Terms and Conditions of Business

When a consumer purchases goods from a trader, they have certain statutory rights provided by the law (these are discussed later). These rights cannot be taken away from the consumer. You must ensure that any terms and conditions contained in documents or in signs do not attempt to override a consumer’s statutory rights. Such terms are called “restrictive statements” as they are an attempt to restrict the customer’s rights.

An example of a restrictive statement is “No refunds” or “sold as seen, tried and tested”. Not only are such statements ineffective but their use is a criminal offence. When you make any reference to a consumer’s rights without attempting to restrict them, for example by stating that they have a “three month warranty”, you must also state that it does not affect their statutory rights.

The Customer's Rights

When a consumer purchases goods from you, the Sale of Goods Act 1979 requires that the goods supplied must be of satisfactory quality, fit for their purpose and correctly described. These are often called “statutory rights”. Goods will be of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory. What a person can reasonably expect of a new car will be different to what they could reasonably expect of a second hand car.

Also, the price paid for the car will be a factor to consider. It is unlikely that a new car with a small scratch will be of satisfactory quality whereas that may be acceptable on an older second hand car. Satisfactory quality will also cover a vehicle’s durability. Although consumers cannot expect a second hand car to be as durable as a new car, they would not expect major mechanical problems to occur after only a matter of weeks.

If a consumer believes that the vehicle they have bought is not of satisfactory quality, fit for its purpose or as described, then there may be a breach of contract. In these circumstances, the consumer may be entitled to a full refund. If there has been a long lapse of time between purchase and the fault occurring, then the consumer may be entitled to compensation rather than a refund. In essence, the right to a refund will be lost with the passage of time and will instead become a right to compensation. If it has only been a matter of weeks since purchase, the consumer may be entitled to a refund. In those circumstances, the consumer is not obliged to bring the vehicle back to you.

You may need to collect it yourself. If the consumer is only entitled to compensation because of the lapse of time since purchase, they should inform you of the fault and give you the opportunity to either remedy the fault or contribute to the cost of repair. If you decline, then the consumer is entitled to go elsewhere to have the fault repaired and then to claim some or all of the cost from you, depending on the nature of the fault.

Third Party Warranties

If you offer a consumer a third party warranty, it will be in addition to and not instead of the consumer’s statutory rights. In circumstances where a defect has arisen which is not covered by the warranty, the consumer will still have rights against you because of their statutory rights.

Servicing and Repairs

The law requires that when you carry out a service for consumers or do repairs, you must do the job with reasonable care and skill. You must also carry out the work that has been agreed. If you fail to exercise reasonable care and skill, then you may not be entitled to payment.

And finally...

Fuel Consumption and CO2 Emission Figures