Rights and Responsibilities – Advanced
Introduction to Civil and Criminal Law
There are a range of civil and criminal laws that exist to protect us when we go shopping. Below we consider the rights and responsibilities that these place on both the trader and the consumer.
Civil Law
Every consumer transaction is based on the law of contract. The consumer is agreeing to buy goods or services and the seller is agreeing to provide them.
Unfortunately, the major problem that buyers face is that the goods that they buy turn out to be defective, therefore civil law exists to provide rights and obligations for both the buyer and the seller.
Making a contract
Knowing your rights can give you confidence and put you in a stronger bargaining position. Every time you buy new or second-hand goods from a shop, a catalogue or from anyone running a business, you enter into a contract with the seller. Such sale contracts impose obligations on both the buyer and the seller.
A contract is made usually at the time that the deal is struck. The exact moment that a contract is made can be very important because if there are any special terms or conditions attached to it (such as "Yes, we'll order the CD but you'll have to pay postage or delivery charges") then you must be told about them at or before the time the contract is made. Otherwise they don't form part of your contract and you can't be forced into accepting them.
What does a contract involve?
In order to have a contract, there are 3 main things that need to be present;
There is NO contract, until an offer has been made and this has then been accepted. Both parties must be clear about what they're agreeing to.
Example Suppose you had said "I want to buy the latest Oasis CD that you've got in your window" and the shop had said "We've just sold the last one we had on special promotional offer. We can get you another copy but it'll be the full price".
Here the seller isn't accepting your offer, they are making what the law calls a counter-offer and asking you whether you still want to go ahead knowing that the price will increase. At this point you're free to back out of the deal by rejecting his counter-offer. But if you accept then you're agreeing to pay the higher price.
Why is a contract so important?
Once you have made it and agreed the terms of your deal, you have a legal obligation or responsibility to go through with the contract. Changing your mind can actually cost you money because you would be in breach of contract. (the legal term for breaking your agreement).
If you break the contract, the other party can claim compensation. Even if you're a minor (under eighteen years old) you still run the risk of being sued for breach of contract.
It is one good reason why it pays to be careful before you commit yourself to anything.
If, on the other hand, it is the seller who breaks the agreement, then you'd be entitled to compensation for any losses which you suffered. Example - if you pay a deposit for a CD and the shop is unable to get you a copy, you can reclaim the deposit you paid. And if you'd had to make several journeys to and from the shop - perhaps they'd asked you to call back later - then you might be entitled to your fares.
As previously stated, everytime we go shopping we enter into a contract. We may agree some of the terms of that contract with the trader, however, there will be other terms that are implied into our contract by:
Sale of Goods Act 1979 (as amended)
This is a civil law that states that every time a trader sells you goods:
a) They must be of "satisfactory quality" - This basically means that anything you buy from a shop shouldn't be broken or badly damaged and it should work properly.
Example - A jumper shouldn't have the arms sewn in back to front, a pair of tights shouldn't have the feet pointing in different directions, a hot water bottle shouldn't leak and drench your feet with scalding water.
Sale goods - these may not be in perfect condition, so it is important to look to see if they are marked as "shop soiled" or "seconds". The seller is not responsible for any defects which he told you about or which you should have noticed before you bought them.
Second hand goods - these are covered by the Sale of Goods Act, however, the price you pay for the goods is taken into consideration and the wear and tear on the item when you buy it is also a relevant factor.
Durability - There are no hard and fast rules laid down in the Act about how long anything should last. A lot of your rights will depend on how you use the goods. You will not be entitled to help from a trader if you have damaged the items yourself.
b) They must match the description the trader gives them.
Example - A pair of trousers described on the label as "100% pure cotton" should be just that. If you buy a milk chocolate Easter egg that is described as 'solid chocolate', it shouldn't be hollow.
NB - If a trader gives a false description it would also be covered by the Trade Descriptions Act 1968 (discussed later) and could be reported to your local Trading Standards Department.
c) They must be "fit for their purpose".
