Excluding liability for satisfactory quality in a consumer sale (Consumer Rights Act 2015 s.31)
Bethan Lloyd buys a new washing machine for her home from Sparkle Appliances Ltd, a retailer in England. Sparkle's order form, which Bethan signs, states in bold: "Goods sold as seen. Sparkle accepts no liability for any fault in the goods." Within a week the drum stops turning because of a manufacturing defect. Sparkle says Bethan agreed to the clause and refuses to do anything.
Which of the following best describes the effect of the clause?
Choose one answer to see the reasoning.
Worked answer
Correct answer A: It is not binding on Bethan so far as it would exclude Sparkle's liability for the statutory term that the goods be of satisfactory quality.
THE RULE TO REMEMBER
A trader cannot exclude or restrict liability to a consumer for the statutory term that goods are of satisfactory quality; such a term is not binding on the consumer (CRA 2015 ss.9 and 31).
Excluding liability for satisfactory quality in a consumer sale (Consumer Rights Act 2015 s.31)
Section 9 of the Consumer Rights Act 2015 treats every contract by which a trader supplies goods to a consumer as including a term that the quality of the goods is satisfactory. Section 31(1)(a) provides that a 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 s.9. Bethan is a consumer buying for her home and Sparkle is a trader. A new washing machine whose drum fails within a week through a manufacturing defect is unlikely to be of satisfactory quality. The clause attempts to exclude Sparkle's liability for that, so it is not binding on her to that extent, however clearly it was displayed and even though she signed it.
Why B is wrong: Section 31 operates regardless of signature or prominence; the term simply does not bind the consumer to that extent.
Why C is wrong: For consumer contracts the CRA 2015 applies, and s.31 is an outright bar rather than a reasonableness test.
Why D is wrong: Section 31 makes the clause non-binding to the extent it restricts any liability under s.9, not just some remedies.
Why E is wrong: Liability under s.9 is strict; the trader's knowledge of the defect is irrelevant to whether the exclusion binds.
A little more practice done.
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