#20303 - L7. Implied Terms In Consumer Contracts. - Commercial Sales Law Lecture Notes

L7. Implied Terms in Consumer Contracts.

1. Expanded Statutory Terms (ss 13–17 CRA)

The CRA re-enacts several SGA terms while introducing new protections specifically for modern consumer transactions.

A. Matching a Sample or Model (ss 13–14)

• Goods to Match Sample (s 13): If a consumer examines a sample before contracting, the goods must match that sample unless differences were specifically disclosed beforehand.This applies to examining a portion of theactual stock to be supplied.

• Goods to Match a Model (s 14): This is anew provisionwith no SGA counterpart.It applies when a consumer examines a "model" (a representative version of the finished product, like a display TV on a shop floor).The final product must match that model.

B. Installation and Digital Content (ss 15–16)

• Installation (s 15): If installation is part of the contract and is the trader's responsibility, the goods are deemednon-conformingif installed incorrectly.

• Digital Content in Goods (s 16): This is anew provision.If digital content (software) included in goods does not meet statutory standards (quality, fitness, or description), theentire physical productis treated as non-conforming.For example, a computer that works mechanically but has faulty software is a non-conforming good.

C. Right to Supply and Limited Title (s 17)

• Full Title: Traders must have the right to sell or transfer ownership, and goods must be free from undisclosed charges.

• Limited Title: If only a limited title is transferred, the trader must disclose all charges known to them that are unknown to the consumer.

2. The Hierarchy of Statutory Remedies

The CRA provides a structured set of remedies for any breach of sections 9–16.

Tier 1: The Short-Term Right to Reject (s 22)

• 30-Day Limit: Consumers generally have 30 days from delivery (or completion of installation) to reject non-conforming goods and end the contract.

• "Clock-Stopping": If a consumer agrees to a repair or replacement within these 30 days, the 30-day period is paused.After the repair/replacement, the consumer has the remainder of that time (or 7 days, whichever is longer) to reject the goods if they still don't conform.

• Full Refund: Rejection entitles the consumer to a full refund within 14 days using the original payment method.

Tier 2: Repair or Replacement (s 23)

• Trader Duties: The trader must repair or replace the goods within a reasonable time, without significant inconvenience, and at no cost to the consumer.

• Restrictions: A trader can refuse this remedy if it is impossible or "disproportionate" compared to other available remedies.

Tier 3: Price Reduction or Final Right to Reject (s 24)

This tier is triggered if a single attempt at repair/replacement fails, or if Tier 2 is impossible or takes too long.

• Price Reduction: The consumer keeps the goods but receives a reduction based on...