Sale of Goods Act – Law on Quality of Goods

Have you ever bought a product that was not up to the mark and is unsure how to proceed? The Sale of Goods Act is designed to protect the rights of consumers in cases such as these. The act, passed in 1979, outlines what customers can expect when purchasing goods from a seller. Several iterations of the act have been passed, including the latest in 2015. It covers various aspects of consumer protection, such as refunds, faulty goods, implied terms, and consumer rights.

In this blog, we will delve deeper into different aspects of the Sale of Goods Act, its objectives, and how they help protect consumer rights. If you have ever wondered what you are entitled to as a consumer, this blog is a must-read.

Sale of Goods Act 1979

The Sale of Goods Act of 1979 is a law passed by the British Parliament that governs English contract law and UK commercial law with regard to the sale and purchase of products. The Act regulated and consolidated the law by combining the original Sale of Commodities Act of 1893 with later laws. The 1979 Act has undergone various minor statutory additions and modifications since 1979.

The Consumer Rights Act of 2015 took its place on October 1, 2015, for several areas of consumer contracts. Yet, it remained the key legislation governing business-to-business exchanges, including selling or purchasing goods. The Act applies to contracts when the property in ‘goods’ is transferred or agreed to be transferred for a monetary price, in other words: where property (ownership) in personal chattels is sold.

Sale of Goods and Supply of Services Act 1980

The 1980 Sale of Products and Supply of Services Act is a law passed by Ireland’s parliament, the Oireachtas. As a result, customers have protections when they buy or hire brand-new items or services from a private limited company for personal use. It specifies that services must be performed with care and that commodities must be of merchantable quality and match their description.

Sale of Goods and Services Act 1982

A law passed by the UK Parliament in 1982 called the Supply of Products and Services Act mandates that service providers meet a certain level of craftsmanship. In addition, the work must be finished fairly for a reasonable fee if a specific completion date or price has yet to be established.

Regarding contracts between small businesses and customers starting on October 1, 2015, the Consumer Rights Act 2015 partially replaced the Act. In England, Wales, and Northern Ireland, only Part IA of the Supply of Goods and Services Act 1982, as amended, which creates provisions similar to Part I of the Act, and Part III of the Act, which deals with the Act’s commencement etc., apply in Scotland.

Sale and Supply of Goods Act 1994

An act to amend the law about the sale of products; to create provisions as to the implicit terms to be included in certain agreements for the transfer of property in or the hiring of goods, in hire-purchase agreements, and on the exchange of items for trade stamps; and for associated objects.

Sale of Goods Act 2015

Regulations governing the supply of goods to customers are outlined in the Consumer Rights Act of 2015. Whether commodities are delivered through a sale, hire, hire-purchase, or work/materials contract, a single set of regulations applies to all such agreements. The Act likewise governs the provision of services and digital content.

What is Goods Under Sale of Goods Act?

Existing goods, owned or possessed by the seller, or future goods to be manufactured or obtained by him after the execution of the contract of sale are the items that make up a contract of sale.

What Are the Objectives of Sale of Goods Act 1930?

The Sale of Goods Act 1930 is a law that outlines regulations relating to the sale of goods in commercial transactions. It was enacted in British India, which includes Bangladesh now, and has various versions, including consolidations and reprints. Over the years, there have been more than 247 references to this act in various legal cases.

The Sale of Goods Act aims to safeguard the interests of both buyers and sellers in commercial transactions. It lays out the rule of law and conditions regarding the quality, quantity, and delivery of goods, as well as what constitutes a breach of contract. In addition, this law aims to ensure fairness and integrity in commercial transactions between parties.

