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Outline how consumers are protected in contracts for the sale of goods.

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Introduction

´╗┐Jed Hatton BTEC Reg No. BA80147 Unit 21 Contract and Business Law P2 What is a standard form contract? A standard form contract is a contract between two parties that does not allow for negotiation, i.e. take it or leave it. It is often a contract that is entered into between unequal bargaining partners, such as when an individual customer is given a contract by the salesperson of a multinational corporation. The customer is in no position to renegotiate the standard terms of the contract and the company's representative usually does not have the authority to do so. Statutes: The Sales of Goods Act 1979 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 Act consolidates the original Sale of Goods Act 1893 and subsequent legislation, which in turn had changed the law. For example, if someone buys a washing machine they would expect it to last for at least 3 years usage. The individual who bought the washing machine would be protected under the sales of goods act if the washing machine breaks; they would be refunded with a new washing machine or a sum of money. The sales of goods act 1979 affects contractual terms because in the contract the user is protected from multiple situations if the goods aren?t of expected quality. ...read more.

Middle

Consumer Protection (Distance Selling) Regulations 2000 The consumer protection (Distance Selling) regulations 2000 was put in place to protect buyers and make the process of purchasing goods from a distance a more pleasurable and secure experience. This is really important and a needed statute due to the boost in e-commerce and online trading. A number of details of the supplier must be complete before the contract, this includes; a clear identity of the supplier, the suppliers address, a description of the service, price of the goods including all taxes, delivery costs, arrangement for payment, existence of cancellation, the period for which the offer is valid and the minimum duration of the contract. So for example, if you were to buy an item online, the Consumer Protection (Distance Selling) regulations 2000 would ensure that the supplier has all details in place like the overall price with no hidden costs, the correct address and a clear identity with contact details of the supplier. If these are not met during the contract then the consumer is protected and can take the supplier to court for a refund or replacement. The Consumer Protection (Distance Selling) Regulations 2000 affects the contractual terms of online business because it ensures that the supplier is totally upfront with all details and nothing is hidden. It is an implied term because the act?s principles cannot be negotiated. Unfair Contract Terms Consumer Regulation 1999 The Unfair Contract Terms Consumer Regulation 1999 applies when unfair terms are concluded between a supplier and consumer. ...read more.

Conclusion

For example if a supplier persuades a consumer into a contract aggressively or the consumer signs a contract without knowing what exactly the terms are then they can be protected by this statute for unfair trading. This statute affects contractual terms because they have to make everything clear and the contract must be agreed by both parties. The unfair trading act is an expressed term as unfair trading has to be argued by one of the parties, mainly the consumer. Unfair contract terms act 1977 Unfair Contract Terms Act 1977 was built to stop the unfair contracts being formed and to protect users who are signed to an unfair contract. Unfair terms include; contractual term which has not been individually negotiated, in this case the individual that claims it was not negotiated together must prove that it was. An example of an unfair contract would be when a supplier creates a term that the consumer is unaware of and didn’t agree on, say an extra charge of £10 per month, the consumer would be protected under the unfair contract terms act 1977 and wouldn’t have to pay the extra charge. This statute affects contractual terms because all of the terms expressed have to be agreed by both parties and they must be aware of what they are signing. Unfair contract terms are expressed as someone has to negotiate with the judge whether they are in an unfair contract or not. Unit 21 Contract and Business Law P2 ...read more.

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