Consumer Rights Bill (HL Bill 52)

with the day on which the goods were delivered to the consumer must be taken
not to have conformed to it on that day.

(15) Subsection (14) does not apply if—

(a) it is established that the goods did conform to the contract on that day,
5or

(b) its application is incompatible with the nature of the goods or with how
they fail to conform to the contract.

20 Right to reject

(1) The short-term right to reject is subject to section 22.

(2) 10The final right to reject is subject to section 24.

(3) The right to reject under section 19(6) is not limited by those sections.

(4) Each of these rights entitles the consumer to reject the goods and treat the
contract as at an end.

(5) The right is exercised if the consumer indicates to the trader that the consumer
15is rejecting the goods and treating the contract as at an end.

(6) The indication may be something the consumer says or does, but it must be
clear enough to be understood by the trader.

(7) From the time when the right is exercised—

(a) the trader has a duty to give the consumer a refund, subject to
20subsection (17), and

(b) the consumer has a duty to make the goods available for collection by
the trader or (if there is an agreement for the consumer to return
rejected goods) to return them as agreed.

(8) The consumer’s entitlement to receive a refund works as follows.

(9) 25To the extent that the consumer paid money under the contract, the consumer
is entitled to receive back the same amount of money.

(10) To the extent that the consumer transferred anything else under the contract,
the consumer is entitled to receive back the same amount of what the consumer
transferred, unless subsection (11) applies.

(11) 30To the extent that the consumer transferred under the contract something for
which the same amount of the same thing cannot be substituted, the consumer
is entitled to receive back in its original state whatever the consumer
transferred.

(12) If the contract is for the hire of goods, the entitlement to a refund extends only
35to anything paid or otherwise transferred for a period of hire that the consumer
does not get because the contract is treated as at an end.

(13) If the contract is a hire-purchase agreement or a conditional sales contract and
the contract is treated as at an end before the whole of the price has been paid,
the entitlement to a refund extends only to the part of the price paid.

(14) 40A refund under this section must be given without undue delay, and in any
event within 14 days beginning with the day on which the trader agrees that
the consumer is entitled to a refund.

(15) If the consumer paid money under the contract, the trader must give the refund
using the same means of payment as the consumer used, unless the consumer
expressly agrees otherwise.

(16) The trader must not impose any fee on the consumer in respect of the refund.

(17) 5There is no entitlement to receive a refund—

(a) if none of subsections (9) to (11) applies,

(b) to the extent that anything to which subsection (11) applies cannot be
given back in its original state, or

(c) where subsection (12) applies, to the extent that anything the consumer
10transferred under the contract cannot be divided so as to give back only
the amount, or part of the amount, to which the consumer is entitled.

(18) It may be open to a consumer to claim damages where there is no entitlement
to receive a refund, or because of the limits of the entitlement, or instead of a
refund.

21 15Partial rejection of goods

(1) If the consumer has any of the rights mentioned in section 20(1) to (3), but does
not reject all of the goods and treat the contract as at an end, the consumer—

(a) may reject some or all of the goods that do not conform to the contract,
but

(b) 20may not reject any goods that do conform to the contract.

(2) If the consumer is entitled to reject the goods in an instalment, but does not
reject all of those goods, the consumer—

(a) may reject some or all of the goods in the instalment that do not
conform to the contract, but

(b) 25may not reject any goods in the instalment that do conform to the
contract.

(3) If any of the goods form a commercial unit, the consumer cannot reject some of
those goods without also rejecting the rest of them.

(4) A unit is a “commercial unit” if division of the unit would materially impair the
30value of the goods or the character of the unit.

(5) The consumer rejects goods under this section by indicating to the trader that
the consumer is rejecting the goods.

(6) The indication may be something the consumer says or does, but it must be
clear enough to be understood by the trader.

(7) 35From the time when a consumer rejects goods under this section—

(a) the trader has a duty to give the consumer a refund in respect of those
goods (subject to subsection (9)), and

(b) the consumer has a duty to make those goods available for collection by
the trader or (if there is an agreement for the consumer to return
40rejected goods) to return them as agreed.

(8) Section 20(9) to (13) apply to a consumer’s right to receive a refund under this
section (and in section 20(12) and (13) references the contract being treated as
at an end are to be read as references to goods being rejected).

