INTERNATIONAL COMMERCIAL LAW

International Commercial Law Assignment

International Commercial Law

Introduction

As a trader you need to know how the law relating to the supply of goods and services affects you and your customers. This Guide attempts to explain the operation of the law in the UK. UK law on sale of goods has evolved over many years. It is now principally set out in the Sale of Goods Act 1979 which has been amended by the Sale and Supply of Goods Act 1994 and more recently by the Sale and Supply of Goods to Consumers Regulations 2002. However, the Supply of Goods and Services Act 1982 applies similar remedies to those in the sale of goods legislation where the seller installs the goods or a contract is agreed for goods to be manufactured or produced (see "installation" on page 19 and "goods to be manufactured". (Slapper, Gary; David Kelly 2008, 73-89)

Buyers are entitled to goods of satisfactory quality, taking account of any description, the price and other relevant circumstances. If an item has a fault that is present at the time of sale (sometimes referred to in this guidance as a "latent" or "inherent" fault), the consumer can complain once it is discovered. But buyers cannot expect a legal remedy in respect of:

fair wear and tear;

misuse or accidental damage; or

if they decide they no longer want the item.

Similarly, buyers cannot expect a legal remedy where goods have faults that they knew about before the sale or that should have been evident on reasonable inspection.

Explanation

Proving the fault

Generally, the buyer needs to demonstrate the goods were faulty at the time of sale. This is so if he chooses to request an immediate refund or compensation (damages). There is one exception. This is when the buyer is a consumer and returns the goods in the first six months from the date of the sale, and requests a repair or replacement or, thereafter, a partial or full refund. In that case, the consumer does not have to prove the goods were faulty at the time of the sale. It is assumed that they were. If the retailer does not agree, it is for him to prove that the goods were satisfactory at the time of sale. For goods returned after six months the normal rules apply so that it would be for the consumer to demonstrate they were faulty when sold. (Slapper, Gary; David Kelly 2008, 73-89)

Conforming to Contract (The Implied Terms)

When buyers complain about goods they frequently say that they are "faulty". What this means, in legal terms, is that the goods do not conform to contract, although this is not the language that is usually used in this situation.

Goods would not conform to contract (would be faulty) if they failed to work immediately from the time of sale. Indeed, goods might not conform to contract if they failed to work later, even after a number of years, due to an inherent fault - ...