Consumer Law (LLB Academic Unit)

**I. GOODS: QUALITY & CONFORMITY (Part 1 CRA 2015)**

1. **Satisfactory Quality (s.9)**: Goods must meet the standard a reasonable person would consider satisfactory, considering:
   - Description, price, and all other relevant circumstances
   - Fitness for all common purposes
   - Appearance and finish
   - Freedom from minor defects
   - Safety and durability
   *Key authority: Grant v Australian Knitting Mills [1936] AC 85 (implied fitness principle)*

2. **Fitness for Particular Purpose (s.10)**: Where consumer makes particular purpose known (expressly or implicitly), goods must be reasonably fit for that purpose. Seller's skill/judgement must be relied upon.

3. **Conformity with Description (s.11)**: Goods must match any description by trader, including in advertising/pre-contractual statements.

4. **Conformity with Sample/Model (s.13)**: Goods must match sample/model shown to consumer, allowing for normal differences.

5. **Right to Reject (s.19)**: Short-term right to reject (30 days generally) for any breach. After 30 days, must give one repair/replacement opportunity before rejection.

**II. SERVICES & DIGITAL CONTENT (Part 1 CRA 2015)**

1. **Reasonable Care and Skill (s.49)**: Service must be performed with reasonable care and skill standard of competent practitioner.

2. **Reasonable Price (s.51)**: Where price not agreed, service must be provided for reasonable price.

3. **Reasonable Time (s.52)**: Where time not agreed, service must be performed within reasonable time.

4. **Digital Content Requirements (s.34)**: Must be of satisfactory quality, fit for purpose, and as described. Includes right to repair/replacement.

**III. UNFAIR CONTRACT TERMS (Part 2 CRA 2015)**

1. **Core Test (s.62)**: Contract term is unfair if contrary to good faith and causes significant imbalance in parties' rights/obligations to consumer detriment.

2. **Grey List (Schedule 2)**: Indicative list of potentially unfair terms including:
   - Excluding/limiting trader's liability
   - Allowing trader to vary terms unilaterally
   - Unfair termination clauses
   - Penalty clauses

3. **Transparency Requirement (s.68)**: Written terms must be plain, intelligible, and prominent.

**IV. UNFAIR COMMERCIAL PRACTICES (Consumer Protection from Unfair Trading Regulations 2008)**

1. **General Prohibition (Reg.3)**: Traders must not engage in commercial practices contrary to professional diligence that materially distort consumer economic behaviour.

2. **Misleading Actions (Reg.5)**: False information or deception likely to cause average consumer to take transactional decision they wouldn't otherwise take.

3. **Aggressive Practices (Reg.7)**: Harassment, coercion, or undue influence impairing consumer freedom of choice.

4. **Blacklisted Practices (Schedule 1)**: 31 practices always unfair including:
   - Pyramid schemes
   - False limited availability claims
   - Prize draw scams

**V. CONSUMER CREDIT (Consumer Credit Act 1974 as amended)**

1. **Creditworthiness Assessment (s.55B)**: Lender must assess borrower's creditworthiness before agreement.

2. **Right to Withdraw (s.66A)**: 14-day cooling-off period for distance contracts.

3. **Unfair Relationships (s.140A)**: Court may reopen credit agreements where relationship between parties is unfair to debtor.

**VI. DISTANCE & OFF-PREMISES CONTRACTS (Consumer Contracts Regulations 2013)**

1. **Pre-contract Information (Reg.13)**: Specific information requirements including:
   - Trader identity
   - Main characteristics of goods/services
   - Total price
   - Right to cancel

2. **Cancellation Right (Reg.29)**: 14-day cancellation period without reason for distance/off-premises contracts.

3. **Return Obligations (Reg.34)**: Trader must refund within 14 days of cancellation.

**VII. PRODUCT LIABILITY (Consumer Protection Act 1987)**

1. **Strict Liability (s.2)**: Producer liable for damage caused by defective products without need to prove negligence.

2. **Defect Definition (s.3)**: Product defective when not as safe as persons generally are entitled to expect.

3. **Defences (s.4)**: Including state of the art defence and compliance with mandatory regulations.

