Chapter 15 End of Chapter Questions

. A purchases furniture from B, a local furniture business, for her home. B inserts an exclusion clause in the contract that he is not liable for any damage during delivery. B damages the furniture and A's front door when he delivers the property. A wishes to contest the exclusion clause. Which legislative regime might A be able to rely upon?

Unfair Contract Terms Act 1977

Consumer Rights Act 2015

Unfair Contract Terms Act 1977 or Consumer Rights Act 2015

None of the given options is correct.

. Which common law technique should the courts not use to restrict the application of an exclusion clause?

Interpreting the clause strictly against the party relying on it (contra proferentem) and holding it to be inapplicable to the events which occurred.

Holding the clause not to be incorporated into the contract because notice of it was insufficient or too late.

Invoking the 'doctrine of fundamental breach'.

None of the options given is correct.

. Which of the following is a difference between an exclusion clause and a limitation clause?

The contra proferentem rule is applied more stringently to the former.

There is a higher degree of improbability that a party would agree to the former than the latter.

Only the former can possibly be held to be merely declaratory of the common law.

All the above options are correct.

. To which of the following does UCTA 1977 not apply?

Clauses which purport to exclude the right to rescind or avoid a contract.

An agreement in writing to submit disputes to arbitration.

Clauses requiring claims or complaints to be made within a specified time or in a specified form.

Clauses which preclude a buyer of goods or services from withholding part of the price by reason of defects in the goods or services supplied.

. To which type of parties does UCTA 1977 not apply?

A local authority in respect of rubbish collection

The proprietor of a private school operated for profit

A solicitor acting in the course of his business

A university which is a charitable foundation

. Does section 3 of the Misrepresentation Act 1967 apply to claims for damages for a negligent misrepresentation under Hedley Byrne v Heller?

Yes

No

. In what respect does the test of fairness under the Consumer Rights Act 2015 differ from the test under the old regulations?

The test applies to terms that are individually negotiated.

The threshold of what is 'fair' is set to a higher threshold.

The threshold of what is 'fair' is set to a lower threshold.

All of the options given are correct.

. When can a term which specifies the main subject matter of the contract be subject to the test of fairness in the Consumer Rights Act 2015

When the term is manifestly unfair.

In the same circumstances as any other term of the contract.

When the term is not transparent and prominent such that an average consumer would be aware of the term.

Never.

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