1. If you know your rights, You wouldn’t go wrong
Sale of Goods
If you know your rights, You wouldn’t go wrong
Karwan Dana

2. The Sale of Goods Act 1979 in Britain:
The Sale of Goods Act 1979  regulates contracts in which goods are sold and bought.
The Act performs several functions:
1. The Act lays down a small number of compulsory legal rules  (restrictions) are minimal.
2. The bulk of the Act is concerned with presumptions and implied terms  reflect the commercial expectations in the most commonly agreed sales contracts.

3. Terms Implied into the Contract of Sale:
Terms are implied into contracts by the Sale of Goods Act 1979.
Breaches of these terms by the seller may give rise to an action for damages
Condition: If the terms are conditions, any breach of them means termination of the contract.
Warranty: where the breach renders it unreasonable for a buyer to reject the goods (for breach of the implied terms as to description, quality or fitness
or sample) then the buyer can only claim damages for a breach of warranty.
This amendment moderates the traditionally strict approach of English Law to contractual breach in a commercial context.

4. Implied Term as to Title:
Section 12 incorporates into the contract a term that the seller either has legal title to the property
At the time to be sold or
at the time when property is passed.
Two warranties are implied:
The buyer enjoys quiet possession of the goods
The goods will be free from any burdens (i.e., a third party having lien over the goods).
These terms can be harsh:
e.g., rejection of goods found to be in breach of Section12  will allow the buyer to recover the full price paid, with no allowance for the buyer's use of the goods.

5. Implied Term as to Description:
Where the buyer buys goods by description  the goods must correspond with this description.
Harlingdon v Christopher Hull (legal precedent)  provides  this implied term may only be breached if the buyer relied upon the description.
Therefore if the buyer is an expert, reliance may not be established.

6. Harlingdon & Leinster Enterprises Ltd v Christopher Hull Fine Art Ltd
Besides, there are still other cases on sales by description. Example will be Harlingdon & Leinster Enterprises Ltd v Christopher Hull Fine Art Ltd.
Christopher were a art dealers firm which owned by Harlingdon. He was asked to sell 2 oil paintings by Gabriele Münter. However, Harlingdon does not have knowledge in examining paintings by Münter. He told the plaintiffs that he wanted to sell two painting by Münter and the plaintiffs’ employee agreed to buy one of the paintings for £6,000 without any inquiries.
Before this, Harlingdon had told him that he do not have much knowledge on the paintings. Later on, the painting was discovered to be a forgery and plaintiffs claim for repayment.
However, court held that plaintiffs did not relied on Harlingdon’s description to buy the paintings, hence, it was not a sale by description.

7. Beale v Taylor
In another case of Beale v Taylor, seller planned to sell his car and advertised it as a “Herald adaptable white, 1961, twin carbs"
The buyer had seen the car and bought it. However, they do not realise that the rear part of the car was part of 1961 Herald convertible car, but the front half was part of an earlier model.
Later on, the buyer realised the truth and claim for damages for breach of condition. Court held that although the description of the car was true to their knowledge, the seller was selling a car as described in the advertisement. There is a discrepancy on description which breaches the sales of goods by description.

8. Implied Term as to Quality or Fitness:
These terms are implied by Section 14 and are only relevant where the seller is acting in the course of a business.
There is no requirement as to the status of the buyer.
First: Fitness for purpose:
If the buyer expressly or impliedly makes his purpose for the goods known to the seller  The seller is obliged to make sure the goods provided are fit for that purpose, if it is reasonable for the buyer to rely on the seller's expertise.

9. Case law
This recent decision of the Technology and Construction Court ([2016] EWHC 2062 (TCC)) contains important guidance on fitness for purpose obligations, particularly in relation to the offshore wind energy generation industry. The judgment of Mr Justice Edwards-Stuart should also give parties careful pause for thought when considering entering into agreements to waive their rights to future claims.

10. Second: Satisfactory Quality:
The quality of the goods sold must be satisfactory
The Act provides an objective test to determine satisfactory quality  “the quality that would be expected by the reasonable man”  with regards price, description and any other relevant factors.
The courts have identified certain factors:
Second hand goods will attract a lower expectation.
Goods of a reputable brand may attract a higher expectation.

11. Sale by Sample:
Where goods are bought by bulk and the buyer has tested a small number of those goods  the seller is obliged to make sure that every item in the bulk corresponds with the quality of the sample tested.

