environmental services.doc

ENVIRONMENTAL SERVICES

Environmental Operations - Trading Standards Service-

FREQUENTLY ASKED QUESTIONS

Question: "I paid a £50 deposit on furniture, but changed my mind later. The shop won't give me my money back. Can they do this?"

Response: When you place an order and pay a deposit, you enter into a contract. The shop takes a deposit as security and proof of your good intentions. If you break the deal, then you will probably lose the deposit as a penalty.

Contact Name: Environmental Operations Admin Contact Ext No: 2252/2177

Question: "I bought a computer yesterday and I think it is faulty. I have stopped the cheque but the shop manager is now threatening to take me to court. What are my rights?"

Response: Generally, it is very risky to stop a cheque. This is because a cheque is legally an agreement to pay, and by breaking that agreement, the shop may have a valid legal claim against you, even though you might have been supplied faulty goods. It is better to complain to the shop promptly, and they might agree to cancel the cheque for you, or give you a refund or replacement. Remember, paying by credit card for goods over £100 gives you additional rights if things go wrong.


Question: "I was in a rush the other day and signed an agreement for a mobile phone. However, I have now looked at the terms and they seem rather restrictive, not even allowing me to complain if the phone is faulty. Am I bound by this deal?"

Response: The general rule of thumb is that you are bound by a contract if you put your signature to it, so NEVER sign one without reading it first, however tedious that might seem. There are some legal protections against unfair or restrictive contract terms that you can fall back on, though. Firstly, no contract can take away your automatic statutory rights, that is for example your right to compensation for faulty goods under the Sale of Goods Act, and it is illegal for the supplier to restrict liability in the event of death or personal injury. Also, other terms must be fair and reasonable, unambiguously worded, clear and easy for the average person to read. If in doubt about a contract, don't sign it, take a copy away, and get some advice.


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Question: "I ordered furniture and was told that delivery would be within 6-8 weeks - that was 9 weeks ago. Can I now cancel the order and have my money back?"

Response: Generally, there is no legal requirement that goods are delivered within a particular time. All that the law says is that goods should be delivered within a 'reasonable time' which is a matter of debate. If necessary, you should consider setting a firm date for delivery, and incorporate this into the contract. Ideally, you should make sure that a specific delivery date is written down on the order form. This is called 'making time of the essence in the contract'. Although you probably cannot cancel at the moment, you can impose a reasonable time limit now, by writing to the shop and setting a final date for delivery. If the furniture still doesn't come, you could cancel it and have a refund.


Question: "I was given a sweater at Christmas that is faulty. Can I take it back to the shop for a refund?"

Response:

Usually, if you haven't bought the goods yourself, then you don't have a contract with the shop, and therefore, no rights. However, the law has recently changed to allow so-called third parties to have rights if things go wrong. The buyer of the goods needs to have identified you as being the recipient at the time they were bought, so you should check with them, or look to see if they have written your name on any accompanying receipts, invoices or guarantee cards.


Question: "I have been sent books in the post that I haven't ordered, and the company is demanding payment. Do I have to pay?"

Response: No. The Distance Selling Regulations 2000 says that if you are sent unsolicited goods (in other words, goods that you didn't order, or ask for) they become your property and you can treat them as a gift. You can keep them, give them away, or sell them, whatever you prefer. If the company presses for payment then report them to your local Trading Standards Department.



Question: "I have just purchased a product that is faulty. Is it the manufacturers responsibility to rectify any faults?"

Response: No! The manufacturer does not have any liability to the consumer. The seller of the product always has liability for the goods they sell. However, the manufacturer may be willing to carry out repairs which are covered by their guarantee.


Question: "I have just purchased some goods which are defective. The trader will only offer me a credit note, or an exchange. Is he right?"

Response: No! If the goods are defective, The Sale of Goods Act 1979 as amended by The Sale and Supply of Goods Act 1994 entitles you to expect "reasonable" financial compensation. If you have just purchased the goods, you may be entitled to "reject" them and have your money back. If you purchased the goods some time ago, a repair or replacement may be reasonable.


Question: "I have just purchased something that I do not want anymore. Does the shop have to give me a refund?"

Response: No! You are only entitled to a refund if the goods don’t comply with the law, for example if they are defective. However, the trader may be willing to give you a credit note.


Question: "I have accepted a credit note from a trader, but they do not have anything that I like. Can I now demand that the trader gives me the cash?"

Response: No! You are not entitled to a refund once you have accepted a credit note. Also, beware that if you do not use the credit note before its time limit expires , it will become worthless.



Question: "I took some faulty goods back to the shop, but the trader pointed to a notice which stated " No Refunds". Is this correct?"

Response: No! Traders cannot restrict their liability for faulty goods. In fact these notices are illegal. Report it to your local Trading Standards Service.


Question: "I purchased goods over a year ago and the guarantee has now expired. The trader has advised me that he does not have any responsibility for the goods. Is he right?"

Response: No! Guarantees are extra to your legal rights. If the goods are faulty due to an inherent fault, it is the trader’s responsibility to rectify the situation.


Question: "I went to a "sale" and purchased some goods that are now faulty. The trader will not accept any liability as they were sale items. Is he right?"

Response: No! You have the same rights when buying "sale" goods as when you buy a brand new item. However, if the price has been reduced because the item was damaged, you cannot complain about the damage. Even though you also have the same rights when buying second hand goods, you will have to accept that the item may not be as reliable as a new model.


Question: "I have purchased some faulty goods, but unfortunately I have lost the receipt. The trader says that because I do not have a receipt, I do not have any rights. Is he right?"

Response: No! Strictly speaking, you do not have to produce a receipt in order to pursue a claim for faulty goods. However, under the law, you are required to produce proof of the purchase. Therefore, if you paid by cash, a receipt may be the only proof that you have.



Question: "I purchased some clothes which I have now found do not fit me. The trader will not take them back and give me a refund. Is he correct?"

Response: Yes! You only have a claim against the seller if the goods are faulty or misdescribed.


Question: "I have purchased a camera that is faulty. The trader is unable to find out what the fault is and wants to send the camera back to the manufacturer. Can he do this?"

Response: Yes! Although the trader is liable under the Sale of Goods Act 1979 as amended by the Sale and Supply of Goods Act, if the trader is unable to ascertain the cause of the defect, it would be reasonable to seek a second opinion from the manufacturer.


Question: "I purchased an ex display washing machine which had a damaged casing. The trader will not take the machine back. Is he right?"

Response: Yes! You cannot complain about faults that you knew about before you purchased the goods. However, apart from the known faults, the machine is still required to be of a "satisfactory" quality and work properly.


Question: "I want to purchase a three piece suite that is on display in a shop. The shop refused to sell it to me. Does a shop have the right to refuse to sell goods?"

Response: Yes! Goods on display in a shop are there for you to make an offer to buy, the shop is not obliged to accept your offer. The same applies where goods have been labelled with the wrong price, the shop does not have to sell at that price.



Question: "I was given a present which has developed a fault. The trader will not accept liability even though the goods were purchased from him. Can he refuse to deal with me?"

Response: Yes! Under the Sale of Goods Act 1979 as amended by the Sale and Supply of Goods Act, only the person who purchased the goods has a right to seek redress for faulty goods. However, a lot of companies will be willing to try and resolve complaints. Recent legislation gives you rights if the goods were specifically bought for you and the seller knew they were for you.


Question: "I ordered goods for delivery by a specific date. The goods have not yet been delivered but the trader will not accept cancellation of the order. Am I right in thinking that I am entitled to cancel?"

Response: Yes! But only if it you specifically made it a condition of the contract that the goods must be delivered by that date. If you did, and the date has passed, you are entitled to cancel without any financial penalty.


Question: "I allowed a salesperson into my home and subsequently signed a contract. Can I cancel the contract?"

Response: Yes! If the contract was signed as the result of an 'unsolicited' visit and is over £35, you have a seven day period during which you can cancel without any financial penalty. You have to be given a cancellation notice and the trader can be prosecuted by Trading Standards if the salesperson fails to provide the notice. You also have cancellation rights if you sign a credit agreement in your home where the salesperson introduced you to a finance company. The law allows you a cancellation period of five days which begins on the receipt of a signed copy from the finance company.



Question: Can I always insist on a refund?

Response: No. You cannot insist on a refund or replacement if: The retailer tells you about a fault or if a defect is obvious when you buy. You have made a mistake about a purchase or simply changed your mind. If you have had a reasonable opportunity to check the goods and used them you may not be entitled to a refund, but you may still ask for a repair if the goods are faulty.


Question: Do I need proof of purchase to complain about goods?

Response: Yes. Some proof of purchase is essential. This does not have to be a receipt. A cheque stub, credit card slip or bank statement may be enough. However, it is always worth keeping your receipt during the lifetime of the goods in case problems occur.


Question: How are my rights different if I buy on credit rather than paying cash?

Response: When you buy on credit you can ask the credit company for help when there is a problem providing the goods cost more than £100 and you used a credit card or the retailer arranged credit for you. The law makes the credit company jointly liable for faulty goods. That means if the retailer or service provider is unhelpful you may be able to ask the credit company for assistance.

Contact Name: Contact Ext No:

Question: I am paying for goods by instalments. Can I stop paying my direct debit until my problem is resolved?

Response: You may cause yourself more problems if you stop paying. This could be seen as default and ultimately affect your credit rating. Ask the credit company to suspend your payments. Remember you can ask them to help you to resolve your complaint because they are jointly liable.



Question: I am paying for goods by instalments. Can I stop paying my direct debit until my problem is resolved?

Response: You may cause yourself more problems if you stop paying. This could be seen as default and ultimately affect your credit rating. Ask the credit company to suspend your payments. Remember you can ask them to help you to resolve your complaint because they are jointly liable.


Question: I purchased goods through a private individual. Is the law the same?

Response: No. The law is not the same when you buy from a private individual and you may have fewer rights. In private sales, it is only the description of the goods that counts or what the seller tells you about the goods. Remember - buyer beware.


Question: What if the goods are second-hand?

Response: The Sale of Goods Act covers both new and second-hand goods. They must still be of a satisfactory quality, fit for their purpose and as described. However, the older the goods are, the more wear and tear you must expect. They may not be perfect but they should still work.

Contact Name: Environmental Operations Admin Contact Ext No: 2252/2177:

Question: What if I bought the goods in a sale?

Response: The Sale of Goods Act covers sale goods. Your rights are exactly the same unless the fault is brought to your attention at the time of purchase.



Question: I purchased goods from a mail order company. Is the law the same?

Response: Yes. Your legal contract is with the mail order company as the retailer and any claim should be directed to them. You also have added protection under the Distance Selling Regulations. The company must provide their name, address and all details of the product, they must make your right to cancel quite clear and confirm your order in writing. You have seven days to withdraw.


Question: What if goods don't arrive?

Response: The Advertising Standards Authority (020 7580 5555) may be able to help with delays. The Mail Order Traders Association (01704 563787) may be able to help with catalogue companies If the goods have been ordered from an advertisement in a newspaper or magazine write to the manager of the publication. If you paid in advance and the supplier has ceased trading you may be protected if the company belongs to the Mail Order Protection Scheme (MOPS) for newspapers or the Periodicals Publishers Association (PPA) for magazines. You need to contact them quickly as time limits can apply.


Question: The retailer wants to return the goods to the manufacturer for inspection. Can they do this?

Response: Yes. If you cannot prove what the fault is this is a reasonable response. The retailer is still responsible if the goods are faulty but they may want to get them checked.



Question: My phone is faulty and the retailer has arranged to repair it but cannot lend me a phone to use in the meantime. I am paying line rental but haven't got a phone to use. Can I claim compensation?

Response: Yes. If your phone is defective then you have a claim against the retailer. If you are paying line rental to a separate company for a phone you have no use of you may be able to claim compensation from the retailer.


