Law 5110 Study Guide - Quiz Guide: Consumer Rights Act 2015, Retail, Debit Card
CONSUMER RIGHTS ACT 2015
This crucial Act, which came into force on 1 October 2015, consolidated and simplified
the previous legislation on consumer rights (which was criticized for being excessively
complex) and also gave consumers a number of new rights and remedies.
The provisions regarding exemption clauses only apply to contracts between traders
(businesses) and consumers (s.61(1)). They do not apply to employment contracts or
apprenticeships (s.61(2)).
Provisions of CRA regarding business-to-consumer (B2C) contracts
For quick reference see the table below.
Section
Form of exemption
Effect of
exemption
s31, s.47, s.57
A term or notice excluding the
trader’s liability in relation to any
of the implied terms under the Act
(see terms and reps’ handout for
details) is not binding on the
consumer
Void (not binding)
s.62(1)-(2)
s.62(4)-(7)
Unfair term or notice
A term or notice is unfair if it
causes a significant imbalance in
the parties’ rights and obligations
under the contract to the
detriment of the consumer…
taking into account the nature of
the subject matter of the contract
and by reference to all the
circumstances of the case.*
Void
s.64
However, a transparent and
prominent term may not be
assessed for fairness if it relates
to the main subject-matter or the
price of the contract.
Valid
s.65
A trader cannot by a term or
notice exclude liability for death or
injury arising from negligence
Void
s.67
Where a term is not binding on
the consumer, the contract
continues, so far as practicable, to
have effect in every other respect
Document Summary
This crucial act, which came into force on 1 october 2015, consolidated and simplified the previous legislation on consumer rights (which was criticized for being excessively complex) and also gave consumers a number of new rights and remedies. The provisions regarding exemption clauses only apply to contracts between traders (businesses) and consumers (s. 61(1)). They do not apply to employment contracts or apprenticeships (s. 61(2)). Form of exemption s31, s. 47, s. 57 s. 62(1)-(2) s. 62(4)-(7) s. 64 s. 65 s. 67. A term or notice excluding the trader"s liability in relation to any of the implied terms under the act (see terms and reps" handout for details) is not binding on the consumer. However, a transparent and prominent term may not be assessed for fairness if it relates to the main subject-matter or the price of the contract. A trader cannot by a term or notice exclude liability for death or injury arising from negligence.
