When purchasing goods, a buyer can consider what avenues could be explored if there are any breaches by the seller. The starting point would be to consider whether the buyer and the seller are each acting in a personal or professional capacity. 

Depending on the answer to this question, different legislation would apply and reflect how much the buyer is protected and what options are available if anything goes wrong.   

I will now look at the different combinations of relationships that could apply to the purchase and explain the legislation that would accordingly apply. 

Consumer to Business Relationship

s. 2 (2) of the Consumer Rights Act 2015, defines a trader as a ‘person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf.’    

s. 2 (3) of the Consumer Rights Act 2015 defines a consumer as ‘an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession’. 

So, if the buyer is making a purchase unrelated to their profession and purchasing from a seller who is acting through the course of their profession, this would be a consumer to business relationship. Therefore, the Consumer Rights Act 2015 would apply to the transaction.  

In line with the Act, the following three requirements would need to be met for goods sold by a trader: 

1. The goods must be of satisfactory quality
2. The goods must be fit for purpose
3. The goods must match the description given by the trader

As the relationship between consumer and business is by its nature unequal, these terms cannot be excluded by agreement. 

If the consumer feels the goods sold to them do not meet any of the above 3 requirements, the following options are available to them: 

1. Reject the goods and ask for a full refund within 30 days of the purchase
2. Offer the trader one opportunity to repair or replace the goods within the first 6 months of the purchase
3. If the cost of repair or replacement is too much considering the initial value of the goods, the consumer could then be entitled to a full or partial refund instead, within the first 6 months of the purchase. 

It is important to be aware that if the consumer notices an issue with the goods, such that they don’t meet the above 3 requirements, within the first 6 months of purchase, it is presumed that the issue was present at the time of purchase unless the trader proves otherwise. 

However, if the consumer notices an issue with the goods after the first 6 months, unless they can prove otherwise, it is presumed that it occurred during the time they had the goods. 

Lastly, where the consumer bought digital content, the trader would be required to repair or replace the content. If this is not possible, the consumer could be entitled to a price reduction. Here, the consumer would not be able to reject the content.       

 Business to Business Relationship

Previously, the Sale of Goods Act 1979 (SGA) had applied to contracts involving consumers. However, subsequent to the introduction of the Consumer Rights Act 2015, the scope of the SGA is now limited to business to business relationships, where both buyer and seller are acting in a professional capacity.  

s. 2(1) of the SGA defines a sale of goods as ‘…a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price.’

So, if the buyer has a commercial contract with a seller, this would create a business to business relationship. 

In these such agreements, even if not expressly agreed between the parties, the SGA implies the following terms:

1. The goods be of satisfactory quality
2. The goods be fit for purpose
3. The goods do match the description given by the the seller

However, unlike between consumer to business relationships, here it is possible for the two businesses to exclude the above terms when entering agreements for the goods. The exclusion would not be enforceable though ‘to the extent that it is shown that it would not be fair or reasonable to allow reliance on the term’ as stated in s. 55 (4) SGA.  

Depending on what terms were agreed between the parties and which have been breached by the seller, the options available to a buyer could be: 

1. Rejection of the goods (or partial rejection) and recovery of damages
2. Damages for the non-delivery of the goods by the seller
3. Damages for breaches of warranty
4. Applying to court for specific performance of the contract by the seller

Consumer to Consumer Relationship

 This relationship is the most precarious. Examples of where it can arise are where individuals privately purchase online through e-bay, etsy etc. 

As both parties are consumers, this relationship would not come under the Consumer Rights Act 2015; this legislation is specific to consumer to business relationships. 

General contract principles would apply and any action that a consumer could take would depend on if the other party has breached any agreed term or any assurance given through online messages.  

Therefore, the principle ‘caveat emptor’- buyer beware is apt for these transactions. It is up to the buyer to ask any questions and obtain any needed information before making a decision to purchase. 

The SGA could potentially apply, but only insofar as specific terms on how the goods were to be sold and the consequences for any failings were agreed between the parties in a contract, or more likely through exchange of messages on online platforms. 

Unlike the previous two relationships, the following terms would not be implied into any agreements and would not apply unless specifically agreed:

1.    The goods to be of satisfactory quality

2.    The goods to be fit for purpose

However, the principle that the goods must match the description given by the seller does apply to consumer to consumer relationships, even where it is not expressly agreed in writing in messages etc. 

If the seller makes a false statement on which the buyer relies and thereafter the buyer suffers loss as a result, they can rescind the agreement and seek damages, under the Misrepresentation Act 1967.

The application of many of the legal concepts in this post would be decided by the Court when considering the individual circumstances of each different case before it.    

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The information provided in this post is for general informational purposes only and does not constitute formal legal advice. Reading this post or contacting us through it does not create a solicitor-client relationship. Laws, regulations, and precedents change frequently. Please feel free to contact the writer regarding the specifics of your individual situation before taking or refraining from any action.