S12 Sale of Goods Act

Section 12 of the Sale of Goods Act states that,

1. In a contract of sale, the seller is implied to have the right to sell the goods in the event of a sale and to have the right to do so when the property is to pass in the case of an agreement to sell.
2. In a contract of sale other than one to which subsection (3) below applies, it is also implied that:

• The goods are free from any charge or encumbrance not disclosed or known to the buyer before the contract is made, and they will remain free until the time when the property is to pass; and
• The buyer will enjoy quiet possession of the goods, except to the extent that it may be disturbed by the owner or another person entitled to the benefit of any charge or encumbrance so disclaimed.
• This clause applies to contracts of sale where it is clear from the contract or may be inferred from the circumstances that the seller solely wants to transfer any title that he or a third party may have.

3. In a contract to which subsection (3) above applies, there is an implied that all charges or encumbrances known to the seller and not known to the buyer have been disclosed to the buyer before the contract is made.
4. There is also an implied agreement that none of the following will interfere with the buyer’s quiet possession of the goods in a contract to which subsection (3) above applies:

• The seller
• The buyer
• The third party

5. If the parties to the contract intend for the seller to transfer only the title that the third party may have, and anyone claiming through or under the seller or that third party other than under a charge or encumbrance that has been disclosed to or known by the buyer before.

S13 Sale of Goods Act

Section 13 of the Sale of Goods Act lays down specific rules related to the quality of goods.

1. Where there is a contract for the sale of products by description, there is an implication that the commodities will correspond with the description.
2. If the items do not also match the description, it is not enough for sale to be made by sample and description if just the bulk of the goods matches the sample.
3. The fact that products are exposed for sale or hire and are chosen by the customer does not preclude a transaction from being one by description.

S14 Sale of Goods Act

Section 14 of the Sale of Goods Act determines the quality and fitness of the goods sold.

1. There is no implied representation of the quality or suitability for any particular purpose of goods supplied under a contract of sale except as stipulated by this section and section 15 below and subject to any other statute.
2. There is an implied provision that the items provided under the contract are of sufficient quality where the seller sells goods as part of their business.
3. There is an implied warranty that the goods supplied under the contract are reasonably fit for the purpose specified in the contract when the seller sells goods in the course of a business and the buyer, expressly or by implication, makes that purpose known to the seller, or where the purchase price or a portion of it is payable in instalments. A credit broker previously sold the goods to the seller of that credit broker.
4. An implication about quality or appropriateness for a certain purpose may be appended to a contract of sale by usage.
5. Except in cases where the other party is not selling in the course of a business and either the buyer is aware of this fact, or reasonable efforts are made to bring it to the buyer’s attention before the contract is made, the preceding provisions of this section apply to a sale by a person who is acting as an agent for another in the course of a business.

Sale of Goods Act Refund

The Sale of Goods Act ensures customers can refund or replace faulty or substandard products. The company is responsible for the product’s failure. A retailer must deliver your purchase within 30 days unless otherwise agreed upon. You can cancel your order and get a full refund if the delivery date is crucial and it does not happen.

Sale of Goods Act Faulty Goods

If an item is faulty, does not match the description, or does not operate as promised, the seller must offer a complete refund. When customers purchase items in a sale, they have the same rights to refunds as when they purchase them at full price.

Sale of Goods Act Business to Business

The items will match the description provided, be of adequate quality and fit their purpose, and if a sample is offered, the goods will match this sample. The transferor has a good title and the authority to transfer the item sold.

Sale of Goods Act Wrong Price Advertised

Whether you have purchased the goods will determine your legal rights in a store.

You don’t have the right to purchase an item at a reduced price if you bring it to the register and are informed that the price on the tag or label needs to be corrected. You could still ask the seller to honour the price.

The same applies if you see a product advertised somewhere for less money than it is listed on the price tag.

You don’t have to return an item if the store sold it to you for less money than they intended; they can only legally demand more if you and the salesperson discussed the price and ended up charging you significantly less.

Ask the shop to refund the difference between what you paid and what was advertised if you discover you paid more for an item than advertised at the time.

If you can, keep any proof of the error; for instance, you can take a photo of the advertisement in the store window.

Sale of Goods Act Consumer Rights

The Sale of Goods Act is a consumer protection law that has been in effect since 1954. It has been amended 0 times and referred to in 247 legal cases. The original Act was passed in 1895, and since then, it has been the primary legislation governing consumer rights.

