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published on 12 th^ of June, 2013.
CONSUMER RIGHTS BILL
EXPLANATORY NOTES
INTRODUCTION
- The explanatory notes relate to the Consumer Rights Bill as published in draft on the 12 th^ of June, 2013. They have been prepared by the Department for Business Innovation and Skills. Their purpose is to assist the reader in understanding the Bill and to help inform debate on it. They do not form part of the Bill and have not been endorsed by Parliament.
- The notes need to be read in conjunction with the Bill. They are not, and are not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require any explanation or comments, none is given.
OVERVIEW OF THE STRUCTURE OF THE BILL
- The Consumer Rights Bill sets out a framework that consolidates in one place key consumer rights covering contracts for goods, services, digital content and the law relating to unfair terms in consumer contracts. In addition, the Bill introduces easier routes for consumers and small and medium sized enterprises (“SMEs”) to challenge anti-competitive behaviour through the Competition Appeal Tribunal (“CAT”). The Bill also consolidates enforcers’ powers as listed in Schedule 5 to investigate potential breaches of consumer law and clarifies that certain enforcers (such as Trading Standards Officers) can operate over local authority boundaries. It will give the civil courts and public enforcers greater flexibility to take the most appropriate action for consumers when dealing with breaches or potential breaches of consumer law.
- The Bill is in three Parts:
Consumer contracts for Goods, Digital Content and Services;
Unfair Terms; and
Miscellaneous and General, including Investigatory Powers, Amendment of the Weights and Measures (Packaged Goods) Regulations 2006, Enterprise Act 2002: enhanced consumer measures and other enforcement, and Private Actions in competition law.
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Background
- There is general agreement across business and consumer groups that the existing UK consumer law is unnecessarily complex. It is fragmented and, in places, unclear, for example where the law has not kept up with technological change or lacks precision or where it is couched in legalistic language. There are also overlaps and inconsistencies between changes made by virtue of implementing European Union (“EU”) legislation alongside unamended pre-existing UK legislation.
- The law that protects consumers when they enter into contracts has developed piecemeal over time. Initially it was the courts that recognised that a person buying goods has certain clear and justified, but sometimes unspoken, expectations. The courts developed a body of case law which gave buyers rights when these expectations were not met. This case law was then made into legislation that protected buyers when buying goods, originally in the Sale of Goods Act 1893, updated by the Sale of Goods Act 1979 (“SGA”). These rights were then extended by the introduction of the Supply of Goods and Services Act 1982 (“SGSA”) to cover the situations when goods were provided other than by sale (for example when someone hires goods). The SGSA also covers (in relation to England, Wales and Northern Ireland) certain protections for the recipients of services supplied by traders. Legislation setting out rules on unfairness in contract terms was established domestically in the Unfair Contract Terms Act 1977 (“UCTA”). These pieces of legislation currently cover more than just consumer contracts but certain of their provisions offer extra protection to consumers (as opposed to other types of buyers).
- The EU has also legislated to protect consumers and so the UK legislation has been amended to incorporate this European legislation; sometimes this has been implemented in domestic law without resolving inconsistencies or overlaps.
- The relevant domestic law is currently mainly contained in the following legislation:
Supply of Goods (Implied Terms) Act 1973
Sale of Goods Act 1979
Supply of Goods and Services Act 1982
Sale and Supply of Goods Act 1994
Sale and Supply of Goods to Consumers Regulations 2002
Unfair Contract Terms Act 1977
Unfair Terms in Consumer Contracts Regulations 1999
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on the main characteristics of the goods, services and digital content) before the consumer is bound by the contract;
specifies the consumer’s cancellation rights (during so-called “cooling off periods”) for goods, services and digital content contracts concluded at a distance or off premises; and
introduces various measures aimed at protecting consumers from hidden charges once they have entered into a contract.
- A consultation by the Department for Business Innovation and Skills (“BIS”) in August 2012 sought views on implementing the CRD in particular highlighting those areas where the UK had some flexibility in the way the Directive might be applied^1. A Government response will be published in due course. Part of the CRD has been introduced early as the Consumer Rights (Payment Surcharges) Regulations 2012.
- In developing proposals for the Consumer Rights Bill, the Government has taken into account the definitions and measures contained within the CRD and, as far as appropriate, has made the Bill consistent with the CRD, with the intention of achieving overall a simple, coherent framework of consumer legislation.
