Consumer Rights Act 2022
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Insertion of sections 73A to 73X into Act of 1995 | ||
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150. (1) The Act of 1995 is amended by the insertion of the following sections after section 73: | ||
“Goods to be in conformity with hire-purchase agreement at time of delivery | ||
73A. (1) Where a hire-purchase agreement is concluded between an owner and a hirer, the owner shall deliver goods to the hirer that are in conformity with the hire-purchase agreement at the relevant time. | ||
(2) Goods are in conformity with the hire-purchase agreement if the goods— | ||
(a) comply with the requirements of sections 73B to 73D, and | ||
(b) do not fall to be treated as not being in conformity with the hire‑purchase agreement under section 73E. | ||
(3) Subject to sections 73B(3) and 73G(1) to (3), where the goods delivered by the owner are not in conformity with the hire-purchase agreement at the relevant time, the hirer shall have the right to the remedies specified in section 73I and 73L. | ||
(4) In this section, ‘relevant time’— | ||
(a) in relation to goods other than goods with digital elements, means the time at which— | ||
(i) the hirer or a person indicated by the hirer for the purpose acquires the physical possession of the goods, or | ||
(ii) the goods are delivered to a carrier who was commissioned by the hirer to deliver the goods (and who was not proposed by the owner for that purpose), | ||
and | ||
(b) in relation to goods with digital elements, means the time at which, following delivery of the physical component of the goods to the hirer or a person indicated by the hirer for the purpose— | ||
(i) the single act of supply of the digital content or digital service is performed, or | ||
(ii) the continuous supply of the digital content or digital service over a period of time begins, | ||
in such a way that the digital content or digital service, or any means suitable for downloading or accessing it, has reached the sphere of the hirer and no further action by the owner is required in order to enable the hirer to use the digital content or digital service in accordance with the hire-purchase agreement. | ||
Owner to have right to sell goods etc. | ||
73B. (1) Subject to subsection (2), the requirements referred to in section 73A(2) are that the owner shall ensure that— | ||
(a) at the time when the ownership of the goods is to be transferred under the hire-purchase agreement, the owner has the right to sell the goods, | ||
(b) at the time when the ownership of goods is to be transferred under the hire-purchase agreement, the goods are free from any charge or other encumbrance (other than a charge or other encumbrance which was disclosed to the hirer before the hirer entered into the hire-purchase agreement), and | ||
(c) the hirer shall enjoy quiet possession of the goods except so far as it may be disturbed by the owner or any other person entitled to the benefit of any charge or encumbrance so disclosed. | ||
(2) Where the hire-purchase agreement shows, or the circumstances at the time the agreement was concluded imply, that the owner and the hirer intend that the owner transfer only the limited title to the goods that the owner or a third person may have— | ||
(a) all charges and encumbrances known to the owner shall be disclosed to the hirer before the hirer enters into the agreement, and | ||
(b) the hirer’s quiet possession of the goods shall not be disturbed by— | ||
(i) the owner, | ||
(ii) the third person, or | ||
(iii) a person claiming through or under the owner or the third person unless that person is claiming under a charge or encumbrance that was disclosed to the hirer before the agreement was concluded. | ||
(3) Where the owner does not have the right to sell goods as required by subsection (1)(a), the hirer shall have the right to terminate the hire‑purchase agreement. | ||
(4) Where the hirer has the right to terminate the hire-purchase agreement under subsection (3) and wishes to exercise that right— | ||
(a) the hirer shall exercise that right in accordance with section 73N, and | ||
(b) the owner shall comply with the obligations in section 73O. | ||
(5) The hirer shall have the right to the remedies specified in sections 73I and 73L where— | ||
(a) the goods are not in compliance with subsection (1)(b) and (c), | ||
(b) the owner does not disclose all known charges or encumbrances in accordance with subsection (2)(a), | ||
(c) the hirer’s possession of the goods does not comply with subsection (2)(b), or | ||
(d) a restriction resulting from a violation of any right of a third party, in particular an intellectual property right, prevents or limits the use of the goods in accordance with sections 73C and 73D. | ||
(6) In case of dispute, it shall be for the owner to show that— | ||
(a) the owner had the right to sell the goods in accordance with subsection (1)(a), | ||
(b) the goods complied with the requirements of subsection (1)(b) and (c), | ||
(c) the owner disclosed all known charges and encumbrances in accordance with subsection (2)(a), and | ||
(d) the hirer’s possession of the goods complied with subsection (2)(b). | ||
Subjective requirements for conformity with hire-purchase agreement | ||
73C. (1) The goods delivered under a hire-purchase agreement shall— | ||
(a) be of the description, type, quantity and quality, and possess the functionality, compatibility, interoperability and other features, specified in the hire-purchase agreement, | ||
