Business Studies – 3.4.1 Legal controls related to marketing | e-Consult
3.4.1 Legal controls related to marketing (1 questions)
The Sale of Goods Act 1979 (now largely replaced by the Consumer Rights Act 2015) was a significant piece of legislation designed to protect consumers from unfair trading practices. It established a set of implied terms that automatically applied to all sales of goods in the UK, regardless of whether they were explicitly stated in a contract. The Consumer Rights Act 2015 built upon this, strengthening consumer rights and providing a more comprehensive framework.
Key aspects of the Sale of Goods Act/Consumer Rights Act and how they protect consumers:
- Satisfactory Quality: Goods must be of a standard that a reasonable person would consider acceptable. This means they should be durable, free from defects, and fit for their intended purpose. Example: A washing machine purchased from a retailer must be able to wash clothes effectively and without significant mechanical problems.
- Fitness for Purpose: Goods must be suitable for the purpose for which they are generally used. Example: A ladder sold for household use must be safe and sturdy enough to support a reasonable weight.
- As Described: Goods must match the description provided by the seller. This includes accurate details about features, specifications, and condition. Example: If a used car is advertised as having low mileage, it must actually have low mileage.
- Implied Warranty of Title: The seller must have the legal right to sell the goods. Example: A car dealer must have the legal ownership of the car they are selling.
- Consumer Rights to Repair, Replacement, or Refund: If goods are faulty, consumers have the right to demand repair, replacement, or a refund, depending on the nature of the fault and the cost of repair.
The legislation provides a legal basis for consumers to seek redress if they have been treated unfairly. It empowers them to challenge misleading advertising, faulty goods, and other unfair practices. Businesses are obligated to comply with these regulations to avoid legal repercussions and maintain a good reputation. The Act significantly shifted the balance of power in favour of consumers, ensuring they have greater protection in the marketplace.