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Sale
of Goods Act 1979
Fact sheet and
Frequently Asked Questions
This Act implies
certain terms into contracts for the sale of goods. For example:
- Goods must be
as described, of satisfactory quality, and fit for any purpose
which the consumer makes known to the seller.
- Goods are of
satisfactory quality if they reach the standard that a
reasonable person would regard as satisfactory, taking into
account the price and any description.
- Aspects of
quality include fitness for purpose, freedom from minor defects,
appearance and finish, durability and safety.
- It is the
seller, not the manufacturer, who is responsible under the Act.
If goods are not
of satisfactory quality the buyer is entitled, if he acts within a
reasonable time, to reject the goods and get his money back.
A material
question in whether a reasonable time has elapsed is whether a buyer
has had a reasonable opportunity to examine the goods. Even if he
has lost his right to reject, the buyer would still be entitled to
damages. Ultimately it would be for the courts to decide whether or
not a breach of contract had occurred and the redress to which a
consumer might be entitled.
 Traders Guidance: "A Traders Guide: law relating to the supply of goods
and services".
Consumers'
Guidance: "Unsatisfactory Goods - Your Rights as a Consumer"
The Department has produced a shortened guide for
consumers, including how to complain.
Sale
of Consumer Goods Directive
Directive
1999/44/EC "on certain aspects of the sale of consumer goods
and associated guarantees"
Following consultations, the Sale and Supply of Goods to Consumers
Regulations 2002 were laid before Parliament on 11 December. They will come into
force on 31 March 2003.
The Regulations transpose the Directive 1999/44/EC on the
Sale of Consumer Goods and Associated Guarantees.
Although the
impact on the extensive body of existing UK legislation is
relatively modest there are some useful changes for consumers and
the Directive itself sets a minimum baseline for consumers' rights
across Member States.
Fact
Sheet and Frequently Asked Questions on Directive
1999/44/EC.
 The Sale and Supply of Goods to Consumers
Regulations 2002 - Short Guide for consumers.
The Sale and Supply of Goods to Consumers
Regulations 2002 - Detailed Guide for businesses.
 Sale
and Supply of Goods to Consumers Regulations 2002 (HMSO web site).
Regulatory
Impact Assessment.
Transposition
Note.
A copy of the
actual Directive is available in the 1st DTI Consultation Document issued
in January 2001 Please
Click Here to read it.
Please
Click Here
for the 2nd Consultation Document released in
February 2002. Summary
of responses 
Supply
of Goods and Services Act 1982
This Act implies
into contracts for the supply of a service the terms that:
- the service
will be carried out with reasonable care and skill,
- within a
reasonable time and,
- where no
price has been agreed, for a reasonable charge.
These terms
apply unless they have been excluded and there are strict limits on
the circumstances in which an exclusion or variation will be
effective. Any material used must be of satisfactory quality. The
law treats the failure to meet these obligations as a breach of
contract and the consumer is entitled to seek redress.
Traders Guidance: "A Traders Guide: law relating to the supply of goods
and services".
Unfair
Contract Terms Act 1977
Under the Unfair
Contract Terms Act 1977, a person cannot exclude or restrict his
liability for death or personal injury resulting from negligence. He
can exclude or restrict liability for other loss or damage resulting
from negligence only if the exclusion clause satisfies the test of
reasonableness.
In the case of
sales and hiring to consumers, a trader cannot opt out of his
obligations to sell or hire goods which are of satisfactory quality.
In other cases a
trader dealing with a consumer or on his own written standard terms
of business cannot exclude or restrict his liability for breach of
contract or allow himself to provide an inadequate service unless he
can show that the clause satisfies the test of reasonableness.
Nor can a trader
require a consumer to indemnify him against any loss he may incur
through negligence or breach of contract unless he can show that the
clause satisfies the same test.
Whether a term
is or is not unreasonable is for the court to decide. If a term were
to be challenged, it would be for the party seeking to impose the
term to demonstrate to the court that it was reasonable. The 1977
Act is drawn in this way so that commercial parties remain free to
conclude contracts between themselves on such terms as they wish. It
would be an infringement of their freedom if the law were to prevent
them agreeing a contract term about quality that both parties were
prepared to accept.
Traders Guidance: "A Traders Guide: law relating to the supply of goods
and services".
Unfair
Terms in Consumer Contract Regulations 1999
The Unfair
Terms in Consumer Contracts Regulations 1999 (SI 1999 No 2083)
came into force on 1 October 1999.
They repeal and
replace the 1994 Regulations of the same title (SI 1994 No 3159)
with modifications to remove any uncertainty that the scope of the
Regulations is different from that of the EC Directive (93/13/EEC)
which they implement.
They provide
that a term which has not been individually negotiated in a consumer
contract, is unfair (and hence non-binding on the consumer) if
contrary to the requirement of good faith, it causes a significant
imbalance in the rights and obligations of the parties to the
detriment of the consumer.
The Regulations
maintain the obligation of the Director General of Fair Trading
(contained in the 1994 Regulations) to consider any complaint made
to him about the fairness of any contract term drawn up for general
use. He may seek assurances and, if necessary, injunctions against
those using terms which he considers to be unfair.
The Regulations
provide for the first time that a qualifying body named in Schedule
1 (statutory regulators, trading standards departments and
Consumers’ Association) may also apply for an injunction to
prevent the continued use of an unfair contract term. When
regulations have been made to implement the Injunctions Directive
(98/27/EC) applications will be sought from other consumer bodies
who meet objective criteria and wish to be named in the Regulations.
 on
the Unfair Terms in Consumer Contract Regulations (link is to a document
on the Office of Fair Trading web site).
Sale
& Repair of Motor Vehicles
Please
click the button to access our FactSheet and FAQ (Frequently Asked
Questions) on car sales and servicing and repairs.
Also available
from the Office
of Fair Trading are "Buying a used car. How to get the best
deal" and “How to get a better deal from your garage”
 The
DTI published the “Be
Garage Wise” leaflet providing information on choosing a garage,
your dealings with your garage and what you should expect from a
good garage.
(171 Kb )
"Be Garage Wise" leaflet.
Click on this button to have a shorter printed version posted to
you.
In addition
guidance
booklets on more general sale and supply issues are available as follows: "A Buyer's
Guide", "A Trader's Guide: Law relating to the supply of
goods and services", and "Unsatisfactory goods: your
rights as a consumer."
Local authority
trading standards officers also enforce relevant criminal
legislation such as the Trade Descriptions Act 1968, which applies
amongst other things to clocking, and vehicle safety legislation.
Further details on vehicle safety are available from Department
of Transport.
The DTI has recently published research into car servicing and
repair:
 Following
the Report of the Task Force on Car Servicing and Repair the DTI
commissioned research to provide an up to date picture of the
service consumers receive in the car servicing and repair
market. 207 garages and 58 fast-fit business were mystery
shopped between March and June 2002. The work was carried out
for the DTI by Intertek Testing Services Research and Testing Centre.
The results are contained in this report.
(363Kb) Car Servicing and
Repair: Mystery Shopping research.
 Market
research was commissioned by the DTI as part of the follow-up work
to the Report of the Task Force on Car Servicing and
Repair to
provide information on interest in a national voluntary and
self-financing “good garage” scheme of the type described in the
Task Force. The research was carried out by NOP Automotive and this
report contains the results.
(351 Kb) Car servicing
and Repairs: Research into trade and consumer interest in a national
'good garage' scheme.
For more
information about cars and your rights visit the Consumer
Gateway.
DTI Contact
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