(b) be fit for any particular purpose for which the hirer requires them— | ||
(i) that the hirer made known to the owner at the time of, or before, the conclusion of the hire-purchase agreement, and | ||
(ii) that the owner has accepted, | ||
(c) be delivered with all accessories and instructions, including on installation of the goods, specified in the hire-purchase agreement, and | ||
(d) be updated as specified in the hire-purchase agreement. | ||
(2) Spare parts and an adequate after-sales service shall be made available by the owner— | ||
(a) in such circumstances as are stated in an offer, description or advertisement by the owner on behalf of the producer or on his or her own behalf, and | ||
(b) for such period as is so stated or, if no period is so stated, for a reasonable period. | ||
(3) In this section, ‘interoperability’ means the ability of goods to function with hardware or software different from those with which goods of the same type are normally used. | ||
Objective requirements for conformity with hire-purchase agreement | ||
73D. (1) The goods delivered under a hire-purchase agreement shall— | ||
(a) be fit for all of the purposes for which goods of the same type would normally be used, taking into account so far as relevant any enactment or rule of law, European Union law, technical standards or, in the absence of technical standards, applicable sector-specific industry codes of conduct, | ||
(b) be of the quality and correspond to the description of any sample or model that the owner made available to the hirer before the conclusion of the hire-purchase agreement, | ||
(c) be delivered along with any accessories, including packaging, installation instructions or other instructions, that the hirer may reasonably expect to receive, and | ||
(d) be of the quantity and possess the qualities and other features (including in relation to durability, functionality, compatibility, safety and security) normal for goods of the same type that the hirer may reasonably expect given the nature of the goods and taking into account any public statement in relation to the goods made by, or on behalf of, the owner or any other person constituting a previous link in the chain of transactions relating to the hire-purchase agreement, including the producer, particularly in advertising or on labelling. | ||
(2) In subsection (1)(d), the reference to the durability of the goods is a reference to the ability of the goods to maintain their functions and performance through normal use and to possess the ability to do so which is normal for goods of the same type and which the hirer can reasonably expect having regard to— | ||
(a) the specific nature of the goods, | ||
(b) the possible need for reasonable maintenance of the goods, | ||
(c) any public statement on the durability of the goods made by or on behalf of any person constituting a link in the chain of transactions, and | ||
(d) all other relevant circumstances, including the price of the goods and the intensity or frequency of the use made of the goods by the hirer. | ||
(3) The owner shall not be bound by any public statement referred to in subsection (1)(d) or (2)(c) if the owner shows that— | ||
(a) the owner was not, and could not reasonably have been, aware of the public statement in question, | ||
(b) at the time of the conclusion of the hire-purchase agreement, the public statement had been corrected in the same way as it had been made (or in a comparable way), or | ||
(c) the decision of the hirer to take the goods could not have been influenced by the public statement. | ||
(4) Where a hire-purchase agreement for the letting of goods with digital elements provides for a single act of supply of the digital content or digital service, the owner shall ensure that the hirer is informed of and supplied with updates, including security updates, that are necessary to maintain the goods in conformity with the agreement for the period of time that the hirer may reasonably expect given the type and purpose of the goods and the digital elements, and taking into account the circumstances and nature of the hire-purchase agreement. | ||
(5) Where a hire-purchase agreement for the letting of goods with digital elements provides for a continuous supply of the digital content or digital service for a period exceeding two years, the owner shall ensure that the hirer is informed of the availability, and supplied with, any update (including a security update) that is necessary to maintain the goods in conformity with the agreement during that period. | ||
(6) Where a hire-purchase agreement for the letting of goods with digital elements provides for a continuous supply of the digital content or digital service for a period not exceeding two years, the owner shall ensure that the hirer is informed of the availability, and supplied with, any update (including a security update) that is necessary to maintain the goods in conformity with the contract for the period of two years beginning with the delivery of the goods with digital elements. | ||
(7) Where the hirer fails to install within a reasonable time an update supplied in accordance with subsection (4), (5) or (6), the owner shall not be liable for any lack of conformity with the hire-purchase agreement resulting solely from the failure to install the update— | ||
(a) if the owner informed the hirer of the need for the hirer to install the update (including the consequences of failing to do so), and | ||