Example - Wellington boots shouldn't let in water (although fashion boots might). If you ask for a food mixer that beats, whisks and kneads dough then the one the seller gives you should do all those things.
But be careful of making assumptions. If you want something to do a particular job then say so. Don't just pick up the first thing that comes to hand and hope for the best. If you do then you've only yourself to blame if it doesn't measure up to your requirements.
Unsatisfactory Goods
If the seller fails to meet any one of these three conditions (satisfactory quality, description or fitness for purpose) then he or she is probably in "breach of contract".
Despite anything a retailer may tell you, you have no legal claim against the manufacturer under the Sale of Goods Act. The law says that it's the retailer's responsibility.
If the fault is serious and you find it almost immediately, or soon after purchase, then you are entitled to claim your money back.
If it's less serious and can be fixed by a simple repair or adjustment then the trader may offer to do that. Sometimes the fault may affect the look of an item rather than its performance - for example, a scratch or a dent. Here, you'd probably be entitled to a reduction in price or some of your money back.
Occasionally you may suffer other financial losses as a result of buying faulty goods. For example, a T-shirt may be described as "machine washable" but when you take it out of the machine you find the dye has run and stained other clothes, or you have to pay out of pocket expenses such as travel or postage. All of these costs can form part of your claim against the seller.
Credit Notes
Often traders will offer you a credit note instead of a refund. A credit note is simply a piece of paper that the trader writes on promising to give you goods in exchange for its value.
You don't have to accept a credit note if you have bought faulty or misdescribed goods. So don't be fobbed off with one. If you think you're entitled to a refund you should say so and not take anything less than the law allows you.
Other points to remember
Below is another civil law which is designed to help consumers who make contract for services and was made to extend the protection given by the Sale of Goods Act 1979.
The Supply of Goods and Services Act 1982
This Act covers not only services but also the goods that may be used as part of that service:
Examples
The Supply of Goods and Services Act says that if goods are being supplied to you as a part of a service then those goods must be as described, of satisfactory quality and fit for the purpose. In other words they have to meet the same standards as those laid down in the Sale of the Goods Act - as if they'd been sold to you over the counter.
The second part of the Act deals with the basic obligations of anyone who provides a service, such as dry cleaning, hairstyling, plumbing, transport, estate agency. It says that the supplier must carry out the work with reasonable care and skill and that it must be done within a reasonable time and for a reasonable price.
Verbal Contracts
Many service contracts are made verbally, such as "My watch has stopped. Can you repair it?" This can sometimes cause problems because you may end up with a bigger bill than you'd expected.
You should always tell the trader to contact you if it seems likely that the job will be more expensive than anticipated - then you have the choice of going ahead or leaving things as they stand.
As stated earlier, the Trade Descriptions Act 1968 sets out to protect consumers from traders who either deliberately or accidentally mislead their customers.
The Act also makes it illegal for traders to knowingly mislead you about the services they are providing. For example:-
Criminal Law
These are the major Acts that support and assist consumers when buying goods and services.
The following areas are all covered by criminal law, which means that any trader who breaks these laws can be prosecuted. All of these laws are enforced by officers from your local Trading Standards Departments.
Weights & Measures Act 1985
This Act makes it illegal to give short weight or an inadequate quantity. Trading Standards Officers make sure that customers are not given less than they have paid for and that traders don't use inaccurate weighing or measuring equipment.
To do their job the Inspectors visit all kinds of premises including markets, shops, factories, mobile shops, petrol stations, one-day sales and pubs. They check scales, measures and metering equipment. They also make special test purchases to make certain that when customers buy something they are not being cheated.
It is a criminal offence to mark goods with a wrong indication of their amount. For example: - If you buy a bag of potatoes marked 1 kilo, then it should contain at least that amount and no less.
