WJEC A-Level Law 603-1978-1
Law Making in Wales and the UK
Delegated Legislation
Statutory Interpretation
Judicial Precedent
The Civil Courts and Dispute Resolution
The Criminal Process and the Criminal Courts
Legal Personnel and the Judiciary
Access to Justice and Funding
Tort: Rules and Theory
Tort: Negligence
Tort: Occupiers' Liability
Tort: Remedies
Human Rights: Rules and TheoryHuman rights
Human Rights: Key Convention ProvisionsHuman rights
Human Rights: RestrictionsHuman rights
Human Rights: EnforcementHuman rights
Human Rights: Protection and ReformHuman rights
Contract: Rules and TheoryContract
Contract: FormationContract
Contract: TermsContract
Contract: Misrepresentation and DuressContract
Contract: DischargeContract
Contract: RemediesContract
Criminal Law: Rules and TheoryCriminal
Criminal Law: General Elements of LiabilityCriminal
Criminal Law: Offences Against the PersonCriminal
Criminal Law: Property OffencesCriminal
Criminal Law: DefencesCriminal
Criminal Law: Preliminary OffencesCriminal
Contract: Terms
Statutory control of exclusion and unfair terms
- 3 things to know
- A2 Units 3 and 4
Overview
Recall questions on liability for negligence and written standard terms, the reasonableness test, George Mitchell, Smith v Eric S Bush and Watford Electronics, the fairness test, and enforcement.
What you need to know
Answer each one before you reveal it.
Which statute controls exclusion clauses in consumer contracts and which controls them between businesses?
What does section 2 of the Unfair Contract Terms Act 1977 provide about liability for negligence?
Questions from this subtopic
Each one with the model answer underneath.
- 1
Which statute controls exclusion clauses in consumer contracts and which controls them between businesses?
Model answer
Since 1 October 2015 the Consumer Rights Act 2015 controls terms in contracts between a trader and a consumer, while the Unfair Contract Terms Act 1977 controls them in contracts between businesses.
- 2
What does section 2 of the Unfair Contract Terms Act 1977 provide about liability for negligence?
Model answer
Liability for death or personal injury resulting from negligence cannot be excluded or restricted at all, and liability for any other loss caused by negligence can be excluded only so far as the term satisfies the requirement of reasonableness.
- 3
What control does section 3 of the Unfair Contract Terms Act 1977 impose on written standard terms?
Model answer
Where one party deals on the other's written standard terms, a clause excluding liability for breach, or allowing performance substantially different from what was expected, is effective only if it is reasonable.
- 4
State the reasonableness test in section 11 of the Unfair Contract Terms Act 1977.
Model answer
The term must have been a fair and reasonable one to include having regard to the circumstances that were, or ought reasonably to have been, known to the parties when the contract was made.
- 5
Give three of the guidelines in Schedule 2 to the Unfair Contract Terms Act 1977.
Model answer
The court considers the relative bargaining strength of the parties, whether the customer received an inducement such as a lower price for accepting the term, and whether the customer knew or ought to have known of the term's existence and extent.
- 6
Why was the limitation clause held unreasonable in George Mitchell v Finney Lock Seeds (1983)?
Model answer
The clause limited liability to the price of the seed, £201.60 for 30 lb, against a crop failure costing some £61,000, and since the seed merchants were at fault and could insure against the risk the clause was not fair and reasonable.
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