Chapter 9 Multiple Choice Questions

. Who is a 'proferens'?

A person who is favoured by an exclusion clause.

A person against whom an exclusion clause operates.

A person who seeks to avoid or limit liability for breach of a fundamental breach of contract.

A person who is excluded from the operation of the Consumer Rights Act 2015.

. What is the ratio of Photo Productions Ltd v Securicor Transport Ltd?

A person cannot use an exclusion clause to exclude or limit liability for a fundamental breach of contract.

The construction of an exclusion clause is determined, based on the construction of the exclusion clause, on whether or not it covers the liability in question.

An exclusion clause cannot be relied on to exclude or limit the liability of a person who has acted in a criminal manner.

An exclusion clause cannot be relied on to exclude or limit liability for a deliberate act.

. What does the contra proferentem rule state?

An exclusion clause cannot be relied on to exclude liability for a fundamental breach of contract.

A person cannot rely on an unreasonable exclusion clause.

An exclusion clause can only be relied upon if it is specifically brought to the other party's attention prior to the contract being entered into.

An ambiguous exclusion clause will be interpreted against the person seeking to rely on it.

. Identify which of the following statements are correct.

Contracts between consumers and businesses are governed by the Unfair Contract Terms Act 1977.

Contracts between consumers are governed by the Unfair Contract Terms Act 1977.

Contracts between consumers are governed by the Consumer Rights Act 2015.

Contracts between consumers and businesses are governed by the Consumer Rights Act 2015.

Contracts between businesses are governed by the Unfair Contract Terms Act 1977.

The Unfair Contract Terms Act 1977 were repealed and replaced by the Unfair Terms in Consumer Contracts Regulations 1999.

. Which one of the following is NOT within the scope of the Unfair Contract Terms Act 1977?

A clause excluding liability for property damage.

An exclusion clause in a contract for the sale of goods between two parties, one of which is based in the UK, and the other based in the USA.

An exclusion clause in an employment contract that operates in favour of the employee.

A notice on a wall excluding liability for negligence.

. Section 2(1) of the Unfair Contract Terms Act 1977 renders ineffective contractual terms that excludes liability for death or personal injury caused by negligence. True or False?

True

False

. Which one of the following statements regarding s 3 of UCTA 1977 is correct?

Section 3 only applies to consumer contracts.

Section 3 applies to terms that seek to exclude liability for qualified obligations.

Section 3 provides that an exclusion clause that allows a party to render no contractual performance is automatically void.

Section 3 only applies where a party deals on the other's written standard terms of business.

. The Consumer Rights Act 2015 only applies to terms that were not individually negotiated.

True

False

. There are several differences between the Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015. Which one of the following is not a valid difference?

The 2015 Act only applies to consumer contracts and notices, whereas the 1977 Act is not limited to consumer contracts and notices.

Under the 2015 Act, the burden of proof is placed on the consumer, whereas under the 1977 Act, the burden of proof is placed on the party relying on the exclusion clause.

The 1977 Act applies to both contractual terms and non-contractual notices, whereas the 2015 Act only applies to contractual terms.

Under the 2015 Act, legal persons cannot act as consumers, whereas they can deal as consumers under the 1977 Act.

The 2015 Act applies to any potentially unfair term, whereas the 1977 Act only applies to terms that exclude, limit or require indemnification of liability.

Under the 1977 Act, certain types of term are automatically ineffective, whereas the 2015 Act does not automatically invalidate any type of term.

. Under the Consumer Rights Act 2015, a legal person (such as a company or LLP) can generally be classified as a consumer.

True

False

. Which one of the following is not one of the three elements of the Consumer Rights Act 2015's test for unfairness?

Whether the term is contrary to the requirement of good faith.

Whether the term affects the seller's ability to deal fairly and equitably with the consumer.

Whether the term causes a significant imbalance between the parties' rights and obligations under the contract.

Whether the significant imbalance causes detriment to the consumer.

Quiz Content