A "seller or supplier" is any individual or company which makes relevant contracts in the course of their business. However it does mean that the issue is no longer as clear cut as previously.
In assessing the fairness of a term, the following must be taken into account: It does, however, extend the scope of terms which can be rendered ineffective; especially when dealing with unfair terms that do not constitute exemption clauses. The sellers were in a better position to get insurance for the loss than the buyers.
A list of examples of unfair terms are set out in Schedule 2.
The topic of unfair terms is vast, and could equally include specific contracts falling under the Consumer Credit Actthe Employment Rights Act or the Landlord and Tenant Act Simply, the UTCCR say that a consumer is not bound by a standard term in a contract with a seller or supplier if that term is unfair.
Unfair Contract Terms The inclusion of contractual terms are subject to a test in the courts so that they are used fairly.
The fairness of the core provisions does however remain a factor to be taken into account when assessing the fairness of other terms in the contract. You can help by adding to it.
However in OFT v Abbey National plc  the Supreme Court held that if a term related in any way to price, it could not by virtue of regulation 6 2 be assessed for fairness. If you have any questions about this article, please do contact us and ask. In the complex case of Director General of Fair Trading v First National Bank,  the bank 's seemingly unfair interest term was found to be in good faith as the term guarded the bank from a possible situation of receiving no interest defeating their business objective.
What this means is illustrated by examples of types of unfair term listed in Schedule 2 to the Regulations see below.
There was some criticism in legal circles that the UK government had not bothered to repeal and reenact the Act to embrace the Directive. As a trader, we can tell you that very few consumers are aware of these regulations and they are very rarely enforced. Unfair Contract Terms Act "None of you nowadays will remember the trouble we had - when I was called to the Bar - with exemption clauses.
Regulation 7 says that standard terms must use plain and intelligible language. Does the Unfairness Test Apply to all Terms? The Regulations overlap somewhat with the Unfair Contract Terms Act which deals specifically with exemption clauses.
They were re-issued on 1 October They do not have to have the same form or mechanism. Transparency is also fundamental to fairness. In DGFT v First National Bank plc  the House of Lords held that given the purpose of consumer protection, regulation 6 2 should be construed tightly and Lord Bingham stated good faith implies fair, open and honest dealing.
This controversial stance was tempered by their Lordships' emphasis that any charges must be wholly transparent,  though its compatibility with EU law is not yet established by the European Court of Justiceand it appears questionable that it would be decided the same under the proposed Unfair Contract Terms Bill.
The lease extension took effect as a surrender of the lease and a grant of a new extended lease. Section 2 2 stipulates that any clause restricting liability for loss to property has to pass the "reasonableness test".
Other changes There have been several significant deletions from the Regulations.
All the High Street banks, including Abbey Nationalhad a practice of charging high fees if account holders, unplanned, exceeded through withdrawals their normal overdraft limit. Enforcement This is the key area in which the Regulations differ from the original Regulations.
It knew well that the little man would never read the exemption clauses or understand them. The Directive set out requirements that in many ways are narrower than rules already in place in English law.
In the UK, these Regulations work to render ineffective terms that benefit seller or suppliers against the interests of consumers. This does not apply to contracts for the purchase or sale of foreign currency, travellers' cheques or international money orders denominated in foreign currency.
The principle of freedom of contract can no longer be said to justify using standard terms to take away protection consumers would otherwise enjoy. The courts may in future prohibit the use of any similar term by any person. This is generally actioned where there is a real as opposed to fanciful threat of harm to the collective interests of timeshare consumers.
In order to ensure consumer protection laws are actually enforced, the Office of Fair Trading has jurisdiction to bring consumer regulation cases on behalf of consumers after receiving complaints.
Consumers can also rely on the Regulations in a dispute with you.
This looks at the ability of either party to get insurance, their bargaining power and their alternatives for supply, and a term's transparency.The primary legislation on unfair contract terms deriving from the EU is the Unfair Terms in Consumer Contracts Regulations Both UCTA and UTCCR cover similar ground and can give rise to concurrent claims.
The Directive Council Directive 93/13/ECC on unfair terms in consumer contracts UTCCRs Unfair Terms in Consumer Contracts Regulations UCTA Unfair Contract Terms Act CCA Consumer Credit Actas amended CCRs Consumer Contracts.
Assessment of unfair terms. 6. —(1) Without prejudice to regulation 12, the unfairness of a contractual term shall be assessed, taking into account the nature of the goods or services for which the contract was concluded and by referring, at the time of conclusion of the contract, to all the circumstances attending the conclusion of the contract and to all the other terms of the contract or.
Unfair contract terms guidance 7 I INTRODUCTION This is the second issue of the guidance on the Unfair Terms in Consumer Contracts Regulations (the 'Regulations') and replaces the original.
UK UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS (SI NO ) Sec. 1 Citation and commencement These Regulations may be cited as the Unfair Terms in Consumer Contracts Regulations and shall come. The Unfair Terms in Consumer Contracts Regulations (the "Regulations") were replaced by the Consumer Rights Act on 1 October For guidance in relation to contracts entered into on or after 1 Octoberplease see our page on the Consumer Rights Act.Download