6. Exemption clauses

2021 ◽  
pp. 130-174
Author(s):  
Richard Taylor ◽  
Damian Taylor

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. Exemption clauses provide that one party will not be liable in certain situations; they exclude or limit liability. Exemption clauses have traditionally been frowned upon because they have been misused, often to the detriment of consumers, and the courts have responded by repeatedly looking for ways to cut them down. In recent years the Unfair Contract Terms Act 1977 has given the courts much stronger powers and the Unfair Terms in Consumer Contracts Regulations have strengthened the position of consumers. These statutory controls have recently been radically overhauled in the Consumer Rights Act 2015 and this chapter provides a full explanation of these complex developments.

2019 ◽  
pp. 128-171
Author(s):  
Richard Taylor ◽  
Damian Taylor

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. Exemption clauses provide that one party will not be liable in certain situations; they exclude or limit liability. Exemption clauses have traditionally been frowned upon because they have been misused, often to the detriment of consumers, and the courts have responded by repeatedly looking for ways to cut them down. In recent years the Unfair Contract Terms Act 1977 has given the courts much stronger powers and the Unfair Terms in Consumer Contracts Regulations have strengthened the position of consumers. These statutory controls have recently been radically overhauled in the Consumer Rights Act 2015 and this chapter provides a full explanation of these complex developments.


Author(s):  
Richard Taylor ◽  
Damian Taylor

Without assuming prior legal knowledge, books in the Directions series introduce and guide readers through key points of law and legal debate. Questions, diagrams and exercises help readers to engage fully with each subject and check their understanding as they progress. Exemption clauses provide that one party will not be liable in certain situations; they exclude or limit liability. Exemption clauses have traditionally been frowned upon because they have been misused, often to the detriment of consumers, and the courts have responded by repeatedly looking for ways to cut them down. In recent years the Unfair Contract Terms Act 1977 has given the courts much stronger powers and the Unfair Terms in Consumer Contracts Regulations have strengthened the position of consumers. These statutory controls have recently been radically overhauled in the Consumer Rights Act 2015 and this chapter provides a full explanation of these complex developments.


Contract Law ◽  
2020 ◽  
pp. 444-471
Author(s):  
Ewan McKendrick

This chapter focuses on Part 2 of the Consumer Rights Act 2015. The Act gives to the courts much broader powers to regulate terms in contracts which have been concluded between traders and consumers. Section 2 examines the individual sections of Part 2 of the Act and the leading cases decided under the Regulations which preceded the Act. Particular attention is given to key concepts such as ‘significant imbalance’, ‘good faith’, the exclusion of certain terms from assessment for fairness, the indicative and non-exhaustive list of terms that may be regarded as unfair, and the role of regulators in the enforcement of the legislation. Section 3 draws on work done by Professor Susan Bright in relation to the role of the Unfair Contract Terms Unit in the early days of the enforcement of the legislation.


Author(s):  
Robert Merkin ◽  
Séverine Saintier

The Casebook series provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. This chapter deals with exemption clauses and unfair contract terms. An exemption clause is a term in a contract or notice that can be either an exclusion clause (excluding liability or remedies) or a limitation clause (limiting liability to a specified sum). The chapter primarily focuses on the requirements that must be satisfied before an exemption clause can be relied upon, the question of construction and the natural and ordinary meaning of the clause, contra proferentem, liability for negligence, limitation clauses, inconsistent terms and fundamental breach. It then examines the legislative regulation of exemption clauses, emphasizing the growing distinction between commercial and consumer contracts in this context. It considers in some depth the enforceability of exemption clauses in a B2B context in accordance with the Unfair Contract Terms Act 1977 and its interpretation in case law. In the B2C context, it discusses control of unfair terms in accordance with Part 2 of the Consumer Rights Act 2015 and the case law interpreting the previous legislative regulation of unfair terms.


