Consumer Protection.

The only times the Exclusion Clauses are valid are when they are considered ‘fair and reasonable’. If a Mobile Mechanic loses your mobile phone, the mechanic would have to prove it took reasonable care of the goods and could not be held responsible for what occurred. If the loss or damage was through an employee (worker) then you would be entitled to compensation.

Ending a Contract

A contract is ended by:

1. Performance- this is when you buy article pay for it and walk out the shop with it.
2. By Agreement by both parties. This is when you return goods to a shop and the retailer accepts their return and refunds your money.
3. By Breach. This is when one party of the contract does not carry out his/her part of agreement.

Government Acts

Introduction

The five Government Acts were set up to protect both retailers and customers in any sense of innocence. The 5 Government Acts are:

The Sales of Goods Act 1979 and 1995

It has been amended 3 times since it was first passed. It states that all goods must be:

1. As described- Must meet description.
2. Of satisfactory quality. It has to be worth its price.
3. Fit for the purpose for which it is intended. It has to do what it says it does.
4. Fit for any specific purpose which the buyer has made clear to the seller. Must be what the buyer asked in detail.

The Supply of Goods Act 1982

This act states it:

1. Ensures that all work is carried out within a reasonable time scale.
2. Ensures that you pay a reasonable charge. Standard price.
3. Ensures reasonable target skills. Eg. The electrician is qualified to be an electrician.
4. Ensures the person carrying out the work uses satisfactory material.

The Consumer Protection Act 1987

This relates to price and safety. Under this act it is an offence to:

1. Mislead consumers about the price of goods, services, accommodations or facilities.
2. Mislead Consumers over the sale prices and claim exaggerated price reductions.
3. Supply goods which are not reasonably safe.
4. This Act is enforced by the Trading Standard Offices.

Trade Descriptions Act 1968

Designed to prevent the false on misleading description of goods.

Examples:

1. Selling goods which are wrongly described by the manufacturer.
2. Implied Descriptions, Eg: A picture on a box which gives a false impression.
3. Other aspects of the goods, including quantity, size, composition methods of Manufacturer.

Consumer Credit Act 1974

1. If you have signed a credit agreement and you want to cancel it you can do so within a certain period of time as long as you did not make the deal over the phone and you did not sign the agreement at the seller’s shop, office or workplace. Therefore if you signed the agreement in your own home you will be able to cancel after you have signed the agreement.
2. A creditor (the one who provides credit) cannot demand early payment, try to get the goods back or end the agreement without first serving a written notice on you giving you 7 days notice of their intention to take such action. The notice has to be written in a particular way. If you receive a notice you should get legal advice to check that it is a proper notice. The notice should contain the following;

The notice should say how much should be paid to bring payments up to date.

When payments should be made.

What will happen if payments are not made?

How the agreement can be brought to an end and that if payments are made the agreement will not be brought to an end.

3. If you have paid a third of the total price of the goods under a HP agreement then the creditor cannot take the goods back without first getting a court order. Even if they apply for a court order you can ask the court to suspend the "Return Order" and accept your offer to pay the outstanding amounts by instalments. If you do not agree and the creditor has not got a court order, but takes the goods back anyway you can sue the creditor and claim back all the money you have paid under the agreement. The creditor cannot enter your premises to repossess the goods without your permission or without a court order.
4. If a credit agreement is unfair then you can apply to the court and ask them to look at the agreement and put in place a new agreement or alter the old one. However, the court will only do this if it can be shown that the agreement is "extortionate"(a very high price).

Laws and Consequences

There are many types of organisations that deal with cheating or breaking the law in the Business world. They are:

Office of Fair Trading (oft)

The role of the OFT is to:

• Identify trading produces which are against consumer interests.
• To put these right, wherever possible.
• Regulate the provision of consumer credit.
• Investigate and remember activities by industry and commence which are against the interests of consumers (such as rising prices or limiting the supply of an item).

Citizens Advice Bureau (CAB)

There are nearly 800 Citizen advice Bureaux in Britain.

 They give independent advice to people in debt who have problems, housing and legal concerns and other issues such as employment and immigration. They also help people fill out forms and letters or even represent them in court. You can find your legal ‘CAB’ in the local directory on the internet on the official website www.macab.org.uk or if you live in Scotland then the Scottish Association of ‘CAB’ can cover that area.

National Consumer Council (NCC)

This independent body was established in 1995 and its aims are to:

• Promote action which improves and safe guard’s consumer interests.
• Represents consumers when major decisions are being made which will affect them.
• Ensure that the interests of all consumers are taken into account.

The NCC publishes several research papers and reports each year. It is best accessed through the internet on www.ncc.org.uk.

Trading Standard Offices

Trading Standard Offices are there to:

• Provide free help and advice.
• To prevent Traders who are providing unsatisfactory goods or services. Trading Standards offer help small claims procedure.
• They stop the misleading of prices and descriptions and investigate complaints by consumers.
• They enforce legislation in their own area. They have the power to inspect and seize over.
• You’ll find them in the Yellow Pages, on the internet and other sites such as the BBC Watchdog.