The Act outlines several requirements for the transfer of property, necessary actions, and notification for the sale of goods. It also includes rules for weighing goods to determine the correct price, ensuring consumers are not cheated. The law aims to set standards for goods’ quality, including accurate labelling and adequate safety measures.

The Sale of Goods Act protects consumers against unscrupulous sellers and preserves their rights.

Sale of Goods Act 6 Years

Normally, a customer cannot file a lawsuit once the contract’s breach has occurred for longer than six years (usually the date of delivery in a contract for the sale of goods). Although the law only permits a consumer a certain amount of time to file a lawsuit, this does not indicate that all products must last this long.

Conclusion

In conclusion, the Sale of Goods Act is a crucial law that protects the interests of both buyers and sellers. It sets out many important regulations, such as implied terms and rules surrounding refunds and faulty goods. The act is periodically updated to guide changing times and business environments. Understanding the Sale of Goods Act can help you make more informed decisions as a consumer or business.

FAQ – Sale of Goods Act

What are my rights under the Sale of Goods Act?

Under the Sale of Goods Act, both buyers and sellers have rights. The Act outlines that goods must be in a state ready for delivery, and the Act has undergone consolidations, reprints, and amendments since its original version in 1895. 247 sources have cited the Sale of Goods Act, RSO 1990, c S.1.

The seller is obligated to perform necessary actions before transferring goods. It is important to familiarize oneself with the provisions outlined in the Act to understand one’s rights as a buyer or seller.

Does Sale of Goods Act still apply?

Yes, the Sale of Goods Act still applies even though it was enacted in 1954. The Sale of Goods Act, RSO 1990, c S.1, is still in force, and it specifies the requirements that must be met before a seller and buyer can agree to a sale.

For example, the property must be transferred once the contract takes effect, and the seller must complete any necessary actions before transferring the goods. Therefore, ensuring that all legal obligations are fulfilled when engaging in any sale of goods is essential.

In what circumstances can you insist on a refund?

As a consumer, you are entitled to a refund if the goods you purchased are faulty or not fit for their intended purpose. Additionally, if the goods do not match the description provided by the seller, you can insist on a refund. You can also request a refund if the seller breaches any obligations under the Sale of Goods Act.

Keeping records of your purchase and any communications with the seller is important to ensure a smooth refund process. In addition, this will make it easier to provide evidence of your claim if you need to request a refund.

Can shops refuse to give you a refund?

In some circumstances, shops may refuse to give you a refund, but it ultimately depends on why you are requesting the refund. For example, you are entitled to a refund if the product is faulty or not as described.

However, if the product has been opened or used, the shop may only accept a refund if the product is faulty. It’s important to note that shops may have refund policies, so it’s always best to check before purchasing.

What is not covered under Sale of Goods Act?

The Sale of Goods Act covers the transfer of goods that are in a state ready for delivery and requires the seller to perform necessary actions to make goods deliverable before transfer. For example, if weighing is necessary for determining the price, the correct price must be calculated before transfer.

However, it’s important to note that the Sale of Goods Act does not cover regulations, amendments, or citations. Its history includes multiple versions, consolidations, and reprints.

What constitutes a sale of goods?

A sale of goods typically refers to a contract between a seller and buyer outlining terms such as price and delivery. At the moment of the contract, it is known as a “sale.” It involves the transfer of property in goods from the seller to the buyer in exchange for payment. A sale of goods contract can apply to any sale and should include detailed language. An agreement to sell becomes a sale when the transfer of property in the goods occurs.

Who is responsible for a faulty product?

The retailer or seller is usually responsible for a faulty product under the Sale of Goods Act. However, if the product was bought from a private seller, they may not be accountable for faults that develop after the sale.

If the product is under warranty, the manufacturer may also be responsible for repairing or replacing it.

If you discover a fault, it’s essential to contact the retailer or seller as soon as possible to understand the options. Depending on the situation, they may offer a replacement, a refund, or a repair.