What consumers need to know
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7 February 2012
Consumer need to watch out for liability
clauses. Suppliers will almost always seek to restrict exclude or limit
liability under UK law.
Consumer need to know that a business cannot limit or exclude their
liability at will.
The Unfair Contract Terms Act 1977 or UCTA is the starting point.
However this has been somewhat overtaken by regulation 8(1) of the
Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2083)
('UTCCR 1999')(to be read in tandem with UCTA 1977) which provides that
consumer contracts may be unfair if they have not been individually
negotiated and are not binding on the consumer.
An unfair term is one which is 'contrary to the requirement of good
faith causes a significant imbalance in the parties' rights and
obligations under the contract to the detriment of the consumer'
(Regulation 5(1) (SI 1999/2083)). A list of the types of clauses that
may be caught by this is set out in Schedule 2 (SI 1994/3159) of the
UTCCR 1999 and these include exclusion and limitation clauses.
The ever excellent OFT provides guidance and care on the Regulations.
It is going to become a hot potato as the consumer will be the king and
suppliers will realise that it must listen to its customers.
Michael Coyle is a Solicitor Advocate and can be contacted at
firstname.lastname@example.org. Lawdit is a commercial law firm based in
About the Author
Solicitors offer services and advice for litigation,
commercial contracts, Intellectual Property and IT legal agreements. We
are experts in commercial law with a heavy emphasis on Intellectual
Property, Internet and e-commerce law. Lawdit is a member of the
International Trademark Association, the Solicitors' Association of
Higher Court Advocates and we are the appointed Solicitors to the
largest webdesign association in the world, the United Kingdom Website
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Article Published/Sorted/Amended on Scopulus 2012-05-24 19:10:03 in Legal Articles