employment legislation

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Employment legislation

Sales of goods act

 This act lays down the legal framework covering the buying and selling of goods. The act only applies to sales by a business to the public. It covers sales in shops and showrooms, and by market stalls, mail order and any kind of direct sales. The act does not cover private sales. Under the act:

  • Goods must be of ‘merchantable quality’, which means they should be fit for ordinary use: they must work and be free from faults. The merchantable quality partly depends on the price paid for the goods. More expensive goods are expected to be of a higher quality. There are two exceptions to the rule. Buyers cannot complain that goods are not of merchantable quality if:
  • the seller points out defects when the goods were bought;
  • the buyer has examined the goods before buying them and has been satisfied they were all right.
  • Goods are assumed to be ‘fit for purpose’. That is, the goods will do what they are bought for, especially if the buyer has asked the seller for advice before buying the goods.
  • Goods must be ‘as described’. That is they must be exactly as they are described in catalogues or other sales material, or by a salesperson. For example, a sweater described as ‘100% pure wool’ must not contain any other fibre.

Trade description act

This act makes it an offence for a seller to describe goods and services falsely, in advertisements, notices, sales literature or by a salesperson at the point of sale. False descriptions of all kinds are covered. For e.g. a photograph that gives a wrong impression, or maker, or purpose of the goods.

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Misleading claims about prices are also part of the Act. It is an offence to:

  • Make a false claim that goods are being sold below the recommended price;
  • Make a false comparison with a previous price, for example saying that goods have been reduced from £30 to £20 when they have been sold at £20 for the last three months.
  • Suggest that the price is lower than it actually is because there are hidden extra costs. For e.g. the cost of packing and delivery have to be added to arrive at the full price.

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