Consumer transactions – How does the law help?

By Najma Ahmad

Every consumer transaction is governed by the law of contract. The consumer agrees to purchase goods and the seller in turn provides the services.

Common problems faced by a consumer are that goods purchased turn out to be defective or not up to standard. For example, your washing machine breaks down after one month, the TV blows up or the cooker burns out..

The Law

Section 14 of the Sale of Goods Act 1979 (as amended) applies to goods that are sold in the course of a business. It does not cover goods sold in a private sale; however it does apply to business and private buyers. Goods sold in the course of a business include sales by stores, garages and mail order.

Under section 14 (2A) of the 1979 Act, all goods must be of satisfactory quality.

So what does this mean?

Goods are of “satisfactory quality” if they meet the standard that a reasonable person would regard as satisfactory. Therefore a washing machine that breaks down two days after purchase would, by a reasonable person, mean that the goods supplied were unsatisfactory. Section 14 (3) of the Sale of Goods Act 1979 (as amended) takes this a step further and states that the quality of goods includes their state and condition, i.e. must be “fit for the purposes in which it was intended”. Aspects of quality of goods are appearance and finish, safety, durability and the goods must be free from minor defects. This however varies according to the goods that are supplied, whether they are new or old and the price that consumers pay for them.

New goods – how long should they last?

The 1979 Act as amended does not deal with this; therefore each case is decided upon its own merits.

For example:

Mr A buys a brand new car from Company B who is a seller for Manufacturer C. If after two days of driving the engine seizes up, the car clearly would not be of satisfactory quality.

Case law suggests that appearance defects for all goods must be taken into account when deciding whether or not the goods are of satisfactory quality. Consumers tend to purchase goods to look good and not just to perform a function.