- The Government is also considering the advice of the Law Commission and Scottish Law Commissions (the “Law Commissions”) received in March 2012 that the law surrounding consumer rights to redress following misleading or aggressive behaviour from traders is fragmented, complex and unclear^2. The Law Commissions have recommended limited reform, targeting the most serious causes of consumer detriment. The Government intends to implement the Law Commissions’ proposed reforms through amendment of the Consumer Protection from Unfair Trading Regulations 2008 (“CPRs”) and, as such, this reform does not need to be introduced within the Consumer Rights Bill. The recommended reform would give consumers the right to unwind the transaction (get a refund) or receive a discount on the price if they were bullied or misled into agreeing a contract. The Government will issue its response to the Law Commissions’ report in due course.
(^1) A consultation on implementing the Consumer Rights Directive, BIS, August 2012
(^2) The Law Commission No.332/The Scottish Law Commission No.226, March 2012
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Advice and consultations
- The University of East Anglia concluded in 2008 that the UK consumer protection regime had two key weaknesses – uneven enforcement and excessively complex law^3. A call for evidence in the Consumer Law Review in 2008 revealed strong support across the board for consolidating consumer legislation, making it clearer and more accessible^4. Respondents highlighted a number of benefits that a rewrite would bring
- removing discrepancies and inconsistencies, greater use of plain English, greater awareness of rights, remedies and obligations, greater flexibility, future proofing and aiding business growth.
- A number of consultations and academic research papers over several years have examined proposals that form part of this Bill. A single Government response to BIS consultations between March and November 2012 and a report by the Law Commissions of March 2013 (detailed below) is published alongside a draft Bill and these explanatory notes.
Part 1
- The Davidson report in 2006, which examined the transposition of European Directives into domestic law, concluded that UK law on the sale of goods was unnecessarily complex^5. The Law Commissions consulted on potential changes to the law on remedies for faulty goods and made recommendations in 2009^6. Professors G. Howells and C. Twigg-Flesner examined the law on goods and services in 2010 and made recommendations to BIS on how the law could be clarified and simplified^7. Also in 2010, Professor Bradgate reported to BIS on the uncertainty in current law around consumer rights to quality for digital content products^8. Following these various reports, BIS consulted from July to October 2012 on proposals to clarify consumer rights in goods, services and digital content^9.
(^3) Benchmarking the performance of the UK framework supporting consumer empowerment through comparison against relevant international comparator countries, a study for BERR by UEA, 2008
(^4) Consumer Law Review: Summary of Responses, BIS, 2009
(^5) Davidson Report, HM Treasury, 2006
(^6) The Law Commission No.317/The Scottish Law Commission No.216, 2009
(^7) Consolidation and simplification of UK consumer law, BIS, 2010
(^8) Consumer rights in digital products, BIS, 2010
(^9) Enhancing consumer confidence by clarifying consumer law, BIS, 2012
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- In November 2012, BIS published a consultation paper on extending the range of remedies available to courts when public enforcers apply to them for enforcement orders under Part 8 of the Enterprise Act 2002 (2002 c.40) (“EA”)^13.
- Research by the OFT shows that businesses view the present approach to private actions by consumers and businesses as one of the least effective aspects of the UK competition regime. BIS consulted on measures to make it easier and simpler for businesses and consumers to challenge anti-competitive behaviour in April 2012 and Government published its response in January 2013^14.
Structure of the Bill
- The Bill consists of three parts and four Schedules. The general arrangement of the Bill is as follows:
Part Summary
Part 1 Sets out the standards that goods must meet.
Consolidates and aligns the inconsistent remedies available to consumers for goods supplied under different contract types, such as sale, work and materials, conditional sale or hire purchase.
Sets a time period of 30 days in which consumers can reject substandard goods and receive a full refund.
Limits the number of repairs or replacements of substandard goods before traders must offer some money back.
Sets limits on the extent to which traders may reduce the level of refund (where goods are not rejected initially) to take account of the use of the goods the consumer has had up to that point.
Introduces a new category of digital content.
(^13) Civil enforcement remedies – consultation on extending the range of remedies available to public enforcers of consumer law, BIS, November 2012
(^14) Private actions in competition law: a consultation on options for reform, BIS, April 2012 and a government response, BIS, January 2013
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Introduces tailored quality rights for digital content.
Introduces tailored remedies if the digital content rights are not met.