Ombudsmen

Their job is to investigate unresolved complaints and problems.

• Their no charge for their service.
• They are definitely the last resort.
• Customers are expected to resolve the problem with the supplier first. If there is no satisfaction the case can be referred.
• Ombudsmen operates in the following areas:

1. health service
2. government departments
3. local authorities
4. Legal services
5. Insurance Services
6. Banking Services
7. Building Societies
8. Housing

Regulators

Regulators and commonly known as Watchdogs. They aim to obtain quality and value for money. They independently operated and are appointed by the government to oversee different companies. They offer local companies such as Oftel and other Utility Companies. There are regulators for most industries and each of them has their own objectives.

Criminal Law

A criminal is an individual who has committed an action against the interests of Society. For example it is an offence to steal, rape, kidnap, drug deal, Speed on main road and to murder. The case is either tried in a Magistrate’s court before a judge and jury or at a police station on a sheriff’s court in Scotland.

Civil Law

This is concerned with the relationships between individuals and companies. In this case individuals bring civil action against each other. To bring this action there must be 2 factors:

1. Loss or damage
2. Must be legal obligation owed to the party bringing the action.

The action will normally be started in a county court by the aggrieved known as the claimant.

The person who starts court poundings against the individual accused of causing the loss of damages is known as the defendant. The small claims procedures is an easy way of bringing action in claims of small amount up to £5000 in England and Wales £1000 in Northern Ireland and £150 in Scotland.

Glossary

A glossary is like a dictionary. It highlights all the difficult words and their meanings. It only tells you about the booklet words that are not understandable, words like Consumer Protection.

CONSUMER PROTECTION- ensures that consumers are not taken advantage of.

CHARTERS- these are rules and regulations to help consumers.  

CONSUMER LEGISLATION- these are the 5 main Government Acts which were set up by the Government to protect consumers.

CONSUMER PROTECTION ACT- This act relates to price and safety. Under this act it is an offence to;

Mislead consumers about the price of goods, services, accommodation or facilities

Mislead consumers over sale prices and claim exaggerated reduction

Supply goods which are not reasonably safe for example.

THE LAW OF CONTRACT- includes CAPACITY, OFFER, ACCEPTANCE, CONSIDERATION, and INTENTION TO CREATE A LEGAL RELATIONSHIP

SALE OF GOODS ACT- the Act very clearly states that all goods must be;

* AS DESCRIBED-

* OF SATISFACTORY QUALITY-

* FIT FOR THE PURPOSE WHICH IT IS BOUGHT FOR

SUPPLY OF GOODS ACT- This act ensures all services are;

You will always be a winner in   Consumer Protection.

 

Speaking Coursework Role Play

Alan- Hello. I’m here to buy a computer.

Seller-We have a Dell Intel Pentium 4 Processor which also is a DVD-R with a scanner and an Epson printer.

Alan- How much is it?

Seller- its £1200 with a five year guarantee.

Alan- I’ll take it

Seller- Do you want it delivered?

Alan-Ok

Seller-It will arrive on April 4th

They sign the papers. Receipt has been given proving him paying an his bank statement.

April 4th and the PC has not arrived.

April 11th and the PC still has not arrived.

Alan rings PC World and speaks to the Customer Helpline.

CHL-Hello. This is John speaking for the PC World Customer Helpline. How can I Help.

Alan- Hi. I bought a PC from your store and they said they would deliver it to my door but it has been a week and the PC still has not arrived.

CHL- Can I have your details please?

Alan- Alan Kumar, 38 Real Street, Southall, Middlesex

CHL- We have absolutely no data on your buying of a PC.

Alan-so I am I £1200 short in my bank account. Either give me a full refund or you can give the PC I ordered.

CHL-We can’t do anything to resolve this case. There is no proof of you buying anything.

Alan-fine I’ll get my Lawyer to resolve this.

Alan arranges to meet his lawyer.

Lawyer- Hello. How can I help you?

Alan tells his version events that have occurred in the last couple of weeks.

Alan-So what do you make of this case?

Lawyer-Yes this is very good case Alan. They are breaking the Supply of Goods and Services Act which states that they cannot supply faulty goods and their services are blaming the consumer for lying. Do you have the receipt for the product you bought?

Alan- Sorted. Let’s pay a visit to PC World.

Alan and his lawyer go to PC World.

Lawyer- My client ordered a PC three weeks ago and it was supposed to arrive last week but it still has not arrived.

Seller-There is no proof that he bought a PC from PC World.

Alan- I have my bank statement and I also have the receipt for the purchase of the PC.

Seller- That’s not even a PC World receipt.

Lawyer- Fine, I’ll see you in court then.

Seller- I was only joking. I’m sure we can renegociate about this misunderstanding.

Lawyer- To get a PC the he wanted or a full refund plus compensation.

Seller – You can have the PC you wanted Alan sorry sir.

Alan- thank you.

The case is resolved and Alan gets the PC he wanted and an extra bonus for compensation.