108 Chapter 3The terms of the contract
n In non-consumer deals, liability for breach of the statutory implied terms as to
satisfactory quality, fitness for purpose, correspondence with description and corres-
pondence with sample can be excluded only by a term which is reasonable. When a
buyer deals as a consumer these implied terms can never be excluded.
n Only a term which is reasonable can restrict or exclude liability for misrepresentation.
n The Unfair Terms in Consumer Contracts Regulations 1999 apply only to consumer
contracts.Practice questions
1 Janice, who owns a garden centre, agreed to buy a second-hand tractor from Gerald, a
farmer, for £6,500. Janice also agreed to buy 100 sacks of King Edward seed potatoes from
Giles, another farmer. Gerald delivered the tractor to Janice. Eighteen months later the police
took the tractor away from Janice, explaining that it had been stolen from Oswald two years
ago. Gerald had bought the tractor at an auction and had no idea that it was stolen. At
the time when the police took the tractor away it was worth about £2,000 as Janice had
used it very extensively. The seed potatoes which Giles delivered were Maris Piper, not King
Edwards. Janice was not very bothered about this, as she thought that customers were as
likely to buy Maris Piper seed potatoes as they were to buy King Edwards. However, the day
after the seed potatoes were delivered, Janice saw a documentary on the television saying
that Maris Piper potatoes had been linked to a certain type of cancer. In the light of the
documentary Janice does not think that she will be able to sell any of the potatoes once they
have been grown. Advise Janice of her legal position as regards both Gerald and Giles.
2 Keith, a market trader, bought ten portable CD players from CDMaker Ltd. The following day
Keith sold three of these on his market stall. All three customers have returned the CD players
which they bought to Keith’s stall and demanded a refund. They claim that the CD players do
not work properly as they spring open when being played. Keith finds that this is true, but
that the problem can easily be fixed by tightening a screw. The customers refuse to accept
this repair and are demanding their money back. Advise Keith of his legal position as regards
both his customers and CDMaker Ltd.3 Manufacturer Ltd pay Service Co £2,000 to service their two boilers. After the service has
been completed, Manufacturer Ltd find that neither boiler can be used. The problem with
the first boiler was caused by Service Co inserting a replacement valve which did not work
properly. Service Co could not have discovered in advance that the valve was faulty because
it had been bought as new and looked perfectly all right. The problem with the second boiler
was caused by an unknown problem. No parts were supplied or changed and Service Co say
that they serviced the boiler while adhering strictly to a code of practice which is widely
accepted in the boiler servicing trade. The boiler did not work before the service was carried
out and nor did it work afterwards. Advise Manufacturer Ltd of their legal position as regards
the defects in the two boilers.
4 A retailer buys a television from a manufacturer. The retailer hires the television to a consumer
for a three-month period. The television was badly manufactured, so that its back casing is
not tightly fitted together. The retailer could easily have tightened several screws and fixed
this defect but did not do so before hiring the television to the consumer. As regards both the
sale by the manufacturer and the contract of hire by the retailer, explain which sections of
which statutes have been breached and the remedies available.