12. Smith v Hughes sell by sample
Facts
Mr Hughes was a racehorse trainer. Mr Smith, who was a farmer, brought him (Mr. Hughes) a sample of oats, and Hughes ordered forty to fifty quarters of oats at 34 shillings a quarter. Sixteen quarters were sent to start with. But when they arrived, Hughes said they were not the oats he thought they were. He had apparently wanted old oats (which are the only ones racehorses can eat), and he was getting new, green oats. In fact, Smith's sample was of green oats. Hughes refused to pay and Smith sued for breach of contract, for the amount delivered and for damages for the amount for oats that were still to be delivered. Later questions were asked to jury.
The jury at the County Court of Surrey holden at Epsom, initially held for Mr Hughes that there was a mistake on his part, but were directed by the judge that if Mr Hughes was under a mistake about the oats (thinking they were old when they were green oats) and Mr Smith had known it, they should find in Mr Hughes' favour. Mr Smith appealed.
Judgment
The Court of the Queen's Bench found that the jury had been misdirected and ordered a retrial. Leaning in Mr Smith's favour, they held that the question was not merely whether the parties were at consensus ad idem, but what they had communicated by their conduct and words to one another. Mr Smith was held to be under no duty to inform Mr Hughes of his possible mistake about the kind of oats, reaffirming the old idea of caveat emptor (buyer beware).[2] A unilateral mistake is therefore in principle no ground for rescission of a contract.

13. Excluding Implied Terms:
These terms will not be incorporated into the contract where they have been expressly excluded, or express terms conflict with them.
These exclusions may be invalid under the unfair terms in consumer contracts
If the term excluding these implied terms is struck out, the implied term will be effective.

14. In Consumer Cases:
These provisions apply where the buyer is a consumer.
Within six months, after deliverey, the “buyer” can require the seller to repair the goods, reduce the price, or rescind the contract  where the buyer successfully claims that the goods were not in accordance with the contract at the time of delivery.
The “seller” can defeat this claim if:
It is established that the goods did so conform at the time of delivery, or
The measure is incompatible with the nature of the goods or the nature of the lack of conformity.

15. Consumer requires repair or replacement:
The seller must repair or replace the goods within a reasonable amount of time.
This cannot be required if it is impossible or disproportionate in consideration of other available remedies.
Consumer requires reduction or rescission:  
Only available where repair or replacement is impossible or
the seller is taking an unreasonable amount of time to perform these requirements.

16. Seller does not have title:
If the seller does not own the goods, the buyer generally cannot gain title, although he can sue for breach of the implied term as to title.
Seller has voidable title:  
Where the seller holds voidable title, title can pass to a buyer in good faith. If title is voided before the contract of sale is concluded, title cannot pass.

17. Consumer Rights Act 2015 - Legislation

18. This session will cover:
The Sale of Goods Act.
Proof of purchase.
3. Your rights on refunds.
4. Where to go to for help with consumer problems.

19. Shoppers’ rights and responsibilities
1. The Sale of Goods Act
Shoppers’ rights and responsibilities

21. “Fit the description given”
The description given to goods must be correct. Examples include:
Labels;
Advertisements and brochures; and
What the sales person tells you about the goods.
Car for Sale
12,000 genuine miles

22. Freshly made sandwiches
Should not be two days old!
A as “leather” should not be plastic. jacket described

23. “Be of satisfactory quality”
Goods should:
1. Work when you buy them.
2. Carry on working and stay
in good condition for a
reasonable length of time.
3. Last as long as they can
reasonably be expected
to.
New goods should be safe, durable and free from minor defects.

24. Waterproof boots should not let in water.
“Be of satisfactory quality”
‘Satisfactory’ takes into account the product’s price and age.
Waterproof boots should not let in water.
You would expect a pair of expensive designer boots to last longer than a pair from a bargain shop.

25. “Fit for purpose” Goods should do what is claimed of them.
Many have a special purpose.
Example
If you ask the retailer for a phone charger to fit your phone and it does not
you can complain.

27. Buying on the Internet and from mail order catalogues
You have seven days to cancel – even if you don’t like the goods. Day One begins the day after you buy the goods.
Exceptions
Personalised goods;
Fresh food or flowers; and
Sealed CDs, DVDs or
software that you have
opened.

28. 2. Proof of purchase
Returning goods

29. Always ask the retailer for a receipt and keep it safe.
Proof of Purchase
Returning faulty or misdescribed goods
1. A receipt is the best proof of purchase.
2. You can also use a:
Bank statement or a cheque
stub;
Credit card statement; or a
A witness who saw you
buying the goods. This is
less reliable than the
others.
Top Tip
Always ask the retailer for a receipt and keep it safe.