Many factory-packaged goods are now packed under what is called the average weight system. In practice, this means that some packs may contain fractionally more or less than the stated quantity subject to certain tolerance limits laid down in the Act.
Food Safety Act 1990
This Act is intended to make sure that we're not made ill or poisoned by the food we eat and that we're not cheated by false or misleading food labels or advertisements - like fake slimming aids and health foods.
Years ago it wasn't unusual for traders to tamper with the food they supplied.
Milk was a popular target for sabotage. Watering-down became so common that it was very rare to find any cream on the top. Beer and wine suffered similar fates too.
The Food Safety Act says that it is not only illegal to add anything harmful to food but it is also against the law to take anything away from it by diluting it or watering it down. The law also covers what ingredients must be declared on food labels and that adverts and must be truthful.
For example: - if the label says "Contains 10% butter", then the product has to contain exactly that. The label should give a list of ingredients and there are strict rules about what is allowed to go into a particular food.
Manufacturers who fail to meet these standards can be prosecuted, usually by Trading Standards Officers. Officers regularly take samples of all sorts of different foods and send them to an expert Analyst for testing. If the Analyst finds anything wrong he will report back to the Inspector who then decides what action to take. This will often lead to a case in the Criminal Courts.
The Act also controls food hygiene in factories, shops, cafés, restaurants, stalls, mobile shops and vehicles (like Ice-Cream and Burger vans). The rules about hygiene are usually enforced by Environmental Health Officers. If you see anything that suggests uncleanliness in a café, shop or restaurant, like the odd mouse or cockroach, you should report it to your local Environmental Health Department.
It is also against the law to sell food containing foreign bodies (i.e. things that shouldn't be there at all). You'd be surprised at some of the things that have turned up; a baby mouse in a bag of peanuts: a snail in a bottle of ginger beer; a frog in a packet of garden peas; even a rat in a sliced loaf!
Trade Descriptions Act 1968
This Act sets out to protect consumers from traders who either deliberately or accidentally mislead their customers. It is a criminal offence for a trader to falsely describe the goods that they are selling.
For example:- A trader supplying a second-hand car described as having had "one careful lady owner and low mileage" which is later found to have had two previous owners and a false mileage reading has committed at least two criminal offences. The Act says that if you're given details like this then they must be true.
Similarly, if a set of saucepans is described on the box as being "Aluminium - non-stick coating" then that's exactly what they should be;
If a watch is advertised on television as being waterproof then it shouldn't merely be water resistant;
If the label on a fruit pie shows a cross-section overflowing with whole pieces of juicy fruit then the filling shouldn't be a fruit-flavoured purée.
Consumer Credit Act 1974
This Act covers virtually all types of credit and hire agreements and aims to promote truth in lending. It seeks to ensure that consumers are given adequate information in credit agreements and that advertisements for credit are accurate.
Anyone who lends money, arranges credit or hires out goods for more than three months has to have a licence from the Office of Fair Trading in London. It is a criminal offence to trade without a licence.
Most credit deals involve something called "interest" charges. These represent the cost of borrowing the money and a trader must give details about them. If interest is being charged on any loan it must be shown as an Annual Percentage Rate (or APR).
Consumer Protection Act 1987
Parts I and II of the Act deal with unsafe goods and seek to prevent or at least reduce the risk of consumers being injured by dangerous or defective goods.
It says that traders who supply new goods must make sure that those goods are safe. Specific safety standards have been provided to help traders to comply with the law. The range of goods covered by safety regulations include:-
This list is by no means complete but it will give you some idea of the wide range of items covered by safety regulations. Anyone in the chain of distribution who sells goods that do not meet the safety standards is committing a criminal offence.
Part III of this Act deals makes it a criminal offence for traders to mislead consumers about the selling price of goods, services, facilities and accommodation. Some examples of illegal practices would be:-
To help traders comply with the law the Government has produced a set of guidelines called the "Code of Practice for Traders on Price Indications". The Code gives advice on most areas of pricing and is intended as a good practice guide.