(b) the failure of the hirer to install the update, or the incorrect installation by the hirer of the update, was not due to shortcomings in the installation instructions provided to the hirer. | ||
(8) There shall be no lack of conformity with a hire-purchase agreement under subsection (1), (4), (5) or (6) if, at the time of the conclusion of the agreement— | ||
(a) the hirer was specifically informed by the owner that a particular characteristic of the goods deviated from the requirements of the subsection concerned, including a lack of conformity with the hire-purchase agreement caused by a restriction resulting from a violation of an intellectual property right or any other right of a third person, and | ||
(b) the hirer expressly and separately accepted that deviation. | ||
(9) In case of dispute, it shall be for the owner to show that the hirer— | ||
(a) was specifically informed by the owner that a particular characteristic of the goods deviated from the requirements of subsection (1), (4), (5) or (6), and | ||
(b) expressly and separately accepted that deviation when concluding the hire-purchase agreement. | ||
Incorrect installation of goods | ||
73E. Any lack of conformity with the hire-purchase agreement resulting from the incorrect installation of the goods shall be treated as a lack of conformity of the goods with the hire-purchase agreement if— | ||
(a) the installation forms part of the agreement and was carried out by the owner or under the owner’s responsibility, or | ||
(b) the installation, intended to be carried out by the hirer, was done by the hirer and the incorrect installation was due to shortcomings in the installation instructions provided to the hirer by the owner or, in the case of goods with digital elements, provided to the hirer by the owner or by the supplier of the digital content or digital service. | ||
Implied terms of hire-purchase agreement | ||
73F. Sections 73B to 73E shall be implied into every hire-purchase agreement and shall have effect as if they were terms of such an agreement. | ||
Liability of owner | ||
73G. (1) Where a hire-purchase agreement for the letting of goods with digital elements provides for a continuous supply of digital content or a digital service for a period specified in the agreement, the owner shall be liable for a lack of conformity of the digital content or digital service with the agreement that occurs or becomes apparent within that period. | ||
(2) Where a hire-purchase agreement provides for the delivery of goods on more than one occasion during the period for which the agreement subsists, the owner shall be liable to the hirer during that period for a lack of conformity of the goods with the hire-purchase agreement which exists at the relevant time. | ||
(3) Where an update is supplied by the owner or a third party supplying the digital content or digital service under a hire-purchase agreement for the letting of goods with digital elements, the owner shall be liable for any lack of conformity of the digital content or digital service with the agreement— | ||
(a) caused by the update which exists at the time of supply or installation of the update, or | ||
(b) caused by the failure of the owner to supply an update in accordance with section 73D at the time when the update should have been supplied. | ||
(4) Subject to subsections (2) and (3), where a hire-purchase agreement for the letting of goods other than goods with digital elements provides for a continuous supply of digital content or a digital service for a period specified in the hire-purchase agreement, the hirer’s right to a remedy in respect of a lack of conformity with the hire-purchase agreement for which the owner is liable under this section shall apply for the period of 6 years beginning with the relevant time. | ||
(5) Where a hire-purchase agreement for the letting of goods with digital elements provides for a continuous supply of digital content or a digital service for a period specified in the hire-purchase agreement, the hirer’s right to a remedy in respect of a lack of conformity with the hire-purchase agreement for which the owner is liable under this section shall apply for the period of 6 years beginning with the time at which the lack of conformity with the hire-purchase agreement occurs or becomes apparent during the period so specified. | ||
(6) In this section, ‘relevant time’ has the same meaning as it has in section 73A. | ||
Burden of proof | ||
73H. (1) Subject to subsection (2), where it becomes apparent during the period of 12 months beginning with the relevant time that goods supplied under a hire-purchase agreement are not in conformity with the hire-purchase agreement, the lack of conformity with the agreement shall be presumed to have existed at the relevant time unless— | ||
(a) the contrary is proven, or | ||
(b) such a presumption is incompatible with the nature of the goods or with the nature of the lack of conformity with the agreement. | ||
(2) Where a hire-purchase agreement for the letting of goods with digital elements provides for the continuous supply of the digital content or digital service for a period specified in the agreement, the burden of proof as to whether the digital content or digital service was in conformity with the hire-purchase agreement during that period shall be on the owner for a lack of conformity with the agreement which becomes apparent during that period. | ||
