If the two parties
to a contract, particularly one dealing with the sale of goods, are not dealing
with each other face to face, the buyer could be at a disadvantage in not
seeing the goods described by the seller.
Two businesses dealing in this way could be thought to
have enough resources to deal with this situation – it is in effect a business
risk, and the buyer should take precautions such as asking for a sample, or
later rely on remedies such as damages for breach of contract. A consumer in a
similar position is vulnerable and, following a European directive, new
statutory protection now exists.
The Consumer Protection (Distance Selling) Regulations
2000 are now in force, and although they have not yet been widely used, and
therefore will need some interpretation, they represent a great step forward in
updating the law of Contract to cover modern methods of trading.
The Regulations affect those who sell good or services to
consumers (not where a business deals with a business) and apply where the sale
takes place in one of the following ways:
Ø By telephone
Ø By fax
Ø By mail order or catalog shopping
Ø Over the Internet
Ø Using digital television services.
Under the Regulations the seller must give the consumer
clear information about the good or services offered before the sale takes
place and must give written confirmation after the sale.
The consumer then has
a ‘cooling off’ period of seven working days. This means that if the consumer
changes their mind during that time, they can cancel the contract without it
amounting to a breach.
The Regulations do not apply to some contracts,
including:
Ø The sale of land
Ø Sales from a vending machine
Ø Public pay telephones
Ø Auction sales.
There are also partial exemptions, particularly in the
areas of transport, accommodation and catering,and the right to cancel does not
apply to some goods, such as perishable goods, newspapers, magazines, unsealed
audio or video recordings or computer software, personalised goods, goods that
by their nature cannot be returned.
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