The Gazette 1979

GAZETTE

MARCH 1979

RADICAL CHANGES PROPOSED

BY NEW SALE OF GOODS BILL

by Robert

The Sale of Goods and Supply of Services Bill 1978 now

before the Oireachtas contains many sweeping changes in

what has become known recently as Consumer Law.

Following on the Consumer Information Act 1978 whose

full implementation has been delayed pending the entry

into office of the recently appointed Director of

Consumer Affairs, the second piece of legislation (as

initiated), provides for the following major changes:—

1 • A buyer will no longer have to reject defective goods

at the time the property in them passes or is deemed

to pass to him.

2. Contracts for Sale will contain implied conditions

and warranties as to the title of the vendor to sell the

goods.

Goods selected by a buyer from a display, e.g. in a

self-service shop or supermarket may be "goods sold

by description".

The implied conditions or warranties as to the

merchantable quality (now defined for the first time)

of goods shall only apply where the seller sells in the

course of business.

Such a seller may not use notices or exclusion

clauses that would restrict a buyer's rights under

Sections 12 to 15 of the Sale of Goods Act 1893 (as

amended by the proposed bill).

All sales of motor vehicles, except to a buyer in the

trade will have an implied condition that the vehicle

is free from any defect which would render it a

danger to the public. Such a condition may only be

excluded by an agreement that the vehicle is not

intended for use in its then condition, and only in the

circumstances where such an agreement is

reasonable.

Finance Houses are to be made parties to any

contract between a seller and a consumer where there

is a contract whereby the Finance House finances the

consumer.

Guarantees can no longer exclude statutory or

common law rights and the benefits of guarantees

can pass to all persons who acquire title to the goods

during the guarantee period e.g. persons who receive

the goods as gifts.

9. A purchaser is not deemed to have accepted goods

until he has had an opportunity of examining them.

The rights of hirers under Hire Purchase Agreements

are strengthened and brought generally into line with

buyers rights under contracts for the sale of goods.

1. Suppliers of services (a phrase not comprehensively

defined in the Bill) are deemed to imply in all

contracts which they make for those services that

they have the necessary skill to render the service,

that they will supply the service with due skill, care

and integrity and that all materials used will be sound

and reasonably fit for the purpose required.

'2. The law in misrepresentation has been altered in

favour of the person to whom the representation is

made in so far as the remedies for misrepresentation

is concerned.

13. Unsolicited goods may after notice to the sender, be

retained by the recipient.

Flanagan

14. Charges for directory entries can only be levied

where there is an agreement for such entry and

orders for such entries must be on the customers

notepaper or order forms.

The above does not purport to be a comprehensive list of

all the amendments to the Sale of Goods Act and new

Sale of Goods Act and new law introduced by the Bill.

One of the over riding provisions in the Bill which will

govern both it and the 1893 Act introduced the concept of

a "consumer" for the first time a consumer being a

person who does not make a contract in the course of a

business transaction but the other party to the contract

does make it in such capacity and the goods or services

are of a type ordinary supplied by private use or

consumption.

There is no reason to believe that there will be

substantial substance of amendments accepted to this

legislation. Nor indeed are they likely to be put forward by

the major opposition party because the Bill is very similar

to one which is understood to have been drafted during

the tenure of office of the previous government and which

was in fact introduced as a Private Members Bill by front

bench members of the opposition in late 1978. It

therefore seems very important for solicitors to brief

themselves on the terms and effects of the new legislation,

which are likely to be pervasive and far ranging.

FORMING

A COMPANY?

Why Worry?

The Law Society provides a quick service

based on a standard form of Memorandum

and Articles of Association. Where necessary

the standard form can be amended, at an

extra charge, to suit the special requirements

of any individual case.

In addition to private companies limited by

shares, the service will also form —

• Unlimited companies.

• Companies limited by guarantee.

• Shelf companies, company seals and

record books are available at competitive

rates.

Full information is available from:

COMPANY FORMATION SERVICE

INCORPORATED LAW SOCIETY OF

IRELAND

BLACKHALL PLACE, DUBLIN.

Tel. 710711. Telex 31219 ILAW EI.