(3) For the purposes of relying on the presumption under subsection (1), the hirer shall be required to prove only that— | ||
(a) the goods are not in conformity with the hire-purchase agreement, and | ||
(b) the lack of conformity became apparent during the period of 12 months beginning with the relevant time. | ||
(4) Nothing in this section shall prevent or restrict a hirer from exercising a remedy after 12 months from the delivery of the goods. | ||
(5) In this section, ‘relevant time’ has the same meaning as it has in section 73A. | ||
Right to remedies under sections 73J and 73K | ||
73I. (1) Where goods are not in conformity with the hire-purchase agreement at the relevant time, the hirer shall have the following rights— | ||
(a) the right to exercise the short-term right to terminate the agreement in accordance with section 73J, and | ||
(b) subject to subsections (2) and (3), the right to have the goods brought into conformity with the agreement through repair or replacement in accordance with section 73K. | ||
(2) The hirer may choose between the remedies of repair and replacement of the goods unless the remedy chosen by the hirer— | ||
(a) would be impossible for the owner to carry out, or | ||
(b) compared to the alternative remedy, would impose disproportionate costs on the owner, taking all the circumstances into account, including— | ||
(i) the value that the goods would have if there were no lack of conformity, | ||
(ii) the significance of the lack of conformity, and | ||
(iii) whether the alternative remedy could be provided without significant inconvenience to the hirer. | ||
(3) The owner may refuse to bring the goods into conformity with the hire-purchase agreement if both repair and replacement— | ||
(a) are impossible for the owner to carry out, or | ||
(b) compared to the alternative remedy, would impose disproportionate costs on the owner, taking all the circumstances into account, including those specified in subsection (2)(b)(i) and (ii). | ||
(4) In this section, ‘relevant time’ has the same meaning as it has in section 73A. | ||
Short-term right to terminate hire-purchase agreement | ||
73J. (1) This section applies where the hirer has the short-term right to terminate the hire-purchase agreement under section 73I(1)(a). | ||
(2) The period during which the hirer has the short-term right to terminate the hire-purchase agreement— | ||
(a) begins— | ||
(i) where the hire-purchase agreement requires the owner to install the goods after their delivery or to take any other action to enable the hirer to use the goods, on the day on which the installation or other action is completed, or | ||
(ii) in any other case, at the relevant time, | ||
and | ||
(b) subject to subsection (3), expires 30 days after that day or, as the case may be, the relevant time. | ||
(3) Where goods are of a kind that can reasonably be expected to expire or deteriorate on the expiry of a smaller number of days than the 30 days referred to in paragraph (b) of subsection (2), that paragraph shall apply as if for the reference to 30 days there were substituted a reference to that smaller number of days. | ||
(4) Nothing in subsection (2) prevents a hirer who has the right to terminate a hire-purchase agreement from terminating it before the beginning of the period referred to in that subsection (or that subsection as applied by subsection (3)). | ||
(5) In case of dispute, it shall be for the owner to show that by virtue of subsection (3) the period referred to in subsection (2) is shorter than 30 days. | ||
(6) Where the hirer has the right to terminate a hire-purchase agreement under this section and wishes to exercise that right— | ||
(a) the hirer shall exercise that right in accordance with section 73N, and | ||
(b) the owner shall comply with the obligations in section 73O. | ||
(7) In this section, ‘relevant time’ has the same meaning as it has in section 73A. | ||
Repair or replacement of goods | ||
73K. (1) This section applies where goods are to be brought into conformity with the hire-purchase agreement by repair or replacement. | ||
(2) The owner shall ensure that the repair or replacement of the goods is carried out— | ||
(a) free of charge, | ||
(b) within a reasonable time after being informed by the hirer of the lack of conformity with the agreement, and | ||
(c) without significant inconvenience to the hirer, taking into account the nature of the goods and the purpose for which the hirer requires the goods. | ||
(3) The reasonable time for completing the repair or replacement of the goods under subsection (2)(b) shall correspond to the shortest possible time necessary for completing the repair or replacement and shall be objectively determined having regard to the nature and complexity of the goods, the nature and severity of the lack of conformity and the effort needed to complete the repair or replacement. | ||
(4) The hirer shall make the goods that are to be remedied by repair or replacement available to the owner. | ||
(5) The owner shall take back any goods that have been replaced and any goods that are to be repaired at the owner’s expense. | ||
(6) Subsection (7) applies where— | ||
(a) it is necessary to remove goods in order to repair or replace them, and | ||
(b) the goods were installed in a manner consistent with their nature and purpose before the lack of conformity of the goods with the hire-purchase agreement became apparent. | ||
(7) The owner’s obligation to repair or replace the goods under subsection (2) includes— | ||
