Revise Terms implied into a consumer contract by the Consumer Rights Act 2015 for Cambridge 9084 (3.2.2)

The Consumer Rights Act 2015 (CRA) was enacted to consolidate, simplify, and strengthen UK consumer law. It applies to contracts made between a 'trader' and a 'consumer' on or after 1 October 2015. A 'consumer' is defined in s.2(3) as 'an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession'. Conversely, a 'trader' (s.2(2)) is a person acting for purposes relating to their trade, business, craft or profession. This distinction is crucial; the Act's protections do not apply to business-to-business (B2B) or consumer-to-consumer (C2C) contracts. The CRA 2015 implies key terms into contracts for goods, services, and, for the first time under specific legislation, digital content, ensuring consumers receive a baseline level of protection.

Section 9 of the CRA 2015 implies a term that all goods supplied must be of satisfactory quality. This objective standard is assessed by what a 'reasonable person' would regard as satisfactory, considering the price, description, and all other relevant circumstances. Section 9(3) provides a non-exhaustive list of factors to assess quality, including fitness for all common purposes, appearance and finish, freedom from minor defects, safety, and durability. The standard is flexible. For example, in Rogers v Parish (1987), a new £16,000 Range Rover had minor defects in the engine, gearbox, and bodywork. The court held it was not of satisfactory quality; a consumer is entitled to expect a new, premium car to be free from even minor defects. This contrasts with Bramhill v Edwards (2004), where a motorhome slightly wider than the legal limit was deemed satisfactory as the defect was minor and did not affect use or safety.

Section 10 implies a term that goods will be reasonably fit for any particular purpose that the consumer makes known to the trader. This protection is triggered when the consumer, either expressly or by implication, communicates a specific use for the item which may be different from its common purpose. Crucially, the consumer must be relying on the trader's skill or judgement. For instance, if a consumer tells a hardware shop assistant they need adhesive to stick plastic to metal, the adhesive sold must be fit for that specific purpose. Similarly, if a buyer tells a computer store they need software for video editing on a Mac, and they are sold a Windows-only version, this would be a breach of s.10. The principle was established in pre-CRA cases like Griffiths v Peter Conway Ltd (1939), where a man with abnormally sensitive skin could not claim a coat was unfit, as he had not made his specific sensitivity known to the seller.

Under s.11 of the CRA 2015, where goods are supplied by description, there is an implied term that the goods will correspond with that description. This is a strict liability term, meaning the trader is in breach even if the goods are of satisfactory quality, if they do not match the description given. The description can be written (e.g., on packaging or a website), pictorial, or verbal. The case of Re Moore & Co and Landauer & Co (1921), although pre-CRA, illustrates the strictness; tins of fruit were delivered in cases of 24 instead of the described 30, and despite the total quantity being correct, this was a breach. This strict approach was also seen in Arcos Ltd v E A Ronaasen & Son (1933), where wooden staves that were a fraction of an inch thicker than described were held to be a breach, even though they were still perfectly usable for their intended purpose of making barrels. Under the CRA, every part of the description is a contractual term.

The CRA 2015 provides a clear, tiered system of remedies if goods do not conform to the contract by breaching one of the implied terms (ss. 9, 10, 11). This structure is a key departure from the older Sale of Goods Act regime.

Tier 1: The Short-Term Right to Reject (ss.20-22)

For a period of 30 days from the date of delivery (or ownership transfer), the consumer has the right to reject the goods and claim a full refund. The consumer must indicate to the trader that they are rejecting the goods. The trader must provide the refund without undue delay and within 14 days, and must bear any reasonable costs of returning the goods.

Tier 2: The Right to Repair or Replacement (s.23)

If the 30-day period has passed, or if the consumer chooses not to reject the goods, they have the right to request a repair or a replacement. The trader must carry this out within a reasonable time, without causing significant inconvenience to the consumer, and at the trader's own expense. The consumer cannot demand both, and the trader can refuse one of the options if it is impossible or disproportionately expensive compared to the other.

Tier 3: Price Reduction or the Final Right to Reject (s.24)

The consumer becomes entitled to a second-tier remedy if: (a) a repair or replacement is impossible or has failed; (b) the trader has not performed the repair/replacement within a reasonable time or without significant inconvenience. The consumer can then choose either:

• A price reduction: An 'appropriate amount' is refunded to the consumer, who keeps the goods. This could be up to 100% of the price.
• The final right to reject: The consumer rejects the goods for a refund. However, if this right is exercised more than 6 months after delivery, the trader is entitled to make a deduction from the refund to account for the use the consumer has had of the goods (this does not apply to motor vehicles).

A significant development in the CRA 2015 was the introduction of specific statutory rights for 'digital content'. This is defined as 'data which are produced and supplied in digital form', such as software, apps, games, e-books, and streamed media. Previously, the legal status of such content was unclear. The CRA 2015 implies terms for digital content that mirror those for goods. Section 34 requires digital content to be of satisfactory quality. Section 35 requires it to be fit for a particular purpose made known by the consumer. Section 36 requires it to be as described by the trader. These provisions provide consumers with clear rights and remedies, such as the right to repair or replacement, if their digital purchases are faulty.