Author(s):  
Elizabeth Macdonald ◽  
Ruth Atkins

Koffman & Macdonald’s Law of Contract provides a clear, academically rigorous, account of the contract law which is written in a style which makes it highly accessible to university students new to legal study. It works from extensive consideration of the significant cases, to provide students with a firm grounding in the way the common law functions. There are chapters on formation, certainty, consideration, promissory estoppel, intention to create legal relations, express and implied terms, classification of terms, the Unfair Contract Terms Act 1977, Unfair Terms in Consumer Contracts, mistake, misrepresentation, duress and undue influence, illegality, unconscionability, privity, performance and breach, frustration, damages, and specific enforcement, as well as companion website chapters on capacity and an outline of the law of restitution. Many new cases and legislative developments are covered in the ninth edition, such as Armchair Answercall Ltd v People in Mind Ltd, Blue v Ashley, Cavendish Square Holding BV v Talal El Makdessi, ParkingEye Ltd v Beavis,Globalia Business Travel S.A.U. (formerly TravelPlan S.A.U.) of Spain v Fulton Shipping Inc of Panama, Marks and Spencer plc v BNP Paribas Securities Services Trust Company (Jersey) Ltd,MWB Business Exchange Centres Ltd v Rock Advertising Ltd, Patel v Mirza, Phones 4U Ltd (In Administration) v EE Ltd. This edition has been updated to include major legislative developments including the Consumer Rights Act 2015, which now encompasses, and makes some changes to, the unfair terms regime, which was previously provided by the Unfair Terms in Consumer Contracts Regulations 1999, as well as removing, and taking on board, the consumer elements of the Unfair Contract Terms Act 1977.


Legal Studies ◽  
2017 ◽  
Vol 37 (1) ◽  
pp. 78-102 ◽  
Author(s):  
Paula Giliker

The Consumer Rights Act 2015 seeks to consolidate in one place key consumer rights covering contracts for goods, services and digital content, and the law relating to unfair terms in consumer contracts. These are areas where there has been considerable activity at both a national and an EU level. In particular, the Consumer Sales Directive 99/44/EC, the Unfair Terms in Consumer Contracts Directive 93/13/EEC and the Consumer Rights Directive 2011/83/EU have all made significant changes to Member State law, promoting the idea of the ‘informed consumer’, able to assert his or her rights in entering consumer contracts. This paper will examine the extent to which the Act promotes the objectives of these Directives and the implications of the result of the June 2016 referendum that the UK should leave the EU. Does the Consumer Rights Act 2015 represent a valuable consolidation of EU and UK consumer policy, or are EU rights being absorbed into a distinctive national framework of consumer rights?


Author(s):  
Janet O’Sullivan

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter examines potentially unfair terms, including exemption clauses, in a contract. It considers the common law’s response to exemption clauses and other potentially unfair terms, and discusses statutory schemes to regulate them. It covers the Unfair Contract Terms Act 1977 (UCTA) which governs exemption clauses in non-consumer contracts, subjecting them to a requirement of reasonableness where the contract was made on standard terms. It also discusses in detail the Consumer Rights Act 2015 (CRA), which imposes a test of fairness on terms in consumer contracts, apart from the core terms.


Author(s):  
McMeel Gerard

This chapter focuses on exemption clauses. Particular attention is placed on the detailed rules of construction still applicable to exemption clauses. Moreover, the chapter considers the statutory interventions in this field in the shape of the Unfair Contract Terms Act 1977 and Part 2 of the Consumer Rights Act 2015 (superseding the Unfair Terms in Consumer Contracts Regulations 1999). Since these statutory interventions there has been a marked tendency to construe exemption clauses in commercial agreements in a more realistic way. This is especially prevalent where the parties are of relatively equal bargaining power and where the clause is perceived as giving effect to a sensible allocation of risk.


Author(s):  
Ewan McKendrick

This chapter focuses on Part 2 of the Consumer Rights Act 2015. The Act gives to the courts much broader powers to regulate terms in contracts which have been concluded between traders and consumers. Section 2 examines the individual sections of Part 2 of the Act and the leading cases decided under the Regulations which preceded the Act. Particular attention is given to key concepts such as ‘significant imbalance’, ‘good faith’, the exclusion of certain terms from assessment for fairness, the indicative and non-exhaustive list of terms that may be regarded as unfair, and the role of regulators in the enforcement of the legislation. Section 3 draws on work done by Professor Susan Bright in relation to the role of the Unfair Contract Terms Unit in the early days of the enforcement of the legislation.


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