Consumer Rights Act 2022
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Goods to be free from charge and other encumbrance | ||
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16. (1) The trader shall ensure that— | ||
(a) at the time when the ownership of goods is to be transferred under a sales contract, the goods are free from any charge or other encumbrance (other than a charge or other encumbrance which was disclosed to the consumer before the consumer entered into the sales contract), and | ||
(b) the consumer shall enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed. | ||
(2) Where a sales contract shows, or the circumstances at the time the contract was concluded imply, that the trader and the consumer intend that the trader transfer only the limited title to the goods that the trader or a person other than the trader (a “third person”) may have— | ||
(a) all charges or encumbrances known to the trader shall be disclosed by the trader to the consumer before the consumer enters into the sales contract, and | ||
(b) the consumer’s quiet possession of the goods shall not be disturbed by— | ||
(i) the trader or the third person, or | ||
(ii) a person claiming through or under the trader or the third person unless that person is claiming under a charge or encumbrance that was disclosed to the consumer before the sales contract was concluded. | ||
(3) The consumer under a sales contract shall have the right to the remedies specified in Chapter 3 of this Part where— | ||
(a) the goods are not in compliance with subsection (1)(a) or (b), | ||
(b) the trader does not disclose all known charges or encumbrances in accordance with subsection (2)(a), | ||
(c) the consumer’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 person, in particular an intellectual property right, prevents or limits the use of the goods in accordance with section 17 or 18 . | ||
(4) In case of dispute, it shall be for the trader to show that— | ||
(a) the goods complied with the requirements of subsection (1)(a) and (b), | ||
(b) the trader disclosed all known charges or encumbrances in accordance with subsection (2)(a), and | ||
(c) the consumer’s possession of the goods complied with subsection (2)(b). |