Introduces a new statutory right that if a trader provides information in relation to a service, and the consumer takes this information into account, the service must comply with that information.
Introduces new statutory remedies when things go wrong with a service.
Makes it clear that consumers can always request these rights and remedies when a trader provides a service to them
Part 2
including Schedules 2, 3 and 4
Consolidates the legislation governing unfair contract terms in relation to consumer contracts, which currently is found in two separate pieces of legislation, into one place, removes anomalies and overlapping provisions in relation to consumer contracts.
Makes clearer the circumstances when the price or subject matter of the contract cannot be considered for fairness and in particular makes clear that to avoid being considered for fairness those terms must be transparent and prominent.
Clarifies the role of and extends the indicative list of terms which may be regarded as unfair (the so-called ‘grey list’).
Part 3 including Schedules 5, 6 and 7
Consolidates and simplifies the investigatory powers of consumer law enforcers in relation to the listed legislation and set them out in one place.
Clarifies the law so that Trading Standards are able to work across local authority boundaries as simply and efficiently as possible.
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Supply of Goods (Implied Terms) Act 1973 This will be replaced by provisions in the Consumer Rights Bill.
Sale of Goods Act 1979 For business to consumer contracts this will mainly be replaced by the Consumer Rights Bill but some provisions of SGA will still apply, for example, rules which are applicable to all contracts of sale of goods (as defined by that Act – essentially these are sales of goods for money), regarding matters such as when property in goods passes. The SGA will still apply to business to business contracts.
Supply of Goods and Services Act 1982 For business to consumer contracts, this Act’s provisions will be replaced by the Consumer Rights Bill. The SGSA will be amended so that it covers business to business contracts only.
Sale and Supply of Goods Act 1994 This will be replaced by provisions in the Consumer Rights Bill.
Sale and Supply of Goods to Consumers Regulations 2002
This will be replaced by provisions in the Consumer Rights Bill.
Unfair Contract Terms Act 1977 In respect of business to consumer contracts the Act’s provisions will be replaced by the Consumer Rights Bill. The UCTA will be amended so that it covers business-to-business and consumer- consumer contracts only.
Unfair Terms in Consumer Contracts Regulations 1999
These will be replaced by the Consumer Rights Bill.
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Territorial extent and application
- The Bill extends to England and Wales, Scotland and Northern Ireland as described below.
- Parts 1 to 3 largely extend to the whole of the UK. Some of Part 3 does not apply to Scotland or Northern Ireland because of the differences in the law. For example, the provision relating to the Competition Appeal Tribunal issuing injunctions in private actions does not extend to Scotland, and some of the legislation which Part 3 proposes to amend does not extend to Scotland or Northern Ireland, e.g. the Sunday Trading Act 1994.
- The position under the three devolution settlements is as follows:
The regulation of the sale and supply of goods and services to consumers is reserved to Westminster under section C7(a) of Schedule 5 to the Scotland Act
- Regulation of anti-competitive practices and agreements is reserved under section C3 of Schedule 5.
The regulation of sale and supply of goods and services to consumers and the regulation of anti-competitive practices are not devolved under the Government of Wales Act 2006.
Consumer protection is transferred under the Northern Ireland Act 1998, as it does not fall under the list of excepted and reserved matters in Schedules 2 and 3 to that Act. The regulation of anti-competitive practices and agreements is a reserved matter under paragraph 26 of Schedule 3 to that Act.
- The Government’s intention is to ensure consistency of consumer rights and the effectiveness and efficiency of their enforcement across the UK whilst respecting the devolution settlements. We are in regular discussion with the devolved administrations on the detail of the Bill's provisions and before the Bill is introduced we will ensure that if legislative consent motions are required they will be sought.
Which country’s law governs the contract?
- European Regulation EC 593/2008 on the law applicable to contractual obligations sets out the rules as to which country’s law applies to consumer contracts. It is known as the “Rome I Regulation”. It confirms that it is open to a consumer and a trader to choose the law of any country to govern their contract. Where they do not choose, if a trader pursues its activities in or directs its activities to the UK, (whether the trader is in the UK or not) and the contract covers those activities, the Rome I Regulation provides that a contract with a consumer habitually living in the UK will be governed by UK law. Even if the consumer and trader do choose another country's law to
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destination and that you will pay a price for it.