(a) the removal of the goods that are not in conformity with the hire-purchase agreement (referred to in this subsection as the ‘non-conforming goods’), | ||
(b) where the non-conforming goods are repaired, the installation of those goods, | ||
(c) where the non-conforming goods are replaced, the installation of the goods that replace the non-conforming goods, and | ||
(d) bearing the costs of any such removal and installation. | ||
(8) The hirer shall not be liable to pay for the normal use of any goods that are replaced during the period prior to their replacement. | ||
(9) In this section, ‘free of charge’ means free of the necessary costs incurred in order to bring goods into conformity with the hire-purchase agreement, particularly the cost of postage, carriage, labour or materials. | ||
Right to proportionate reduction in price or final termination of hire‑purchase agreement | ||
73L. (1) This section applies where— | ||
(a) the hirer has exercised his or her right under section 73I(1)(b) and— | ||
(i) the owner has not completed the repair or the replacement of the goods or, where applicable, has not completed the repair or replacement in accordance with section 73K, or | ||
(ii) the owner has refused to bring the goods into conformity with the hire-purchase agreement in accordance with section 73I(3), | ||
(b) the goods are not in conformity with the hire-purchase agreement at the relevant time and the same or a different lack of conformity of the goods with the agreement becomes apparent despite the owner having attempted to bring the goods into conformity with the agreement, | ||
(c) the goods are not in conformity with the hire-purchase agreement at the relevant time and the lack of conformity of the goods is of such a serious nature as to justify an immediate price reduction or the termination of the hire-purchase agreement, or | ||
(d) the goods are not in conformity with the hire-purchase agreement at the relevant time and the owner has declared, or it is clear from the circumstances, that the owner will not bring the goods into conformity with the hire-purchase agreement within a reasonable time or without significant inconvenience to the hirer. | ||
(2) Subject to subsections (5) and (7), the hirer shall have— | ||
(a) the right to a proportionate reduction in the price in accordance with section 73M, or | ||
(b) subject to subsection (3), the right to exercise the final right to terminate the hire-purchase agreement in accordance with section 73N. | ||
(3) The hirer shall not have the right to exercise the final right to terminate the hire-purchase agreement under subsection (2)(b) if the lack of conformity of the goods with the agreement is only minor. | ||
(4) In case of dispute, it shall be for the owner to show that the lack of conformity of the goods with the agreement is minor. | ||
(5) Where subsection (1)(b) applies, it shall be objectively determined, taking all the circumstances into account (including the matters mentioned in subsection (6)), whether the hirer— | ||
(a) shall have the right specified in paragraph (a) or (b) of subsection (2), or | ||
(b) shall be required to accept a further attempt or attempts by the owner to bring the goods into conformity with the hire-purchase agreement. | ||
(6) The matters referred to in subsection (5) are— | ||
(a) the type and value of the goods, | ||
(b) the nature and significance of the lack of conformity with the hire‑purchase agreement, and | ||
(c) whether the hirer can reasonably be expected to maintain confidence in the ability of the owner to bring the goods into conformity with the hire-purchase agreement, in particular where the same lack of conformity with the agreement appears on more than one occasion. | ||
(7) For the purposes of subsection (1)(c), it shall be objectively determined, having regard to the nature and severity of the lack of conformity with the hire-purchase agreement (including the matters mentioned in subsection (8)), whether the lack of conformity of the goods with the agreement is of such a serious nature as to justify the application of subsection (2). | ||
(8) The matters referred to in subsection (7) are whether the lack of conformity with the hire-purchase agreement is such that— | ||
(a) the hirer cannot maintain confidence in the ability of the owner to bring the goods into conformity, | ||
(b) the ability of the hirer to make normal use of the goods is severely affected and the hirer cannot reasonably be expected to trust that this would be remedied by repair or replacement by the owner. | ||
(9) Where the hirer is entitled to exercise the right conferred by subsection (2)(b) by virtue of some (but not all) of the goods to which the hire-purchase agreement relates not being in conformity with the agreement, the hirer may exercise that right only in relation to— | ||
(a) those goods, and | ||
(b) any other goods that the hirer acquired with the goods that are not in conformity with the agreement, if the hirer cannot reasonably be expected to keep only the goods that are in conformity with the hire-purchase agreement. | ||
(10) In this section, ‘relevant time’ has the same meaning as it has in section 73A. | ||
Price reduction | ||
73M. (1) This section applies where the hirer has the right to a price reduction under section 73L(2)(a). | ||
(2) The right of the hirer under this section is the right— | ||
