Law 5110 Lecture Notes - Lecture 13: Unfair Terms In Consumer Contracts Regulations 1999, Unfair Contract Terms Act 1977, Consumer Rights Act 2015
LECTURE 13
Statutory control of exclusion and limitation clauses;
UCTA and Judicial Approaches to Reasonableness
Legislative Background
The use of “unfair terms” was regulated by two pieces of legislation:
• UNFAIR CONTRACT TERMS ACT 1977 (UCTA)
• UNFAIR TERMS IN CONSUMER CONTRACTS REGULATIONS 1999 (UTCCR)
The Unfair Contract Terms Act 1977 applied generally to the use of exclusion or limitation clauses and
operated so at to render some clause void and to subject others to a test of “reasonableness”.
The Unfair Terms in Consumer Contracts Regulations applied to unfair terms generally but only in relation to
‘Consumer Contracts.’
However, the introduction of the Consumer Rights Act 2015 has significantly amended the legislative control
of exclusion clauses.
Impact of the Consumer Rights Act 2015
The Consumer Rights Act 2015 completely replaces the Unfair Terms in Consumer Contracts Regulations 1999.
The Consumer Rights Act 2015 has also amended the Unfair Contract Terms Act 1977 so that UCTA now only
applies to Business-to-Business contracts and Consumer-to-Consumer contracts.
“Consumer Contacts” (contacts between a Trader and a Consumer) are now completely covered by the
provisions of the Consumer Rights Act 2015.
Contract
Legislative Provision
Contract between a “Trader”
and a “Consumer”
(a “consumer contract”).
Consumer Rights Act 2015
Contract between a Business
and a Business
Unfair Contract Terms Act 1977
Contract between a Consumer
and a Consumer
Unfair Contract Terms Act 1977
Defining a “Consumer Contract”
s.61 Consumer Rights Act 2015:
The provisions of the Consumer Rights Act 2015 will apply to contracts between a “trader” and a “consumer”
(referred to as “Consumer Contracts” for the purposes of the Act)
s.2 Consumer Rights Act 2015:
(2)“Trader” means a person acting for purposes relating to that person’s trade, business, craft or profession,
whether acting personally or through another person acting in the trader’s name or on the trader’s behalf.
(3)“Consumer” means an individual acting for purposes that are wholly or mainly outside that individual’s
trade, business, craft or profession.
Non-Consumer Contracts (those not between a “trader” and a “consumer”) will continue to be regulated by
Document Summary
The use of unfair terms was regulated by two pieces of legislation: unfair contract terms act 1977 (ucta, unfair terms in consumer contracts regulations 1999 (utccr) The unfair contract terms act 1977 applied generally to the use of exclusion or limitation clauses and operated so at to render some clause void and to subject others to a test of reasonableness . The unfair terms in consumer contracts regulations applied to unfair terms generally but only in relation to. However, the introduction of the consumer rights act 2015 has significantly amended the legislative control of exclusion clauses. The consumer rights act 2015 completely replaces the unfair terms in consumer contracts regulations 1999. The consumer rights act 2015 has also amended the unfair contract terms act 1977 so that ucta now only applies to business-to-business contracts and consumer-to-consumer contracts. Consumer contacts (contacts between a trader and a consumer) are now completely covered by the provisions of the consumer rights act 2015.
