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A Traders Guide to the Sale and Supply of Goods to Consumers Regulations 2002

A Summary of the Changes to the Sale of Goods Act 1979 (as amended)

This publication is intended to be a summary of the changes made to the Sale of Goods Act 1979 by the introduction of the Sale and Supply of Goods to Consumers Regulations 2002 which came into force in the United Kingdom on the 31st March 2003.

The introduction of these Regulations is the result of a European Directive which aims to provide a minimum standard of consumer rights throughout the European Union.

Currently, Consumers are entitled to expect that goods are:

  • Accurately described;
  • Are of a satisfactory quality; and
  • Are fit for the purpose for which they are commonly supplied.
Satisfactory quality includes a number of factors including:
  • Appearance and finish;
  • Safety;
  • Durability;
  • Freedom from minor defects.
In simple terms this means that goods MUST NOT be faulty.

The consumer is allowed a reasonable time to inspect the goods to ensure that they meet with the above requirements. Where they do not, the consumer can reject the goods and claim a full refund.

If a more lengthy time has lapsed since purchase, then the consumer has accepted the goods and they will be able to claim damages. The sum of damages normally amounts to the cost of repairing the goods and/or any additional losses which they have incurred as a direct result of the fault.

The Regulations introduce further remedies in addition to those provided under existing legislation. Where goods purchased are misdescribed or faulty, then the consumer may request one of the following remedies:

  • A replacement product: A retailer however may decline this request IF he can show that this is excessively costly in comparison to an alternative ie. if a product is an expensive item but a cheap and easy repair will resolve the fault.
  • A repair of the fault: A consumer can now request a free repair from the retailer as an alternative to pursuing damages. Any repair MUST be carried out within a reasonable time - if it is not, then a consumer may switch remedy and request a replacement product as detailed above OR
    IF these remedies are impossible, impractical or fail for any reason ie. delay then a consumer may then pursue :
  • A partial or full refund: If the consumer has had some use of the goods, then a full refund may not be appropriate. A small amount may be deducted for wear and tear - this will vary on the nature of the goods and the amount of use.
Proving the fault - if a consumer chooses to use existing remedies of rejection or damages within the Sale of Goods Act 1979 (as amended) then the onus of proof is on the consumer where there is a dispute.

From the 31st March 2003, if a consumer chooses to pursue a remedy under the Regulations, then for the first six months they are not required to prove the fault existed. Where disputed, it is for the retailer to prove that the goods were NOT faulty.

If six months has elapsed since delivery then the onus of proof reverts to the consumer.

Other situations covered
The remedies provided by the Regulations also apply where

  • installation by a retailer is unsatisfactory.
  • Installation instructions have serious shortcomings.
  • Goods to not match any public statements made about them ie. advertisements.
  • A specially commissioned product has relevant failings.

The rules also apply to second hand goods and to goods supplied as part of a service contract.

Guarantees
The Regulations provide that where a guarantee is supplied with the goods, then that guarantee will provide an additional legally binding contract with the supplier of the guarantee. This is commonly the manufacturer of the goods.

The consumer may choose to pursue a remedy either under the Sale of Goods contract OR the legally binding guarantee.

The consumers choice cannot be restricted to one or the other.

All the statutory rights and remedies discussed in this leaflet are available to consumers for up to 6 years from the date of the contract. For breaches of a legally binding guarantee, the limitation is 6 years from the date of the breach.

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