Legal Rights of Customer in terms of Refunds / Compensation - Essay Example

Legal Rights of Customer in terms of Refunds / Compensation Legal Rights When One Buys Goods The UK law protected customer’s rights that flows from Sales of Goods Act 1979, Goods and Services Act 1982 and Supply of Goods to Consumer Regulations 2002 at the time of purchase of goods in relation with: a) goods in a satisfactory condition b) goods free of faults c) goods quality wise perfect d) having complete details about description, price e) finished goods f) publicized information available on the purchased goods g) specification of goods h) goods safely and properly usable (Twomey & Jennings 2010). Usually buyers encounter with the forward mentioned issues in terms of legal rights when buying goods: a) undertaking in respect of no legal rights b) false description of purchasable item c) defective / unsafe goods d) short measure e) short weight f) misleading price g) misleading information (Twomey & Jennings 2010). Commission and Omissions As per UK law a dealer can be accountable for a criminal offence if he / she commits by misleading the purchaser or hide the accurate information from him due to which he / she may not be taken proper decision at the time of buying goods (Steingold & Steingold 2010). Take the example of Ms Market who purchased second hand Dorf car from Big Deal, a car dealer at a cost of pounds 5,000. Within a week of its purchase, serious engine defects come to surface that made it unusable for a longer period of time. On consultation, the mechanic advised Ms Market that the only option left is to replace the engine of the vehicle to drive. Since Big Deal committed criminal offence by not divulging the factual status of the engine of the car at the time of purchase, therefore, liable for repair, replacement or compensation. As a last resort, she should be tried in a competent court of law. If a dealer commits such an offence as mentioned above in the case of Ms Market, she may be prosecuted for not giving the correct information about the product. If accurate information passed on to Ms Market by Big Deal at the time of purchase, she definitely dropped the idea of purchasing second hand defective car. Passing on the inaccurate information / misleading information to the buyer may be considered “misleading omission” (Macintyre 2008). To further elaborate the mentioned point of view, we may take the example of a trader who advertised in a newspaper about the sale of mobile phones without mentioning that the saleable goods are reconditioned. Since the advertiser concealed material information with the readers about used mobiles, hence committed criminal offence (Steingold & Steingold 2010). Rights in Terms of Unsatisfactory Goods If goods taken from dealers are not in line with the desirable quality, mismatch with the description, the seller is bound to get the things streamlined. The responsibility cannot be shifted to the manufacturer. In the dealer shifts the responsibilities on the shoulder of manufacturer, buyer should not accept it on the guarantee of manufacturers in order to avoid future complications (Twomey & Jennings 2010). In case of defective goods, the buyers have the following options in terms of legal rights: a) get the whole money back b) get partial money back c) get the goods repaired / replaced d) get compensation in full or in partial on case to case basis (Twomey & Jennings 2010). Following rights will not be exercised by the buyers: a) anything wrong with the goods b) examined the goods at the time of buying, noticed defects in goods but not reported to the trader / seller c) defects indicated to the buyer by the seller d) damaged the goods by the buyer e) goods lasted than expected (Twomey & Jennings 2010). Full Refund In case of unsatisfactory quality of goods bought by the buyer, he / she may return the purchased goods and get full refund of it. In most of the business promotional campaign, the money back guarantee option is available for a shorter period of time (Howells & Weathrill 2005). In the mentioned scenario, buyer shall not get full refund: a) usage of goods continuously even after realizing its defects b) get repaired the goods c) goods are in possession for an indefinite period without noticing the faults (Stone 2009). Under the cited background, if buyer does not qualify for full refund, he / she may at least qualify for partial refund. Alternatively the goods either get repaired or replaced by the seller (Macintyre 2008). Goods Repaired / Replaced Goods purchased if found defective, buyers then entitle to get full refund, partial refund, get the goods repaired or replaced as the case may be. However, if the buyer kept the goods for a longer period of time without knowing that some of gadgets are now faulty, he / she may not be entitled of the benefits as mentioned above (Howells & Weathrill 2005). Buyers may have the option to take the goods back within the specified time period (from the date of its buying). The seller should accept that the item sold was faulty at the time of sale, therefore, needs to be replaced / repaired free of cost. On the other hand if seller does not accept that the sold item was faulty, then burden of proof lies on the shoulder of the buyer. In other words buyers have to prove its fault (Stone 2009). If the goods are in