Many of you who run your own company will know this already but it is useful for those who don't. Basically, under the old law (Sale of Goods Act 1979) the consumer (an individual) had rights such as goods to be of satisfactory quality, as described and fit for purpose. A trader could not exclude these rights without falling foul of S.6 of the Unfair Contract Terms Act 1977. However, when dealing with another company, the trader could exclude or restrict the rights so long as such an exclusion or restriction is reasonable.

Fortunately, even if you buy something in the name of your business, that can still mean you deal as a consumer. If the purchase is not integral to your business and is instead merely incidental, you deal as a consumer. For example, you buy a vacuum to keep your shop tidy (incidental not integral). The Court of Appeal summed this up in R&B Customs Brokers Co. Ltd. v. United Dominions Trust Ltd. [1987] EWCA Civ 3

Luckily, the new law (Consumer Rights Act 2015) has amalgamated and simplified the old law and now states as follows with regard to a consumer:

“Consumer” means an individual acting for purposes that are wholly or mainly outside that individual’s trade, business, craft or profession.

A trader claiming that an individual was not acting for purposes wholly or mainly outside the individual’s trade, business, craft or profession must prove it.

As an added bonus under the new Act, consumers now get 30 days within which faulty goods can be returned for a refund no questions asked. The trader has no cards to play which is useful when dealing with places like Curry's who don't have the best reputation.

 LL.B (Hons) - University of Derby
LOT (Lord of Time) - University of Gallifrey