6. The principal Act is amended by inserting, immediately after section 12, the following Part:“PART III | ADDITIONAL CONSUMER RIGHTS IN RESPECT OF NON-CONFORMING GOODS |
| Interpretation of this Part |
12A.—(1) In this Part, unless the context otherwise requires —“applicable contract” means —| (a) | a contract of sale of goods; | | (b) | a contract for the transfer of goods; or | | (c) | a hire-purchase agreement; |
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| “contract for the transfer of goods” has the same meaning as in the Supply of Goods Act (Cap. 394); |
| “contract of sale of goods” has the same meaning as in the Sale of Goods Act (Cap. 393); |
| “delivery” has the same meaning as in the Sale of Goods Act; |
“goods” —| (a) | in relation to a sale, has the same meaning as in the Sale of Goods Act; and | | (b) | in relation to any other transfer, has the same meaning as in the Supply of Goods Act; |
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| “hire-purchase agreement” has the same meaning as in the Hire-Purchase Act (Cap. 125); |
| “repair” means, in cases where there is a lack of conformity in goods within the meaning of subsection (4), to bring the goods into conformity with the contract; |
“transferee” —| (a) | in relation to a contract of sale of goods, means the buyer within the meaning of the Sale of Goods Act; | | (b) | in relation to a contract for the transfer of goods, has the same meaning as in the Supply of Goods Act; and | | (c) | in relation to a hire-purchase agreement, means the hirer within the meaning of the Hire-Purchase Act; |
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“transferor” —| (a) | in relation to a contract of sale of goods, means the seller within the meaning of the Sale of Goods Act; | | (b) | in relation to a contract for the transfer of goods, has the same meaning as in the Supply of Goods Act; and | | (c) | in relation to a hire-purchase agreement, means the owner within the meaning of the Hire-Purchase Act. |
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| (2) References in this Part to dealing as consumer are to be construed in accordance with Part I of the Unfair Contract Terms Act (Cap. 396). |
| (3) For the purposes of this Part, it is for a transferor claiming that the transferee does not deal as consumer to show that he does not. |
(4) For the purposes of this Part, goods do not conform to —| (a) | a contract of sale of goods if there is, in relation to the goods, a breach of an express term of the contract or a term implied by section 13, 14 or 15 of the Sale of Goods Act; | | (b) | a contract for the supply or transfer of goods if there is, in relation to the goods, a breach of an express term of the contract or a term implied by section 3, 4 or 5 of the Supply of Goods Act; and | | (c) | a hire-purchase agreement if there is, in relation to the goods, a breach of an express term of the contract or a term implied by section 6A, 6B or 6C of the Hire-Purchase Act. |
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(5) The following provisions shall not apply to this Part:| (a) | the definitions of “consumer” and “goods” in section 2(1); | | (b) | section 2(2); and | | (c) | the provisions in Part IV. |
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12B.—(1) This Part applies if —| (a) | the transferee deals as consumer; | | (b) | the goods do not conform to the applicable contract at the time of delivery; and | | (c) | the contract was made on or after the date of commencement of section 6 of the Consumer Protection (Fair Trading) (Amendment) Act 2012. |
(2) If this section applies, the transferee has the right —| (a) | under and in accordance with section 12C, to require the transferor to repair or replace the goods; or | | (b) | under and in accordance with section 12D —| (i) | to require the transferor to reduce the amount to be paid for the transfer by the transferee by an appropriate amount; or | | (ii) | to rescind the contract with regard to the goods in question. |
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| (3) For the purposes of subsection (1)(b), goods which do not conform to the applicable contract at any time within the period of 6 months starting from the date on which the goods were delivered to the transferee must be taken not to have so conformed at that date. |
(4) Subsection (3) does not apply if —| (a) | it is established that the goods did so conform at that date; or | | (b) | its application is incompatible with the nature of the goods or the nature of the lack of conformity. |
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| Repair or replacement of goods |
12C.—(1) If section 12B applies, the transferee may require the transferor to —| (a) | repair the goods; or | | (b) | replace the goods. |
(2) If the transferee requires the transferor to repair or replace the goods, the transferor must —| (a) | repair or, as the case may be, replace the goods within a reasonable time and without causing significant inconvenience to the transferee; and | | (b) | bear any necessary costs incurred in doing so (including in particular the cost of any labour, materials or postage). |
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(3) The transferee must not require the transferor to repair or, as the case may be, replace the goods if that remedy is —| (a) | impossible; | | (b) | disproportionate in comparison to the other of those remedies; or | | (c) | disproportionate in comparison to an appropriate reduction in the amount to be paid for the transfer under paragraph (a), or rescission under paragraph (b), of section 12D(1). |
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(4) One remedy is disproportionate in comparison to the other if the one imposes costs on the transferor which, in comparison to those imposed on him by the other, are unreasonable, taking into account —| (a) | the value which the goods would have if they conformed to the applicable contract; | | (b) | the significance of the lack of conformity with the applicable contract; and | | (c) | whether the other remedy could be effected without causing significant inconvenience to the transferee. |
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(5) Any question as to what is a reasonable time or significant inconvenience is to be determined by reference to —| (a) | the nature of the goods; and | | (b) | the purpose for which the goods were acquired. |
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| Reduction in amount to be paid or rescission of contract |
12D.—(1) If section 12B applies, the transferee may —| (a) | require the transferor to reduce the amount to be paid for the transfer of the goods in question to the transferee by an appropriate amount; or | | (b) | rescind the contract with regard to those goods, |
| if the condition in subsection (2) is satisfied. |
(2) The condition is that —| (a) | by virtue of section 12C(3) the transferee may require neither repair nor replacement of the goods; or | | (b) | the transferee has required the transferor to repair or replace the goods, but the transferor is in breach of the requirement of section 12C(2)(a) to do so within a reasonable time and without causing significant inconvenience to the transferee. |
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| (3) For the purposes of this Part, if the transferee rescinds the contract, any reimbursement to the transferee may be reduced to take account of the use he has had of the goods since they were delivered to him. |
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| Relation to other remedies, etc. |
12E.—(1) If the transferee requires the transferor to repair or replace the goods, the transferee must not act under subsection (2) until he has given the transferor a reasonable time in which to repair or replace (as the case may be) the goods.(2) The transferee acts under this subsection if —| (a) | he rejects the goods and terminates the contract for breach of condition; or | | (b) | he requires the goods to be repaired or replaced (as the case may be). |
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12F.—(1) In any proceedings in which a remedy is sought under this Part, the court may, in addition to any other power it has, act under this section.| (2) On the application of the transferee, the court may make an order requiring specific performance by the transferor of any obligation imposed on him by virtue of section 12C. |
(3) Subsection (4) applies if —| (a) | the transferee requires the transferor to give effect to a remedy under section 12C or 12D or has claims to rescind under section 12D; but | | (b) | the court decides that another remedy under section 12C or 12D is appropriate. |
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(4) The court may proceed —| (a) | as if the transferee had required the transferor to give effect to the other remedy; or | | (b) | if the other remedy is rescission under section 12D, as if the transferee had claimed to rescind the contract under that section. |
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| (5) If the transferee has claimed to rescind the contract, the court may order that any reimbursement to the transferee be reduced to take account of the use he has had of the goods since they were delivered to him. |
| (6) The court may make an order under this section unconditionally or on such terms and conditions as to damages, payment for the goods and otherwise as it thinks just. |
| (7) Subject to its jurisdiction under section 5 of the Small Claims Tribunals Act (Cap. 308), a Small Claims Tribunal may, in addition to its powers under that Act, act under this section.”. |
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