1. **'Satisfactory Quality' vs. 'Fitness for Purpose' (Goods: s.9 & s.10 CRA 2015)**
   - **Trap:** Treating them as the same standard. They are distinct rights.
   - **Reality:** 'Satisfactory quality' (s.9) is an objective, all-things-considered standard covering appearance, safety, durability, etc. 'Fitness for particular purpose' (s.10) applies only if the consumer made that particular purpose known to the trader (expressly or by implication) *and* relied on the trader's skill/judgment. A good can be of satisfactory quality but not fit for a disclosed particular purpose (e.g., a standard laptop is satisfactory but not fit for high-end gaming if that was the disclosed purpose).

2. **'Rejection' of Goods – The 30-Day Final Right to Reject (s.22 CRA 2015)**
   - **Trap:** Thinking consumers always have a long-term right to reject non-conforming goods.
   - **Reality:** The *final* right to reject (terminate the contract for breach of s.9, s.10, s.11) is lost if not exercised within 30 days of ownership/possession (the 'first' right to reject can be exercised earlier). After 30 days, the consumer must give the trader *one opportunity* to repair or replace before they can then reject (s.24) or demand a price reduction.

3. **Digital Content: When is it 'Goods' vs. 'Digital Content'? (s.2 & s.16 CRA 2015)**
   - **Trap:** Assuming all digital products are treated as 'digital content' under the Act.
   - **Reality:** The CRA 2015 definitions are crucial. 'Digital content' is data produced/supplied in digital form (s.2(9)). If supplied on a *tangible medium* (e.g., a DVD, a pre-loaded USB), it is likely 'goods' and the goods rights apply. If supplied by download/streaming, it is 'digital content' (s.16). Remedies differ: for digital content, the consumer cannot 'reject' it; the key remedies are repair/replacement or price reduction, and in some cases, compensation for damage to device or other digital content (s.46).

4. **'Trader' vs. 'Consumer' – The Purpose Test (s.2 CRA 2015)**
   - **Trap:** Assuming an individual is always a 'consumer'.
   - **Reality:** A 'consumer' is an individual acting for purposes *wholly or mainly outside* their trade, business, craft, or profession (s.2(3)). Buying a laptop *mainly* for freelance work could mean you are not a 'consumer' for that contract. The burden of proof that an individual is *not* a consumer lies on the trader (s.2(4)).

5. **Unfair Terms in Consumer Contracts: The 'Grey List' vs. Core Exemption (UTCCR 1999, Sch 2 & reg 6(2))**
   - **Trap:** Believing a term on the 'Grey List' (indicative list of potentially unfair terms) is automatically unfair, or that a 'core' term (price/subject matter) is automatically exempt from fairness assessment.
   - **Reality:** The Grey List (Sch 2) is *indicative only* – the term must still be assessed for fairness under the general test (good faith, significant imbalance). Conversely, the core exemption (reg 6(2)) only applies if the term is *transparent* (plain language) *and* *prominent* (brought to consumer's attention). An opaque or hidden core term can be assessed for fairness.

6. **Unfair Commercial Practices: 'Misleading Actions' vs. 'Aggressive Practices' (CPUTR 2008)**
   - **Trap:** Conflating the two categories or misapplying the 'average consumer' benchmark.
   - **Reality:** 'Misleading actions' (regs 5, 6) relate to false information/deception. 'Aggressive practices' (reg 7) involve harassment, coercion, or undue influence impairing the consumer's freedom of choice. Both are assessed against the 'average consumer' benchmark (reg 2(2)), but note the 'vulnerable consumer' test applies if the practice is directed at a clearly identifiable group whose characteristics make them particularly vulnerable.

7. **Consumer Credit: The 'Total Charge for Credit' (TCC) and APR (CCA 1974, CONC)**
   - **Trap:** Thinking the interest rate is the main regulated figure.
   - **Reality:** The key regulated disclosure is the **APR (Annual Percentage Rate of Charge)**, which must be calculated to include the *total charge for credit* (all mandatory costs: interest, fees, etc.) and presented prominently. A failure to display the APR correctly can be a breach. The APR allows for like-for-like comparison, unlike a simple interest rate.