- Subsections (3) to (5) sets out the position with regard to “mixed contracts”. There are many examples of mixed contracts, for example contracts involving the supply of both goods and services (e.g. a kitchen installation or a car service where spare parts are fitted) or digital content and a service (e.g. the service of supplying and installing anti-virus software). In such contracts, under the Bill, the service element attracts service rights, the goods elements attracts goods rights and so on. Subsection (3) therefore makes clear that, for such mixed contracts, it will be relevant to look at the rights and remedies for each element of the mixed contract. Chapter 2 is the chapter dealing with goods and also makes clear that special rules apply where goods are supplied and installed by a trader and that similarly special rules apply where goods and digital content are supplied together in one product (e.g. where digital content is supplied on a disk (clause 15)). In the main, it is Chapter 3 that applies to digital content (but as mentioned above clause 15, which is in Chapter 2 sets out particular rules about digital content and goods supplied together in one product. Chapter 4 applies to services. Subsection (6) makes clear that consumer contracts are subject to additional rules. These include Part 2 on unfair contract terms and also certain rules in the SGA which are applicable to all contracts of sale for goods as defined by that Act (essentially sales of goods for money), including rules relevant to the passing of property. Subsection (6)(c) refers to the common law (case law or precedent) as developed by judges through decisions of courts and similar tribunals.
Clause 2: Key definitions
- One of the policy objectives is to align, as far as possible, the definitions of certain key terms across the Bill and other consumer law, such as the regulations currently being drafted to implement the CRD, to facilitate easier interpretation and clearer application of the law. These terms are “consumer,” “trader,” “goods” and “digital content”. Since the CRD is a maximum harmonisation Directive, there is little scope for the UK to alter those definitions when implementing the CRD. Therefore, to ensure as much consistency as possible, the definitions of these key terms in the Bill are based largely on the definitions within the CRD. This clause sets out these key definitions in a clause separate from the general interpretation clause (which sets out all other definitions of terms used in the Bill that need definition) because they are vitally important to understanding the scope of the Bill. ‘Service’ is also a key concept but is not defined by the Bill; it was not defined in the SGSA nor is it defined in the CRD.
- Subsection (2) makes clear that a trader is a person acting for purposes relating to that person’s trade, business, craft or profession. It makes clear that a trader acting through an agent, for example by subcontracting part of a building contract, is liable for proper execution of the contract. The term agent covers anyone acting in the name of, or on behalf of, a sole trader or trader company so would also include an employee. A “person” is not just a natural person but can also include companies, charities and arms of government (and the reference to a “person” can also include more than one person). So where these types of body are acting for purposes relating to their trade,
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business, craft or profession, they are caught by the definition of trader. The general interpretation clause (clause 60) makes clear that a ‘business’ includes the activities of government departments and local and public authorities, which means that these bodies may therefore come within the definition of a trader. Not-for-profit organisations, such as charities, mutuals and cooperatives, may also come within the definition of a trader where they are acting for purposes relating to their trade, business, craft or profession. For example, if a charity shop sells t-shirts or mugs, they would be acting within the meaning of trader.
- Another key definition is the definition of “consumer”. Firstly, a consumer must be an “individual” (that is, a natural person) – the protection does not apply to small businesses or legally incorporated organisations (e.g. companies formed by groups of residents). If a group of consumers contracts for goods, services or digital content, they are not left without protection. For example if one consumer makes all the arrangements for a group to go to the theatre or to go on holiday, depending on the circumstances, each member of the group may be able to enforce their rights or the person who made the arrangements would have to enforce the rights on behalf of the group. The other main restriction on who is a consumer is that a consumer must be acting wholly or mainly outside their trade, business, craft or profession. This means, for example, that a person who works from home one day a week who buys a kettle and uses it on the days when working from home would still be a consumer. Conversely a sole trader that operates from a private dwelling who buys a printer of which 95% of the use is for the purposes of the business, is not likely to be held to be a consumer (and therefore the rights in this Part will not protect that sole trader but they would have to look to other legislation. For example, if the sole trader were buying goods, they would have to look to the SGA for protections about the quality of the goods).
- Subsection (6) excludes (for some purposes) from the definition of consumers those acquiring second-hand goods at an auction which they have the opportunity to attend in person. This derives from Directive 1999/44/EC on certain aspects of the sale of consumer goods and associated guarantees (Article 1 (3)), and the previous definition of “dealing as a consumer” under the UCTA. This exclusion applies to the Goods provisions in Chapter 2 only, other than those derived from the CRD (as the scope of the CRD is not subject to this exclusion) – its application is set out in subsection (5).
