Consumer Rights Act 2015: Implied Terms and Remedies
Welcome to this essential chapter of Paper 2! In everyday life, whenever you buy a pair of trainers, order a laptop online, or pay someone to fix your car, you enter into a legally binding contract. But what happens if the trainers fall apart after two days, the laptop never turns on, or the mechanic does a terrible job? You might not have written out a 10-page contract with the shopkeeper, but the law steps in to protect you anyway.
In this topic, we examine the statutory rules contained in the Consumer Rights Act 2015 (often abbreviated as the CRA 2015). You will learn about the terms that the law automatically inserts (implies) into contracts between traders and consumers, and the precise statutory remedies consumers can claim when things go wrong.
Syllabus check: Note that consumer implied terms under the old Sale of Goods Act 1979 and Supply of Goods and Services Act 1982 were removed from the specification. Under the official syllabus, statutory consumer terms run exclusively through the Consumer Rights Act 2015!
---Part 1: The Basics — Who Does the Act Protect?
Before diving into specific sections, it is important to understand when the Consumer Rights Act 2015 applies. It applies specifically to contracts between a trader (a person or business acting for purposes relating to their trade, business, craft, or profession) and a consumer (an individual acting for purposes wholly or mainly outside that individual's trade, business, craft, or profession).
The Act splits transactions into different types. In this chapter, we focus on the two main categories assessed in your exam:
1. Contracts to supply goods (physical items you buy, hire, or receive).
2. Contracts to supply services (actions someone performs for you, like plumbing, dry cleaning, or building work).
Part 2: Contracts to Supply Goods — Implied Terms
When a trader sells or supplies goods to a consumer, the Consumer Rights Act 2015 implies three vital statutory terms into the contract. You must learn the section numbers and their legal tests:
1. Section 9: Satisfactory Quality
Under section 9, every contract to supply goods includes a term that the quality of the goods is satisfactory.
The Legal Standard: What counts as "satisfactory"? The Act provides an objective test: goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking into account:
• Any description of the goods.
• The price or other consideration (a luxury, expensive watch is expected to last longer and finish better than a cheap watch bought for a very low price).
• All other relevant circumstances.
Quality includes aspects such as fitness for all the purposes for which goods of that kind are usually supplied, appearance and finish, freedom from minor defects, safety, and durability.
Important Limitation: Section 9 does not apply to defects specifically drawn to the consumer's attention before the contract is made, or defects that a consumer's examination ought to reveal if they examined the goods before buying.
2. Section 10: Fitness for a Particular Purpose
Under section 10, if the consumer makes known to the trader (either expressly or by implication) any particular purpose for which they are buying the goods, the contract includes a term that the goods are reasonably fit for that purpose.
• Ordinary purpose: Covered under section 9.
• Special/Particular purpose: Covered under section 10. For example, if a consumer tells a camping shop assistant, "I need a sleeping bag that will keep me warm in temperatures as low as -15°C," and the assistant sells them a standard summer bag, the trader breaches section 10 even if the bag is perfectly fine for normal indoor sleepovers.
Limitation: Section 10 will not apply if the trader can show that the consumer did not rely, or that it was unreasonable for the consumer to rely, on the trader's skill or judgment.
3. Section 11: Goods to be as Described
Under section 11, every contract to supply goods by description includes a term that the goods will match that description.
• Whenever you buy goods based on a label, a catalogue entry, a website listing, or verbal statements made by the seller about their specifications (e.g., "100% genuine leather" or "512 GB storage"), the goods must match that description.
• Even if the consumer selects the goods themselves from a shop shelf, the transaction is still treated as a sale by description if the goods are described on packaging or signs.
Key Takeaway for Goods:
• Section 9: Satisfactory quality (reasonable person standard).
• Section 10: Fit for particular purpose (made known to trader).
• Section 11: Match the description.
Part 3: Remedies for Breach of Terms in Goods Contracts
When a trader breaches any of the implied terms in sections 9, 10, or 11, the Consumer Rights Act 2015 sets out a clear, structured system of statutory remedies. You should think of these remedies as running in tiers:
Tier 1: Section 20 — Short-Term Right to Reject
• What is it? The consumer can reject the goods, treat the contract as at an end, and receive a full refund of all money paid.
• Time limit: The consumer must exercise this right within 30 calendar days from the time ownership or possession was transferred and the goods were delivered or installed.
• Trader's duty: The trader must provide the refund without undue delay (and within 14 days of agreeing the consumer is entitled to it), using the same payment method, and cannot charge any fee for the refund.
Tier 2: Section 23 — Right to Repair or Replacement
If the 30-day period has passed, or if the consumer simply prefers not to reject the goods right away, they can claim a repair or replacement under section 23:
• The trader must repair or replace the goods within a reasonable time and without significant inconvenience to the consumer.
• The trader must bear any necessary costs incurred in doing so (such as postage, labour, and materials).
• Limitation: A consumer cannot demand a repair (or replacement) if that chosen remedy is impossible or disproportionate compared to the other option.
Tier 3: Section 24 — Right to a Price Reduction or Final Right to Reject
What happens if a repair or replacement does not solve the problem? Under section 24, the consumer moves to this final tier if:
1. After one repair or one replacement, the goods still do not conform to the contract; OR
2. Repair or replacement is impossible; OR
3. The trader failed to repair or replace the goods within a reasonable time and without significant inconvenience.
The consumer can choose between:
• Price reduction: Keep the faulty goods, but receive an appropriate reduction in the price (a partial refund) to reflect their reduced value.