Question: I asked a garage to diagnose a fault in my car, but repairs have been carried out without authorisation!

Response: This can be a difficult matter, especially if the contract was only verbal, as it can be very difficult to 'prove' that the garage had carried out the work without your authority. It will generally come down to 'proving' your word against the word of the garage. If the garage has carried out unauthorised work, you could require them to 'undo' the work and put the vehicle back in its original condition, however, this course of action can also create legal problems, especially if it would make the vehicle unroadworthy . The trader may also refuse to undo the work or release the vehicle without payment. If improvements have been made, the garage is entitled to exercise a lien over the car, this is a legal right to hold disputed goods until payment is made. In these circumstances, the only way you can recover possession of the car is to 'pay under protest' and to then pursue your claim for reimbursement against the garage through arbitration (trade association) or the courts.


Question: The garage doesn't accept liability!

Response: Put your complaint in writing, giving the garage a specific date to rectify the fault. [See leaflet 'Writing a letter of complaint'] You may need to obtain a written report, from an independent engineer, [ e.g. AA or RAC ] to provide technical evidence to back your claim. If the trader does not respond to your letter, you may now have to have any defects rectified by another garage. [ It is only fair to advise the owner of the second garage that the repair is the subject of a dispute.] You will have to pay for the repair and then claim the repair costs back, if necessary, through arbitration (trade association) or the courts.



Question: The cost of repairs is higher than I expected

Response: If you are in dispute and refuse to pay the price the garage is charging, the garage is entitled to exercise a lien over the car. That is a legal right to hold the disputed goods until payment is made. In these circumstances, the only way you can recover possession of the car is to 'pay under protest' and to then pursue your claim for reimbursement against the garage through arbitration (trade association) or the courts. You will need to advise the garage in writing that you are not accepting the price and are paying purely to get the car back, and giving them a specified period in which to reimburse the disputed amount. You may ultimately have to pursue your claim through arbitration (trade association) or the courts.



Question: The vehicle was damaged at the garage while it was in for repair.

Response: The garage has a general duty of care to look after your vehicle while it is in their possession, therefore if the vehicle is damaged at the garage, the cost of any repairs will be the garage's liability.


Question: 'I've signed a credit agreement and I’ve been given a copy of the fully completed form. Can I cancel or withdraw?'

Response: Legally, once the agreement document has been completed, you are not entitled to withdraw or cancel. If you want to end the agreement, contact the creditor and ask about the procedures for ending the agreement. You may have to pay cancellation charges or other administrative costs as well as the full loan back to the creditor.


Question: 'I've got a loan, but now I’ve come into some money. Can I pay the loan off early?'

Response: Yes, the law calls this 'early settlement'. By paying off the loan early you will be entitled to a rebate of some of the outstanding interest. See our leaflet 'Early Settlement Explained' for more details.


Question: 'I've got cancellation rights on my agreement but the company is refusing to let me cancel - what can I do?'

Response: If you are having difficulty cancelling a credit agreement or are unsure as to your rights, contact your local Trading Standards Department or Citizens Advice Bureaux for advice as soon as possible.



Question: I have seen a CD player on sale in a shop that I want to buy. However, when I tried to buy it the manager told me it was the wrong price. Can I make the shop sell it to me at the displayed price?

Response: No. You cannot make a trader sell anything to you if they don’t want to. In civil law, when goods are displayed in a shop, a catalogue or an advertisement, this is called an ‘invitation to treat’. This means that it is an invitation for the consumer to make an offer to the shop to buy the goods, and it is up to the shop whether or not they want to accept that offer.

However, subject to certain defences, the shop might have committed a criminal offence. This is because the Consumer Protection Act 1987 says that traders must not display misleading prices. You should report this to us at Trading Standards so that we can consider investigating the matter.


Question: I ordered a PC by phone recently, and paid for it in full by credit card. However, I have just heard that the company has gone bust, so I have lost nearly £1,000 and I haven’t got any goods. Can I do anything?

Response: Firstly, you should try to find out whether any receivers or administrators have been appointed so that you can register as a ‘creditor’ of the company. You can often find this information out by contacting the official receiver (listed in the phone directory).

An important protection is also available because you have used your credit card. When you buy goods which are individually worth £100 or more, and pay by credit card (NOT a debit or charge card) the law says that the credit card company becomes ‘equally liable’ with the retailer for breaches of contract. This right is given to you under Section 75 of the Consumer Credit Act 1974. So, as non-delivery of goods is a fundamental breach of contract, you should be able to get your money back from the credit card company.

You should put your complaint in writing to them, giving them as much information about the order as you can, and asking them to refund your money in full. They may need a bit of time to investigate the matter, and to check on what has happened to the retailer, but in time, you should get all of your money back.



Question: I bought a jacket for my daughter the other day, but when she tried it on she didn’t like it. I thought I was entitled to have my money back, but the shop has said no, and will only exchange it or give me a credit note. Are they allowed to do this?

Response: Yes. The law only requires a shop to take goods back and refund if they are in breach of contract, in other words if the goods are faulty or incorrectly described. If you have made the wrong choice, then they don’t have to do anything, not even offer a credit note or exchange, so what they have offered is more than they have to.

Of course, many shops have very generous policies and allow you to bring back unwanted goods, but crucially, they don’t have to. If in doubt, check with the company before you buy, and if necessary get them to write on your receipt if they agree to offer a refund.


Question: I bought a pram last week, and the chassis has become bent and twisted in use. I have taken it back to the shop and would rather have my money back, but they have refused to do this, saying that I have to let them repair it. Is this true?

Response: No! The Sale of Goods Act 1979 (as amended) says that you are entitled to expect the pram to be of a ‘satisfactory quality’ - in other words, it should not be faulty, it should be fit for its normal purpose, durable, and safe, amongst other things. If this is not the case, then, providing you act quickly, you should be able to reject the pram and have your money back. You are not obliged to let the retailer carry out a repair, particularly so soon after purchase.Incidentally, Trading Standards enforces various pieces of law concerning the general safety of goods. If you feel there is a safety issue with this pram (or any other goods you have bought) you should report the matter for us to consider investigating.



Question: The manufacturer’s guarantee has just expired on my dishwasher, and it has gone wrong. Does this mean that I don’t have any rights?

Response: No! When you buy goods, you enter into a contract with the shop or retailer, and your legal rights for contractual problems are with them, not the manufacturer. Most manufacturers offer a guarantee, usually for 12 months, but this is in addition to your legal rights against the seller.

Your rights lie against the seller under the Sale of Goods Act 1979 (as amended) and entitle you to complain if goods are faulty or misdescribed. The seller can potentially be held liable for up to 6 years, so if there is a problem with the goods you should always go back to the shop you bought it from.


Question: Eighteen months ago, I bought an expensive carpet for the living room, but already it is wearing very badly. The shop has refused to do anything, arguing that it is normal wear, and that the 12 months guarantee has expired. What can I do?

Response: When you buy goods from a shop, you enter into a contract with them which is regulated by the Sale of Goods Act 1979 (as amended). This Act gives you rights against the trader for up to 6 years, so the fact that the manufacturer’s guarantee has expired is irrelevant.

Your basic rights under the Act are that you should be able to expect the carpet to be of a ‘satisfactory quality’. This means it should be fit for its normal purpose, of a satisfactory appearance and finish, and durable, amongst other things.

It is up to you to prove your case, so if the shop is arguing that this is normal wear, you might need to seek a second opinion to prove them wrong. You could ask another carpet supplier for an informal opinion, or alternatively, you could appoint an independent expert. If this proves your case, and the shop still won’t accept liability, you might have to sue them for compensation in the courts.



Question: I bought a computer as a gift for my nephew a few weeks ago, and it has now developed a fault. My nephew took it back to his local branch of the shop, but they say they don’t have to do anything because he didn’t buy the computer, and they don’t have a contract with him. When I bought the computer, I told the shop assistant that this was going to be a gift, and the assistant personally filled my nephew’s name in on the guarantee card. What are our rights?

Response: Traditionally, because of a legal principle known as ‘privity of contract’ only the buyer and seller of the goods were considered to be in contract with each other. However, a recent change in the law has said that third parties, where clearly identified at the time of the sale, will now have rights under the contract too. The fact that you told the shop at the time of the sale that this was a gift, and even identified him in writing by name as the recipient of the goods, means that your nephew should be able to make a claim against the shop as a third party to the contract.

If you are buying goods as a gift, then you should always let the shop know at the time of the purchase, and make sure if possible that it is put in writing ideally, get the assistant to endorse the receipt, so that you can hand this to the recipient of the gift too.


Question: I bought a DVD player last week. It worked for a few days but has now completely failed. I have taken it back to the shop but they say that as it was working when they sold it to me, they no longer have to do anything at all. They also implied that I must have damaged it myself. What can I do?

Response: The shop is wrong when they say that, because it was working when it was sold to you, they are no longer liable. The Sale of Goods Act 1979 (as amended) says that the shop should sell goods that are of a ‘satisfactory quality’, i.e. they should be free from fault, fit for their purpose and correctly described, as well as being durable. You are allowed a ‘reasonable’ period after purchase to check them out and see if they are OK, and if you only bought the player last week, you are well within this ‘reasonable’ time. If you can prove that the goods are faulty, you should be able to reject the DVD player and have your money back.

Unfortunately, some shops try to avoid their liability by saying that the goods aren’t faulty, but have been damaged by the consumer. The law says that it is up to you to prove you have a case, so you should tell the shop that if they don’t accept responsibility, you will take the player to another shop for a second opinion in order to prove it is faulty. If you have to pay for this opinion, you could claim this back from the shop as well as a refund for being sold defective goods.



Question: I bought a washing machine 10 months ago, and it has now gone wrong. The shop has refused to do anything other than repair it. Am I entitled to a refund or an exchange?

Response: No. The law that covers this area, the Sale of Goods Act 1979 (as amended), says that you can usually only reject goods and have a refund in the very early stages of the deal, i.e. within the first few weeks after purchase. Also, there is nothing in law that requires a trader to provide replacement goods, although some shops have individual policies allowing for this check with the company’s head office if in doubt.

After this length of time, the Sale of Goods Act says that you are allowed to claim ‘reasonable compensation’, usually, a repair or the cost of repair, so the shop has probably acted reasonably in offering this to you.


Question: I ordered a dining table and chairs from a shop at the weekend, and paid a deposit of £250. Now, two days later, I’ve changed my mind. The shop has agreed to cancel the sale, but won’t give me back my deposit. Are they allowed to keep it? Would it have been any different if I had signed a credit deal at the time?

Response: When you agreed to buy the furniture, and paid the deposit, you entered into a legally binding contract with the shop. For a cash sale such as this, you have no right to cancel the agreement, and if you do so, it is likely that you will lose the deposit.

If you had signed a regulated credit agreement in the shop, then you still would not have had any general right of cancellation. However, you have a right to withdraw from the agreement if has not yet been ‘executed’, i.e. if the credit company have not yet signed it. (Often, a credit company might not sign the agreement for several days after you have, because they need time to check on your credit status). It is always worth checking with the credit company as soon as possible. If they do allow you to withdraw from the deal, then the entire contract would collapse, and you would then also be entitled to have your full deposit back.



Question: I am thinking about buying a car direct from Europe, using a car importer. Do you have any tips?

Response: This is becoming an increasingly popular way of buying new cars, often at prices much lower than in the UK. However, it can have its pitfalls, and it is essential to take precautions. Remember that you might have to wait several months for the car to be delivered; you might not get the same guarantees or warranties that you would get from a UK dealer. If there is a fault with the car, it might be difficult to take action against a dealer in another country - check whether the importer will take legal responsibility; check whether there are any risks of surcharges for differences in exchange rates; take steps to protect any advance payments, using a credit card if possible. Finally, shop around, and make sure you get EVERYTHING in writing.


