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Re: UCTA

"Ste" <ste_rose0@hotmail.com> wrote in message
news:893bb3a6-fc22-4e02-904b-2516a3bc3cbb@b16g2000yqb.googlegroups.com...
On 20 Mar, 14:22, Cynic <cynic_...@yahoo.co.uk> wrote:
> On Thu, 19 Mar 2009 23:37:26 +0000, Alasdair <m...@bobaxter.coo.uk>
> wrote:
>
> >To what extent do the Unfair Contract Terms Acts apply in business to
> >business transactions.
> >A friend of mine (let's call him A) runs a phone shop. Inter alia, he
> >sells "3" phones on contract. He sold a "3" phone to a
customer (B).
> >B actually got the phone free of charge, paid for by part of the
> >commission A got from "3". "3" did the usual credit checks
on B and
> >approved the deal.
> >After four months, B defaulted on his bill payments to "3" so
"3"
> >"clawed back" the commission from A leaving A seriously out of
pocket.
> >Doubtless "3" were acting under a term in their standard terms and
> >conditions.
>
> Why should A *not* bear the costs?
>
> Think about it. If A was immune from penalty if his customers
> default, then he would be inclined to make easy sales to dodgy
> customers and let "3" bear the consequences.
>
> I recall one of our salespersons who was highly miffed that we
> deducted the commision he had earned on goods that were subsequently
> returned by the customer. He had in fact been "selling" goods by
> persuading people to take them for a "free trial period", invoicing it
> as a sale, and then approving a refund when the items were returned
> before the end of the payment period.

I'm with you on this one Cynic.



Can we just get back to the legal issue for a minute?

Alasdair asked to what extent UCTA applies.

It seems to me that this may represent the error of supposing that UCTA
seeks to strike down 'unfair' contract terms generally. IT DOES NOT.

It inavlidates some terms (those relating to liability for personal injury
caused by negligence) and subjects others to a reasonableness test.

But unless the term falls within the categories of terms covered by UCTA,
the Act is no use to you.

Even when it does apply, its application is sometimes only in favour of
persons dealing as consumer and this not in business to business sales.

For the avoidance of doubt it is of course quite clear that the Unfair Terms
in Consumer Contracts Regulations 1999, which apply to a broader range of
terms, are not relevant here because, as their name implies, they affect
only consumer contracts, which this is not.


Andrew McGee

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