(9) That right does not apply—

(a) if none of section 20(9) to (11) applies,

(b) to the extent that anything to which section 20(11) applies cannot be
given back in its original state, or

(c) to the extent that anything the consumer transferred under the contract
5cannot be divided so as to give back only the amount, or part of the
amount, to which the consumer is entitled.

(10) It may be open to a consumer to claim damages where there is no right to
receive a refund, or because of the limits of the right, or instead of a refund.

(11) References in this section to goods conforming to a contract are to be read in
10accordance with section 19(1) and (2), but they also include the goods
conforming to the terms described in section 17.

22 Time limit for short-term right to reject

(1) A consumer who has the short-term right to reject loses it if the time limit for
exercising it passes without the consumer exercising it, unless the trader and
15the consumer agree that it may be exercised later.

(2) An agreement under which the short-term right to reject would be lost before
the time limit passes is not binding on the consumer.

(3) The time limit for exercising the short-term right to reject (unless subsection (4)
applies) is the end of 30 days beginning with the first day after these have all
20happened—

(a) ownership or (in the case of a contract for the hire of goods, a hire-
purchase agreement or a conditional sales contract) possession of the
goods has been transferred to the consumer,

(b) the goods have been delivered, and

(c) 25where the contract requires the trader to install the goods or take other
action to enable the consumer to use them, the trader has notified the
consumer that the action has been taken.

(4) If any of the goods are of a kind that can reasonably be expected to perish after
a shorter period, the time limit for exercising the short-term right to reject in
30relation to those goods is the end of that shorter period (but without affecting
the time limit in relation to goods that are not of that kind).

(5) Subsections (3) and (4) do not prevent the consumer exercising the short-term
right to reject before something mentioned in subsection (3)(a), (b) or (c) has
happened.

(6) 35If the consumer requests or agrees to the repair or replacement of goods, the
period mentioned in subsection (3) or (4) stops running for the length of the
waiting period.

(7) If goods supplied by the trader in response to that request or agreement do not
conform to the contract, the time limit for exercising the short-term right to
40reject is then either—

(a) 7 days after the waiting period ends, or

(b) if later, the original time limit for exercising that right, extended by the
waiting period.

(8) The waiting period—

(a) 45begins with the day the consumer requests or agrees to the repair or
replacement of the goods, and

(b) ends with the day on which the consumer receives goods supplied by
the trader in response to the request or agreement.

23 Right to repair or replacement

(1) This section applies if the consumer has the right to repair or replacement (see
5section 19(3) and (4)).

(2) If the consumer requires the trader to repair or replace the goods, the trader
must—

(a) do so within a reasonable time and without significant inconvenience
to the consumer, and

(b) 10bear any necessary costs incurred in doing so (including in particular
the cost of any labour, materials or postage).

(3) The consumer cannot require the trader to repair or replace the goods if that
remedy (the repair or the replacement)—

(a) is impossible, or

(b) 15is disproportionate compared to the other of those remedies.

(4) Either of those remedies is disproportionate compared to the other if it imposes
costs on the trader which, compared to those imposed by the other, are
unreasonable, taking into account—

(a) the value which the goods would have if they conformed to the
20contract,

(b) the significance of the lack of conformity, and

(c) whether the other remedy could be effected without significant
inconvenience to the consumer.

(5) Any question as to what is a reasonable time or significant inconvenience is to
25be determined taking account of—

(a) the nature of the goods, and

(b) the purpose for which the goods were acquired.

(6) A consumer who requires or agrees to the repair of goods cannot require the
trader to replace them, or exercise the short-term right to reject, without giving
30the trader a reasonable time to repair them (unless giving the trader that time
would cause significant inconvenience to the consumer).

(7) A consumer who requires or agrees to the replacement of goods cannot require
the trader to repair them, or exercise the short-term right to reject, without
giving the trader a reasonable time to replace them (unless giving the trader
35that time would cause significant inconvenience to the consumer).

(8) In this Chapter, “repair” in relation to goods that do not conform to a contract,
means making them conform.