8. **Distance/Off-Premises Contracts: The 14-Day Right to Cancel – Exceptions (CCR 2013, regs 28 & 29)**
   - **Trap:** Assuming the 14-day 'cooling-off' period applies to all distance/off-premises sales.
   - **Reality:** Key exceptions include: bespoke/made-to-order goods (reg 28(1)(b)); sealed audio/video/software once unsealed (reg 28(3)(b)); goods that by nature cannot be returned (e.g., perishables); and services fully performed before the cancellation period ends, if the consumer consented and acknowledged they'd lose the right (reg 29(1)).

9. **Product Liability under the Consumer Protection Act 1987: The 'Defect' Standard (s.3 CPA 1987)**
   - **Trap:** Equating a 'defective' product under CPA 1987 with one that is 'not of satisfactory quality' under CRA 2015.
   - **Reality:** CPA 1987 liability is strict liability for damage caused by a 'defect' (s.3). A product is defective if its *safety* is *not such as persons generally are entitled to expect*. This is a public safety standard, not a quality/merchantability standard. A very shoddy but safe product may breach the CRA but not the CPA. Focus on legitimate safety expectations, considering presentation, intended use, and time of supply.

10. **Remedies Hierarchy for Goods: 'Repair or Replace' at Trader's Choice? (s.23 CRA 2015)**
    - **Trap:** Believing the consumer can demand their preferred remedy (e.g., replacement over repair) as of right.
    - **Reality:** The consumer can *request* repair or replacement, but the trader gets to choose *which one*, provided the chosen remedy is *conforming* (s.23(3)(a)), *impossible* (s.23(3)(b)), or *disproportionate* compared to the other remedy (s.23(3)(c)). A repair is disproportionate if it imposes costs on the trader compared to replacement, and vice versa. If the trader's chosen remedy fails or is not provided within a reasonable time, the consumer can then escalate.

**1. Consumer Rights Act 2015 (CRA) - Core Framework**
- **Definition of 'Consumer' (s.2):** An individual acting for purposes wholly or mainly outside their trade, business, craft or profession.
- **Key Parts:** Part 1 (Goods), Part 2 (Digital Content), Part 3 (Services).

**2. Goods: Quality & Conformity (CRA ss.9-18)**
- **Satisfactory Quality (s.9):** Standard a reasonable person would consider satisfactory, considering:
  - Description, Price, All other relevant circumstances.
  - Factors: Fitness for purpose, Appearance & finish, Freedom from minor defects, Safety, Durability.
- **Fitness for Particular Purpose (s.10):** Consumer makes known (expressly or impliedly) any particular purpose before contract.
- **Goods to Match Description, Sample, Model (ss.11, 13):** Where sale is by description/sample/model.
- **Conformity with Contract (s.19):** Short-term right to reject (30 days unless longer durability expected). Final right to repair/replacement, then price reduction or final rejection if remedy impossible/not done within reasonable time.
- **Remedies Hierarchy:** Reject (within 30 days) → Repair/Replacement → Price Reduction/ Final Rejection.

**3. Services & Digital Content (CRA ss.49-57)**
- **Services (s.49):** Must be performed with reasonable care and skill. Information about trader/ service binding if consumer relies on it.
- **Digital Content (s.33):** Must be of satisfactory quality, fit for purpose, and as described. Key remedy: Repair/Replacement. If not conforming, can claim price reduction (even if free if paid for with money).
- **Remedy for Services/Digital Content:** Right to repeat performance (if not conforming), or price reduction.

**4. Unfair Contract Terms (CRA Part 2 & Consumer Rights Act 2015 Sch.2)**
- **Core Test:** A term is unfair if, contrary to good faith, it causes significant imbalance in parties' rights to the detriment of the consumer (CRA s.62).
- **'Grey List' (Sch.2):** Indicative list of potentially unfair terms (e.g., irrevocably binding consumer to terms they had no real chance to read; allowing trader to alter terms unilaterally).
- **Exclusions:** Cannot exclude/restrict liability for death/personal injury from negligence (s.65). Liability for other loss can only be restricted if term is *fair and reasonable* (UCTA 1977 s.11).
- **Transparency Requirement (s.68):** Written in plain, intelligible language.

