Harmonisation of Laws with Europe: Sale of Goods to Consumers

The Existing Law

In England and Wales the Sale of Goods Act 1979 (as amended by the Sale and Supply of Goods Act 1994 and the Sale of Goods (Amendment) Act 1995 govern the purchaser's/seller's rights upon the sale of goods. The provision of services is governed by the Supply of Goods and Services Act 1982.

Regrettably for the consumer, the legislation is not without problems and limitations. Consumers are often faced with difficulties when goods purchased become defective. For example, the most common request made by a consumer to a seller when goods become defective is to receive the reimbursement of the purchase price. However, this remedy is often unattainable due to restrictions within the law. In England and Wales the reimbursement of the purchase price is only available to a purchaser if he acts promptly and he has not inspected or accepted the goods. "Acceptance" here is used within its legal meaning, which has caused uncertainty for consumers in the past. Advice should be taken as to whether goods have been or are deemed accepted. Many consumers are therefore faced with the only remedy available to them being a claim for losses, which the consumer has incurred as a result of defective goods being purchased, for example repair costs. This often leaves the consumer with defective goods and hindered by a legal dispute.

Commercial Guarantees

Purchasers often receive guarantees or purchase extended warranties. The terms of these can be restrictive in the protection afforded. A consumer needing to rely on the guarantee can often be prevented by the small print excluding the seller's liability and the consumer is unaware of this. Consumers also often believe that because they have a guarantee they have no other recourse against the seller. This is not correct. The consumer may be in a position to challenge such an exclusion clause. Additionally, the mandatory statutory rights will not be affected.

European Goods

Additional problems arise when goods are purchased from another European country. The European Commission has considered this problem and has noted that national laws governing statutory guarantees vary considerably from one Member State to another, either because of differences in the definition of defective goods in the context of contractual liability or because the rights of consumers vary.

Changes

As a result, the European Commission has proposed to harmonise the laws. The Directive on Certain Aspects of the Sale of Consumer Goods and Associated Guarantees (1999/44/EC) provides the proposal for a statutory guarantee of two years from the date of purchase of the goods and principles of transparency governing commercial guarantees. This will afford consumers, irrespective of the Member State in which they shop a legal protection for two years when goods are not "in conformity with the contract". It also places a burden on seller to bring to the buyers' attention the terms of its commercial guarantees. This harmonisation is scheduled for implementation in England and Wales on the 1st January 2002.

The Directive contains some interesting variations to existing laws on the fitness for the purpose and satisfactory quality for example, the expectation of quality and performance when goods are advertised and public statements are made on the specific characteristics of the goods. Also, defects caused by the improper installation are covered when; the installation is carried out by the seller.

What does this mean to the Consumer?

Consumer's remedies are extended, are more practical and unhindered.
Remedies consist of:
Repair; or
Replacement; or
Reduction in Price; or
Rescission (Rejection) but not for minor defects.
No reference is made to acceptance as is the case at present and therefore the right cannot be lost from acceptance resulting in less uncertainty for consumers
A consumer may be able to reject at any time during the 2-year period.
The cost of goods is likely to increase.

What does a Consumer have to do?

In all cases the consumer must bring the defect to the seller's attention within two months of identifying it otherwise the rights are forfeited.
After 6 months, the consumer must demonstrate that the goods are not in conformity with the contract.

What does this mean to the Seller?

Quality standards will need to be improved, with the goods being more durable.
More stock available for replacements.
The ability to offer repairs, with further on site repair centres and personnel.
Commercial Guarantees will need to be redrafted to be compliant with the transparency rules.
Extended Warranties will need to be redrafted.

This article gives a general overview only and the legal position at the time of writing this article. It cannot be relied upon in any particular case. Specific legal advice must always be considered to include consideration as to whether the legal position contained in this article has changed since going to print. For further information and advice, please contact Nita King or Marianne Johns on 01793 527141 or alternatively by email on Nita.King@lemon-co.co.uk or Marianne.Johns@lemon-co.co.uk.

If you would like to receive more information from Lemon&Co and be kept up to date with legal and statutory updates please register here.

Link to this article:
If you wish to link to this article, please paste the follwoing code into your web page:


				<p><strong><a href="http://www.lemon-co.co.uk/article_sale-of-goods-europe.php">Harmonisation of Laws with Europe: Sale of Goods to Consumers</a></strong><br />
				As a result, the European Commission has proposed to harmonise the laws. The Directive on Certain Aspects of the Sale of Consumer Goods and Associated Guarantees (1999/44/EC) provides the proposal for a statutory guarantee of two years from the date of purchase of the goods and principles of transparency governing commercial guarantees....</p>

Download our core services brochure

- click here - PDF format (275kb)

^ Top