Sale of Goods Act 1979 for business

[danler]

Hi All

 

Can you use the sales of goods act or consumer rights for business issues???

 

ie) What are my business rights to obtaining a refund for a faulty machine that is less than 2 months old (I've already had a replacement machine). I think the fault is a manufacturing problem.. Shop has told me that head office have to issue refunds ( they took 3 weeks to cash a chq, I'd hate to see how long it would take them to issue one)

 

or .. Can I ask for a replacement machine - same spec??

 

If anyone can help me I'll post the full details of the problem I have (but it's quite long)

 

Also if any mods read this could we please have a seperate section for small business issues (pretty pretty please, kiss, kiss, kiss)

 

Thanks

Danler

[buzby]

Yes - SOGA does apply to business users, but is not as comprehensive. Have a look at this from the DTI's site;

 

http://www.dti.gov.uk/consumers/fact-sheets/page24700.html

[rosiecotton]

The SoGA still applies but businesses can exclude some of your rights under the Act in their terms and conditions, provided it is reasonable to do so. This is quite wide though, and it is likely that even the "satisfactory quality" term can be excluded in a business to business contract (see case law L'Estrange v Graucob).

 

If you have a query, the first thing to do is check your terms and conditions for any exclusion clauses. If there are none, then the full SoGA rights apply. If there are, they will have to be reasonable but are likely to restrict your rights accordingly.

[rosiecotton]

Just read your prior post in full - even if the SoGA applied, you cannot demand a replacement - only ask for one.

[danler]

The problem is that within the space of not even 2 months I've already had 1 replacement machine, and a engineer come out once. On thursday the machine packed in with the same fault as the first machine. The shop has said that they will send it back to the manufactures to fix. They have told me I will be without the machine for approx 2 weeks. My guy can't be without the machine for 2 weeks, they wont give me another replacement machine because they havnt got one, so I'll have to buy a second machine. The shop said that refunds can only be done by head office (they took 3 weeks to cash a chq so I'd hate to see how long it would take them issue one). The machine cost nealry £1000 pounds and because of being a small business I havnt got £1000 to spend on another machine tomorrow. I need a replacement machine asap as I wont be able to get my orders out for the end of the week, thus not recieving monies to pay the lads wages.

[rosiecotton]

I'd suggest to check your terms and conditions in full before we can properly advise.

[buzby]

I'm sure this will be an insurable loss - if it affects your business profitability, there may well be a claim they (or even you) can pursue to cover your losses. Why not speak with the manufacturers directly to explain the problem, they may be able to assist, even if they're dealer cannot?

[danler]

The terms and conditions of the contract (just got it off their web site)

 

a) The conditions and warranties set out in Sections 13,14 and 15 Sale of Goods Act 1979 and Sections 12,13,14,15 and 16 Supply of Goods and Services Act 1982 are hereby expressly excluded from contracts made under these terms and conditions.

 

b) In the event of any defect in or failure of any product supplied under these terms and conditions the maximum liability of the Company will be the initial purchase price of the product

 

---- Quite annoying on part (b) as I had to make a 4 hour round trip to pick up a replacement machine.

[danler]

Hi Buzby

 

Problem is the the shop selling these machines, it's their own brand... The shop recommended this perticular model after asking what we was using the machine for.

[rosiecotton]

Ouch, that weakens things considerably. They have basically excluded their liability for the quality and fitness for purpose of the goods. Although it may seem draconic, this can be possible in trade contracts and - as said before - many such clauses have passed the "test of reasonableness" in court (see previous quoted case law).

 

I don't know much about insurance, may be worth you checking out this possibility - as otherwise you are pretty much at the company's mercy regarding what they are prepared to do. Consequential losses (losses suffered as a result of the goods being faulty/unavailable for use) will certainly be out.

[danler]

Thanks Rosiecotton, It looks like I'll have to use the wages for this week to buy a new machine (not the same brand) and hopefully get my customer to pay COD on Friday.

Once again thank you, the SOGA is jargon to me..