Exclusion Clause 2

8/12/2019 Exclusion Clause 2

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Exemption Clauses 2:

Unfair Terms in Consumer

Contracts

A2 Law

Mr Howells


2/13

The Unfair Terms in Consumer

Contract Regulations 1

To compl! with EU "irecti#e

Up$ate$ 1% regulations

Applies to terms generall!& not 'ustexemption clauses


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T!pes of terms inclu$e$

in UTCCR (1)

Terms exclu$ing lia*ilit! for $eath orpersonal in'ur!

Terms which *in$ consumer when the!

ha$ no opportunit! to $isco#er terms*efore the contract

Terms which allow seller to alter the

contract without a #ali$ reason Terms which unreasona*l! exclu$e

consumer+s legal rights


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How $o the Regulations wor,-

.o fairness test applie$ to core terms of contract/as long as terms in 0plain intelligi*le language

ecause consi$eration nee$ onl! *e sufficient/ nota$e3uate 4 so if parties ,now what the! agree to/

courts will not interfere 5t can *e $ifficult to esta*lish 0core elements of a

contract All other terms ha#e to pass fairness test

06ualifie$ *o$ies e7g7 Consumers+ Associationcan appl! to Court to stop an unfair term *einguse$

8prea$s loa$ from 9ffice of air Tra$ing 4 as longas controlle$ an$ super#ise$ properl!


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The Consumer in UTCCR

(1) 0an! natural person who is acting for

purposes which are outsi$e his tra$e/

*usiness or profession

;hat if acting partl! in the context of

*usiness-

R and B Customs Brokers Co Ltd v United

Dominions Trust Ltd (1


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The seller in UCCTR (1)

0an! person who sells or supplies goo$s

or ser#ices/ an$ who in ma,ing a contact

is acting for purposes relate$ to his

*usiness


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Unfairness in UTCCR (1)

Unfair terms are .9T *in$ing R=(1) 0an! term which contrar! to the re3uirement

of goo$ faithcauses a significant im*alance in theparties+ rights an$ o*ligations un$er the contract to

the $etriment of the consumer Eurolaw> .ote ,in$ of factors ta,en into account re 0goo$

faith in 8che$ule 2 of the Regulations

Re3uirement for 0plain intelligi*le language 4where am*iguit!/ will fa#our consumer 5mpact on 0honoura*le ple$ge clauses-


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8uper#ision of the Regulations

"irector?@eneral of air Tra$ing has

super#isor! role o#er unfair contract terms

Recei#es complaints an$ can as, for

in'unctions to stop use of specific unfair

terms

u*lishes info a*out regulations

5s this o,- He+s a politician>


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;here are we now-

Common law use$ to go to great lengths to protecta part! with wea, *argaining power 4 whether a0consumer or not

Less nee$ for this now 4 main 'o* of courts is to

interpret UCTA an$ UCCTR e7g7 where the wor$0reasona*le is use$

As consumers are now well protecte$/ *usinessesare assume$ to *e a*le to loo, after themsel#es>

Photo Production v Securicor (1


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;here are we now- (2)

The legislation 0cuts a $eep furrow across

the $octrine of free$om to contract

? Richar$

8tone

08o the i$ol of 0free$om of contract was

shattere$777 A re#olution in our approach to

exemption clauses

?"enning LD in George

Mitchell v Finne Lock

Seeds(1


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Reform-

UCTA an$ UCCTR ha#e a fair amount of o#erlap Law Commission report Unfair Terms in Contracts

(2BB=) recommen$e$: 9ne single Actto replace current legislation

retaining UCTA s2(1) on terms purporting toexclu$e in'ur! or $eath

9ther non?core terms su*'ect to reasona*lenesstest 4 *ur$en of proof in consumer cases on part!

rel!ing on the clause Create new categor! of 8mall usiness Contractto gi#e them some protection re non?negotiate$terms

A reasona*le term shoul$ *e 0transparent i7e7

clear an$ un$erstan$a*le


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Transparenc!-


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Conclu$ing thoughts777

5s there less free$om to contract now-

5s 0free$om a goo$ thing if people can *e

ta,en a$#antage of-

8houl$ we protect consumers in this wa!-

"o !ou thin, the law is too paternalistic or

a*out right-

Exclusion Clause 2

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