The trainee advisor in Citizens' Advice Bureaux have been allotted with Ben's case to provide information about the legal rules which are applicable to the case.
- Analyse and advice Ben about the legal rules of implied terms which relates to this case.
- Advising Ben on the statutory provisions applicable on the transfer of possession or property.
- Conducting an evaluation of the statutory provisions concerning buyer's and seller's remedies in the sale of goods.
- Evaluating and giving advice on the product liability and legal rules and statutory provisions for faulty goods.
Business law plays an important role for the complete protection of consumer from various frauds, threats and coercion caused by the seller for selling his goods. Therefore it is necessary to protect customers in order to maintain a healthy relationship between buyer and seller. There are certain acts which are introduced by the government which set standards for all activities that are conducted in the market in order to sustain the ethical practices.
The following report includes discussion of a Case Scenario in which the buyer has provided some faulty goods, regarding this aspect following report comprises of the various laws and acts that are related to the goods and services (McKendrick, 2014). It has also discussed about role of a consumer in a situation where he has been provided some faulty products and suggested remedies for the same.
1.1 Legal Rules relating sales of goods and supply of services
Issues: Ben brought car from a second hand car dealer and stated using the same. After using it from some time he notices that hat car is dis[plying certain irregularities while driving uphill. On looking into the history books Ben realised that the seller have presented him with Wrong information.
Sales of goods act, 1979
Section 14: The sellers is responsible to sales goods under defined conditions which must be free from defects is safe and durable.
Contract law: The statement made party to agreement to induce other party to enter into contract is termed as representation and non-fulfilment of the same the innocent party can claim remedy under misrepresentation.
Application and conclusion: The seller is under fault as the car was sold with misrepresentation's of the conditions and the contract terms being not reasonable. The contract can be set aside or stated a voidable on behalf of Ben.
There are various types of rules and regulations which are imposed on the activities related to the sales of several goods and services. There is an act which is known as Sales and Supply of Goods Acts that was established in 1994 and provided certain criteria for aspects related to properties of the goods and services (Dari-Mattiacci, Guerriero and Huang, 2016).
The product must have label providing complete description of its details related to its manufacturing, expiry date and material or ingredients used for production along with other necessary information beneficial for consumers. Quality is another feature and a major factor to be considered by the producer as well as the buyer. Any product which has a degraded quality should be returned within 6 months of purchasing which is regarded as the defect item which is sold by the manufacturer (Ali, 2018).
Every goods is produced for the achievement of some aim therefore that particular good should be perfectly fit for the use for which the item has been made.
1.2 Statutory provisions on the transfer of property and possessions
Issues: Whether all rights and full possession is transferred to Ban?
Sales of gods act, 1979:
Section 14: product must be sold in the conditions in which it is mentioned to buyer and same must be defined in the contract as terms.
Section 16-20: this defines that with selling the good all the rights and ownership is transferred to buyer from seller along with inherent risk which are not foreseeable.
Section 21-25 : this defines that on making full payments legal possession is of buyer over the property so sold.
Application and conclusion: the seller have received the whole amount of £10,000 along with extra deposit of 150. This stats the condition that full rights and possession of the car has been transferred to Ben.
There are numerous impacts which get introduced along with transfer of properties between two individuals.
The transfer depends on two types of good which are basically ascertain and certain , here in the case Ben was provided ascertained good which can be easily given to him from the seller (Twigg-Flesner and Howells,2017).
In addition, the action of transferring occurs when both the parties have mutual agreement for particular object. In this particular scenario, Ben was interested in car and had the test drive where he got completely satisfied with it and seek forward for buying it on mutual decision of transferring the car from mechanic to him. There should be unison of minds between customer and seller as they should have similar intention where one is interested for selling and other for buying. According to the contract, complete disposition of the car can only be done by the seller on term that he will givedecided amount for it and also seller is not regarded as responsible for the risk which are associated with the item which is the important condition for any transaction of goods (Bridge, 2017).
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1.3 Statutory Provisions on buyer's and seller's remedies in sale of goods contracts
Rules: Sales of gods act, 1979
Remedies available to buyer section (40-50): in case of misrepresentation of contract being voidable on part of buyer, the purchaser can sought a remedy in from of return the defective goods in reasonable time. Remedy is also available under section 50 as claiming the damages for breach of the contract.
Remedies available to seller section (10-15): the seller can stop the transfer of property and might not transfer the session of the goods in case the buyer is insolvents and it is identified that purchaser can not pay the amount of sales transaction.
There are detaining remedies for issues which are related to the selling of the particular goods and services. In Case of Ben, he was provided a car which was defected and the seller does not informed him regarding this aspects which lead to a case of fraud in which he can obtain claim for the damages which occurred due to the defect of the car and also he can ask for any replacement or return within 6 months from the agreem