**5. Unfair Commercial Practices (Consumer Protection from Unfair Trading Regulations 2008)**
- **General Prohibition (Reg.3):** Unfair commercial practices are prohibited.
- **'Misleading Actions' (Reg.5):** Cause/ likely to cause average consumer to take transactional decision they would not have.
- **'Misleading Omissions' (Reg.6):** Omit material information or provide it in unclear/unintelligible/untimely manner.
- **'Aggressive Practices' (Reg.7:** Harassment, coercion, undue influence impairing consumer's freedom of choice.
- **'Blacklisted' Practices (Sch.1):** 31 practices always unfair (e.g., false 'limited time' offers, pyramid schemes).
- **Average Consumer Benchmark:** Reasonably well-informed, observant, and circumspect.

**6. Consumer Credit (Consumer Credit Act 1974 as amended)**
- **Regulated Agreements:** Personal credit agreements between £200-£60,260 (excl. mortgages).
- **Formalities & Withdrawal:** Must be in prescribed form with key financial information (CCA s.60). 14-day cooling-off right for most agreements (CCA s.66A).
- **Unfair Relationships (CCA ss.140A-140C):** Court can intervene if relationship between creditor/debtor is unfair.
- **Lender Liability (CCA s.75):** Connected lender liability for breaches by supplier (goods/services over £100, not exceeding £30,000 credit).

**7. Distance & Off-Premises Contracts (Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013)**
- **Pre-contract Information (Regs.9-16):** Specific info required (e.g., trader identity, total price, right to cancel).
- **Cancellation Right (Reg.29):** 14-day cooling-off period from delivery of goods/ conclusion of contract for services. No reason needed.
- **Exceptions to Cancellation Right (Reg.28):** e.g., bespoke/personalised goods, sealed audio/video/software once opened, perishables.
- **Refund Deadline (Reg.34(3)):** 14 days from cancellation notice; for goods, must be returned first.

**8. Product Liability (Consumer Protection Act 1987 Part I)**
- **Strict Liability (s.2):** Producer/own-brander/importer liable for damage caused by a *defective* product.
- **Defect (s.3):** Safety not such as persons generally are entitled to expect, considering:
  - Manner of marketing, Instructions, Reasonable uses, Time of supply.
- **Defences (s.4):** e.g., State of scientific/technical knowledge at time ('development risks' defence).
- **Damage:** Death, personal injury, or damage to private property over £275.
- **Limitation:** 3 years from damage/knowledge; long-stop 10 years from supply (s.11A).

**WEEK 1-2: Consumer Rights Act 2015 Framework**
- Master structure: Parts 1 (goods), 2 (services/digital content), 3 (unfair terms)
- Key definitions: 'consumer', 'trader', 'goods', 'digital content' (s.2)
- Relationship with other statutes: Sale of Goods Act 1979, Supply of Goods and Services Act 1982
- Practical exercise: Identify applicable CRA Part for different scenarios

**WEEK 3-4: Goods - Quality & Conformity**
- Core rights: ss.9-17 CRA 2015
- Satisfactory quality (s.9): standard vs. consumer expectations
- Fitness for purpose (s.10): particular purpose vs. ordinary use
- Conformity with description/sample/model (ss.11-13)
- Remedies hierarchy: short-term right to reject → repair/replace → price reduction/final right to reject
- Case law: Bernstein v Pamson Motors (rejection), Rogers v Parish (satisfactory quality)

**WEEK 5: Services & Digital Content**
- Services: reasonable care and skill (s.49), reasonable price (s.51)
- Digital content: quality, functionality, compatibility (ss.34-36)
- Remedies: repeat performance → price reduction
- Special rules: damage to device/digital content (s.46)
- Practical focus: Differentiate goods/services/digital content treatment

**WEEK 6: Unfair Contract Terms**
- CRA Part 2 (ss.62-67) and UCTA 1977 interplay
- Core test: fairness (s.62) and transparency requirements
- Grey list terms (Sch 2) and absolutely prohibited terms
- Enforcement: OFT role, injunctions
- Case law: Director General of Fair Trading v First National Bank

**WEEK 7: Unfair Commercial Practices**
- Consumer Protection from Unfair Trading Regulations 2008
- Prohibited practices: misleading actions/omissions, aggressive practices
- Blacklisted practices (Sch 1)
- Enforcement: criminal offences, civil redress
- Practical exercise: Identify UCPs in advertising scenarios