- Subsection (7) sets out another key definition: the meaning of “goods”. This derives from Article 2(3) of the CRD. Essentially “goods” means anything physical which you can move (“any tangible moveable item”). Therefore, the Bill does not apply to purchases of immovable property such as land or a house. However, this subsection makes clear the meaning of goods can also include certain utilities (water, gas and electricity) where they are put up for sale in a limited volume or set quantity. Examples of these are a gas cylinder, a bottle of water or a battery. Clause 3 contains further provision on the scope of the contracts for goods covered by the Bill.
- The definition of digital content in subsection (8) is the same as the definition in the
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Conditional sale Sale where the consumer pays in instalments and only obtains ownership of the goods when the final payment is made (or other conditions are satisfied), although the consumer may use the goods in the meantime.
SGA
Hire purchase A contract of hire with an option or condition to buy at the end of the hiring period
SGITA
Barter or exchange Where goods are exchanged for a consideration other than money
SGSA
Work and materials Where the contract includes both the provision of a service and the supply of associated goods
SGSA
Hire of goods A contract of hire where there is no intention that ownership of the goods will be transferred
SGSA
- The current legislation provides that goods must meet certain standards – such as being of satisfactory quality, fit for purpose, corresponding to descriptions or samples by which they are supplied, and being free from third parties’ rights - and provides that the trader must have the right to sell (or hire) the goods. These matters are treated as “implied terms” of a contract. Implied terms are terms that are not expressly set out in a contract (which are “express terms”) but still form part of the contract.
- The current legislation categorises these implied terms as “conditions” of the contract or “warranties” (save in relation to Scotland, as this terminology does not apply in Scots law, but the legislation provides an equivalent effect). Most of the statutory implied terms are categorised as conditions, breach of which enables the consumer to choose either to treat the contract as terminated or to continue with the contract (i.e. keep the goods) but claim damages. The implied terms regarding goods being free from third parties’ rights are classified as “warranties”, where a breach is relatively
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less serious but could give rise to a claim for damages. The current legislation also sets out statutory remedies for consumers, where the implied terms regarding quality, fitness for purpose and corresponding to descriptions or samples are breached in contracts other than for hire or hire purchase. The statutory remedies are repair or replacement of goods, followed in some circumstances by termination of contract or receiving an appropriate reduction from the price.
- In 2008 the Law Commission and Scottish Law Commission consulted on “Consumer Remedies for Faulty Goods”, and published a report in 2009. Some of the provisions in this Chapter build on the Law Commissions’ recommendations.
- In 2010 the Department for Business, Innovation and Skills (“BIS”) commissioned a report, entitled “Consolidation and Simplification of UK Consumer Law”^15 to examine how existing consumer law might be consolidated and simplified to make it more accessible to consumers, business and their advisers. That report recommended that consumer contract law would be improved if many of the provisions could be brought together into a single consumer contract law that so far as possible subjected all consumer supply contracts to the same rights and remedies. The report recommended that the remedies for goods would be made clearer and more accessible by incorporating them into a single piece of legislation and aligning the remedies as much as possible.
- Following these reports, BIS consulted in July 2012 on proposals for reform of the law regarding contractual supplies to consumers of goods, as well as of services and digital content. This consultation included proposals building on the 2009 and 2010 reports.
What goods contracts are covered?
Clauses 3-7: Consumer contracts about goods
- Clause 3 sets out what contracts are covered by this Chapter. The provisions contained in this Chapter apply in most cases where a trader supplies (or agrees to supply) goods to a consumer under a contract – such a contract is referred to in the Bill as a “contract for the supply of goods”. (The terms “trader”, “consumer” and “goods” are addressed in clause 2).
- Subsection (2) provides that the Chapter does not apply to certain contracts. Such contracts therefore do not count as “contracts for the supply of goods”.
(^15) The report was authored by Professor Geraint Howells and Professor Christian Twigg-Flesner available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31838/10- 1255-consolidation-simplification-uk-consumer-law.pdf
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At present, contracts under which goods were supplied together with services are subject to section 1 of the SGSA.
Clause 5 defines contracts for hire of goods, as they apply between a trader and a consumer. This is consistent with the definitions under sections 6 and 11G of the SGSA, save that it applies only to trader to consumer contracts (as does all of this Part of the Bill).