Question: I have just been to collect my car that was being repaired by a local garage, and the bill is a lot more than I expected. The garage won’t dive me the car back unless I pay. What can I do?

Response: The Supply of Goods and Services Act 1982 says that, if no price is agreed beforehand, you are only obliged to pay a ‘reasonable’ sum for the work. To gauge what would constitute a reasonable amount, get 3 estimates from other similar sized garages in the same area. If they charge substantially less, tell the garage that this is all you are prepared to pay.

There is a problem, though, in that the garage may exercise their right of 'lien' over the car. This effectively allows them to keep hold of the car until the money they are asking for is paid. You may then have no choice but to pay. However, you should make sure that this is payment ‘under protest’, and that you will immediately issue a summons in the sheriff court for the difference. It is important that you tell the garage your intentions in writing.



Question: I have had the engine reconditioned on my car, and it is running as badly as it did before. The garage is not prepared to help.

Response: Under the Supply of Goods and Services Act 1982, you are entitled to expect that the garage carried out the work with reasonable care and skill. Tell the garage why you are dissatisfied, and if they won’t accept liability, get the car looked at by another garage, preferably an authorised dealer for your make of car. If all else fails, you may need to get a problem rectified elsewhere - make sure you get a full written report, and keep any parts that are removed or replaced. You might then have to sue the garage in the Sheriff Court.



Question: I am about to sell my car privately through the small ads, what steps should I take to protect myself?

Response: Have the car MOT’d and check that it is roadworthy. It can be a criminal offence to sell an unroadworthy car. Describe the model, year, and mileage as long as you know it is "genuine". Do not make statements such as "excellent condition"; "genuine mileage"; "A good little runner". Any description you apply could make you liable if it turns out to be untrue. Always ask for cash before you release the car, or cash the cheque first. Building Society cheques or Bankers Drafts give a little more protection than an ordinary bank cheque. Never release the car until you have received full payment.


Question: I have bought a car privately, through the small ads of my local paper. It was only £800, but I now find the engine is totally worn out, and it is using oil excessively. What can I do?

Response: When you buy privately, the law says that you have fewer rights than when buying from a trader. The principle of 'caveat emptor' or ‘buyer beware’ operates. You have no legal right to expect the goods to be of a satisfactory quality (although cars should be roadworthy, whether bought privately or not). You are entitled, however, to expect the car to be correctly described. So, if the seller had claimed that it was in ‘excellent condition’ for example, then you might have been able to argue misrepresentation.

It is always a good idea to take a knowledgeable friend or mechanic with you when you buy a car privately and you must accept that although you might get a good price buying privately, there are attendant risks, also.


Question: I have signed a credit agreement arranged by a local garage to buy a second hand car. It is a hire purchase agreement. I have since discovered that the salesman falsely described the age of the car and told me that it was "genuine" mileage, when it wasn’t.

Response: Act quickly. Write a letter to the finance company telling them that the seller has falsely described the car. Make it clear that you want to cancel the deal, in view of the false descriptions. Press for your money back, plus the part exchange car (or the value of it). Inform your local Trading Standards Service, as there may be criminal offences that they can investigate under the Trade Descriptions Act 1968.


Question: I signed a credit agreement at a local garage this weekend to buy a new car. The salesman was extremely pushy, and now I have got home, I realise that I cannot afford it./tt/file_convert/555e616cd8b42a71048b45d4/document.doc 20

Response: You need to act quickly, get in touch with the finance company and tell them you wish to "withdraw" from the agreement. Explain that you can’t afford to go ahead. Fax them a letter stating the same details as you have discussed over the telephone. The contract becomes binding once the finance company has signed the agreement. If you manage to "withdraw" before it is signed by the finance company, the deal is then effectively cancelled. If a deposit has been paid you should claim that back in full from the car supplier.


Question: I bought a brand new car for cash 3 weeks ago. I want the garage to take it back because I have discovered numerous faults. The engine does not run smoothly and the bodywork is damaged.

Response: If you act quickly and seek to reject the car quickly, you should be in a position to claim your money back, plus the part-exchange car or the value of it. The law says you must be given a reasonable time to examine the car to ensure that it is satisfactory in practice, this may only be a few weeks. You must therefore act very quickly. The law that protects you is the Sale of Goods Act 1979 (as amended) by the Sale & Supply of Goods Act 1994).


Question: I bought a brand new car at the weekend, and signed a Hire Purchase agreement. I took delivery today and am really disappointed. I have found chips on the paintwork, a crease in the roof, and the car intermittently judders at 60 mph?

Response: When you purchase a brand new car which is subject to Hire Purchase Agreement or a Conditional Sale Agreement you are protected by the Supply of Goods (Implied Terms) Act 1973. The vehicle should be of satisfactory quality, which covers appearance and finish, freedom from minor defects, safety and durability. As you bought on HP, your contract is with the HP company, so you should approach them in writing and cancel the contract. Explain exactly what the faults are and enclose copies of any proof you have of the faults.



Question: I paid a deposit on a brand new motorbike last week. The dealer and I agreed a price of £6,500 and I have an order form with this price clearly shown. The dealer now says that he has made a mistake with the price and he wants a further £750. Do I have to pay this?

Response: No! You have entered into a legally binding contract with the dealer at an agreed price. By charging you more money after the deal is struck, the dealer is in breach of contract. If the dealer refuses to supply the motorbike at the agreed price, then you would be entitled to cancel the contract and have your deposit refunded. If you are then forced to buy the bike elsewhere for a higher price, you could claim the difference from the dealer.

You should write to the company, pointing out that they are in breach of the contract, and giving them notice of your intentions if they do not supply the bike at the agreed price within, say, 7 days.


Question: No! You have entered into a legally binding contract with the dealer at an agreed price. By charging you more money after the deal is struck, the dealer is in breach of contract. If the dealer refuses to supply the motorbike at the agreed price, then you would be entitled to cancel the contract and have your deposit refunded. If you are then forced to buy the bike elsewhere for a higher price, you could claim the difference from the dealer.

You should write to the company, pointing out that they are in breach of the contract, and giving them notice of your intentions if they do not supply the bike at the agreed price within, say, 7 days.

Response: The Hire Purchase Act (now incorporated into the Consumer Credit Act) states that the fist ‘innocent purchaser’ of the vehicle gets ‘good title' or ownership. By innocent purchaser, the law means someone who did not know, and who could not reasonably have been expected to know, about the outstanding HP agreement. The HP company would not be able to repossess the car from you, therefore, and should pursue your friend for breach of the Hire Purchase agreement. This applies even if you had bought the car from a trader, as you would still have been an ‘innocent purchaser’.

Of course, it follows that if you had known about the HP agreement, or if you had suspicions and didn’t ask any questions, you would not be considered to be an innocent purchaser - ownership would not pass to you and the car could then be repossessed.

You should always consider carrying out checks before you buy a car. There are agencies, such as HPI, who will search their databases and let you know whether the car has an HP agreement registered against it, or whether it has been declared an insurance write-off, and also whether it has been reported stolen. Incidentally, stolen cars (in common with other stolen goods) will always remain the property of the person from whom they were stolen. If you are unfortunate enough to buy a stolen car, then the original owner will be entitled to have it back.



Question: Last night, I lost my wallet that contained all my credit cards. I am worried that somebody may find it and start using my cards - to what extent am I liable?

Response: The first thing to do is to notify the credit card companies immediately, by telephone, advise them of the loss or theft and request them to cancel your cards. It is essential that you do this as quickly as possible before the thief has time to use the card - if you do this, you will not be liable for any bills which the thief may incur. Then, write to them within the next seven days to confirm your telephone conversation.

Under the Consumer Credit Act, your maximum liability will be £50 even if you fail to notify the credit card company. However, if you have been careless, such as writing your confidential PIN number on the back of the card or if the PIN number is easily identifiable on a piece of paper near the cards (say), then you may lose this protection and you may be liable to pay any bills incurred.

If someone uses your payment card fraudulently to shop from home without your permission, you can cancel the payment and your card company must arrange for your account to be re-credited in full.

If you discover that someone has used your card dishonestly, tell the card issuer as soon as possible.


Question: I wanted to buy a three piece suite from my local furniture store and take out their ‘Buy now, Pay later’ finance scheme but after I filled in all the forms the store told me that they had carried out some checks and they refused me credit - can they do this and what are my rights?

Response: It is probable that the furniture store or their credit company contacted a ‘credit reference agency’ to get some basic details about you and your credit record. If they did, you have a legal right to know their name and address. When you receive this - you can then write to them and ask for a copy of your file. You must also supply your full name and address, any other addresses you may have lived at in the last six years together with a small £2 fee. They must reply to you within seven working days of receiving your letter. If your file contains incorrect information, you can ask for it to be amended. A leaflet has been published by the Data Protection Commissioner called ‘NO CREDIT’. It explains in full what you can do to challenge incorrect information, along with sample letters. Ask for it at your local Trading Standards Dept, CAB or library.



Question: I recently went in to my local electrical superstore and purchased two items using my credit card - one was a toaster costing £35 and the other was tumble dryer, which cost £250. The toaster caught fire the following day and the tumble dryer doesn’t ‘tumble’ - in other words, both items developed faults shortly after I purchased them. What are my rights against the superstore and against the credit card company?

Response: When you purchase goods, you are entitled to expect them to be of 'satisfactory quality', ‘as described’ and ‘fit for the purpose’ under the Sale of Goods Act 1979 (as amended). In law, these are called 'implied terms' and cannot, legally, be taken away from you. If the supplier, in this case the electrical superstore, breaks any of these terms, he is deemed to be a 'breach of contract' and you are entitled to a full refund of any monies paid.

If they don’t give you a refund then you are entitled to seek recovery through the 'small claims procedure' of your local county court. Don’t be deterred by their attempts to refer you to the manufacturer.

In addition, the credit card company is also ‘jointly liable’ under Section 75 of the Consumer Credit Act for a breach of contract by the superstore so, you can either sue the superstore or the credit card company or both. However, this ‘joint liability’ provision only applies to single items with a cash price over £100 - therefore, you could only take action against the superstore in respect of the toaster but against either or both the superstore and the credit card company in respect of the tumble dryer. This ‘joint liability’ provision can be especially useful if the supplier goes out of business e.g. if a tour operator ‘crashes’ after you have paid for your holiday by credit card.


Question: I don’t have a very good credit record and I found it difficult to get a £2,000 loan. I asked a credit broker to find one for me, which he did, but I didn’t take it up and now he’s charging me £250 for his services - do I have to pay?

Response: The broker is entitled to charge you a reasonable fee but, if you didn’t enter into the loan within the six months of being introduced to a possible lender, the broker is only entitled to keep £5 of a fee or commission. If you’ve paid more than £5, you can ask him to refund the difference to you.



Question: Last week we received a visit at our home from a company selling conservatories - we agreed to buy one for £6,000 and we signed a credit agreement. We’ve now decided that we can’t afford it and want to pull out of the deal. The company has told us that we can’t and that there is no 'cooling off' period - are they right?

Response: No.

The agreement is cancelable if oral representations were made in your presence (as opposed to a telephone call) and the agreement was signed ‘off trade premises’ i.e. in your private home.

In this case, a copy of the agreement and a notice of your cancellation rights should have been given to you when you signed. In addition, a second copy, again including a notice of your cancellation rights, must also be sent to you, by post, within 7 days of the making of the agreement.

The ‘cooling off’ period, during which time you may cancel the agreement, runs from the time you sign the agreement until the end of the 5th day following the day when you received your second copy through the post.