(a) to require the owner to reduce in accordance with subsection (3) the price the hirer is required to pay under the hire-purchase agreement, or | ||
(b) to receive from the owner a reimbursement of the price paid by the hirer in excess of the amount of the reduction applicable under subsection (3). | ||
(3) The reduction of the price shall be proportionate to the decrease in the value of the goods received by the hirer compared with the value that the goods would have if they were in conformity with the hire-purchase agreement. | ||
(4) Where the hirer has the right to reimbursement under subsection (2)(b), the owner shall reimburse the hirer in accordance with section 73P. | ||
(5) In a hire-purchase agreement where the hirer transfers the ownership of goods to the owner in full or part payment of the price, the right of the hirer to a price reduction shall not apply if— | ||
(a) no agreed monetary value was ascribed by the parties to the goods to be transferred by the hirer at the time the hire-purchase agreement was concluded, or | ||
(b) the goods which the hirer has transferred, or is required to transfer, under the hire-purchase agreement cannot be divided up so as to enable the owner to receive or retain only the reduced price. | ||
Obligations of hirer in event of termination of hire-purchase agreement | ||
73N. (1) Where the hirer exercises the right to terminate a hire-purchase agreement under section 73B(3), the short-term right to terminate a hire-purchase agreement under section 73I(1)(a) or the final right to terminate a hire-purchase agreement under section 73L(2)(b), the hirer shall— | ||
(a) do so by means of a statement to the owner expressing the decision to terminate the hire-purchase agreement, and | ||
(b) return any goods or materials delivered under the hire-purchase agreement to the owner at the owner’s expense. | ||
(2) A hirer who fails to comply with the obligation to return any goods or materials in accordance with subsection (1) shall be liable in damages for any loss or damage suffered by the owner as a result of that failure. | ||
Obligations of owner where hire-purchase agreement terminated | ||
73O. (1) This section applies where the hirer exercises— | ||
(a) the right to terminate a hire-purchase agreement under section 73B(3), | ||
(b) the short-term right to terminate a hire-purchase agreement under section 73I(1)(a), or | ||
(c) the final right to terminate a hire-purchase agreement under section 73L(2)(b). | ||
(2) The owner shall upon receipt of the goods or, if the owner so chooses, of evidence provided by the hirer of having sent back the goods, reimburse the hirer in accordance with section 73P for— | ||
(a) the price paid for the goods, and | ||
(b) any costs incurred by the hirer in returning the goods to the owner. | ||
(3) If the hirer terminates a hire-purchase agreement before the price payable for the goods under the agreement has been paid in full, the reimbursement to which the hirer is entitled under subsection (2) applies only to the part of the price which has been paid by the hirer. | ||
(4) Where the hirer exercises the final right to terminate the hire-purchase agreement under section 73L(2)(b), the reimbursement of the price to which the hirer is entitled under subsection (2) may be reduced in proportion to any depreciation in the value of the goods in excess of the depreciation that could reasonably be expected to result from their normal use. | ||
(5) In case of dispute as to the application of subsection (4), it shall be for the owner to show that the depreciation in the value of the goods exceeded that which could reasonably be expected to result from their normal use. | ||
(6) Subject to subsection (7), in a hire-purchase agreement where the hirer transfers the ownership of goods to the owner in full or part payment of the price, the owner shall— | ||
(a) return those goods to the hirer, and | ||
(b) reimburse the hirer in accordance with section 73P for any part of the price paid by the hirer. | ||
(7) If the owner cannot return goods to the hirer in accordance with subsection (6), the owner shall reimburse the hirer— | ||
(a) to the agreed monetary value ascribed to the goods by the parties at the time the hire-purchase agreement was concluded, or | ||
(b) where no such monetary value was agreed, to a reasonable market value for the goods at the time the hire-purchase agreement was concluded. | ||
Time limits and means of reimbursement by owner | ||
73P. (1) This section applies where reimbursement is owed to the hirer by the owner by virtue of— | ||
(a) a price reduction under section 73M, | ||
(b) the exercise of the right to terminate the hire-purchase agreement under section 73B(3), | ||
(c) the exercise of the short-term right to terminate the hire-purchase agreement under section 73I(1)(a), or | ||
(d) the exercise of the final right to terminate the hire-purchase agreement under section 73L(2)(b). | ||
(2) The owner shall reimburse the hirer without undue delay and in any event not later than 14 days after the day on which the owner receives— | ||
(a) the goods back, or | ||
(b) if the owner so chooses, evidence provided by the hirer of having returned the goods. | ||
(3) The owner shall reimburse the hirer using the same means of payment as the hirer used to pay for the goods unless— | ||
(a) the hirer expressly agrees otherwise, and | ||
(b) the hirer does not incur any fees as a result of reimbursement by the means otherwise agreed. | ||
(4) The owner shall reimburse the hirer without the imposition of any fee on the hirer in respect of the reimbursement. | ||
