Terms implied by the Consumer Rights Act 2015

Introduction to Consumer Rights

Have you ever bought a smartphone that stopped working after two days, or hired a decorator who left your walls looking worse than before? In contract law, you don't always need a written guarantee to be protected. The Consumer Rights Act (CRA) 2015 automatically "implies" (inserts) certain terms into contracts between businesses and individuals. These terms are there to ensure fairness and protect you from being stuck with faulty products or poor service.

This chapter focuses on the specific protections the CRA 2015 provides when you buy goods or services. It is a vital part of Paper 3, as you will often need to apply these sections to "problem scenarios" involving unhappy customers.

1. Key Definitions (Section 2 and Section 61)

Before the CRA 2015 applies, the contract must be between a trader and a consumer (s61).

• Trader (s2): A person acting for purposes relating to their trade, business, craft, or profession.
• Consumer (s2): An individual acting for purposes wholly or mainly outside their trade, business, craft, or profession.

Note: If a business buys a laptop from another business for office use, they are NOT a consumer. They would be covered by different laws (like the Sale of Goods Act 1979), which are not the focus of this chapter.

2. Implied Terms for Goods

When a trader sells goods (physical items) to a consumer, the following three terms are automatically part of the contract:

A. Satisfactory Quality (Section 9)

Goods must be of a quality that a "reasonable person" would find satisfactory. This includes their state, condition, and the following factors:

• Fitness for all common purposes: Does it do what that item normally does?
• Appearance and finish: Does it look the way it should?
• Freedom from minor defects: Even small scratches might make a new car "unsatisfactory."
• Safety and Durability: It shouldn't break immediately or be dangerous.

The Price Test: What is "satisfactory" depends on the price. You expect more from a £1,000 designer watch than a £5 watch from a market stall.

B. Fitness for a Particular Purpose (Section 10)

If a consumer tells the trader they need the goods for a specific purpose, the goods must be fit for that purpose. This applies even if the purpose is unusual, as long as the consumer relied on the trader’s expertise.

Example: If you tell a shoe shop assistant you need boots specifically for "Arctic trekking" and they sell you standard hiking boots that freeze and crack, they have breached s10.

C. As Described (Section 11)

The goods must match the description given to the consumer. This includes descriptions on the packaging, in an advert, or even what the salesperson tells you.

Example: If you buy a "pure silk" shirt and the label says "100% polyester," the trader has breached s11.

Quick Summary Table: Goods
s9: Is it good quality?
s10: Does it do the specific job I asked for?
s11: Does it match the description?

3. Remedies for Goods

If a trader breaches s9, s10, or s11, the consumer has specific legal rights to fix the situation. These follow a "tiered" system:

The Short-Term Right to Reject (Section 20 & Section 22)

The consumer has 30 days from the date they took ownership of the goods to reject them and get a full refund. They don't have to accept a repair or replacement during this time if they don't want to.

Repair or Replacement (Section 23)

If the 30 days have passed, or if the consumer prefers, they can ask the trader to repair or replace the item. The trader must do this at no cost to the consumer, within a reasonable time, and without causing significant inconvenience.

Price Reduction or the Final Right to Reject (Section 24)

If the repair or replacement is impossible, or if the first repair attempt fails, the consumer can:

• Keep the item but get a price reduction (a partial refund); OR
• Use the final right to reject the item and get a refund (though the trader may deduct some money for the use the consumer has already had of the item).

4. Implied Terms for Services

When you pay someone to do something (like a haircut, a car service, or building work), the CRA 2015 implies these terms:

A. Reasonable Care and Skill (Section 49)

A trader must perform the service with reasonable care and skill. This means they must work to the standard of a "competent professional" in that field.

Example: A plumber who installs a sink but forgets to tighten the pipes, causing a leak, has not used reasonable care and skill.

B. Performance within a Reasonable Time (Section 52)

If the contract doesn't fix a specific date or time for the work to be finished, the trader must complete it within a reasonable time. What is "reasonable" depends on the facts (e.g., you can't expect a whole house to be painted in one hour).

5. Remedies for Services

If the service isn't up to scratch, the remedies are slightly different from goods:

Repeat Performance (Section 55)

The consumer can require the trader to perform the service again to the required standard. This must be done at the trader's expense and within a reasonable time.

Price Reduction (Section 56)

If repeat performance is impossible or isn't done within a reasonable time, the consumer is entitled to a price reduction. This can be up to 100% of the cost if the service was completely useless.

Common Mistakes to Avoid in Exams

• Don't mix up Goods and Services: If the problem is about a physical object (like a phone), use s9, s10, s11. If it's about work being done (like a repair), use s49 and s52.
• The "Reasonable Person" Test: When discussing s9 (Satisfactory Quality), always mention that it's an objective test—what would a "reasonable person" expect given the price and description?
• The 30-Day Limit: Remember that the "Short-term right to reject" (full refund) only lasts for 30 days. After that, the consumer must usually try a repair or replacement first.
• Check the Parties: Ensure the contract is between a Trader and a Consumer. If it's two friends selling a car to each other, the CRA 2015 does not apply!

Note: For information on how businesses try to limit these rights, see the chapter on "Control of Exemption Clauses."

Key Takeaway

The Consumer Rights Act 2015 is designed to balance the power between big businesses and individual shoppers. For goods, they must be of satisfactory quality (s9), fit for purpose (s10), and as described (s11). For services, they must be done with reasonable care and skill (s49) and in a reasonable time (s52). If these aren't met, the law provides a clear path to refunds, repairs, or replacements.