• Final right to reject: Return the goods and receive a refund. Note: If the final right to reject is exercised more than 6 months after delivery, the trader may make a reasonable deduction for the use the consumer had of the goods (except in certain motor vehicle cases).
Quick Summary Flowchart for Goods Remedies:
Fault detected within 30 days? \(\implies\) Section 20 Short-term right to reject (full refund).
After 30 days (or consumer choice)? \(\implies\) Section 23 Repair or replacement.
Repair/replacement failed, impossible, or delayed? \(\implies\) Section 24 Price reduction OR Final right to reject.
Part 4: Contracts to Supply Services — Implied Terms
Now we switch from physical items to services (work done for you). When a trader supplies a service to a consumer, the Consumer Rights Act 2015 implies specific statutory terms:
1. Section 49: Reasonable Care and Skill
Under section 49, every contract to supply a service includes a term that the trader must perform the service with reasonable care and skill.
• What is the standard? This is an objective standard. The trader must perform the work to the standard of a reasonably competent professional in that trade or profession.
• Example: A car mechanic servicing brakes must carry out the work with the competence of a qualified, reasonably skilled mechanic. If they forget to tighten the brake calipers, they have breached section 49.
2. Section 52: Performance Within a Reasonable Time
Under section 52, if the contract does not fix the time for the service to be performed, and the contract does not say how that time is to be fixed, there is an implied term that the trader must perform the service within a reasonable time.
• What is "reasonable" is a question of fact, depending on the nature of the service and surrounding circumstances (e.g., severe weather delaying an outdoor roofing job might be considered, but general laziness or overbooking other jobs would not).
Key Takeaway for Services:
• Section 49: Service must be carried out with reasonable care and skill.
• Section 52: Service must be carried out within a reasonable time (where no time was agreed).
Part 5: Remedies for Breach of Terms in Services Contracts
When a trader breaches an implied term under a service contract, the consumer has access to two specific statutory remedies under the Act:
1. Section 55: Right to Repeat Performance
• What is it? The consumer can require the trader to perform the service again, to the extent necessary to complete it properly.
• Terms: The repeat performance must be done within a reasonable time, without significant inconvenience to the consumer, and at the trader's own expense (the trader cannot charge for the extra labour or materials).
• When is it used? It applies to breaches of section 49 (failure to use reasonable care and skill). It cannot be demanded if repeat performance is physically or practically impossible (e.g., if a photographer ruined wedding photos on the day, repeat performance cannot recreate the wedding).
2. Section 56: Right to a Price Reduction
• What is it? The consumer can claim a reduction in the price by an appropriate amount (which can be up to 100% of the price if the service is completely useless).
• When is it available? A price reduction is available where:
1. Repeat performance under section 55 is impossible;
2. The consumer asked for repeat performance, but the trader failed to do so within a reasonable time or caused significant inconvenience; OR
3. The breach relates to section 52 (failure to perform within a reasonable time). You cannot "repeat" a late service, so the remedy for breaching section 52 is directly a price reduction under section 56.
Quick Summary for Services Remedies:
• Poor workmanship (breach of s49)? \(\implies\) First, Section 55 repeat performance; if that fails or is impossible, Section 56 price reduction.
• Undue delay (breach of s52)? \(\implies\) Direct to Section 56 price reduction.
Part 6: Answering Paper 2 Scenario Questions
In Paper 2, questions present you with real-world scenarios. To achieve top marks across AO1 (knowledge), AO2 (application), and AO3 (analysis of dispute resolution), use a structured step-by-step approach:
Step 1: Identify the Parties and Contract Type
Confirm that the party buying is a consumer and the party selling is a trader under the Consumer Rights Act 2015. Identify whether the contract is for goods or services.
Step 2: Identify the Relevant Implied Term
Cite the specific section number and state its rule:
• Goods: s9 (satisfactory quality), s10 (fitness for particular purpose), or s11 (description).
• Services: s49 (reasonable care and skill) or s52 (reasonable time).
Step 3: Apply to the Scenario Facts
Explain precisely why the trader has breached that term using the scenario details (e.g., why a reasonable person would consider the product defective, or why the work fell below the standard of a competent tradesperson).
Step 4: Determine the Appropriate Statutory Remedy
Select the remedy available under the Act based on time and circumstances:
• For goods: check if it is within 30 days (s20 short-term right to reject). If past 30 days, discuss repair or replacement (s23), followed by a price reduction or final right to reject (s24) if repair/replacement fails.
• For services: discuss repeat performance (s55) and/or price reduction (s56).
Quick Revision Checklist
Before sitting your exam, check that you can state the purpose and section number for each item below from memory:
Goods:
• Section 9: Satisfactory quality (reasonable person standard, price, description, durability).
• Section 10: Fitness for a particular purpose (purpose made known to trader).
• Section 11: Match description.
• Section 20: Short-term right to reject (within 30 days for a full refund).
• Section 23: Right to repair or replacement.
• Section 24: Right to price reduction or final right to reject (after one failed repair/replacement).
Services:
• Section 49: Reasonable care and skill (competent professional standard).
• Section 52: Performance within a reasonable time.
• Section 55: Right to repeat performance.
• Section 56: Right to price reduction.