1. Chapter 2
Resolving Conflict in the
Marketplace
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2. Key Areas
• The law of Contract.
• Elements of a Contract. Almost
• Terminating a Contract. guaranteed Q
• Remedies to a Breach of Contract.
• Protecting Consumer Rights
• Sale of Goods & Supply of Services Act 1980
• Consumer Protection Act 2007
• Resolving Consumer Disputes
• Non Legislative
• Legislative
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3. Contract Law
• The Law of Contract:
– Sets out the rules for proving when a contract
exists and when it is finished (terminated).
• What is a Contract?
– Legally binding agreement that is
enforceable by Law.
– 2 Parties…Offerer and Offeree
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4. Elements of a Contract
NB Agreement
Consideration
Intention to Contract
Capacity to Contract
Consent to Contract
Legality of Form
Legality of Purpose
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6. The Elements
Offer:
a commitment by the person making the offer
to be bound by the contract if it is accepted.
Acceptance:
Must be identical to the offer and must be
unqualified and unconditional.
Consideration:
Is what 1 party gives another party as proof of
the agreement, usually payment of one kind or
another.
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7. Intention to Contract:
It is assumed that all business negotiations have the
intention to form a legal contract.
Consent to Contract:
Parties enter into contract of own free will with no
pressure.
Capacity to Contract:
Must have legal ability to enter into contract.
Legality of Form:
Some contracts must be written.
Legality of Purpose:
Contract must fall within legal rules of the country
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8. Termination of a Contract
Performance
Agreement
Breach
Frustration
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9. Conditions & Warranties
Could see this in Short Qs
A condition is a major clause that is fundamentally
important and goes to the heart of the contract. If a
condition is unfulfilled it constitutes a breach and
the injured party is entitled to treat the contract as
terminated and sue for damages.
A warranty is a minor term of a contract. If a
warranty is breached, the injured can sue for
damages but the contract is not terminated.
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10. Example
You are buying a new BMW, the year and the
make of the car would be the key terms. If you
were supplied with a different make you would
be entitled to get out of the contract and seek
damages (breach of contract).
However, if the car supplied had a different
brand of tyres than initially stated, this would
not be sufficiently serious to allow you to get
out of the contract, (breach of warranty).
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11. Remedies to a Breach of Contract
When a condition of a contract is broken, you can look for:
Damages
Specific Performance
Rescind the Contract
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14. Consumer Law
Sale of Goods and Supply of Services Act 1980
Consumer Protection Act 2007
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15. Before we start…
Caveat Emptor
“Let The Buyer beware”
The buyer has a responsibility to use common sense
when making decisions about purchases
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16. Sale of Goods and Supply of Services Act 1980
• Goods should be:
 Of Merchantable Quality
 Fit for Purpose
 As Described
 As per Sample
 Ownership and Quiet Possession
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17. • Services should be:
– Treated similarly to goods
– Supplier is qualified and skilled
– Due care and attention
– Materials of merchantable quality
• Also states:
– Complaints dealt with by the retailer
– Inertia Selling/Unsolicited goods
– Signs limiting liability are illegal
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18. Illegal Signs
No Exchange on goods
In the event of
fault contact the
manufacturer
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19. Redress for the Consumer
3 R’s… Repair
Replace
Refund
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20. In an exam you will be asked to give
an evaluation…
Do you think the Sale of Goods and
supply of services act 1980 does a
good job in protecting the consumer?
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21. Evaluation of the SoG&SoS Act 1980
This Law does a good job in protecting consumers
because:
• It ensures that consumers get their money back if the
product or service they but is not up to legal standards.
While the Law cannot do away with faulty goods, It can
ensure that consumers do not lose their money if they
buy a faulty product.
• Furthermore, Consumers cannot be fooled into
thinking that they have to accept a credit note by
retailers who put signs to that effect. By banning such
signs, this law especially protects those consumers who
do not know their rights
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22. Homework
Write your own summary of the Act tonight in
your notes.
Remember…
Summarise it to suit yourself not me.
Its going to be a revision tool for you
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23. From DES
Consumer Protection Act 2007
• Fair and Accurate trade descriptions
• False or Misleading Advertisements about
goods, services or prices and previous price.
• The Act appoints the National Consumer Agency
to monitor the provisions of the Act
• All adverts must be legal, honest and fair.
• All communications to promote the goods are
covered by the Act including:
advertisements, notices in shop, claim made by
sales assistant.
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24. From DES
Practices prohibited by the Act include:
• Making False claims for cures for illnesses.
• Offering free prizes when it costs money to claim
the prize.
• Promotions where top prize are unavailable.
• Demanding payment for unsolicited goods.
• Pyramid Schemes: A pyramid scheme is defined
as one where a person pays money, but their
primary benefit derives from the introduction of
others into the scheme, rather than the supply of
a product.
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25. The Consumer Protection Act 2007
• It is an offence provide misleading
claims/misleading advertising about:
– Goods… claims about
weight, ingredients, performance
– Services… claims about time, place, manner
in which a service is provided
– Prices… Actual prices, previous
prices, recommended prices
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26. • The act makes it illegal to use
unfair, misleading, or aggressive practices.
Eg. Quality mark, pure new wool, flame
resistant, rec’ by doctors, price will increase
tomorrow
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27. • The Act bans the
establishment, operation, promotion, and
participation in Pyramid Schemes
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28. National Consumer Agency
• Formerly Director of Consumer Affairs
• Set up by Irish Gov’ in 2007.
• Has following Functions…
1. Inform customers of their rights
2. Investigate breaches of consumer laws
3. Make sure all businesses obey consumer
legislation
4. Conduct research into consumer issues
5. Be an advocate for consumers
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30. Homework
Write your own summary of the Act tonight in
your notes.
Remember…
Summarise it to suit yourself not me.
Its going to be a revision tool for you
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32. Resolving Consumer Disputes
How can consumer complaints be resolved in a non-legislative way?
Consumers who find themselves in conflict with a firm over the way they have been treated have
2 non legislative ways of resolving the issue: talk to the retailer or seek help.
• Talk to the retailer:
– Do it as soon as possible
– Know your rights as set out in Law
– Bring proof of purchase
– Ask to speak to a manager
– Complain in friendly but firm manner (aggressive style makes things worse)
• Seeking Help:
– From organisations that assist with negotiating a resolution to a conflict between
consumers and sellers.
– National Consumer Agency (Dir’ of Consumer affairs)
– Consumer association of Ireland
– Industry trade Associations
– Ombudsman
• Conciliation…3rd party…not Binding
• Arbitration…3rd party…Binding
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33. Re: Page 34 Text… Ombudsman
Ombudsman:
investigates complaints by members of the public against certain public
bodies. Eg. An post, Local Authorities, HSE.
– No authority against Dail, Gardai, Defence Forces, Courts, Prisons,
or Private Companies.
– Emily O Reilly
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34. Financial Services Ombudsman:
– Replaced Insurance ombudsman and Credit Institutions Ombudsman
– William Prasifka
– Helps all personal customers, Limited companies with turnover of
less than €3m, and charities, clubs, trusts and partnerships with
complaints against Banks, building societys, insurance Co, Credit
Unions, pawnbrokers, Bureau de Change, HP providers etc.
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35. Small Claims Court
• For consumers who have claims for faulty
goods/services
• Max claim is €2000.
• Small Claims court is… Accessible, Speedy, Low
Cost, No need for costly legal representation.
• Small Claims Registrar @ District Court
• €25 application fee
• If unsuccessful… can go to District court.
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