(5) An owner who fails to comply with the obligation to reimburse the hirer in accordance with this section shall be liable in damages for any loss or damage suffered by the hirer as a result of that failure. | ||
Effect of termination of hire-purchase agreement on ancillary contract | ||
73Q. (1) Where a hirer terminates a hire-purchase agreement in accordance with section 73N, any ancillary contract is terminated without any cost to the hirer. | ||
(2) Where an owner is informed by a hirer in accordance with section 73N(1)(a) of the hirer’s decision to terminate a hire-purchase agreement, the owner shall inform any trader with whom the hirer has an ancillary contract that the contract with that trader has been terminated by subsection (1). | ||
(3) Where an ancillary contract is terminated by subsection (1)— | ||
(a) the owner or trader with whom the hirer has that contract shall comply with the obligations in section 73O, and | ||
(b) the hirer shall comply with the obligation in section 73N(1)(b). | ||
(4) Where any security has been provided under an ancillary contract that is terminated by subsection (1), it is to be treated as never having had effect and any property lodged with the owner or trader solely for the purposes of that security shall be returned immediately by the owner or trader. | ||
(5) In this section— | ||
‘ancillary contract’, in relation to a hire-purchase agreement concluded between a hirer and an owner, means another contract concluded between that hirer and that owner, or between that hirer and a trader other than the owner, under which— | ||
(a) the owner, or | ||
(b) in pursuance of arrangements made between the owner and that trader, the trader, | ||
supplies to the hirer goods, digital content, a digital service or a service relating to the hire-purchase agreement; | ||
‘trader’ means— | ||
(a) a natural person, or | ||
(b) a legal person, whether— | ||
(i) privately owned, | ||
(ii) publicly owned, or | ||
(iii) partly privately owned and partly publicly owned, | ||
who is acting for purposes related to the person’s trade, business, craft or profession, and includes any person acting in the name, or on behalf, of the trader. | ||
Representations purporting to restrict rights of hirer: offences | ||
73R. (1) It shall be an offence for an owner to do any of the following things in relation to a representation to which subsection (1) applies: | ||
(a) to display on any part of any premises a notice that includes any such representation; | ||
(b) to publish or cause to be published an advertisement which contains any such representation; | ||
(c) to supply goods bearing, or digital content or a digital service displaying in any form such representation; or | ||
(d) otherwise to furnish or to cause to be furnished a document including any such representation. | ||
(2) A representation is ‘relevant’ for the purposes of subsection (1) if— | ||
(a) it is a representation that refunds will not be made for goods that are not in conformity with the hire-purchase agreement, | ||
(b) it is a representation that any refunds will be made only in the form of a credit note or gift voucher, | ||
(c) it is a representation that goods that are not in conformity with the hire-purchase agreement will not be replaced, repaired or otherwise brought into conformity with the agreement, or | ||
(d) it is otherwise likely to be taken as indicating that— | ||
(i) a right or the exercise of a right conferred by any of sections 73A to 73P, | ||
(ii) a remedy or the exercise of a remedy conferred by any of those sections, or | ||
(iii) an obligation or a liability arising under any of those sections, | ||
is restricted or excluded otherwise than in accordance with this Act. | ||
(3) In this section, ‘representation’ includes— | ||
(a) any oral, written, visual, descriptive or other representation by an owner, including any commercial communication, marketing or advertising, and | ||
(b) any term or form of a contract, notice or other document used or relied on by an owner in connection with a hire-purchase transaction. | ||
Exclusion or limitation of liability of owner | ||
73S. (1) A term of a hire-purchase agreement or of any other contract between a hirer and an owner shall not exclude or restrict the owner’s liability under any of sections 73A to 73H. | ||
(2) A term of a hire-purchase agreement or of any other contract between a hirer and an owner which purports to, or has the effect of, excluding or restricting the liability of the owner under any of the provisions specified in subsection (1) shall not be binding on the hirer. | ||
(3) The references in subsections (1) and (2) to excluding or restricting the owner’s liability include a reference to— | ||
(a) excluding or limiting a right or remedy in respect of a liability under a provision specified in subsection (1), | ||
(b) making such a right or remedy, or its enforcement, subject to a restrictive or onerous condition, | ||
(c) allowing an owner to put a person at a disadvantage as a result of pursuing such a right or remedy, | ||
(d) excluding or restricting rules of evidence or procedure, or | ||
(e) preventing an obligation arising or limiting its extent. | ||
(4) An agreement in writing to submit present or future differences to an ADR procedure within the meaning of the European Union (Alternative Dispute Resolution for Consumer Disputes) Regulations 2015 ( S.I. No. 343 of 2015 ) is not to be regarded as excluding or restricting any liability for the purposes of this section. | ||
