A directive is a legal act of the European Union that requires member states to achieve particular goals without dictating how the member states achieve those goals. A directive's goals have to be made the goals of one or more new or changed national laws by the member states before this legislation applies to individuals residing in the member states. Directives normally leave member states with a certain amount of leeway as to the exact rules to be adopted. Directives can be adopted by means of a variety of legislative procedures depending on their subject matter.
A standard form contract is a contract between two parties, where the terms and conditions of the contract are set by one of the parties, and the other party has little or no ability to negotiate more favorable terms and is thus placed in a "take it or leave it" position.
The Unfair Contract Terms Act 1977 is an act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to both actual contract terms and notices that are seen to constitute a contractual obligation.
The Electronic Commerce Regulations 2002, SI 2002/2013, incorporates the EU Electronic Commerce Directive 2000/31/EC into the law of the United Kingdom. They apply to contracts concluded by electronic means over distance whereby the buyer is a consumer. This subordinate legislation provides for rights of the consumer and provisions for which the seller is obliged to fulfill.
The Consumer Protection Regulations 2000, SI 2000/2334, implemented European Directive 97/7/EC as UK law. They applied to contracts "concluded between a supplier and a consumer under an organised distance sales or services provision scheme run by the supplier who, for the purposes of the contract, makes use of one or more means of distance communication" up to and including the moment the contract is agreed. The legislation provided rights to the consumer and obligations which the seller must fulfill.
The Sale of Goods Act 1979 is an Act of the Parliament of the United Kingdom which regulated English contract law and UK commercial law in respect of goods that are sold and bought. The Act consolidated the original Sale of Goods Act 1893 and subsequent legislation, which in turn had codified and consolidated the law. Since 1979, there have been numerous minor statutory amendments and additions to the 1979 act. It was replaced for some aspects of consumer contracts from 1 October 2015 by the Consumer Rights Act 2015 but remains the primary legislation underpinning business-to-business transactions involving selling or buying goods.
A contractual term is "any provision forming part of a contract". Each term gives rise to a contractual obligation, the breach of which may give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the contract.
Contractual terms in English law is a topic which deals with four main issues.
Director General of Fair Trading v First National Bank plc [2001] UKHL 52 is the leading case on the Unfair Terms in Consumer Contracts Regulations 1999. It was an action to test the fairness of clauses in loan agreements which secured a bank's commercial interest rates after a debtor that had defaulted and they had been to court to determine their repayment scheme. The House of Lords held that the clause did not fall within the ambit of reg 6(2) and that it was valid in accordance with the fairness test. The case was brought by the Director General of Fair Trading on behalf of consumers.
The Supply of Goods Act 1973 was an act of the Parliament of the United Kingdom that provided implied terms in contracts for the supply of goods and for hire-purchase agreements, and limited the use of exclusion clauses. The result of a joint report by the England and Wales Law Commission and the Scottish Law Commission, First Report on Exemption Clauses, the Act was granted royal assent on 18 April 1973 and came into force a month later. It met with a mixed reaction from academics, who praised the additional protection it offered while at the same time questioning whether it was enough; several aspects of the Act's draftsmanship and implementation were also called into question. Much of the Act was repealed by the Sale of Goods Act 1979, which included many of the 1973 Act's provisions.
The Unfair Terms in Consumer Contracts Directive93/13/EEC is a European Union directive governing the use of surprising or onerous terms used by business in deals with consumers.
Unfair terms in English contract law are regulated under three major pieces of legislation, compliance with which is enforced by the Competition & Markets Authority (CMA). The Unfair Contract Terms Act 1977 is the first main Act, which covers some contracts that have exclusion and limitation clauses. For example, it will not extend to cover contracts which are mentioned in Schedule I, consumer contracts, and international supply contracts. The Consumer Rights Act 2015 replaced the Unfair Terms in Consumer Contracts Regulations 1999 and bolstered further requirements for consumer contracts. The Consumer Protection from Unfair Trading Regulations 2008 concerns certain sales practices.
RWE Vertrieb AG v Verbraucherzentrale Nordrhein-Westfalen eV (2013) C-92/11 is an EU law and consumer protection case, concerning the Unfair Terms in Consumer Contracts Directive. It emphasises the foundations of consumer protection on inequality of bargaining power and imbalances in information.
Brusse v Jahani BV (2013) C-488/11 is an EU consumer protection case concerned with Unfair Terms in Consumer Contracts Directive. It emphasises the foundations of consumer protection on addressing inequality of bargaining power and imbalances in information.
Kušionová v SMART Capital a.s. (2014) Case C-34/13 is an EU law and consumer protection case, concerning the Unfair Terms in Consumer Contracts Directive. It emphasises the foundations of consumer protection on inequality of bargaining power and imbalances in information.
Banco Español de Crédito SA v Camino (2012) Case C-618/10 is a European Court of Justice (ECJ) case relevant to contract law, concerning the scope of consumer protection under the Unfair Terms Directive under EU law.
The Consumer Rights Act 2015 is an act of Parliament of the United Kingdom which consolidates existing consumer protection law legislation and also gives consumers a number of new rights and remedies. Provisions for secondary ticketing and lettings came into force on 27 May 2015, and provisions for alternative dispute resolution (ADR) came into force on 9 July 2015 as per the EU Directive on consumer ADR. Most other provisions came into force on 1 October 2015.
Cavendish Square Holding BV v Talal El Makdessi[2015] UKSC 67, together with its companion case ParkingEye Ltd v Beavis, are English contract law cases concerning the validity of penalty clauses and the application of the Unfair Terms in Consumer Contracts Directive. The UK Supreme Court ruled on both cases together on 4 November 2015, updating the established legal rule on penalty clauses and replacing the test of whether or not a disputed clause is "a genuine pre-estimate of loss" with a test asking whether it imposed a proportionate detriment in relation to any "legitimate interest" of the innocent party.
European consumer law concerns consumer protection within Europe, particularly through European Union law and the European Convention on Human Rights. Article 169 of the Treaty on the Functioning of the European Union enables the EU to use its ordinary legislative procedure to protect consumers "health, safety and economic interests" and promote rights to "information, education and to organise themselves in order to safeguard their interests". All member states may grant higher protection, and a "high level of consumer protection" is regarded as a fundamental right. Consumers are entitled to a legislative "charter of rights" to safe and healthy products, fair terms, proper information free from misleading advertising and marketing, and rights of cancellation. Beyond these general principles, and outside specific sectors, there are four main Directives: the Product Liability Directive 1985, Unfair Terms in Consumer Contracts Directive 1993, Unfair Commercial Practices Directive 2005 and the Consumer Rights Directive 2011, requiring information and cancellation rights for consumers. As a whole, the law is designed to ensure that consumers in the EU are entitled to the same minimum rights wherever they make their transactional decisions, and largely follows inspiration from theories of consumer protection developed in California, and the Consumer Bill of Rights proclaimed by John F. Kennedy in May 1962. The European Court of Justice has continually affirmed the importance of ensuring more consumer rights than in commercial contracts, both because of information asymmetry, and inequality of bargaining power.
Unfair terms in Irish contract law generally refer to terms in contracts that provide an unreasonable imbalance, usually to the detriment of the consumer, in consumer and other contracts. These unfair terms are provided by common law and more recent statute, most notably Consumer Protection Act 2007 and the European Communities Regulations 1995.