**WEEK 8: Consumer Credit**
- Consumer Credit Act 1974 framework
- Licensing requirements and formalities
- Unfair relationships (s.140A)
- Termination rights and default procedures
- Recent developments: high-cost short-term credit regulations

**WEEK 9: Distance & Off-Premises Contracts**
- Consumer Contracts Regulations 2013
- Information requirements (Sch 1-2)
- Cancellation rights: 14-day cooling off period
- Exceptions to cancellation right (Sch 3)
- Return of goods and reimbursement rules

**WEEK 10: Product Liability**
- Consumer Protection Act 1987 Part I
- Strict liability for defective products
- Defect definition: safety not reasonably expected
- Defenses: state of art, compliance with law
- Relationship with negligence and contract claims

**REVISION WEEK:**
- Create comparison tables: remedies under different regimes
- Practice problem questions mixing multiple topics
- Memorize key statutory sections and their applications
- Review past exam papers for question patterns

I. INTRODUCTION
   A. Scope of Consumer Rights Act 2015 (CRA) - consolidates previous legislation
   B. Key definitions: 'consumer' (s.2), 'trader' (s.2), 'goods', 'digital content', 'services'
   C. Overarching principle: contracts must be fair and provide minimum statutory rights

II. GOODS: QUALITY & CONFORMITY (Part 1 CRA)
   A. Statutory rights under ss.9-17 CRA
      1. Satisfactory quality (s.9) - standard reasonable person would expect
      2. Fitness for particular purpose (s.10) - when purpose made known
      3. As described (s.11) - matches description/sample/model
      4. Other requirements: installation (s.15), durability (implied)
   
   B. Remedies hierarchy (ss.19-24)
      1. Short-term right to reject (30 days)
      2. Right to repair/replacement
      3. Final right to reject
      4. Right to price reduction
   
   C. Key cases: Bernstein v Pamson (satisfactory quality), Rogers v Parish (fitness for purpose)

III. SERVICES & DIGITAL CONTENT (Part 1 CRA)
   A. Services: reasonable care and skill (s.49), reasonable price (s.51)
   B. Digital content: satisfactory quality, fitness for purpose, as described (ss.34-36)
   C. Remedies for breach: repeat performance, price reduction (ss.54-56)

IV. UNFAIR CONTRACT TERMS (Part 2 CRA)
   A. Core test: fairness under s.62 (reflects UTCCR 1999)
   B. Grey list terms (Schedule 2) - presumptively unfair
   C. Prohibition of excluding liability for death/personal injury (s.65)
   D. Key case: Director General of Fair Trading v First National Bank

V. UNFAIR COMMERCIAL PRACTICES (Part 3 CRA)
   A. Prohibition of unfair practices under Consumer Protection from Unfair Trading Regulations 2008
   B. Categories: misleading actions, misleading omissions, aggressive practices
   C. Enforcement through civil remedies (s.19A CPR 2008)

VI. CONSUMER CREDIT
   A. Consumer Credit Act 1974 (as amended) - key provisions
   B. Responsible lending obligations
   C. Right to withdraw/cancel certain agreements

VII. DISTANCE & OFF-PREMISES CONTRACTS
   A. Consumer Contracts Regulations 2013
   B. Key rights: pre-contract information, 14-day cooling-off period
   C. Exceptions and special rules for different contract types

VIII. PRODUCT LIABILITY
   A. Consumer Protection Act 1987 Part I
   B. Strict liability for defective products
   C. Defences available to producers

IX. CONCLUSION
   A. Interrelationship between different consumer protection regimes
   B. Emphasis on consumer-friendly interpretation by courts
   C. Practical application: always check which regime applies to specific scenario

Sarah purchases a new smartphone online from TechDeals Ltd for £600. The phone is advertised as 'water-resistant' and having a '2-year battery life'. After 3 months, the phone malfunctions after minor water exposure and the battery drains excessively fast. Sarah contacts TechDeals, who arrange for their approved repair service, FixIt Ltd, to collect and repair the phone under warranty. FixIt Ltd takes 6 weeks to complete the repair, during which time Sarah is without a functioning phone. Upon return, the phone still has battery issues and now has a cracked screen that wasn't present before repair.