30. Is there anything wrong with the goods?
Did you know:
If there is nothing wrong with the goods, the law says that shops don’t have to give you a refund?
Exchange Policy and Goodwill
Some shops may give you a refund or an exchange as a goodwill gesture if you don’t like the goods or they don’t suit you.

31. Times when you have no rights
Returning Goods?
Times when you have no rights
Example
The colour or size doesn’t suit.
You change your mind about
wanting the goods.
Example
Price ticket says “broken zip” or “shop soiled”.
You were told the goods were
faulty or the fault should have
been obvious.
Example
Washing a woollen jumper at a very high temperature.
You damage the goods or you
don’t follow the instructions
properly.

32. 3. Returning Goods
The law explained

33. Difficult to check goods
Faults may not be obvious when you first buy goods.
Examples
DVD player in packaging.
Electrical goods where
you can’t check the
power supply before you
use them.

34. Remember! Fair wear and tear is not a fault!
Tip
Returning Faulty Goods
As soon as you notice a fault tell the retailer. Try to stop using the goods if possible.
It is the retailer, not the manufacturer, who is responsible if goods are faulty or misdescribed.
Remember! Fair wear and tear is not a fault!

35. Burden of Proof
If a fault appears within the first 6 months then the law assumes that the fault was already there when you bought the item.
If the fault appears after 6 months, then it is up to you to prove that the goods are faulty or misdescribed.

36. Legal Remedies Full or partial refund The law says that: Repair
Replacement
Repairs or replacements must be carried out within reasonable time and without any great disruption to you; and
The retailer must pay for costs eg transporting the goods.
However, the retailer can refuse either of these options if it can be shown that the other option would be less costly.
Know your rights
If the goods are not repaired satisfactorily, you do not lose your right to ask for a refund.

37. The warranty period has finished
Trader’s Excuse:
The warranty period has finished
Don’t buy
from
A warranty period:
Normally lasts for one year; and
Gives you additional rights. It does not replace your
rights under the Sale of Goods Act.
shops
Know your Rights!
If a fault appears a year or more after you buy the
goods, you are still entitled to ask for a repair,
replacement or a partial refund.

38. Try the manufacturer
Don’t buy
from
shops
Your contract is with the shop, not the manufacturer, so the shop must help you with your complaint.

39. Don’t buy
You’re too late to complain
from
shops
You should complain as soon as a fault appears, and if possible, stop using the item. However, this may be months or even years after you bought the goods so there is no time limit.

40. 4. Where to go for help with consumer problems.

41. Consumer Rights Act 2015
The Sale of Goods Act no longer applies in UK law. This has been replaced by the Consumer Rights Act and gives you rights to a refund, repair or replacement if something you buy develops a fault.

42. Returning faulty goods
If you received faulty goods under a contract entered into on or before 30 September 2015, you can choose to reject the goods which means you can give them back and get a refund.
You should note that the law only gives you a reasonable time to do this – what's reasonable depends on the product and how obvious the fault is.
However, even with major purchases or complex items, it’s safest to work on the basis you would usually have no more than three to four weeks from when you receive the goods to reject them.

43. Summary
The Sale of Goods Act requires all goods to be:
as described
of satisfactory quality and
fit for purpose
If they're not, the retailer is in breach of contract, giving rise to a claim under the Sale of Goods Act

44. In conclusion
The Consumer Rights Act 2015 came into force on 1st Oct 2015 and replaced many of the provisions contained in the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982where there is a consumer sale. The Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982 have not been repealed and still apply to contracts for the sale of goods and the supply of services outside a consumer context (eg private sales and business to business transactions).  The main protection offered covers where the seller does not have the right to sell the goods, where the goods are sold by description there is an implied term that the goods will correspond to that description, businesses must ensure that the goods they sell are of satisfactory quality and fit for their purpose, where the goods are sold by sample there is an implied term that the goods will correspond to the sample in quality. In addition there are implied terms that the service must be carried out with reasonable care and skill, that the service will be carried out within a reasonable time and where no price is agreed a reasonable price will be paid. These protections are in the form of statutory implied terms. This means that the Consumer Rights Act or the Sale of Goods Act will put these terms into all contracts for the sale of goods no matter what the parties themselves have agreed in the terms and conditions of sale.