24 Right to price reduction or final right to reject

(1) The right to a price reduction is the right—

(a) 40to require the trader to reduce by an appropriate amount the price the
consumer is required to pay under the contract, or anything else the
consumer is required to transfer under the contract, and

(b) to receive a refund from the trader for anything already paid or
otherwise transferred by the consumer above the reduced amount.

(2) The amount of the reduction may, where appropriate, be the full amount of the
price or whatever the consumer is required to transfer.

(3) Section 20(9) to (16) apply to a consumer’s right to receive a refund under
subsection (1)(b).

(4) 5The right to a price reduction does not apply—

(a) if what the consumer is (before the reduction) required to transfer
under the contract, whether or not already transferred, cannot be
divided up so as to enable the trader to receive or retain only the
reduced amount, or

(b) 10if anything to which section 20(11) applies cannot be given back in its
original state.

(5) A consumer who has the right to a price reduction and the final right to reject
may only exercise one (not both), and may only do so in one of these
situations—

(a) 15after one repair or one replacement, the goods do not conform to the
contract;

(b) because of section 23(3) the consumer can require neither repair nor
replacement of the goods; or

(c) the consumer has required the trader to repair or replace the goods, but
20the trader is in breach of the requirement of section 23(2)(a) to do so
within a reasonable time and without significant inconvenience to the
consumer.

(6) There has been a repair or replacement for the purposes of subsection (5)(a) if—

(a) the consumer has requested or agreed to repair or replacement of the
25goods (whether in relation to one fault or more than one), and

(b) the trader has delivered goods to the consumer, or made goods
available to the consumer, in response to the request or agreement.

(7) For the purposes of subsection (6) goods that the trader arranges to repair at
the consumer’s premises are made available when the trader indicates that the
30repairs are finished.

(8) If the consumer exercises the final right to reject, any refund to the consumer
may be reduced by a deduction for use, to take account of the use the consumer
has had of the goods in the period since they were delivered, but this is subject
to subsections (9) and (10).

(9) 35No deduction may be made to take account of use in any period when the
consumer had the goods only because the trader failed to collect them at an
agreed time.

(10) No deduction may be made if the final right to reject is exercised in the first 6
months (see subsection (12)), unless—

(a) 40when the goods were supplied to the consumer, the make and model of
the goods were stated, and

(b) the trader gives the consumer clear, independent evidence of an active
second-hand market for the sale by traders to consumers of
corresponding goods.

(11) 45“Corresponding goods” means goods that are the same—

(a) in make and model, and

(b) in any other trade designation, and any characteristic, that a consumer
would reasonably be expected to consider relevant when buying the
goods new.

(12) In subsection (10) the first 6 months means 6 months beginning with the first
5day after these have all happened—

(a) ownership or (in the case of a contract for the hire of goods, a hire-
purchase agreement or a conditional sales contract) possession of the
goods has been transferred to the consumer,

(b) the goods have been delivered, and

(c) 10where the contract requires the trader to install the goods or take other
action to enable the consumer to use them, the trader has notified the
consumer that the action has been taken.

Other rules about remedies under goods contracts

25 Delivery of wrong quantity

(1) 15Where the trader delivers to the consumer a quantity of goods less than the
trader contracted to supply, the consumer may reject them, but if the consumer
accepts them the consumer must pay for them at the contract rate.

(2) Where the trader delivers to the consumer a quantity of goods larger than the
trader contracted to supply, the consumer may accept the goods included in
20the contract and reject the rest, or may reject all of the goods.

(3) Where the trader delivers to the consumer a quantity of goods larger than the
trader contracted to supply and the consumer accepts all of the goods
delivered, the consumer must pay for them at the contract rate.

(4) Where the consumer is entitled to reject goods under this section, any
25entitlement for the consumer to treat the contract as at an end depends on the
terms of the contract and the circumstances of the case.

(5) The consumer rejects goods under this section by indicating to the trader that
the consumer is rejecting the goods.

(6) The indication may be something the consumer says or does, but it must be
30clear enough to be understood by the trader.

(7) Subsections (1) to (3) do not prevent the consumer claiming damages, where it
is open to the consumer to do so.

(8) This section is subject to any usage of trade, special agreement, or course of
dealing between the parties.

26 35Instalment deliveries

(1) Under a contract to supply goods, the consumer is not bound to accept delivery
of the goods by instalments, unless that has been agreed between the consumer
and the trader.

