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9084 · 3.2.2

Terms implied into a consumer contract by the Consumer Rights Act 2015 — practice questions

Practice and worked examples for 9084 Terms implied into a consumer contract by the Consumer Rights Act 2015. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

Maya buys a laptop online from TechCo for £600, described as 'brand new, 8GB RAM'. On delivery the laptop has 4GB RAM and scratches. Maya rejects it within 10 days. Advise Maya's remedies under CRA 2015.

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Consumer contract: Maya is a consumer; TechCo a traderCRA 2015 applies.

Implied terms breached:

  • As described (s11) — 4GB not 8GB.
  • Satisfactory quality (s9) — scratches on 'new' laptop.
  • Fit for purpose (s10) — if Maya specified use requiring 8GB.

Non-conforming goods: Goods do not conform to contract (s19).

Remedy — short-term right to reject (s20–22): Within 30 days, Maya may reject and demand full refund — no obligation to accept repair first.

Trader's duty: TechCo must refund without undue delay and within 14 days of receiving goods back.

Conclusion: Maya entitled to reject and full refund — express description and implied quality terms both breached.

Worked example 2

Ben buys a washing machine from an appliance store for £500. After four months, it develops a serious leak. The store sends an engineer who attempts a repair, but the leak persists. The store cannot offer a replacement as the model is discontinued. Ben wants to keep the machine but get some money back. An independent expert values the faulty machine at £150. Advise Ben on his rights and calculate the potential refund.

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1. Identify Contract and Breach:

  • This is a B2C contract, so the CRA 2015 applies.
  • The machine is not of 'satisfactory quality' (s.9) as it is not durable and leaks after only four months.

2. Determine the Remedy Path:

  • The 30-day 'short-term right to reject' has expired.
  • Ben is entitled to the 'first-tier' remedy: a repair or replacement (s.23).
  • The trader attempted one repair, which failed. Replacement is not possible.

3. Access the 'Second-Tier' Remedy:

  • As the first-tier remedy has failed, Ben can now choose a 'second-tier' remedy under s.24: a price reduction or the final right to reject.
  • Ben chooses to keep the item and get a price reduction.

4. Calculate the Price Reduction:

  • Section 24(2) states the reduction must be an 'appropriate amount'. This is typically calculated as the difference between the contract price and the value of the goods in their faulty state.
  • Formula: Price Reduction = Contract Price - Value of Faulty Goods
  • Calculation:
    • Contract Price: £500
    • Value of Faulty Goods: £150
    • Price Reduction = £500 - £150 = £350

Conclusion: Ben is entitled to a price reduction. An appropriate amount would be £350. The trader must refund this sum to Ben, and Ben keeps the washing machine.