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Consumer Legislation

Sales

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Contracts

• Credit Contracts and Consumer Finance Act 2003

• A contract is an agreement between two parties e.g. a buyer and a seller either verbal or written

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Contract

• An offer by the buyer

• Acceptance of offer by the seller

• Consideration – the seller agrees to sell – the buyer agrees to pay

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Contract

• Terms and Conditions

– Deposit terms

– Express terms or clauses

– Implied terms – usually covered by law

– Conditional contracts – specific action must be carried out prior contract going ahead

– Exclusion clauses – limits seller’s responsibilities

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Cancelling a Contract

• Goods bought on credit

– Door to Door Sales Act – 7 day ‘cooling off’ period to cancel

– Credit contracts e.g. loans, hire purchase; 3 day ‘cooling off’ period to cancel if you have not received goods

• Contract with a business

– Consumer Guarantees Act gives you rights when buying for personal use

• Private Sale

– Limited rights – seller misled you or did not have right to sell goods

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Layby Sales Act 1971

• Goods kept in shop until fully paid

• No interest charged

• Regular payments until fully paid

• Obtain layby receipt

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Cancelling layby

• Customer cancels – will receive payments less selling costs and loss in value of goods

• Seller cancels – Must be in writing or in person, only if buyer has broken terms of agreement. Can receive payments less selling costs and loss in value of goods

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Consumer Guarantees Act - Goods

• Acceptable quality

• Fit for their particular purpose

• Match the description

• Match the demonstration model

• Right to sell

• Reasonable price

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Your rights

• Minor fault – retailer can either repair, replace or refund

• Major fault – return goods and either choose refund or replacement

• Complaints to Disputes Tribunal

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Consumer Guarantee Act - Services

• Reasonable care and skill

• Fit for their particular purpose

• Completed within reasonable time

• Reasonable price

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Your rights

• Minor – you must give the provider opportunity to fix problem

• Major

– Something is unsafe – e.g. electrical work

– Makes product unfit for purpose – e.g. mechanic reconditions engine, breaks down 1km after you collect

• If serious, you can refuse to pay or ask for refund. Problems referred to Disputes Tribunal