Consumer Hire Remedies
Right to Remedies
Where the goods are not in conformity with the hire-purchase agreement at the relevant time, the hirer can exercise the short-term right to terminate the agreement or has the right to have the goods brought into conformity through repair or replacement. The hirer may choose between the remedies of repair and replacement of the goods unless the chosen remedy would be impossible for the owner to carry out or would impose disproportionate costs on the owner taking account of all the circumstances. The owner may refuse to bring the goods into conformity if both repair and replacement are impossible for him to carry out or would impose disproportionate costs on him taking account of all the circumstances.
Short-term Right to Terminate
The period during which the hirer has the short-term right to terminate the contract begins (i) when the agreement requires the owner to install the goods after delivery or take any other action to enable the hirer to use the goods, is completed or (ii) when, in any other case, at the relevant time, expires 30 days after that day or the relevant time.
Where the goods may expire or deteriorate in a shorter period, the short-term right to end the agreement will be the end of the shorter period. The hirer may terminate the agreement before the beginning of the period specified In this case, the burden of proof is on the owner in a dispute. Where the hirer has the right to terminate the agreement, the hirer will do so as provided for and the owner will comply with the obligaitons specified.
Repair or Replacement of Goods
Where goods are brought into conformity with a hire-purchase agreement by repair or replacement, the owner must ensure repair or replacement of the goods is carried out free of charge, within a reasonable time period and without any significant inconvenience to the hirer. The reasonable time period will be determined objectively.
The hirer must make the remedied goods available to the owner. The owner will bear the expense of taking back the replaced goods and goods to be repaired. The owner’s obligations to repair/replace includes removal of the non-conforming goods; the installation of repaired non-conforming goods; the installation of goods that replace non-conforming goods and doing so at his own expense. The hirer will not be liable to pay for the normal use of the replaced goods during the period before they are replaced. The term ‘‘free of charge’’ is defined.
Right to Proportionate Reduction in Price and Termination
This applies where a hirer has exercised his right to remedies and the owner has not completed the repair or replacement of the goods and in accordance with the relevant provision the owner has refused to bring the goods into conformity with the agreement; the goods are not in conformity at the relevant time and the same or a different lack of conformity becomes apparent despite the owner’s attempts to bring them into conformity; the lack of conformity is of such a serious nature to justify an immediate price reduction or the termination of the agreement; or the owner has declared or will not bring the goods into conformity within a reasonable time or convenient to the hirer.
The hirer will have the right to a proportionate reduction of the price or the right to exercise the final right to terminate the agreement. If the lack of conformity is only minor, there is no final right to terminate the agreement. In this instance, the burden of proof is on the owner.
It is be objectively determined as to the rights available to the hirer or to have to accept further attempts by the owner to bring the goods into conformity. It will be objectively determined if the lack of conformity is of a serious nature to result in a proportionate price reduction or final right to terminate the agreement. Where the hirer has the final right to terminate the agreement due to some of the goods not being in conformity with the agreement, the hirer may only do so in relation to those goods and any other goods acquired with them where it would not be reasonable to keep the conforming goods.
Price Reduction
Where the hirer has the right to a price reduction, he may require the owner to reduce the price required under the hire-purchase agreement or receive a reimbursement from the owner more than the amount of the reduction. The reduction of the price must be proportionate to the decrease in value of the goods received and the owner must reimburse the amount.
Where the hirer transfers ownership of goods to the owner in full or part payment of the price, the right of the hirer to a price reduction will not apply if no agreed monetary value was ascribed by the parties or the goods cannot be divided up to enable the hirer to receive/retain the reduced price.
Hire Termination
The hirer may only terminate the hire-purchase agreement, either a short term or final right, by means of a statement to do so to the owner and return the goods or materials delivered to the owner at the owner’s expense. Otherwise, the hirer will be liable for damages for loss or damage suffered by the owner as a result of that failure.
Where a hire-purchase agreement is terminated by the hirer (either a short term or final right), the owner on receipt of the goods or evidence that they have been returned, will reimburse the hirer the price paid for the goods and any costs incurred by the hirer in returning the goods. If the agreement is terminated before the full price is paid, only the part of the price paid is subject to reimbursement.
Where the hirer exercises the final right to terminate the agreement, the price reimbursed may be proportionately reduced for any depreciation in value of the goods due to normal use. In this case, the burden of proof is on the owner in a dispute. Where ownership of the goods is transferred by the hirer as full or part payment of the price, the owner will return the transferred goods and may reimburse any part of the price paid.
Where it is not possible to return the transferred goods, the owner will reimburse the hirer with the agreed monetary value of the goods at the time the agreement was concluded or to a reasonable market value at that time if no monetary value was agreed.
Time limits and Means of Reimbursement
In instances where reimbursement is owed to the hirer, the owner will do so no later than 14 days after the day the goods were returned or evidence received that they were returned and make payment in the same way as the hirer used to pay for the goods unless otherwise agreed to by the hirer, without any fees being incurred. The owner will reimburse the hirer without imposing any fee for it. Any failure by the owner to comply with the reimbursement obligation will be liable in damages for any loss or damage suffered by the hirer as a result of that failure.
Effects on Ancillary Contract
Where a hirer terminates a hire-purchase agreement, any ancillary contract will be terminated also without any cost to the hirer. The owner so informed will inform any other owner who had ancillary contracts with the hirer. Obligations apply to both owner and hirer where an ancillary contract is terminated.
Any security provided under a terminated ancillary contract will be treated as having no effect and any property lodged in this regard must be returned immediately by the owner or trader. “Ancillary contract” and “trader” are defined.
Representations purporting to restrict rights of hirer: offences provides that it will be an offence for an owner to make relevant representation by means of a display, publication, supply goods or digital content or a digital service etc. A relevant representation is defined as means of communications used by an owner to restrict the right, where goods are not in conformity with the agreement, to a refund or a refund will only be made in a particular way or goods will not be repaired or replaced or will not be brought into conformity. “Representation” is defined.
Exclusion or Limitation of Liability
A term of a hire-purchase agreement or any other contract between a hirer and the owner will not exclude or restrict an owner’s liability under various listed provisions. A term of an agreement or other contract that purports to exclude or restrict an owner’s liability will not be binding on the hirer.
Liability will not be excluded or restricted in relation to rights or remedies or enforcement of such rights/remedies, being put at a disadvantage for pursuing such rights/remedies, for rules of evidence or procedure or preventing/limiting an obligation. An agreement in writing to engage with an alternative dispute resolution procedure does not exclude or restrict liability. An owner who contravenes this provision commits an offence.