Clause 6 defines hire-purchase agreements for goods, as they apply between a trader and a consumer. This is consistent with the definitions in section 189 of the Consumer Credit Act 1974 and section 15 of the SGITA, save that it applies only to trader to consumer contracts (as does all of this Part of the Bill).
Clause 7 defines contracts for the supply of goods by a trader to a consumer where no monetary value is assigned to the goods. This is a narrower category than “transfer” under section 1 of the SGSA.
What statutory rights are there under a goods contracts?
- Clauses 8 to 16 set out requirements which the goods supplied, or the trader, must meet. Under clauses 8 to 13 and 16, the contracts are to be treated as containing terms that the relevant requirements will be met - or, in the case of clause 11, certain details are to be treated as a term of the contract with which the parties must comply. That is to say that the requirements set by these provisions form part of the contract without either party needing to refer to them.
- Clauses 8 to 10 and 12 to 14 re-transpose Article 2 of the CSD, regarding conformity of goods with the contract. The original transposition was made in the Sale and Supply of Goods to Consumers Regulations 2002 (SI 2002/3045) which amended the SGA and the SGSA.
Clause 8: Goods to be of satisfactory quality
- This clause provides that goods supplied under a contract for the supply of goods (as defined in clause 3 above) must be of satisfactory quality. It details aspects of quality which may be considered when assessing whether the goods are satisfactory – although the clause only gives an indication of such aspects, not an exhaustive list. This clause corresponds to section 14 SGA, section 10 SGITA and sections 4, 9, 11D and 11J SGSA in so far as they relate to satisfactory quality. But as with all of this Part it only relates to trader to consumer contracts.
- Subsection (2) provides that the test of whether or not the quality of the goods is satisfactory is determined by what a reasonable person would expect of the goods in question, taking into consideration all relevant circumstances including any description, the price and any public statements by the trader or producer or their representatives, such as statements made in advertisements or on the labels of goods.
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For example, a lower standard might be expected of cheap or disposable goods in comparison to an equivalent item that cost more or was advertised as being particularly durable.
- Subsections (5) and (6) provide that the circumstances to be considered include public statements about the goods, for example, any claims made in advertising or labelling. However, under subsection (7) such statements are not to be considered as relevant if the trader was not (and could not reasonably have been expected to be) aware of the statement or if the statement was withdrawn or corrected before the contract was made. The statement is also not to be considered if the consumer’s decision could not have been influenced by it.
- Subsection (4) provides that if the consumer is made aware of a particular defect before making the contract then that defect will not be grounds for finding the goods to be unsatisfactory. If the consumer examined the goods before making the contract then a defect which should have been revealed by the examination will not be grounds for finding the goods to be unsatisfactory. If the goods were supplied by sample (even if the consumer did not actually examine the sample) then a defect which should have been revealed by a reasonable examination of the sample will not be grounds for finding the goods to be unsatisfactory.
Clause 9: Goods to be fit for particular purpose
- This clause provides that if a consumer acquires goods for a specific purpose, and has made this purpose known to the trader beforehand, the goods must be fit for that purpose unless the consumer does not rely - or it would be unreasonable for the consumer to rely - on the skill or judgement of the trader. This clause corresponds to section 14(3) SGA, section 10(3) SGITA and sections 4(4)-(6), 9(4)-(6), 11D(5)-(7) and 11J(5)-(7) SGSA, but as with all of this Part it only relates to trader to consumer contracts.
- Subsection (2) makes similar provision for transactions in which the consumer makes the purpose known to a credit broker but actually contracts with another party. For example, a consumer buying goods in a store on a payment plan may make a contract with a finance company (which would be the trader) which is introduced by the store (as credit-broker), with the store selling the goods to the finance company in order for it to sell them to the consumer. In this situation, if the consumer makes the specific purpose known to the salesperson in the store (the credit-broker) that is sufficient and the goods must be fit for that purpose -there is no need for the consumer to also have made it known to the credit provider. “Credit-broker” is defined in clause 60.
Clause 10: Goods to be as described
- This clause provides that where goods are supplied by description, the goods must be as described. Goods can be supplied by description even if they are available for the consumer to see and select, for example on the shelves of a shop. This clause corresponds to section 13 SGA, section 9 SGITA and sections 3, 8, 11C and 11I
