Orientation to Business Law: Consumer Law and Sale of Goods B2C

Introduction

This document provides a comprehensive overview of consumer law as it applies to business-to-consumer (B2C) transactions, specifically focusing on the sale of goods under the Consumer Protection Act. Key concepts include definitions, delivery obligations, handling of goods, consequences of delay, and conformity of goods.

Today's Agenda

Consumer Law: General Overview
Sale of Goods under the Consumer Protection Act
Defect and Delay Provisions
Consequences of Breach of Contract

General Application of the Consumer Protection Act

The Consumer Protection Act applies to the offering, selling, and other marketing of consumer goods or services by traders to consumers. It also encompasses situations where a trader acts as an intermediary in the supply chain.

Definitions

Consumer Good or Service: This refers to any goods or services provided to natural persons primarily for private use, rather than for trade.
Consumer: A natural person acquiring goods or services for personal use.
Trader: A natural or legal person who sells consumer goods or services to derive financial benefit.

Chapter 5: Sale of Goods

Delivery of Goods

According to Section 3 of the Act:

Unless otherwise agreed, goods should be collected by the buyer at the seller's business location at the time the sales contract is concluded.
If no such location exists, the seller is responsible for sending the goods to the buyer.
Goods are considered delivered once the buyer has taken possession.
If installation or assembly is required, delivery is only deemed fulfilled once those obligations are completed.
For goods with digital components, delivery occurs when the digital content is supplied.

Time of Delivery (Section 4)

Goods must be delivered without undue delay, typically within 30 days unless otherwise negotiated.
The seller may withhold delivery until payment is received, unless credit terms are agreed upon.

Passing of Risk (Section 6)

Risk of goods falls on the seller until delivery, unless the buyer fails to collect them timely.
If goods are returned due to defects and are not yet delivered back to the buyer, the seller bears the risk until that time.
If a sale with the option to return is agreed upon, the risk lies with the buyer from the time of delivery until return.

Consequences of Delay in Delivery

The Act outlines remedies available to buyers in the event of delays:

Buyer's Rights (Section 7)

Withhold payment proportional to the delay.
Require the seller to fulfill contract obligations.
Terminate the contract if delay persists beyond an additional, reasonable timeframe.

Conditions for Termination (Section 9)

Buyers may terminate without giving additional notice if:

The seller refuses supply.
The delivery time was essential as disclosed by the buyer during negotiation.
The buyer indicated the importance of a deadline prior to contract conclusion.

Damages (Section 12)

If there is a delay, the seller is liable unless they can prove an obstacle beyond control that was unforeseen at the contract's signing. Buyers can claim direct losses; however, indirect losses only result in liability if negligence is shown on the seller's part.

Conformity of Goods

In accordance with Section 12, goods must conform to the contract in terms of:

Description, type, quantity, quality, and functionality as specified.
Fitness for any particular purpose communicated by the buyer.
Provision of necessary accessories and installation instructions.
Updates as required by the contract.

General Requirements (Section 13)

Goods must meet specific criteria, including:

Usability and compliance with applicable regulations and standards.
Quality and description that align with what the seller represented.
Provision of expected accessories and packaging.

Exemptions for Non-Conformity

Goods are not considered non-conforming if:

A specific deviation was disclosed and accepted by the buyer.
The non-conformity is due to buyer-provided materials that were unknown to the seller.

Practical Application of Consumer Law

As a part of practical application, consider the following customer complaints:

Customer wanting to return a beanie due to discomfort.
Customer wanting to return an electric fan unused due to unexpected weather conditions.
Customer whose tailored suit arrived late, necessitating the purchase of an alternative at greater cost.

Each situation would require assessment based on contractual obligations and applicable consumer law for resolution.

Consumer Law and Sale of Goods Overview

Consumer Law and Sale of Goods Overview