Ivan Mykolenko M2 M3 D2
M2 m3 d2
Unit – 21 (Business Law)
BTEC National Diploma In Business Level 3
The Date
Author: Your Name
Your Teacher
1
,Ivan Mykolenko M2 M3 D2
Unit 21 – Business Law
On completion of this unit I should:
1) Understand the legal requirements for a valid contract
2) Understand the meaning and effect of terms in a standard form contract
3) Understand the impact of statutory consumer protection on the parties to a contract
4) Know the remedies available to the parties to a contract
Task 3:
a) Analyse how consumers are protected in the event of breach of contract for the
supply/sale of goods or services.
b) Analyse the remedies available to a business provider in the event of breach of
contract for the supply of goods or services.
c) Evaluate the statutory protection given to a consumer in their dealings with a business
and the remedies available.
2
, Ivan Mykolenko M2 M3 D2
How consumer’s rigHts can be protected?
When you buy goods or services the law gives you consumer rights. These protect you
from being treated unfairly by a trader. You may have received poor service or you may want
to switch suppliers or cancel a contract. There are some UK’s and EU’s consumer protection
laws, which serve to protect individuals from fraudulent corporations or business practices.
These laws may also support consumers in rebuilding credit or in recovering
from bankruptcy. Some of these laws are: Sales of Goods Act 1979, Supply of Goods and
Services Act 1982 and Trade Descriptions Act 1968.
Let’s imagine, you have bought a new car from the official Volkswagen’s auto salon,
you’ve signed the contract, but after a couple of month driving you are discovering that
gearbox doesn’t work appropriately. You phoned up the salon you’ve bought the car of and
explained your situation, but unfortunately they reject to repair or to give you a new car,
even though the contract you’ve signed buying the car has a term, which states that
Volkswagen Company would repair or change your car if any faults where discovered within
the first year. What shall you do?
The Volkswagen’s basic duty in a sale of goods contract would be to provide the goods in
accordance with the terms of the contract. Therefore if the seller fails to provide in the
manner which was required under the contract then he will be in breach of the contract. The
Volkswagen would also be in breach of the contract even if it provided the goods on time but
the goods themselves did not comply with the terms of the contract.
The Sale of Goods Act 1979 contains provisions which allow for remedies to be given in
consumer contracts when the seller fails to perform. Also the general law of contract contains
remedies which can be used when the contract has been breached. The remedies available
could include compensation or perhaps bringing the contract to an end. When the buyer is a
consumer (which means that the buyer is not acting in the contract for a company) then he
will have further rights to rely on. This is because consumers are given more protection by
the law because they could potentially be more defenceless to fraudulent businesses.
Thus, knowing such information you can freely take your contract, go to the court and sue the
Volkswagen auto salon, which breaches the contract of sale of goods.
Where there is a breach of warranty by the seller, or where the buyer elects to treat any
breach of a condition on the part of the seller as a breach of warranty, the buyer is not by
reason only of such breach of warranty entitled to reject the goods; but he may:
(a) set up against the seller the breach of warranty in diminution or extinction of the price, or
(b) maintain an action against the seller for damages for the breach of warranty.
Sales of Goods Act 1979
3
M2 m3 d2
Unit – 21 (Business Law)
BTEC National Diploma In Business Level 3
The Date
Author: Your Name
Your Teacher
1
,Ivan Mykolenko M2 M3 D2
Unit 21 – Business Law
On completion of this unit I should:
1) Understand the legal requirements for a valid contract
2) Understand the meaning and effect of terms in a standard form contract
3) Understand the impact of statutory consumer protection on the parties to a contract
4) Know the remedies available to the parties to a contract
Task 3:
a) Analyse how consumers are protected in the event of breach of contract for the
supply/sale of goods or services.
b) Analyse the remedies available to a business provider in the event of breach of
contract for the supply of goods or services.
c) Evaluate the statutory protection given to a consumer in their dealings with a business
and the remedies available.
2
, Ivan Mykolenko M2 M3 D2
How consumer’s rigHts can be protected?
When you buy goods or services the law gives you consumer rights. These protect you
from being treated unfairly by a trader. You may have received poor service or you may want
to switch suppliers or cancel a contract. There are some UK’s and EU’s consumer protection
laws, which serve to protect individuals from fraudulent corporations or business practices.
These laws may also support consumers in rebuilding credit or in recovering
from bankruptcy. Some of these laws are: Sales of Goods Act 1979, Supply of Goods and
Services Act 1982 and Trade Descriptions Act 1968.
Let’s imagine, you have bought a new car from the official Volkswagen’s auto salon,
you’ve signed the contract, but after a couple of month driving you are discovering that
gearbox doesn’t work appropriately. You phoned up the salon you’ve bought the car of and
explained your situation, but unfortunately they reject to repair or to give you a new car,
even though the contract you’ve signed buying the car has a term, which states that
Volkswagen Company would repair or change your car if any faults where discovered within
the first year. What shall you do?
The Volkswagen’s basic duty in a sale of goods contract would be to provide the goods in
accordance with the terms of the contract. Therefore if the seller fails to provide in the
manner which was required under the contract then he will be in breach of the contract. The
Volkswagen would also be in breach of the contract even if it provided the goods on time but
the goods themselves did not comply with the terms of the contract.
The Sale of Goods Act 1979 contains provisions which allow for remedies to be given in
consumer contracts when the seller fails to perform. Also the general law of contract contains
remedies which can be used when the contract has been breached. The remedies available
could include compensation or perhaps bringing the contract to an end. When the buyer is a
consumer (which means that the buyer is not acting in the contract for a company) then he
will have further rights to rely on. This is because consumers are given more protection by
the law because they could potentially be more defenceless to fraudulent businesses.
Thus, knowing such information you can freely take your contract, go to the court and sue the
Volkswagen auto salon, which breaches the contract of sale of goods.
Where there is a breach of warranty by the seller, or where the buyer elects to treat any
breach of a condition on the part of the seller as a breach of warranty, the buyer is not by
reason only of such breach of warranty entitled to reject the goods; but he may:
(a) set up against the seller the breach of warranty in diminution or extinction of the price, or
(b) maintain an action against the seller for damages for the breach of warranty.
Sales of Goods Act 1979
3