QUESTIONS:
1. Analyse Sarah's rights against TechDeals Ltd regarding the original phone defects under the Consumer Rights Act 2015, considering sections 9-11 (satisfactory quality), section 14 (fitness for purpose), and section 19 (remedies).

2. Discuss whether the repair service provided by FixIt Ltd complies with the requirements for services under Part 1 of the Consumer Rights Act 2015 (sections 49-52), particularly regarding reasonable care and skill, and time for performance.

3. Evaluate whether the 'water-resistant' claim could constitute an unfair commercial practice under the Consumer Protection from Unfair Trading Regulations 2008, and what remedies might be available.

4. Consider whether any terms in TechDeals' standard warranty document limiting liability for 'consequential losses' would be enforceable under the Consumer Rights Act 2015, Part 2 (unfair terms).

5. Advise Sarah on her options regarding the cracked screen caused during repair, including potential claims against FixIt Ltd or TechDeals Ltd.

**Drill 1: Goods Conformity Analysis**

**Scenario:** Consumer purchases a 'smart' refrigerator for £1,200. After 3 months, the ice maker fails and the internal temperature fluctuates wildly, causing food spoilage. The retailer claims this is 'normal wear and tear' and refuses repair.

**Questions:**
1. Which specific sections of the Consumer Rights Act 2015 apply?
2. What statutory rights has the retailer breached regarding conformity?
3. What remedies are available if the goods don't conform to contract?
4. How does the 'reasonable person' test apply under s.9(2)?
5. What is the time limit for rejecting goods under the short-term right to reject?

**Key Authorities:**
- CRA 2015 ss.9-11, 19-24
- Requirement to be of satisfactory quality (s.9(1))
- Fit for particular purpose (s.10)
- As described (s.11)
- Remedies hierarchy: short-term right to reject → repair/replacement → price reduction/final right to reject

**Drill 2: Digital Content Rights**

**Scenario:** Consumer pays £40 for software that crashes repeatedly, corrupting user files. The EULA excludes all liability for data loss.

**Questions:**
1. How does CRA 2015 treat digital content differently from goods?
2. What quality standards apply under s.34?
3. Can the EULA exclusion clause stand? Apply UTCCR 1999
4. What remedies exist for non-conforming digital content?
5. How does the right to repair/replacement differ from goods?

**Key Authorities:**
- CRA 2015 ss.33-36, 46
- UTCCR 1999 reg.5 (unfair terms)
- Office of Fair Trading v Abbey National [2009] UKSC 6

**Drill 3: Unfair Terms Challenge**

**Scenario:** Gym contract includes: 'No refunds under any circumstances' and 'Management may alter facilities without notice.'

**Questions:**
1. Which terms are potentially unfair under CRA 2015 Part 2?
2. Apply the 'grey list' in Schedule 2 to these terms
3. What is the test for fairness under s.62?
4. How does the 'core exemption' in s.64 apply?
5. What consequences follow if terms are found unfair?

**Key Authorities:**
- CRA 2015 ss.62-67
- Schedule 2 (indicative list of unfair terms)
- Director General of Fair Trading v First National Bank [2001] UKHL 52

**Instructions:** Answer BOTH questions. Time: 90 minutes total. This section tests application of the Consumer Rights Act 2015 (CRA 2015), Consumer Protection from Unfair Trading Regulations 2008 (CPRs), Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCRs), and related principles.

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**QUESTION 1 (45 marks)**

Maya, a university student, orders a new 'Zephyr' laptop from TechDirect Ltd, an online retailer, for £850. The website description states: "The Zephyr features our latest 'CoolRun' processor, ensuring smooth performance for gaming and design software. Includes a 3-year manufacturer's warranty."

Upon delivery, Maya finds:
1. The laptop overheats and shuts down after 30 minutes of use, making it impossible to run any demanding software.
2. The documentation indicates the processor is an older, less powerful 'SteadyState' model, not the 'CoolRun'.
3. The warranty booklet states coverage is only for 1 year.

Maya contacts TechDirect within two weeks. They offer a repair. Maya refuses, demanding a full refund. TechDirect refuses the refund, citing their standard terms which state: "For any goods deemed faulty, our liability is limited to repair or replacement. Refunds are only available if repair is impossible. Any claim must be made within 7 days of delivery."