(5) An owner who contravenes subsection (1) commits an offence. | ||
Liability for commercial guarantee | ||
73T. (1) A commercial guarantee shall be binding on the guarantor under the conditions specified in the commercial guarantee statement and in any associated advertising available at the time of, or before, the conclusion of the hire-purchase agreement. | ||
(2) Without prejudice to the generality of subsection (1), where a producer offers the hirer a commercial guarantee of durability for specified goods for a specified period of time— | ||
(a) the producer shall be liable directly to the hirer during the entire period of the commercial guarantee of durability for the repair or the replacement of the goods in accordance with section 73I, and | ||
(b) the producer may offer more favourable conditions to the hirer in the commercial guarantee statement on the durability of the goods. | ||
(3) If some or all of the conditions specified in the commercial guarantee statement are less advantageous to the hirer than those specified in the associated advertising, the commercial guarantee shall be binding under the more advantageous conditions specified in the advertising relating to the commercial guarantee unless, before the conclusion of the hire-purchase agreement, the associated advertising was corrected to reflect the same, or comparable, conditions to those specified in the commercial guarantee statement. | ||
Liability of owner for another’s commercial guarantee | ||
73U. (1) Where an owner gives a hirer a commercial guarantee provided by another guarantor, the owner shall, unless the owner expressly indicates the contrary when the guarantee is given to the hirer, be liable to the hirer for the observance of that guarantee as if the owner were the guarantor. | ||
(2) Notwithstanding subsection (1), where the owner gives his or her own commercial guarantee to a hirer, it shall be presumed, unless the contrary is proved, that the owner has not made himself or herself liable to the hirer under any commercial guarantee from another guarantor which the owner has given to the hirer. | ||
(3) The liability of an owner to a hirer under subsections (1) and (2) is without prejudice to the rights conferred on the hirer under section 73T. | ||
Liability under commercial guarantee to subsequent hirers | ||
73V. Where goods covered by a commercial guarantee provided to a hirer are subsequently acquired by another hirer within the duration of the guarantee period, that other hirer shall be entitled to rely on the commercial guarantee against— | ||
(a) the guarantor under section 73T, or | ||
(b) the owner under section 73U(1) and (2), | ||
as if he or she were the hirer to whom the guarantee was provided. | ||
Provision and content of commercial guarantee statement | ||
73W. (1) Where goods are let under a hire-purchase agreement and there is a commercial guarantee, the commercial guarantee statement shall be provided to the hirer on a durable medium by the time of the delivery of the goods. | ||
(2) The commercial guarantee statement shall be expressed in concise, plain, intelligible language and shall include the following— | ||
(a) a clear statement that the hirer is entitled by law to remedies from the owner free of charge in the event of a lack of conformity of the goods with the hire-purchase agreement and that those remedies are not affected by the commercial guarantee, | ||
(b) the name and address of the guarantor, | ||
(c) the procedure to be followed by the hirer to obtain the implementation of the commercial guarantee, | ||
(d) the designation of the goods to which the commercial guarantee applies, and | ||
(e) the conditions of the commercial guarantee. | ||
(3) Any failure to comply with subsection (1) or (2) shall not affect the binding nature of the commercial guarantee for the guarantor. | ||
(4) In this section— | ||
‘durable medium’ means any instrument which enables a hirer or an owner to store information addressed personally to that person in a way that is accessible for future reference, for a period of time adequate for the purposes of the information, and which allows the unchanged reproduction of the information stored; | ||
‘free of charge’ means free of the necessary costs incurred in order to bring goods into conformity with the hire-purchase agreement, particularly the cost of postage, carriage, labour or materials. | ||
Exclusion or limitation of rights of hirer under commercial guarantee | ||
73X. (1) A commercial guarantee shall not— | ||
(a) in any way exclude or limit the rights of the hirer under any enactment or rule of law, | ||
(b) impose obligations on the hirer that are additional to his or her obligations under the hire-purchase agreement, or | ||
(c) purport to make the guarantor or any person acting on his or her behalf the sole authority to decide whether goods conform to the hire-purchase agreement or whether the hirer is otherwise entitled to make a claim under the commercial guarantee. | ||
(2) Any provision of a commercial guarantee that is contrary to subsection (1) shall not be binding on the hirer. | ||
(3) A guarantor who gives a commercial guarantee which contravenes subsection (1) commits an offence.”. | ||
(2) The amendment made by subsection (1) shall apply in relation to a hire-purchase agreement that is concluded on or after the day on which this section comes into operation. |