else. 
     • Consumer Protection Act 1987
       • the law which brings the EU directive into UK law
       • What can be claimed for?
         • Death Injury damage to PERSONAL property amount must be OVER £275  
       • restrictions
         • where customer has not used the product properly where customer has not followed warnings and instruction there will be NO LIABILITY 
       • EVALUATION
         • All EU goods covered so can buy goods from anywhere with confidence.  Should promote vigilance amongst producers and improve products No need to show HOW breech occurred - easier for consumers   Can hold ANY PARTY  in the supply chain liable. Negatives.. Only personal property - can't claim for business damage. Only property OVER £275. leaves a lot of small claims with no remedy.   Too many defences makes claiming difficult.   
       • what products are covered?
         • everything EXCEPT nuclear power buildings UNPROCESSED raw materials 
       • defences
         • the damage arises because the product meets a regulation requirement The defect did not exist when the D had the product The defect could not have been reasonable known about The product was not sold in the course of business. 
     • EU product safety directive
       • Strict Liability
         • means claimant does not need to show HOW the product defect was caused.