(2) The following provisions apply if the contract provides for the goods to be
40delivered by stated instalments, which are to be separately paid for.

(3) If the trader makes defective deliveries in respect of one or more instalments,
the consumer, apart from any entitlement to claim damages, may be (but is not
necessarily) entitled—

(a) to exercise the short-term right to reject or the right to reject under
5section 19(6) (as applicable) in respect of the whole contract, or

(b) to reject the goods in an instalment.

(4) Whether paragraph (a) or (b) of subsection (3) (or neither) applies to a
consumer depends on the terms of the contract and the circumstances of the
case.

(5) 10In subsection (3), making defective deliveries does not include failing to make
a delivery in accordance with section 28.

(6) If the consumer neglects or refuses to take delivery of or pay for one or more
instalments, the trader may—

(a) be entitled to treat the whole contract as at an end, or

(b) 15if it is a severable breach, have a claim for damages but not a right to
treat the whole contract as at an end.

(7) Whether paragraph (a) or (b) of subsection (6) (or neither) applies to a trader
depends on the terms of the contract and the circumstances of the case.

27 Consignation, or payment into court, in Scotland

(1) 20Subsection (2) applies where—

(a) a consumer has not rejected goods which the consumer could have
rejected for breach of a term mentioned in section 19(3) or (6),

(b) the consumer has chosen to treat the breach as giving rise only to a
claim for damages or to a right to rely on the breach against a claim by
25the trader for the price of the goods, and

(c) the trader has begun proceedings in court to recover the price or has
brought a counter-claim for the price.

(2) The court may require the consumer—

(a) to consign, or pay into court, the price of the goods, or part of the price,
30or

(b) to provide some other reasonable security for payment of the price.

Other rules about goods contracts

28 Delivery of goods

(1) This section applies to any sales contract.

(2) 35Unless the trader and the consumer have agreed otherwise, the contract is to
be treated as including a term that the trader must deliver the goods to the
consumer.

(3) Unless there is an agreed time or period, the contract is to be treated as
including a term that the trader must deliver the goods—

(a) 40without undue delay, and

(b) in any event, not more than 30 days after the day on which the contract
is entered into.

(4) In this section—

(a) an “agreed” time or period means a time or period agreed by the trader
and the consumer for delivery of the goods;

(b) if there is an obligation to deliver the goods at the time the contract is
5entered into, that time counts as the “agreed” time.

(5) Subsections (6) and (7) apply if the trader does not deliver the goods in
accordance with subsection (3) or at the agreed time or within the agreed
period.

(6) If the circumstances are that—

(a) 10the trader has refused to deliver the goods,

(b) delivery of the goods at the agreed time or within the agreed period is
essential taking into account all the relevant circumstances at the time
the contract was entered into, or

(c) the consumer told the trader before the contract was entered into that
15delivery in accordance with subsection (3), or at the agreed time or
within the agreed period, was essential,

then the consumer may treat the contract as at an end.

(7) In any other circumstances, the consumer may specify a period that is
appropriate in the circumstances and require the trader to deliver the goods
20before the end of that period.

(8) If the consumer specifies a period under subsection (7) but the goods are not
delivered within that period, then the consumer may treat the contract as at an
end.

(9) If the consumer treats the contract as at an end under subsection (6) or (8), the
25trader must without undue delay reimburse all payments made under the
contract.

(10) If subsection (6) or (8) applies but the consumer does not treat the contract as
at an end—

(a) that does not prevent the consumer from cancelling the order for any of
30the goods or rejecting goods that have been delivered, and

(b) the trader must without undue delay reimburse all payments made
under the contract in respect of any goods for which the consumer
cancels the order or which the consumer rejects.

(11) If any of the goods form a commercial unit, the consumer cannot reject or
35cancel the order for some of those goods without also rejecting or cancelling the
order for the rest of them.

(12) A unit is a “commercial unit” if division of the unit would materially impair the
value of the goods or the character of the unit.

(13) This section does not prevent the consumer seeking other remedies where it is
40open to the consumer to do so.

(14) See section 2(5) and (6) for the application of this section where goods are sold
at public auction.

29 Passing of risk

(1) A sales contract is to be treated as including the following provisions as terms.