To cancel the agreement, you must give written notice at any time during the ‘cooling off’ period to the creditor or their agent. In this instance, any payments made must be returned to you. A cancellation notice sent by post is deemed to have been ‘served’ at the time of posting as opposed to the time of receipt - so, provided you have posted it within the ‘cooling off’ period, the agreement is effectively cancelled.

If you’ve not been given ‘copies’ or a notice of your cancellation rights, the agreement is totally unenforceable.


Question: I bought my car on hire purchase about eighteen months ago and the agreement has about 6 months to run - I’ve missed about 3 or 4 payments - the finance company want to repossess it but I’ve heard something about the car being ‘protected goods’ - what does this mean?

Response: If you’ve missed any payments, then you’re in breach of the agreement, but, if you’ve paid one third or more of the ‘total price’ of the goods, then they are ‘protected goods’.

This means that the creditor (finance company) can only repossess the car with a court order.

If they repossess the car without the court order, then three ‘events’ take place.

Firstly, the agreement is terminated.

Secondly, you (the debtor) are freed from all liability under the agreement - past, present and future.

Thirdly, you are entitled to recover all the money you’ve paid under the agreement.

Thus, there are serious consequences for the creditor if he fails to obtain the ‘court order’.


Furthermore, if the car is in your garage or on your drive, then the creditor must obtain a second court order to enter your premises - if he doesn’t, you will be able to make a claim for damages. And, before any of these actions can take place, the creditor must first serve you with a 'default notice' which will set out what action you should take.


Question: What should I do if I’m unable to make my repayments under a credit agreement?

Response: There are many reasons why people can fall behind on payments of their credit agreements - loss of employment, relationship breakdowns, unexpected major financial commitments elsewhere, long term sickness. People are often very distressed and embarrassed about admitting they are in debt, and often ignore the problem. It will not go away, and will only get worse. You should always notify the credit company at the earliest opportunity if you are experiencing difficulty. Most companies will have come across this situation many times before, and will have specially trained staff to help you, without being critical and judgmental. In the vast majority of cases, they will work out alternative methods of paying, called ‘rescheduling’ the agreement. Many will agree to suspend interest payments until you get back on your feet again.

If you find that your credit company is being unhelpful or if you’d rather talk to someone independently, seek advice from your local CAB. Many have debt counselors who can negotiate with a credit company on your behalf.

You should also check to see whether you have any insurance cover with the credit agreement, which might cover the payments in certain situations, e.g. redundancy or illness.

Whatever you do, be wary of companies offering you yet more loans to get you out of an existing debt. These loans are often at cripplingly high rates of interest, and many are secured against your house. REMEMBER, SEEK ADVICE QUICKLY AND DON’T IGNORE THE PROBLEM YOU WILL OFTEN FIND THAT PEOPLE AND BUSINESSES ARE FAR MORE SYMPATHETIC AND HELPFUL THAN YOU’D THINK!


Question: Are ‘credit sale’, ‘conditional sale' and 'hire purchase' the same thing?

Response: These are all forms of credit offered by finance houses and retailers, but there are certain important distinctions.

A credit sale is one where the purchase of goods is financed by a loan, which is repayable over a fixed period of time. Often, domestic household goods are sold this way, such as washing machines, TVs, etc. The retailer arranges the finance for you with a finance company, and the goods become your property immediately. The goods cannot be repossessed if you fall behind with your payments (what is called falling into arrears).

Hire purchase is most often used for very expensive items, such as cars. What happens here is that the finance company buys the goods from the seller, and then hires them to you for a fixed period? At the end of the agreement, once the final payment is made, you can exercise the option to have ownership, or ‘title’ to the goods, and they will become your property. Until then, though, 'title' or ownership, stays with the finance company, and you cannot sell the goods or get rid of them without the company’s permission. The finance company is obliged /tt/file_convert/555e616cd8b42a71048b45d4/document.doc 26

to make sure that the goods are of a satisfactory quality. If you have paid more than a third of the agreed price, and you fall into arrears, the goods cannot be repossessed without a court order. You can hand the goods back at any stage of an HP agreement, although the company is entitled to claim up to 50% of the agreement price.

Conditional sale agreements are very similar to HP deals, except that you are normally committed to taking title or ownership of the goods at the end of the agreement.

There are many other types of credit agreements available, such as store cards, rolling account credit, buy-now-pay-later schemes, interest free schemes, and lease-hire agreements. In most cases, the Consumer Credit Act 1974 lays down strict guidelines as to how these agreements should be drawn up and worded, and provide rights for early settlement, and the correct procedures that finance companies should follow in the event of there being arrears or other breaches of the agreement.

ALWAYS read a finance agreement before you sign it, and if in doubt, seek advice on your rights from Trading Standards and CAB.

REMEMBER - CREDIT AGREEMENTS CAN BE EASY TO GET INTO BUT MAY NOT BE SO EASY TO GET OUT OF!


Question: What’s the difference between a ‘credit card’ and a ‘charge card’ and how do they operate?

Response: Credit cards are issued by banks, financial institutions and retailers. Each customer has a credit limit and may purchase goods/services (and, in some cases, draw cash) up to that credit limit at retailers which accept the credit card concerned - the retailer is reimbursed by the credit card company (less a small amount called the 'merchant charge') - the credit card company presents a monthly account to the customer.

The customer then has the option of: -

(a) paying cash, in full, to settle the account,

(b) taking credit - if credit is taken, the customer must periodically make payments not less than 5% of the outstanding balance (say), and interest accrues on the outstanding balance.Examples of credit cards are Barclaycard, Visa, Access, and Mastercard

Charge cards are similar to credit cards but with one important distinction - a charge card holder is not given the option of paying cash or taking credit - he must settle the account, in full, usually every month. Examples of charge cards are American Express and Diners Club.

The advantages of credit cards are that they are easy to use, they give you instant credit at your fingertips, and you can defer your decision as to how to repay. The major advantage, though, is that you are given protection under Section 75 of the Consumer Credit Act 1974. This means that the credit card company has to accept liability for breaches of contract on transactions over £100 and up to £25,000. So if you are supplied with faulty goods or a trader goes bust, then you can get compensation through the card company. Note that this DOES NOT apply to charge cards. However, some charge cards also offer protection over and above that provided by the legislation, through voluntary insurance schemes for example.



Question: I am intending to have a new garage built on to my house and am concerned about safeguarding any money paid to a builder if he goes out of business or his work is unsatisfactory.

Response: There is always a risk of losing money paid in advance but there are a number of ways to protect it:

•Some builders require money up front for materials but don't pay more than, say, 10%. You should agree to pay stated amounts at set stages with a job of this size.

•Many builders offer insurance backed guarantees either because of membership of a trade association or through an independent third party organisation. These schemes vary enormously in the amount of cover and may require the payment of a small insurance premium so be sure to check the complete documentation before you sign.

•If possible pay any money using your credit card or by a loan arranged through the builder. In both cases the credit card company or finance company are jointly liable with the builder under Consumer Credit law to cover any loss arising from unsatisfactory work or the builder going bust. This law applies to jobs with a cash value up to £30,000 where any loan is for less than £25,000.


Question: I am in the process of buying a house and the present owners have said they have guarantees for timber treatment and damp proofing carried out on the property. Will I be able to rely on these guarantees if necessary?

Response: Legally, guarantees are part of a contract between the company providing the service and the householder at the time. Many of them are for long periods of time and often the company is no longer in existence when it becomes necessary to use the guarantee.

However, new owners of property can take over guarantees but you will need to check the wording of the guarantee documents or ask the person carrying out the conveyancing to see if it is possible.

In particular,

•no guarantee is of any use if the company is no longer in existence unless it was also backed by financial protection insurance.

•if the company still exists it may be a requirement, on payment of a registration fee, to notify them that you now own the house.

•transfer of a guarantee to you might require your conveyancer to arrange a legally binding 'assignment' to you at the time you buy the property.

Many specialist treatment companies are members of trade associations operating schemes to protect customers, so it will be worth checking to see if your company belongs to one.


Question: A painter and decorator agreed to paint the outside of my house but I forgot to /tt/file_convert/555e616cd8b42a71048b45d4/document.doc 28

agree a start date with him. The autumn is approaching, but he always says he is busy elsewhere. When can I give up on him and go to an alternative tradesman?

Response: Although no start date was agreed the law requires that the job should be done within a ‘reasonable time’. Even though it is not easy to decide on what is reasonable for a particular situation, the trader cannot justify delay on the grounds of being busy.

In the circumstances you would expect the work to have started within a few weeks and it is now necessary to introduce a time into the contract. You will need to write to the trader indicating that you intend to cancel the agreement if the work is not started within, say, a month. If the work is not started by then you will be free to find an alternative trader and have the right to claim from the original contractor any financial loss you have incurred by making the alternative arrangements.



Question: I have been advised that I should have a written contract to cover work carried out on my house. What should this include?

Response: It is possible to draw up your own written contract, but many building trades associations will supply you with a simple standard form of contract. You should be careful of traders who offer a contract containing their own terms and conditions. Read any small print and insist on any changes with the trader if you are not happy. You should be wary about proceeding with a contract containing many exclusion clauses which the trader refuses to amend.

You might want to consider paying for a JCT contract. This is a standard contract for the building industry, currently costing about £10, which has been drawn up by the Joint Contract Tribunal. You can email them for more information on [email protected]

Your contract should include the following:

•yours, and the contractor's name and address

•the standard of workmanship to be carried out in a 'good and workmanlike manner', description of materials to be used and compliance with any plans and specifications, including reference to any relevant British Standards or Codes of Practice.

•start and completion dates with details of compensation for late completion arising from delays except those beyond the control of the contractor.

•clarification of who is responsible for obtaining planning permission or applying for Building Regulations.

•requirement that the contractor leave the site in a tidy state and be aware of environmental and wildlife considerations during the course of the work.

•requirement for the contractor to be adequately insured and agreement that any changes to the contract must be agreed in writing.

•provision for ending the contract by either party, the total cost of the work, how it will be paid and details of any stage payments.


Question: I am about to have some major renovations done to my home and want to avoid as far as possible any problems with contractors. What can I do to avoid disputes?

Response: Choice of a reliable trader is important in ensuring a good job, carried out to an acceptable standard, on time and at a reasonable price. Recommendations of a neighbour or relative use of an established local trader with a reputation to protect or membership of a trade association are all factors which should influence your choice. Increasingly local councils are offering lists of traders who are committed to fair trading schemes.

It is important to be clear about what you require and particularly what work a trader says is necessary to remedy a specific problem. Insist on a written firm quotation and not an estimate. Get quotations from three different traders.

Particularly for large-scale jobs you should have a written contract and only pay when you are satisfied that any work has been completed to your satisfaction. You should only make


payments in advance for materials, and for long-term jobs the contract should specify the stages at which any instalments are to be paid. You will then be able to withhold payment of any instalment until work has been completed satisfactorily.


Question: The wooden doors of a conservatory I have had built at the rear of my house do not fit or lock properly. The builder used subcontractors to do different parts of the job and is saying the carpenter is responsible for the doors and not him. Is this right?

Response: Your agreement was with the builder and he is responsible for any work carried out by subcontractors used by him. The builder is therefore responsible for ensuring that all aspects of the job were carried out on time, in accordance with any technical specifications and descriptions agreed and that all work was carried out with 'reasonable skill and care'. You have these rights under the Supply of Goods and Services Act 1982.

If the builder has not complied with any of these obligations he is liable to put the defects right.

After giving him the opportunity, he is unwilling or unable to do so, you are entitled to get the work remedied by another builder and deduct the cost from the original builder’s invoice.

Many builders belong to trade associations which offer complaints handling services, conciliation and arbitration schemes to resolve disputes with their members and increasingly offer financial protection schemes to protect customers should firms go out of business.


Question: I recently had the flat roof of a garage refelted and on completion of the job I signed a note that I was satisfied with the work. I wasn’t able to check the work at the time but now the roof is leaking. What rights do I have to claim from the roofer?

