UTCCR 1999

Unfair Terms in Consumer Contracts Regulations 1999



Unfair Terms in Consumer Contracts Regulations 1999

Introduction

In the United Kingdom, there exists law that offers protection to all and is known as the Common Law. Apart from the common law, statutory protection has also been developed to offer safeguard from terms that are unfair, through the Unfair Contract Terms Act of 1977, in addition to, the Unfair Terms in Consumer Contracts Regulation of 1999 (UTCCR). The primary legislation out of these is the Unfair Contract Terms Act 1977; while the Unfair Terms in Consumer Contract Regulations is a secondary legislation, which was initiated for implementation of a European Directive (Unfair Contract Terms Act and Consumer Regulations, n.d).

Even though, these are two intensely related but different laws, there is some overlapping protection existing, which the two pieces of legislation offers. The primary difference lies in the UTCCR applying to consumer contracts only. On the contrary, UCTA can also be effectively applied to businesses, as well as, to business relationships. Furthermore, UTCCR is applicable to contracts, and are ineligible for individual negotiation; whereas UCTA hold no such restrictions, and can be applied to exclusion criteria of tortuous liability, as well. Within the extent of both the statutory, the consumer may hold a different definition. There is an extended meaning provided to UCTA where it may also consider business to be the consumer while the business is purchasing the goods that they supply to the consumers ordinarily. In addition, the UCTA also considers various terms as unfair, automatically. On the contrary, UTCCR requires every term that is unfair, to be clearly shown. Hence, it contains its own tests for fairness, which find their basis of deals to be on good faith, as well as, to balance appropriately the rights of the consumes, and obligations with respect to the both parties being involved (Unfair Contract Terms Act and Consumer Regulations, n.d). This paper aims to critically assess the Unfair Terms Contracts Regulations of 1999, and the extent to which it adequately protects the rights of consumers.

Discussion The Unfair Contract Terms Act of 1977

The Unfair Contract Terms Act of 1977 is applicable only to the liabilities, which arise in periods of the business being done. Therefore, this Act fails to offer a comprehensive protection to the consumer from the terms that are relatively unfair to them. Furthermore, it also offers protection only towards particular instances, where terms that are unfair can occur. Specifically, the clauses of penalty are considered outside its remittance. Thus, the Unfair Contract Terms Act enables protections at various levels. This implies that the protection is absolute at some instances, whereas, in some places, the Act will be subjected to a consideration if the terms were reasonable ones to include. Thus, the Unfair Contract Terms Acts is beneficial as it can extend beyond the liability that arise from various contract extending to tortuous liability, which arise from negligence, as well as, liability that arise from the Occupiers Liability Act of 1957 (Unfair ...