possession of the buyers for more than six months and the fault of goods noticed, even then the buyer may approach the seller to get the goods repaired or replaced provided the buyers have to prove that the item was faulty. This option varies from county to county. In Scotland you may have the benefits of getting things repaired or replaced even passage of six years. However, if the goods become faulty after six years of its purchase then the legal rights of the purchasers come to an end. The right option is that the buyer should lodge a complaint within the specified period of time so they may not lose the opportunity of getting things maintained in good condition (Bradgate & White 2007). In case seller agrees to conduct repair work or replace the purchased items, it should be done within the considerable period of time so it may not cause inconvenience to buyer in the days ahead. If goods purchased become ineffective in terms of its usage, the seller if found that the repair is too costly, he / she shall offer the buyer to replace the purchased goods with another one. In the similar situation if buyer ask trader / seller to replace it with another one and if seller found it impracticable / expensive, he / she may have no other option but to go for repair work of the purchased item (Bradgate & White 2007). If both the options (repair or replace) are not exercisable for the seller he / she may offer compensation to buyer in shape of refund either in full or in partial. It depends on the following circumstances: a) replacing or repairing the goods requires substantial funds b) remote possibility of repairing / replacing goods within the reasonable time period c) causing inconvenience to customer / buyer (Howells & Weathrill 2005). Getting money in full or in partial from the seller depends on the time spent that the goods used. Against the mentioned backdrop, buyer will be in a position to get some of the portion of the invested money: a) goods were in workable position before it turns out to be in non workable condition b) in workable condition but its appearance become fade c) one of its function out of multiple functions stop working d) usage of goods for a shorter time period e) repair unsuccessful f) chances of replacement diminished (Howells & Weathrill 2005). Second-Hand Goods Goods bought from the seller though second hand in nature have the same legal rights as available for new goods in accordance with UK Law. It means that the law in question does not differentiate the rights of the purchasers of new goods and the purchasers of old goods. The issue arises what would be the amount of compensation when goods become defective in terms of faulty items. The other issues might be of quality of goods and the price charged there against. We should not expect that the goods provided are perfect quality wise and will perform as per the expectations (Bradgate & White 2007). Remedial Measures In the scenario No.1 where Big Deal, a Car Dealer provided three branded cars namely “ Sundot GR-1” instead of “ Sundot GR-2 ” costing pounds 20000/- each to Slump Limited for the use of its sales persons, were ineffective within three weeks of its purchase due to its defective engines and faulty brakes. It made the three cars non-functional. It frustrated the working relationship with the customers by its sales staff; resultantly five big customers left the company and joined Keyness Limited. The act of Big Deal requires replacement of existing cars with requested brand “Sundot GR-2” and accord compensation due to loss of its potential customers. If seller provides the cars in accordance with the order, the potential customers of the company would not leave the company. In the Scenario No. 2 where Big Deal provided a second hand car to Ms Market for personal use at the cost of pounds 5000/-. The car becomes unusable within a week of its purchase due to serious engine faults. The mechanic advised replacement of engine to make it worth driving. Prior to purchasing, Ms Market asked the sales person of Big Deal to find out a second hand car whose odometer shows running mileage of the car was 25000/-. On the assurance of the sales person of Big Deal that the odometer is showing the correct mileage, she purchased the car. Later on it was revealed by the mechanic that the accurate running mileage of the car should have been 50000/- kilometres. Since the sales person of the Big deal provided misled / incorrect information to Ms Market, therefore, Ms Market will get the benefit of repair / replacement of car. Otherwise refund of the amount as compensation on mutual consensus. The sign at the entrance “No Refunds Given on Faulty Goods” does not hamper the legal rights of the mentioned buyer since such signs are ultra virus to the UK law. Bibliography Bradgate, R & White, F 2007, Commercial Law, Oxford University Press, Oxford. Howells, Geraint G & Weathrill, S 2005, Consumer Protection Law, Ashgate Publishing Ltd., Cornwall. Macintyre, E 2008, Business Law, 4th Ed., Pearson Longman, London. Steingold, Fred S & Steingold F 2010, Legal Forms for Starting & Running a Small Business, Nolo, California. Stone, R 2009, The Modern Law of Contract, 8th Ed., Taylor & Francis, New York. Twomey, David P & Jennings, Marianne M 2010, Anderson's Business Law and the Legal Environment, Cengage Learning, Boulevard. Read More