Response: In signing the note you probably agreed that you had inspected the work and found no problems. If you have to sign a satisfaction note in future without being able to check the work, do so, but write on it ‘work not inspected’.

However, the work should still be satisfactory under the Supply of Goods and Services Act 1982. You should persist with a complaint because the fault was probably not obvious even if you had been able to inspect the work.

If the firm claimed in its advertisement or paperwork to be a member of a trade association you might find that it would offer assistance to resolve your problem.


Question: I have decided to have a new central heating system installed in my house and I have noticed many companies display a logo of a trade association in their advertisement. Are there any advantages in choosing a firm which is a member of a trade association?


Response: There is no guarantee that a company which is a member of a trade association will do a better job than a non member. However, membership may mean that a company must comply with the association’s Code of Practice covering standards of work and, should things go wrong, provide access to a complaints handling service and inexpensive arbitration scheme if you do have problems. However you will not be able to take the firm to court simply for failing to comply with the Code of Practice.

Many trade associations are including financial protection for money paid by customers to member firms, so it will be worth checking this with any association of which a firm claims to be a member.

Remember any installer of gas central heating must by law be registered with CORGI (Council for Registered Gas Installers) which ensures standards of safety.



Question: I went to a local pub with a reputation for being children friendly and was pleased to see advertised ‘Buy two adult meals get one children’s meal free’ My older son and I ordered two adult meals and a children’s burger and chips for my younger son. We enjoyed the meal but I was not very happy when I received the bill as I had been charged for the children’s meal. When I queried this I was told that this offer only applied to adult meals ordered before 1 p.m. and we had ordered at 1.20pm. There was no indication of this on the blackboard outside. Is this right?

Response: I went to a local pub with a reputation for being children friendly and was pleased to see advertised ‘Buy two adult meals get one children’s meal free’ My older son and I ordered two adult meals and a children’s burger and chips for my younger son. We enjoyed the meal but I was not very happy when I received the bill as I had been charged for the children’s meal. When I queried this I was told that this offer only applied to adult meals ordered before 1 p.m. and we had ordered at 1.20pm. There was no indication of this on the blackboard outside. Is this right?


Question: I went out to lunch and ordered a meal which included some potato salad. I was very unhappy to discover a rubber band amongst the potatoes. When I complained the lady in charge said that she was very sorry but it was not her fault she had only just opened the container and showed me the box with one portion missing. She said as it was not her fault (I feel that this was true) she could not do anything about it. Is this right?

Response: No. As the seller of the meal she is responsible for the products she sells and she should make an offer of compensation to you. You should report the matter to the local Environmental Health Department, as selling food with a ‘foreign body’ in it can be an offence under the Food Safety Act.



Question: I went to my local take away just 5 minutes walk from my home. When I got the food home I found that the meal was cold and what had been described as King Prawns were, in fact, tiny shrimps. I took it back but they refused to replace it or give me a refund. What are my rights?

Response: You are entitled to expect the food to be of a satisfactory quality, so it should have been hot. The take-away should have refunded your money. You may want to report them to your local Environmental Health Department, as improperly cooked food, or food served at the incorrect temperature, may pose a health risk. Further, you should notify your local Trading Standards Department. This is because the food appears to have been misdescribed, and they might want to investigate it under the Trade Descriptions Act.


Question: I recently went to a restaurant which had been recommended to me. When I sat down, I was horrified to realise that the prices were very expensive. I had not seen any prices as I went in, shouldn’t they be clearly displayed?

Response: Yes. A pub should display a menu at the bar or on the table depending on where you order the food. A restaurant must display prices on a menu at or near the entrance in so that you can see them before you sit down.All the prices must include VAT and must also show any compulsory service /cover/minimum charges.If the information is not clearly displayed report the premises to the local Trading Standards Service.

If you had booked a table, without knowing the prices, and decide to leave as it was too expensive, even if you had not ordered, you could find that the restaurant might sue you for loss of profit.


Question: My brother and I went for a meal in a smart restaurant in town. We were extremely unhappy with the service we received. It took the waiter over 20 minutes to provide us with a menu, another half an hour to take out order and an eternity to serve the meal. We complained to the waiter at the end of the meal but he was not interested and we felt pressured to pay the bill. Can we still get our money back?

Response: You may not be able to get your money back, although it is still worth writing to ask. It is sensible to complain to the Manager at the time of the problem and if you fail to reach an agreement deduct an appropriate amount from the bill.To decide what is appropriate look at the way the bill is made up, if there is a compulsory /tt/file_convert/555e616cd8b42a71048b45d4/document.doc 34

service charge detailed separately, deduct either all or part of this figure. If the service charge is included in the price of the food deduct a reasonable sum from the total, perhaps 10-15% if the service element is not up to scratch. If the service charge is optional, you would not have to pay any charge but it would be difficult to justify deducting any extra from the bill as service is not included in it.Leave a name and address with the restaurant if you do not pay in full. It will be up to them to claim against you if it does not agree.

If you pay in full and the bill includes a service charge then you should pay ‘under protest’ and write to the restaurant as soon as possible afterwards. You may be able to claim through the courts later on if the matter remains unresolved.


Question: My friend and I went out for the day to the countryside and stopped at a little cottage café advertising "Home-made pies and cakes just like your Mother used to make". We decided to order a chicken and mushroom pie and baked potatoes. We were very unhappy when the pie came as it clearly was not home-made and the chicken was that chopped and shaped processed meat. Can cafes describe their food as homemade when it clearly is not.

Response: No. The food should be as described and there could be both an offence under criminal law which your local Trading Standards Service may be able to take up and also a breach of contract. This would mean you could possibly reduce the amount you pay to reflect the difference in value between a factory made and home made pie or pay ‘under protest’ and make a claim for damages for this amount. Additionally, there is no problem using chopped and shaped chicken rather than chicken pieces cut from the carcass as long as it was clear on the menu or before ordering.



Question: I booked a table at a popular restaurant, for a Christmas meal for my colleagues from the office. Unfortunately, the weather was very poor and several colleagues, who had to travel a long distance were not able to make it there, as it was not sensible for them to travel. At the end of the meal the staff who had managed to attend were presented with a bill for the number booked originally. They protested but the restaurant insisted that the full bill be paid. Did they have to pay as the restaurant could have used the food the following night and it was not our fault we could not get there?

Response: Yes you would have to pay the restaurant. When you make a booking for a certain number of people a contract is being made. Failure to turn up is viewed as a breach of that contract whether it is beyond your control or not you could find that the restaurant might sue you for loss of profit. The food in this instance was for a Christmas Party Night, and would have been prepared for that night. They would argue to keep it for the following night would be a food hygiene risk to customers.


Question: Last night I went into a pub for a quick drink and a packet of crisps. I opened the crisps and ate one and discovered it was soft. I looked at the best before date on the packet and realised that it had expired over two months earlier. When I complained, the lady behind the bar just laughed and replaced them with a different flavour. Is it illegal to sell food after the best before date has expired?

Response: There are two types of date marking used on food. The ‘Best Before’ date is used on food with a long shelf life, such as crisps. In itself, it is not an offence to sell food beyond this date unless it is unfit for human consumption, but you are entitled to expect the food to be of a ‘satisfactory quality’. Therefore, if the crisps were stale, you would be entitled to a refund.

The other date is the ‘Use By’ date. This is used in highly perishable food, such as fresh meat, dairy products etc, which has the potential to deteriorate quickly. It is an offence to sell food beyond the use by date at any time, and if you discover this, or if you suspect dates have been changed, notify Environmental Health as soon as possible.



Question: Having been out to the local pub for a meal, just a few hours later I was very ill for over two weeks. The Doctor suspected food poisoning. I think it was the prawns I ate at the pub. Is there anything I can do?

Response: Yes report your suspicions to the Doctor. He will decide whether the Environmental Health Authority should be informed. It can be difficult to pinpoint the cause of food poisoning as often the symptoms can take up to three days to appear.


Question: Last week we went to a restaurant for a Birthday meal and my sister ordered a vegetarian cauliflower and broccoli quiche. To her horror, when she cut into it, she discovered that there was bacon in it . She complained and did not eat it and insisted on a different vegetarian meal. However, when the bill came we saw that we had been charged for both vegetarian meals. We refused to pay for the quiche and the manager threatened to call the police so we paid. Did I have to pay?

Response: No, you were entitled in these circumstances to complain and refuse to pay for the dish. If you felt that you had no alternative but to pay for the quiche then you should pay ‘under protest’ and then you can make a claim later on. As long as you paid for the food and drink you did eat, the police would have no basis to get involved.


Question: I recently took an evening dress to the dry cleaners, and I pointed out a stain. When I collected it, the stain was still there and the fabric had faded. I complained but the dry cleaner pointed to a notice stating ‘we cannot accept responsibility for loss or damage howsoever caused’. What are my rights?

Response: The Unfair Contract Terms Act and the Unfair Terms in Consumer Contract Regulations prevent traders from limiting their liability in this way. Any contract term must satisfy the test of ‘reasonableness’ and no contract term can seek to restrict your statutory rights. For example, the Supply of Goods and Services Act 1982 (as amended) entitles you to have garments cleaned with reasonable skill and care. Therefore, the dry cleaner cannot avoid legal liability if they were negligent. You should complain in writing, and threaten to sue if they do not compensate you for the loss.



Question: I went to a new hairdresser for a perm. Within a few days I had an inflamed patch of skin on the top of my head. The stylist blamed the batch of solution. Can I claim any compensation?

Response: The hairdresser was providing a service and should have exercised reasonable skill and care whilst doing so, as required by the Supply of Goods and Services Act 1982. When using chemicals an experienced stylist should have carried out a patch test first to check for any adverse reaction. If the hairdresser fails to do this and you suffer an injury you will have a claim for compensation. You should complain to the owner of the salon in writing. You should also visit your GP and get medical evidence. If the hairdresser is a member of the Hairdressing Council you may be able to use that organisation’s conciliation service.


Question: I made an appointment at a beautician’s salon, but didn’t go as something turned up. The salon has now written to me, asking for payment. They say they could have taken other clients if I had notified them that I wasn’t turning up. Can they do this?

Response: Yes. When you make an appointment, you create a contract with the company, and if you fail to keep the appointment, you will be in breach of contract. The trader could be entitled to claim compensation for the loss of business, especially if he had turned other customers away, but it would be reasonable for you to expect evidence of this



Question: I employed a removals company when I moved house recently. Several items were delivered broken and some were lost. What rights do I have?

Response: You are entitled to expect the removals firm to have carried out their service using ‘reasonable skill and care’ under the Supply of Goods and Services Act 1982 (as amended). They should have taken care of your property whilst it was in their possession, and if they caused loss or damage because of their negligence, you could claim compensation for breach of contract.

Check what insurance cover the company has, and also look to see whether they are members of a trade association, such as the British Association of Removers, who have a code of practice and may be willing to arbitrate.


Question: In a cafe recently, I was served a burger that was not cooked properly, and was virtually raw in the middle. Did I have to pay for it?

Response: You are entitled to expect a caterer or restaurant to have prepared food correctly and safely, under the Supply of Goods and Services Act 1982 (as amended) and the Food Safety Act 1990. If they didn’t provide a satisfactory replacement, you could deduct the value of the burger from the final bill. You would, however, be expected to pay for elements of the meal that were OK. You should also report the cafe to the local Environmental Health Department, as the food may not have been safe to eat.


Question: I had new tyres fitted to my car, but when I drove away home the wheels locked. I called the RAC who said the tyres were over-inflated and the wheels had not been fitted correctly. What are my rights?