**Advise Maya on her rights and remedies under the Consumer Rights Act 2015 regarding the laptop.**

In your answer, you should:
- Identify the relevant statutory rights under Part 1 of the CRA 2015.
- Analyse whether the goods conform to the contract, considering the specific issues.
- Discuss the remedies available to Maya and the procedure for pursuing them, including the relevance of TechDirect's terms.
- Consider the time limits involved.

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**QUESTION 2 (45 marks)**

Ben sees an online advertisement for 'KleanWell' kitchens on the website of HomeStyle Ltd. The ad prominently claims: "FULLY PROFESSIONAL INSTALLATION INCLUDED. All our kitchens are installed by our own expert fitters to a perfect finish. 0% FINANCE AVAILABLE." Ben visits a showroom, where a salesperson, Alex, reiterates that installation is "all part of the package" and that the 0% finance is "subject to status, but pretty much everyone gets it." Ben signs a contract for a £12,000 kitchen, to be installed in 6 weeks, and opts for the finance.

Later:
1. The installation is carried out by a sub-contracted fitter who is inexperienced. The work is poor, with misaligned doors and faulty plumbing connections causing a small leak.
2. Ben is rejected for the 0% finance offer and is instead offered a credit agreement at 19.9% APR, which he feels pressured to accept to secure the kitchen.
3. The contract terms include Clause 15: "HomeStyle Ltd accepts no liability for the quality of installation services, which are provided by third parties at the consumer's risk."

**Discuss the potential claims Ben may have under:**
**(a)** The Consumer Rights Act 2015 regarding the installation service and any relevant goods.
**(b)** The Consumer Protection from Unfair Trading Regulations 2008 regarding the advertisements and sales practices.
**(c)** The regulatory framework governing the credit agreement.

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**End of Section**

**Note to Candidate:** A strong answer will identify specific sections of the CRA 2015 (e.g., ss. 9, 10, 11, 19, 20, 23, 25, 49, 50, 54), reference the 'conformity with the contract' framework, apply the remedies hierarchy (short-term right to reject, repair/replacement, final right to reject, price reduction), and distinguish between unfair contract terms (Part 2) and unfair commercial practices (CPRs). For credit, consider the Financial Conduct Authority (FCA) rules on creditworthiness assessments and the potential for the agreement to be unfair under the Consumer Credit Act 1974.

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[INTERMEDIATE]

QUESTION
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Ben purchased a new 'EcoHeat Pro' electric heater from 'WarmHome Ltd,' an online retailer, for £250. The heater's online description stated it could 'heat a medium-sized room (up to 25m²) to 22°C within 15 minutes on its medium setting.' When Ben received the heater, he found it took over 45 minutes to raise the temperature of his 20m² living room by just 3°C, from 16°C to 19°C, even on its highest setting. Furthermore, after two weeks of occasional use, the heater began emitting a faint burning smell and intermittently switching off. Ben contacted WarmHome Ltd, who stated their policy was only to offer a repair for faults occurring within the first 30 days. Ben wants to reject the heater and get a full refund. Which of the following is the MOST ACCURATE statement regarding Ben's rights under the Consumer Rights Act 2015?

ANSWER FRAMEWORK
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A. Ben is entitled to a full refund because the heater is not of satisfactory quality, specifically in relation to its durability and safety, and he can reject it as the final right to reject likely still applies.
B. Ben is only entitled to a repair or replacement, as any right to reject the goods and obtain a refund was lost after the first 30 days from delivery.
C. Ben is entitled to a full refund because the heater does not conform to the contract, specifically by failing to match its description, and he can exercise a short-term right to reject within 30 days.
D. Ben must first allow WarmHome Ltd a single opportunity to repair the heater, and only if the repair is unsuccessful or inconvenient can he then seek a price reduction or refund.