(2) The goods remain at the trader’s risk until they come into the physical
possession of—

(a) the consumer, or

(b) a person identified by the consumer to take possession of the goods.

(3) 5Subsection (2) does not apply if the goods are delivered to a carrier who—

(a) is commissioned by the consumer to deliver the goods, and

(b) is not a carrier the trader named as an option for the consumer.

(4) In that case the goods are at the consumer’s risk on and after delivery to the
carrier.

(5) 10Subsection (4) does not affect any liability of the carrier to the consumer in
respect of the goods.

(6) See section 2(5) and (6) for the application of this section where goods are sold
at public auction.

30 Goods under guarantee

(1) 15This section applies where—

(a) there is a contract to supply goods, and

(b) there is a guarantee in relation to the goods.

(2) “Guarantee” here means an undertaking to the consumer given without extra
charge by a person acting in the course of the person’s business (the
20“guarantor”) that, if the goods do not meet the specifications set out in the
guarantee statement or in any associated advertising—

(a) the consumer will be reimbursed for the price paid for the goods, or

(b) the goods will be repaired, replaced or handled in any way.

(3) The guarantee takes effect, at the time the goods are delivered, as a contractual
25obligation owed by the guarantor under the conditions set out in the guarantee
statement and in any associated advertising.

(4) The guarantor must ensure that—

(a) the guarantee sets out in plain and intelligible language the contents of
the guarantee and the essential particulars for making claims under the
30guarantee,

(b) the guarantee states that the consumer has statutory rights in relation
to the goods and that those rights are not affected by the guarantee, and

(c) where the goods are offered within the territory of the United
Kingdom, the guarantee is written in English.

(5) 35The contents of the guarantee to be set out in it include, in particular—

(a) the name and address of the guarantor, and

(b) the duration and territorial scope of the guarantee.

(6) The guarantor and any other person who offers to supply to consumers the
goods which are the subject of the guarantee must, on request by the consumer,
40make the guarantee available to the consumer within a reasonable time, in
writing and in a form accessible to the consumer.

(7) What is a reasonable time is a question of fact.

(8) If a person fails to comply with a requirement of this section, the enforcement
authority may apply to the court for an injunction or (in Scotland) an order of
specific implement against that person requiring that person to comply.

(9) On an application the court may grant an injunction or (in Scotland) an order
5of specific implement on such terms as it thinks appropriate.

(10) In this section—

• “court” means—

  (a)

  in relation to England and Wales, the High Court or the county
  court,

  (b)

  10in relation to Northern Ireland, the High Court or a county
  court, and

  (c)

  in relation to Scotland, the Court of Session or the sheriff;

• “enforcement authority” means—

  (a)

  the Competition and Markets Authority,

  (b)

  15a local weights and measures authority in Great Britain, and

  (c)

  the Department of Enterprise, Trade and Investment in
  Northern Ireland.

Can a trader contract out of statutory rights and remedies under a goods contract?

31 Liability that cannot be excluded or restricted

(1) 20A term of a contract to supply goods is not binding on the consumer to the
extent that it would exclude or restrict the trader’s liability arising under any
of these provisions—

(a) section 9 (goods to be of satisfactory quality);

(b) section 10 (goods to be fit for particular purpose);

(c) 25section 11 (goods to be as described);

(d) section 12 (other pre-contract information included in contract);

(e) section 13 (goods to match a sample);

(f) section 14 (goods to match a model seen or examined);

(g) section 15 (installation as part of conformity of goods with contract);

(h) 30section 16 (goods not conforming to contract if digital content does not
conform);

(i) section 17 (trader to have right to supply the goods etc);

(j) section 28 (delivery of goods);

(k) section 29 (passing of risk).

(2) 35That also means that a term of a contract to supply goods is not binding on the
consumer to the extent that it would—

(a) exclude or restrict a right or remedy in respect of a liability under a
provision listed in subsection (1),

(b) make such a right or remedy or its enforcement subject to a restrictive
40or onerous condition,

(c) allow a trader to put a person at a disadvantage as a result of pursuing
such a right or remedy, or

(d) exclude or restrict rules of evidence or procedure.

(3) The reference in subsection (1) to excluding or restricting a liability also
45includes preventing an obligation or duty arising or limiting its extent.