Response: The garage should have exercised reasonable skill and care when carrying out this work, as required by the Supply of Goods and Services Act 1982. You are entitled to expect them to put the matter right, or refund your money plus any additional out of pocket expenses you may have incurred. Ask the RAC to confirm in writing what their patrolman found, and present a copy to the garage.


Question: My daughter is getting married, and we took 8 metres of pure silk to a dressmaker /tt/file_convert/555e616cd8b42a71048b45d4/document.doc 39

who measured her and made a dress. However the dressmaker has made a dreadful job of it - the dress doesn’t fit properly, the pattern on the fabric has not been matched. I don’t think that it can be put right and the wedding is only 6 weeks off. What can we do?

Response: The dressmaker failed to make the dress using reasonable skill and care, as required by the Supply of Goods and Services Act 1982. You should consult another dressmaker to see if the dress can be salvaged. If not, then you are entitled to be fully compensated for the loss of the material and the cost of making up the dress. Also, if you have to pay more to get a suitable dress elsewhere, you could be entitled to claim the difference from the dressmaker.


Question: I paid £25 for a bouquet of flowers to be delivered to my friend’s house on her birthday from a local florist. When I went to see her the next day, I was disappointed in them - it was a very poor selection and half of them were wilting already. What are my rights?

Response: You were entitled to expect the florist to make up a bouquet that was of a satisfactory quality. The flowers should also have been fresh and should last a reasonable time. If not, the florist has failed in their obligations under the Supply of Goods and Services Act. You should complain to the florist, and perhaps seek the advice of another florist as to how long the bouquet should have lasted.


Question: I ordered a new bathroom from a local company, and they finished installing it yesterday. However, the quality of workmanship is very shoddy. Some tiles are chipped and coming off the wall, the bath panel has been dented, and the shower leaks. I haven’t paid yet. What are my rights?

Response: Under the Supply of Goods and Services Act 1982 (as amended) you are entitled to expect the work to be carried out using reasonable skill and care, i.e. a good professional level of workmanship. You are entitled to expect the company to fix any outstanding problems, and replace any items that are damaged.

If they won’t do this, you can withhold some of the money, to reflect the cost of employing another company to put the matter right.



Question: I booked an early morning taxi to take me to the airport, and gave the company full details of my flight and check-in times. The taxi was an hour late, and as a consequence, I missed my flight. I was able to travel 5 hours later, but had to pay the airline a supplement. Can I claim compensation from the taxi company?

Response: The taxi firm had a duty to carry out their service to you using reasonable skill and care, as required by the Supply of Goods and Services Act 1982 (as amended). As they knew your travel details, they would be aware of the consequences of their being late, and therefore you could hold them liable for the extra costs that you incurred, i.e. the flight supplement, essential phone calls, refreshments etc.


Question: I booked flights to Lanzarote from a local travel agent, by phone, using my credit card. When I went to collect the tickets, they were to Faro in Portugal. The agent said I had asked for Faro! What are my rights?

Response: You should argue that the agent is in breach of contract because the wrong tickets were supplied, and should demand a refund or that they book flights to the correct destination. As you paid by credit card, and if the tickets cost more than £100 each, you should claim against the credit card company under the principle of Equal Liability (provided by Section 75 of the Consumer Credit Act 1974). If you have to pay more money to get an alternative flight, then you could hold the agent/credit card company liable for the difference in price also.

Be aware, though, that if the agent continues to deny that you asked for Lanzarote, then it may be difficult to prove what happened, and the dispute may come down to your word against theirs. Ultimately, only a court can decide on what happened, based on the ‘balance of probabilities’.



Question: I took my leather boots to be reheeled at a local shoe repairers. When I collected them I noticed that the leather on one of the shoes had a bad scratch. These were quite new, expensive boots. What are my rights?

Response: Under the Supply of Goods and Services Act 1982 (as amended) the repairers should exercise reasonable care and skill whilst reheeling your boots. Any damage caused by them through their negligence or lack of care should either be put right at their expense. If the boots can’t be repaired, then you are entitled to ‘reasonable’ compensation.


Question: When we arrived at our hotel in the Lake District we were told that there had been a mistake and all the rooms had gone. The only alternative was a more expensive hotel 10 miles away. Can I claim the additional cost back?

Response: The hotel is in breach of contract because it accepted your booking but failed to keep a room. It is therefore liable to pay compensation for any additional costs you incur. You should put your complaint in writing to the hotel management, including copies of receipts and invoices for your additional expenses that arose from having to stay in the alternative hotel.


Question: I booked a hotel room but due to circumstances outside my control I had to cancel the booking. Now the hotel refuses to give me back my deposit, and has written to me asking for more money because they weren’t able to relet the room. Can they do this?

Response: Yes, is the short answer. If a booking is accepted, whether by phone, letter or in person, then a binding contract has been entered into. The hotel, for their part, agrees to provide a room for the specified dates at an agreed price and you, the customer, agree to pay for it. If you cancel, the hotel is entitled to retain the deposit. Also, if they were not able to relet the room, they could claim the full cost for loss of profit.

They must be able to show, though, that they did try to relet the room, so you should ask them for evidence of this before you pay any more money. This is because the hotel is under an obligation to 'mitigate their losses' or keep their losses to a minimum. They cannot unreasonably profit from your breach of contract, and need to show they suffered an actual financial loss.


Question: They must be able to show, though, that they did try to relet the room, so you /tt/file_convert/555e616cd8b42a71048b45d4/document.doc 42

should ask them for evidence of this before you pay any more money. This is because the hotel is under an obligation to 'mitigate their losses' or keep their losses to a minimum. They cannot unreasonably profit from your breach of contract, and need to show they suffered an actual financial loss.

Response: You are entitled to reasonable standards of cleanliness, and to have adequate facilities. The accommodation should not have been dirty, and there should be sufficient equipment and facilities to cook and eat meals, if it was described as self-catering. You should be able to pursue a complaint against the tour operators for breach of contract, and also for the out of pocket expenses incurred by having to eat out. You should emphasise that you complained to the rep, who refused to resolve the matter.


Question: In the event of a breach of contract, the law says I am entitled to reasonable compensation. How would I assess what is reasonable if I have a holiday which is of an unsatisfactory quality?

Response: There are three basic components of holiday compensation:

1.Loss of value - the difference between the holiday booked and the holiday received, e.g. where you were accommodated in an inferior hotel. However, when calculating the cost, you must take account of the parts of the holiday that were not affected. If it was only the room that was at fault and you were out sightseeing or on the beach most of the day, then the effect will not have been so great. You must also bear in mind that satisfactory flights, inclusive excursions, inclusive meals and other facilities need to be paid for. 2.Out of pocket expenses - the refund of any reasonable expenses incurred because of the tour operator's breach of contract, for example bus/ taxi fares if a substituted hotel is further away from local attractions, or eating out because the hotel food was inedible. 3.Loss of enjoyment - any claim under this heading is very subjective and difficult to assess. It covers disappointment and frustration when things go wrong. The difficulty comes when trying to assess whether the holiday was a complete disaster or just unpleasant. If just unpleasant, the amount of compensation will be reduced

Ultimately, if you and the tour operator cannot agree on what is a reasonable offer of compensation, you may have to sue in the sheriff court as a small claim, and let the Sheriff decide. Alternatively, you may consider arbitration through the trade association ABTA.



Question: My partner and I have booked our holiday. We have had a letter from the tour operator demanding another £100. Can they do this?

Response: Check the booking conditions for mentions of surcharges. Some operators boast ‘no surcharges’ guarantees which they must honour. If surcharges are permissible then the company must explain what the surcharge is for, e.g. increased fuel prices or changes to exchange rates. Operators cannot impose a surcharge less than 30 days before departure. Also, if the surcharge results in a significant price increase (over 10% according to the ABTA Standard on Surcharges) you are entitled to cancel and receive a full and prompt refund.


Question: What’s the difference between a charter flight and a scheduled flight?

Response: Generally, with charter flights the tour operator hires the whole plane from an airline. It is then up to the operator whether he fills all the seats. Scheduled flights are available for everyone to book on, and are run by the airline direct.Contact Name: Environmental Operations Admin Contact Ext No: 2252/2177

Question: When I booked my holiday, I specifically asked for a sea view. However, when I got there my room was overlooking the hotel kitchens and a supermarket. What are my rights?

Response: If the tour operator was aware of your request, and it was shown on the holiday confirmation, then this request forms part of your contract. If they failed to honour the term, you should complain and seek compensation.



Question: Our hotel was only partially built when we arrived at our holiday resort. The brochure had claimed that there were three restaurants and two pools, but in fact only one restaurant and one pool had been built. As it was high season, everywhere else was full. What should we do?

Response: A Tour operator’s brochure should be accurate, and you are entitled to rely on any description. If these turn out to be untrue, you could argue that the holiday was misrepresented to you, and the company may be guilty of a criminal offence under the Trade Descriptions Act. You should seek compensation for the difference in value between the promised facilities, and what you actually got, along with compensation for loss of enjoyment, inconvenience and disappointment. You should also report the misdescription to your local Trading Standards Department for investigation.


Question: The food at our hotel was of a very poor standard, often being cold or burnt, and usually inedible. After the first week, we decided to eat out every evening. Can we claim the additional cost from our operator?

Response: The food at our hotel was of a very poor standard, often being cold or burnt, and usually inedible. After the first week, we decided to eat out every evening. Can we claim the additional cost from our operator?


Question: Our tour operator has just changed our holiday booking a week before we go away. We are not staying in the hotel we wanted, and the alternative one is further from the beach. Can they do this?

Response: Most tour operators’ conditions allow them to make small changes without paying compensation (check the brochure for details). However, if these changes are major, e.g. moving you to a different resort or hotel with different facilities or amenities, you should be told as soon as possible. If you are not happy with the change, you can cancel and get a full refund. If you decide you have no choice but to go on the holiday, tell the operator that you will assess the inconvenience when you are in the resort, and will write and claim compensation on your return.



Question: My microwave needed repairing 2 months ago, and I paid an engineer to fix it. It has gone wrong again, and the engineer says I will have to pay for another repair. Surely he is liable?

Response: It depends on whether the two faults are related. After two months use, it is possible that the second fault is completely unrelated to the first. You would need to prove that the repairer failed to carry out the original repair using reasonable skill and care, which is his obligation under the Supply of Goods and Services Act. This may entail taking it to another engineer and paying for his opinion, but you must accept that it may be difficult to prove categorically that the two problems are related.


Question: Six months ago my kitchen was totally refitted including new appliances. I’ve just discovered the oven is not heating up properly. I rang the manufacturer, and they said they couldn’t send someone out for 6 weeks. Is there anything else I can do?

Response: Your rights are with the supplier of the cooker, i.e. the kitchen company, under the Supply of Goods and Services Act. They have an obligation to supply a cooker that is of a satisfactory quality, so you should ask them to organise a repair for you. Also, if you financed the kitchen refit on a credit agreement arranged through the kitchen company, you should contact the credit company. You may also have a claim against them under the Consumer Credit Act, and they might be willing to help speed things up.


Question: My 5 year old VCR has started damaging my video tapes so I took it to a local repairer, and asked if they thought it was worth repairing. I was told they would charge £25 for a quotation for examining the VCR. Can they do this?

Response: As long as the trader made this charge clear before accepting your machine then, yes he can. To enable the diagnosis of the problem the trader may have to strip down the machine to find the cause of the problem. This may take him sometime and it will give him an opportunity to decide if the repair is economically viable or not.


Question: Recently my computer broke down. The repairer said it was the hard disk drive and fitted a new one, but a couple of weeks later the fault reappeared. I spoke to the manager who said I would have to pay for the second repair. Is this right?/tt/file_convert/555e616cd8b42a71048b45d4/document.doc 46

Response: Goods supplied in the course of providing a service, such as the hard disk drive in this case, should be of a satisfactory quality. The repairer has broken his part of the contract and should compensate you, either by carrying out a repair free of charge, or refunding your money.