MARKING GUIDANCE
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Correct Answer: C. The heater's failure to perform as described (heating time and capacity) is a breach of s.11 and s.13 CRA 2015 (goods to be as described). This non-conformity was present on delivery, giving Ben a clear short-term right to reject under s.20(5)-(7) within 30 days of ownership (which he is within). The safety/durability issues reinforce the breach but are not the primary legal hook for the short-term right. | Distractor A: Incorrect. While the safety/durability points relate to satisfactory quality (s.9), the 'final right to reject' is a complex, later-stage remedy requiring a failed repair/replacement. The clearer and more immediate route here is the short-term right for description breach. | Distractor B: Incorrect. Misstates the law. The '30 day' period in s.22(3) relates to the trader's obligation to provide a repair/replacement if requested, not the consumer's initial right to reject for non-conformity, which is a minimum of 30 days under s.22(4). Ben is within this period. | Distractor D: Incorrect. This reflects a possible later stage in the remedies hierarchy (s.23) if the short-term right to reject is not exercised. Here, Ben wishes to reject immediately, which he can do for this pre-existing non-conformity.

COMMON PITFALLS
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["Focusing solely on the safety smell and intermittent switching (satisfactory quality/durability) and jumping to the 'final right to reject' which has more conditions.", "Misinterpreting the '30-day policy' mentioned by the trader as reflecting the statutory position for rejection rights.", 'Assuming the description breach is merely a minor issue that must first be remedied by repair.']

[INTERMEDIATE]

QUESTION
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Liam purchased a new 'EcoHeat Pro' electric heater from 'WarmHome Ltd', a retailer, for £450. The heater was advertised as 'perfect for heating a medium-sized living room (up to 30 square metres) efficiently and quietly'. Liam's living room is 28 square metres. Upon use, the heater makes a persistent, loud humming noise that is audible over the television. It also struggles to raise the temperature of the room above 18°C unless run continuously for several hours, resulting in high electricity bills. Liam complains to WarmHome Ltd, who state their standard terms include a clause: 'Any claims regarding noise levels or heating efficiency must be made within 7 days of purchase. The retailer's liability for such matters is limited to a refund of the purchase price, at its discretion.' Liam made his complaint after 10 days. Advise Liam on the key statutory rights he is likely to have against WarmHome Ltd under the Consumer Rights Act 2015 regarding the quality and conformity of the heater. Which of the following options BEST summarises the core applicable legal position?

ANSWER FRAMEWORK
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A) The heater is of satisfactory quality under s.9 of the Consumer Rights Act 2015 as it heats the room, and the noise is a minor issue. The time limit clause is likely valid as it is reasonable under the Unfair Contract Terms Act 1977.
B) The heater likely breaches the satisfactory quality requirement under s.9 due to the noise and inefficiency, and the description requirement under s.11 as it is not 'efficient and quiet'. The short time limit clause is likely an unfair term under the Consumer Rights Act 2015 and not binding on Liam, so his remedies are not barred.
C) Liam's only claim is for breach of the express term 'efficient and quiet' under s.11. The satisfactory quality requirement does not apply to operational characteristics like noise. The clause limiting liability is valid as Liam did not complain in time.
D) The heater's performance is a matter of fitness for purpose under s.10, which Liam did not make known to the retailer, so he has no claim. The clause limiting liability is reasonable and therefore effective.

MARKING GUIDANCE
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Correct answer is B. The heater's loud noise and poor heating efficiency likely breach both the statutory requirement of satisfactory quality (s.9 CRA 2015) and the requirement to match its description (s.11). The advertised statements form part of the contract. The retailer's clause imposing a 7-day time limit for complaints and limiting liability is likely an unfair term under Part 2 of the CRA 2015 (Sch 2, para 5, restricting the consumer's rights) and not binding on Liam. The remedies under ss.19-24 are available subject to the statutory time limits, not the contractual one.

A is incorrect because the issues are not necessarily minor and the clause is unlikely to be reasonable or fair in a consumer context.
C is incorrect because satisfactory quality (s.9) expressly includes fitness for purpose, freedom from minor defects, and appearance and finish – noise and efficiency are relevant. The claim is not solely based on description.
D is incorrect because fitness for purpose under s.10 relates to a particular purpose made known by the consumer, which is not the primary issue here. The standard purpose of heating a room is covered by satisfactory quality. The clause is unlikely to be fair.

COMMON PITFALLS
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['Focusing solely on the time limit clause and assuming it is automatically effective.', 'Confusing the requirements of satisfactory quality (s.9), description (s.11), and fitness for a particular purpose (s.10).', 'Overlooking that advertised statements can form part of the contract under s.11.', 'Assuming that because the heater technically works, it is of satisfactory quality despite significant undesirable characteristics.']