Question: I have entered into a contract for double-glazing following a visit from a representative who called at my house. Do I have any 'cooling off' period in which to cancel the contract?

Response: If the goods or services you bought cost more than £35 and the call was 'unsolicited' (you did not ask the company to call on you) then you have 7 days to cancel the contract. The company should give you written notice of your cancellation rights, otherwise the agreement may be unenforceable

•If you agreed to the visit as a result of an unsolicited telephone call, you will still be able to cancel. This is because the visit did not take place at your 'express request'.

•If you cancel the contract within the 7-day period, you are entitled to a refund of any money you have paid. However, if the goods are perishable, or some work has been carried out, you may have to pay for these, even though you have cancelled.

•Remember - you only have these rights if the visit was unsolicited. If you asked the company to call, you won't have any automatic rights of cancellation (unless you signed a credit agreement - in which case seek some further advice)



Question: I took the day off work for the engineer to come and repair my washing machine. He failed to show up. Can I claim compensation for my wasted time?

Response: There is a breach of the verbal contract you had with the trader. Whether you can recover any compensation for the wasted day depends on whether the trader was aware you would have to take the day off work in other words, your loss needed to be reasonably foreseeable. You should also check to see if the tradesman is a member of a trade association. If he is, and he won’t voluntarily compensate you, you should complain to them also.


Question: I have entered into a contract for the installation of double-glazing but we did not agree on a starting sate. There has been quite a delay and the job has still not been started. How long should I wait for the company to start the job?

Response: Where no start date has been agreed, the contract has an implied term that the work will be done within a reasonable time. It is difficult to determine what a reasonable time is in any particular case, but it would be reasonable to expect the work to be started within a few months of entering the agreement. You should write to the company, and set a deadline for the work to be commenced - this is called making time of the essence. If the deadline passes, you would then be entitled to cancel the contract and go elsewhere.


Question: I recently had an extension built. The plastering was of a very poor standard. The builder said the work was done by a subcontractor and so he is not responsible. Is this true?

Response: No this is incorrect. The trader entered into a contract with you to do the work and it is irrelevant whether he does the work himself or by subcontracting to another tradesman. Therefore the builder must accept liability for poor quality workmanship and your claim is against him.



Question: I need some work done on my house. What should I bear in mind to reduce the chances of getting into a dispute over the work?

Response: •Find a reliable trader, perhaps recommended by a friend or relative and look for someone who is a member of a relevant, specialist, trade association

•Insist on detailed written quotations on headed paper

•Get quotes from more than one trader

•Be as precise as possible about the work to be done. For large expensive projects such as building work, get a written contract, stating all the jobs that need doing, materials to be used, and a time scale for the work to be done by

•Negotiate payment terms, and never pay the full amount up front. Ideally, pay in stages, and only make a final payment when the work is complete and you are happy with it.


Question: I discovered a leaking pipe and had to call a plumber. He was here for less than an hour but the bill was for £200. I fell this was excessive - do I have to pay it?

Response: If no price is agreed beforehand the trader may charge only a reasonable price in accordance with the Supply of Goods and Services Act 1982. What is reasonable depends on the type of work, the amount of work done and the standard of work. Follow these guidelines:

•Always ask for a written quotation before agreeing to the work

•Check with a trade association for guidance on charges

•If the work has already been carried out, get quotes from other traders as to what they would charge for the same work.

•Make a payment for what you consider to be a fair price in line with what the 'going rate' is.



Question: What are my rights when I employ a trader to do work for me?

Response: The Supply of Goods and Services Act 1982 (as amended) covers contracts where the trader supplies labour, as well as goods and services, for example building work, the installation of double glazing or the servicing of a washing machine. This legislation imposes a duty on the trader to:

•Carry out the work using reasonable care and skill •Carry out the service within a reasonable time, where no time limit has been agreed •Make only a reasonable charge for the work where no charge has been agreed in advance •Supply materials/parts and components (if relevant) that are of a satisfactory quality, fit for their purpose, and correctly described.


Question: I got carried away at an Internet auction site yesterday and successfully bid for a vintage motorbike costing £4,500. I really regret my decision and now want to cancel, but the auctioneer says I don’t have any cancellation rights. I thought I did under the Distance Selling Regulations. Who is right?

Response: Unfortunately, the Distance Selling Regulations expressly exclude auctions. Therefore, the normal right to cancel contracts within 7 working days for goods bought over the Internet will not apply.

Internet auction sites will have a page explaining their terms and conditions, and it is essential to read this information before you start bidding.


Question: I have ordered some wine from a company advertising on the Internet. I have to pay £120 up front before they will send the wine to me, and I’m a bit worried as I don’t have the company’s actual address, only their website. I have emailed them, asking for the full details but they won’t supply it to me. Don’t I have a right to know the company details when buying like this?

Response: When you buy ‘at a distance’, i.e. by mail order, phone, or from the Internet, the Distance Selling Regulations apply. This law entitles you to be given information about the company and how to contact them, details of the order and how to cancel. This should be given to you in a ‘durable’ form, i.e., in writing. You should email the company again, and tell them that you will report them to Trading Standards if they don’t provide you with this information.

You might want to note that, if you use your credit card (not debit or charge card) to pay for goods costing more than £100, you will also be able to claim against the credit card company if something goes wrong with the order. This is under a principle called ‘Equal Liability’ and is /tt/file_convert/555e616cd8b42a71048b45d4/document.doc 50

provided by the Consumer Credit Act 1974 Section 75.


Question: I have been sent a load of books from a club, but I didn’t order them. I am worried in case the company starts chasing me for payment. What are my rights if I receive unsolicited goods?

Response: The Distance Selling Regulations say that if you are sent unsolicited goods (in other words, goods that you did not order or ask for) you can treat them as a gift, and either keep them or dispose of them, whichever you prefer. You don’t need to notify the company, they simply become your property.

If the company starts chasing you for money, though, you should then write to them, making it clear that the goods were unsolicited. If they continue to press for payment, notify your local trading standards office who will investigate the complaint.


Question: I ordered some expensive wallpaper from a catalogue by phone about 12 weeks ago using my debit card. I was told that delivery would take about 3-4 weeks but I still haven’t received the goods. Am I entitled to a refund, and could I claim from my debit card company?

Response: When you buy goods from a catalogue, by mail order, phone or Internet, the Distance Selling Regulations state that you are entitled to expect goods to be delivered within 30 days of ordering, unless you agreed a longer time with the trader. By not delivering the goods in this time, the trader is in breach of contract, and you should be able to cancel the deal and have a full refund. The law requires the trader to provide this refund within 30 days also.

If you had paid by credit card, as opposed to debit card, and the goods cost more than £100, you could have claimed from the card company under Section 75 of the Consumer Credit Act, using a principle known as Equal Liability.


Question: What is distance selling?

Response: The Distance Selling Regulations cover transactions made by phone, mail order, catalogues, the Internet, emails, faxes, videotext etc. basically, any transaction made ‘at a distance’ as opposed to going into a shop or other trading premises.


These Regulations entitle you to:

•be given details of the order, the price, contact details for the company, and how to cancel •expect delivery of the goods within 30 days •change your mind about goods for any reason within 7 working days of receiving them •have your money refunded within 30 days if you decide to cancel •treat unsolicited goods as gifts, and keep them or sell them, as you wish


Question: I ordered some CDs from a newspaper advertisement and they arrived yesterday. I was disappointed by the selection of music on them. Do I have any rights to a refund, even though they are not technically faulty?

Response: Yes! The Distance Selling Regulations give you 7 working days to change your mind, whatever the reason, when you buy goods at a distance, i.e. by mail order, phone, the internet, fax etc.

The law says that the trader should have sent you details of the order, the company, and how to cancel in writing, after the order was placed. If they don’t, the law gives you even longer to cancel, in some cases up to 3 months!

You should speak to the firm as soon as possible, and ideally should write to them with notification of cancellation. Do bear in mind, though, that the company may expect you to pay for the return postage when you have simply changed your mind. If the goods are faulty, however, you shouldn’t normally have to pay the return postage.



Question: I ordered a computer mail order but it was damaged in transit. I could tell this because the box was battered and torn that it came in. Have I got to pay for it?

Response: Generally most mail order companies belong to trade associations who have a Code of Practice and have agreed to replace damaged goods free of charge as part of that Code. Check whether the supplier belongs to any such scheme.

The Sale of Goods Act will apply here. This says that once the goods have been handed over to a carrier they became the property of the buyer who must bear the cost of accidental loss or damage in transit. Having said that, the Act also places an obligation on the seller to ensure that the goods are packed properly and insured. You need to show that the packaging was inadequate or that the goods were damaged before they left the seller in order to have a claim against them. Alternatively, you need to make a claim against the carrier. As your computer arrived damaged check to see whether it was insured. You could refuse to accept it and ask for a refund.


Question: I was recently made redundant and am looking for work that I can do at home. I have access to my Sister’s computer so want to surf the net to find Homeworking schemes. Is there anything that I should be wary of?

Response: It’s not difficult to find scams on the internet. You see them on websites, in unsolicited e-mail, in news group postings and in chat rooms. The scams are not new and the advice on how to deal with them is the same; the bottom line is treat them with caution. If it sounds too good to be true, it probably is.

It is impossible to give a definitive guide on how to spot a scam, but here are some clues:-

•Hidden addresses. Beware of traders who try to sell goods or services using anonymous e-mail address or a post office box number and make it hard for your to find their actual location.

•CAPITAL LETTERS SHOUTING AT YOU!!!! Even the look and wording of adverts can make you suspicious. Be sceptical of adverts that shout at you, like ‘THE SECRETS OF GUARANTEED SUCCESS!!!!’ or ‘HOW TO MAKE A £££££MILLION!!!!’ •Vague references. ‘Thousands of satisfied customers!’ While such references sound impressive, you’re rarely given enough information to check them out. •‘This is not a scam’. Don’t fall for this trick. A legitimate business doesn’t need to convince you of its legality. •Promises of instant wealth. If incredible returns are being offered, ask yourself who is going to be able to provide these and how. •Pay for a secret. Some scams will offer a ‘secret’ money-making method available ‘only to a selected number of people’. But a typical scam reaches thousands of users. Details of the scheme are kept hidden until after you pay a fee. •Hidden expenses. Be wary of advertisements promising ‘no start up costs’ and then asking for a one-off fee. •Are you their first victim? Look at the Advertising Standards Authority database of adjudications. The company may already have a complaint upheld against them. Their website address is www.asa.org.uk


Question: I have decided to buy some goods from the Internet. I have never done it before and am very nervous, especially about using my credit card. Is there anything that I should be aware of?

Response: •make sure you know who you are dealing with, it is easy to fake e-mail addresses so don't give out personal information until you are satisfied about the trader; •always read the small print in a contract. Save it, and the terms of business. Keep a copy of the website page; •giving out credit card details can be made safer if the trader uses an encryption facility. Some traders will allow credit card details to be given via a secure page, or via the telephone or fax facility, and you should check with the company before you order; •some sites display a padlock at the bottom when the payment screen is selected. This should be a safe site; •find out if the company has a refund and return policy; •watch out for additional charges such as VAT, customs duties, postage and packaging; •if you are unsure about anything telephone the company asking for confirmation in writing before purchasing; •make sure you know the full postal address of the trader. Beware of addresses that are PO Box numbers; •be very wary about buying goods from companies based outside the UK. If something goes wrong with the order, i.e. goods are faulty or don't turn up at all, then it could be very difficult to take legal action to recover your money. Paying by credit card can sometimes give you extra protection, especially if the goods cost £100 or more.


Question: I recently bought some hardwood garden furniture out of a catalogue from a company that I thought was reputable. When the furniture was delivered I discovered that the wood was softwood and stained. An expert has looked at it and confirmed my suspicions. What are my rights?

Response: The Trade Descriptions Act 1968 makes it a criminal offence for a trader to make a false statement about goods that are offered for sale. You should seek the advice of your local Trading Standards Department, who may want to investigate the misdescription.

The Sale of Goods Act 1979 places an obligation on a trader to ensure that goods sold correspond to their description. If they don’t you could be entitled to a refund of the money you paid, plus any out of pocket expenses you incurred, such as postage charges and the cost of obtaining an independent report. Once you have rejected goods, it is up to the company to arrange for them to be collected.



Question: I ordered some cigarettes from a website that seemed to be really cheap. When I checked my credit card statement later the amount charged was more than I thought.

Response: Goods orders on the "net" from countries within the European Union do not attract customs duties when posted into the UK. They do attract VAT though and also excise duty (if tobacco or alcohol). It is probable that the VAT and duty has been added to your credit bill, and this should have been made clear in the advert on the website page.

Goods that are ordered from countries outside the European Union will attract customs duty, VAT and excise duty so be careful when ordering goods - they may not be as cheap as they appear.

The other cost that should be made clear is whether there is a charge for postage and packing.

If you are in doubt about the duty that is payable you can visit the Customs and Excise website or VAT Business Advice Centre.


Question: I bought some goods by mail order 2 months ago using my credit card to pay for them. The company has since disappeared and the goods are faulty. I contacted my bank and I was told by a friend that as I had paid by card the bank was also liable for goods purchased in excess of £100. The bank denies this - who is right?

Response: The Consumer Credit Act 1974 places the same liability in contract on credit card issuers as it does on traders. This principle is known as 'equal liability'. In other words if the goods were misrepresented or faulty and were over £100 you could make a claim against the supplier as well as the credit card company. This only applies to credit card transactions and not charge cards or debit cards (these are the ones where your money comes directly from your current account or you have to pay off the full amount when you receive your monthly statement).



Question: Since buying goods on the net I have noticed that I am receiving a lot of e-mails trying to sell me things, financial packages and offering various homeworking schemes, competitions etc. I’m getting fed up with this can I do anything?

Response: Before you respond to unsolicited commercial e-mail it is suggested that you:-

•approach them in the same way you would treat an unsolicited telemarketing call. Unsolicited promises from unknown companies should be treated with caution; •treat money making schemes that arrive at your in-box with scepticism. Most of the time these are simply scams.

You could contact your internet service provider (ISP) since they will often be able to trace it back to its source and put a block on future mailings.

There are companies that sell lists of e-mail addresses to those businesses who then sell by direct marketing techniques.

The Direct Marketing Association is preparing with other associations worldwide to establish a global e-mail preference service with which you can register if you do not wish to receive unsolicited sales material by e-mail. Visit their website on http://www.dma.org.uk/


Question: How can I tell whether a sale is genuine or not?

Response: Sale goods or goods which have been reduced from a previous higher price should have been reduced from the last price charged within that shop for a minimum of 28 days in the last 6 months. If the price applicable to the goods does not meet these criteria then expect to see a disclaimer – a notice explaining when and where the higher price applied. For example ‘these goods were on sale at the higher price at our Coventry branch between 1 and 14th February’. You will then be able to judge for yourself whether the reduction is genuine. What does special clearance or special purchase mean? Generally this will mean that the retailer has been able to purchase quantities of stock at a low price, which they want to then pass on to customers. These goods may not have been sold in store previously.



Question: I selected goods but was asked to pay a higher price at the till. What can I do?

Response: When a mistake like this happens, the trader is not obliged to sell you the goods at the lower price. He is entitled to withdraw the goods from sale until the problem is rectified. You cannot insist on buying the goods at the lower price. However if a trader tries to charge you more for goods which are advertised at a lower price, then a misleading price indication could be given, which is a criminal offence. If this happens and you are not satisfied with the trader’s explanation of how it happened then let trading standards know.


Question: Do traders have to indicate the price of services?

Response: No, only goods need to be priced. However the price of accommodation in hotels and guesthouses does need to be displayed in the reception area at the entrance. If you are planning to employ a tradesman, protect yourself by getting several quotes in writing and comparing them. An estimate is not a fixed price and could vary.

Remember you are only obliged to pay a ‘reasonable’ charge for the work carried out in the absence of any other agreement.


Question: I went into a pub recently and the price list was behind the bar where I couldn’t read it. Is this right?

Response: No, bars and restaurants are required by law to indicate the prices of a number of different kinds of drinks. The price list should be clear and legible and easy for customers to read. If prices are not displayed or difficult to see report the details to your local trading standards service.



Question: I went into a restaurant and was embarrassed when the prices were higher than I expected on reading the menu.

Response: Restaurants and pubs are required to place a menu at the entrance to the eating area so that you can examine the menu before being seated. The menu should also include details of any additional charges that may apply e.g. service charge, cover charge. If a minimum charge applies, this also should be indicated. If prices are not displayed ask the waiter to see a menu before being seated and report the absence of menu prices to your local trading standards service.


Question: Can a trader show prices excluding VAT?

Response: If a trader sells to the general public then all prices must include VAT. The price shown must be the final price the customer will pay. If a trader increases the price at the till then he may commit a criminal offence for giving a misleading price indication.


Question: I've been in a shop and couldn’t find any prices on goods for sale. Is this legal?

Response: No. The Price Marking Order requires that all goods offered for retail sale must be priced. A price can be given in several ways, including a shelf edge ticket, a price on each item, a price list. However prices are not required for works of art or antiques.

The price shown must be the final price for the item or a given quantity of product, including VAT and other taxes.



Question: A customer came into the showroom yesterday and we agreed a price for a car she was interested in, and she paid a deposit. However, I have now discovered that we have made a mistake with the price, as we had the wrong information about the engine size – the car should cost another £500. I want to back out of the deal, but the customer isn’t happy and won’t pay the extra, even though I’ve told her it was an honest mistake. Where do we stand?

Response: By taking the customer’s money you have entered into a legally binding contract, and all the important terms have been agreed on, including the price. If you back away from the deal now, you will be in breach of contract, and your client could be entitled to claim compensation from you for that breach, over and above the return of the deposit.

Also in circumstances such as this where the contract was for a unique and specific item, such as a car, the customer may be able to sue you for ‘specific performance’. This means she could ask a court to make you supply that particular car. You may also have committed a criminal offence by applying a misleading price indication to the car. You should, therefore, think very carefully before pulling out of the deal, and ask yourself whether you could lose more money in the long term!


Question: I sold a car yesterday to a consumer for £500. At such a low price, I told him it was ‘sold as seen’. He accepted this. Now, he’s complained because the exhaust has fallen off, and he sys the clutch is going. I’ve told him that he agreed it was sold as seen and he hasn’t any comeback.

Response: ‘Sold as seen’ in this context is a meaningless statement. You can only apply this reasonably to the way the car looks, or something that can be easily seen on a visual inspection, perhaps scratched or dented bodywork for example. However, it is not reasonable to expect a faulty exhaust or clutch to be picked up on the basis of a visual examination, and the consumer is probably entitled to complain. This soon into the contract, the Sale of Goods Act 1979 (as amended) would most likely allow him to reject the car and have a full refund.

Using the term ‘sold as seen’ in these circumstances may also be a criminal offence under the Consumer Transactions (Restrictions on Statements) Order, as it would be seen as an attempt to restrict a consumer’s legal rights. If you want to use any disclaimers, either in contracts or in signs on the garage premises, it is best to seek advice from Trading Standards or your company solicitor first.


Question: I bought a car at an auction last week. The seller stated through the auctioneer that the mileage was correct, although he had no paperwork to support it. It was a good price, however, and as I’ve dealt with him before, I trusted him. I’ve sold it on to a private consumer, who has now complained that they’ve checked with the previous owner, and it has done 100,000 more than on the clock! Of course, I've immediately refunded my consumer, but what are my rights against the seller?


Response: The law of Misrepresentation applies to trade sales as well as consumer sales, and you have been a victim of the car being wrongly described to you. Quite rightly, your consumer is entitled to their money back, but you could also pursue the seller for a refund yourself, on the basis that the car has been misrepresented. You should also report the matter to Trading Standards in the area where the sale took place, as this could be a criminal offence under the Trade Descriptions Act.


Question: A customer left their car with us for minor repairs. However, when he collected it, he pointed to a scratch on the bonnet and said we had caused it. My mechanics are adamant they did not case this damage, and that it must have been there already. I have a gig sign up in my garage saying ‘no liability accepted for damage, howsoever caused’. Am I in the clear?

Response: Regarding the damage first: the customer has a right to expect you to take reasonable care of his property whilst it is in your possession. If he can prove that the damage was not there beforehand, then he might, on the balance of probabilities, be able to hold you liable for the repair. But the burden of proof lies with him, and ultimately, it is up to a court to look at all the evidence and weigh up all the facts, before deciding who is liable.

The disclaimer notice that you display will not allow you to avoid liability. The unfair Contract Terms Act 1977 prevents you from avoiding liability unless you can show that it is fair and reasonable to do so. The consumer could ask a court to set the disclaimer aside as being potentially unfair.



Question: A customer has placed an order with us for a new car. Unfortunately, the manufacturer has raised the price, which I cannot afford to just absorb, and I need to pass it on to the consumer. What should I do?

Response: Generally, the normal rules of contract will apply here, i.e. if the consumer has secured the contract by paying a deposit, then it is likely you will be in a binding contract. Unless your contract terms or sales agreement specifies that you reserve the right to pass on increases outside your control, you may have to bear the cost of the increase.


Question: I sold a 9-year-old car 1 month ago to a consumer. It had a very high mileage on it, and I only charged £1,2000 for it. Because of its age, mileage and price, I told the buyer that I couldn’t give him my usual 3-month warranty. He seemed happy with this, but is now complaining that the engine has blown up and needs replacing. Even using a reconditioned engine, this will cost several hundreds of pounds. He has threatened to sue me if I don’t help towards the cost of the repair – surely this can’t be right?

Response: When you sold the car, you entered into a contract regulated by the Sale of Goods Act 1979 (as amended). The provisions of this Act come into force automatically, and nothing you can waive your liability under this Act – any warranty you provide is considered to be entirely voluntary and in addition to these rights. The Act states that your client is entitled to expect the car to be of a ‘satisfactory quality’, having regard to important factors such as age, condition, mileage etc. Therefore, the buyer’s expectations about how the car should perform would almost certainly have to be lowered because of these factors, but he would still be able to expect reasonable performance from the car.

He would be entitled to ‘reasonable compensation’ from you, which would probably amount to a fair contribution towards the cost of repair. If you can’t agree on what constitutes a fair amount, then you might have to take the matter to arbitration under the Scottish Motor Traders Association Code of Practice, or refer the case to the Sheriff Court as a Small Claim.



Question: A customer came to the showroom three days ago, and put down a deposit of £100 on a car. He agreed to pay me the balance in a week’s time. I’ve had two other people since then who have expressed an interest in the car, but I’ve told them it is sold. Now, the customer has changed his mind and no longer wants the car. He also wants the deposit back. Do I have to give it to him?

Response: The short answer is no! When your customer paid a deposit, he entered into a legally binding contract – you agreed to give him the car, and he agreed to pay you money. By turning away other customers who were interested, you were keeping to your side of the bargain, but by cancelling the agreement to buy the car, your customer is in breach of contract. The law would say it would probably be reasonable for you to keep the deposit as compensation for losing the sale. If you can show that you suffered any further financial losses as a result of this breach, you could also claim for these, provided that they are reasonable, provable and foreseeable.


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environmental services.doc

Documents

faulty goods

unsolicited goods

sale of goods act

shop wont

shop manager

restrictive contract

reasonable time limit

additional rights