NOVEMBER 2015 Candidates answering the questions from a Scottish or Welsh law viewpoint: Please ensure that you write Scottish or Welsh (as the case may be) on the front of your examination booklet. The examiners may expect candidates to show knowledge of legislation which is in place but not in force - i.e. has been enacted - and regulations which have been made but are not yet in force, if they are directly relevant to the subject matter of the examination. There are three sections to the examination paper: Section A Section B Section C Consists of five questions. Candidates should attempt to answer all questions. Total allocation of marks is 25 marks. Suggested time allocation is 45 minutes. Consists of two questions. Candidates should attempt to answer one question. Total allocation of marks is 25 marks. Suggested time allocation is 45 minutes. Consists of three questions. Candidates should attempt to answer two questions. Total allocation of marks is 50 marks. Suggested time allocation is 90 minutes. Total time allowed three hours (plus ten minutes reading time). MATERIALS PERMITTED Candidates are permitted to take into the examination room an unannotated copy of: Avizandum Statutes on Scots Commercial & Consumer Law; Butterworths Commercial & Consumer Law Handbook; Blackstone s Statutes on Commercial & Consumer Law; or Palgrave Macmillan Core Statutes on Commercial & Consumer Law; together with an unannotated Stationery Office original copy of the Consumer Rights Act 2015. The examination paper has six pages, including this front sheet. 1
Section A Candidates should attempt to answer all questions - total of 25 marks 1. With reference to the contexts in which it may arise, briefly explain the issue of capacity in the law of contract. 2. Using examples, briefly explain the difference between an invitation to treat and an offer, in the law of contract. 3. Using examples, briefly explain the different ways in which terms may be implied into contracts. 4. Briefly explain rights to redress for consumers under The Consumer Protection from Unfair Trading Regulations 2008. 5. With reference to examples, outline the concept of remoteness of damage as it applies to the law of tort/delict. Section A total of 25 marks. End of Section A. 2
Section B Candidates should attempt to answer one from two questions - total of 25 marks. 6. The law specifically seeks to protect consumers from the use of contractual terms by traders where those terms are judged to be unfair. With reference to examples, explain the law concerning unfair contract terms. Your answer should include your view of why consumers have been given this protection. 7. With reference to examples, explain potential remedies available to a consumer against a trader for breach of contract under the Consumer Rights Act 2015. Section B total of 25 marks. End of Section B. 3
Section C Candidates should attempt to answer two from three questions - total of 50 marks. 8. Lawrence visits José, who runs a tattoo and body piercing business. José also supplies body jewellery. Lawrence asks for a small tattoo at the back of his neck, simply stating his girlfriend's name, Ann. He also asks for his tongue to be pierced and agrees to buy a titanium flat tongue stud for José to fit. Lawrence looks at the available tongue studs and settles for a green coloured stud. An overall price of 100 is agreed for the tattooing and piercing, plus 10 for the stud. Lawrence pays José the full amount of 110. José completes the work but, as he is in a hurry, Lawrence doesn't check the completed work in his mouth or on his neck, through the use of a mirror (although offered by José). Later that day, Lawrence visits Ann and proudly shows her the tattoo. But, to Lawrence's surprise, she's not happy. Her name has been spelt incorrectly (it states Anne, not Ann). The correct spelling had been clearly stated to José by Lawrence. Furthermore, on now checking the tongue stud in a mirror, he sees that it is dark blue and not green as had been agreed. And it gets worse. Lawrence begins to feel ill and quickly develops fever-like symptoms, including profuse sweating. He is admitted to hospital as an emergency and his condition improves after a few days. The cause of his symptoms is identified as having arisen from the tattoo ink being contaminated. The ink had been produced and supplied to José by InkURate Limited, a Birmingham-based company, run by Pauline. The company had become aware of an infected batch that it had supplied and had tried to recall it. That had involved e-mailing all persons supplied, including José. The e-mail had arrived two days before José carried out the tattooing. José had seen it but had not acted on it. Apply the law of contract and the law of product liability to suggest possible remedies for Lawrence. You should specify against whom any action may be taken and consider any potential defences. Section C is continued over the page. 4
9. Morag is a student and regularly has to submit typed written work to her tutors. Unfortunately, her keyboard skills are basic and she is slow. To improve her speed and quality of output, she decides to buy voice recognition software that will convert her dictated word into written text. She finds one product online that appears suitable: a software package called Tiger Voice Platinum (TVP). It is manufactured by Subtlety, a business owned and run by Lloyd. On the website, it refers to TVP enabling transcription at breath-taking speed and with unerring accuracy. It also claims that the software is virus proof. The cost is 100. Morag completes an order online. The product arrives, by post, contained in disk format. It produces dramatic results. It lives up to its claims and improves Morag s efficiency considerably. She saves much time in completing her work. But, after a month, transcription becomes a lot slower and less accurate. Things get worse and her computer then crashes and all her work is destroyed. She is told by a friend, who has expertise in such things, that the problem must have been caused by a virus contained in the software at the time of delivery. The friend says that it is possible to remove the virus and then reinstall the software. But this proves impossible, as the disk containing the software has deteriorated so much that it breaks when touched. Morag approaches Lloyd, but he is dismissive and says that her current problems must be down to her, not him. He also points to a clause hidden in the terms and conditions which states: Subtlety accepts no responsibility for matters arising after 14 days following delivery. As a result of losing work, Morag has to start again and, in consequence, is unable to meet several submission deadlines. The new submission dates given by her tutors are all in the summer. In order to meet the revised deadlines, Morag cancels a holiday for which she had booked and paid. With reference to the law of contract, the law of misrepresentation and rights to redress for consumers under The Consumer Protection from Unfair Trading Regulations 2008, discuss any claims that Morag might have against Lloyd. Section C is continued over the page. 5
10. Shami owns her own home and has no mortgage. Her central heating boiler has broken down and she decides that it is too old to repair. She visits HouseGlow, a business owned and run by Constance. Shami explains that she requires a boiler that should be suitable for heating her detached property, which has ten rooms (she lives there with her two children aged seven and ten). Constance recommends that the Gloucester Compact boiler is suitable for this purpose. Shami takes the advice and pays 500 for the boiler, and for it to be delivered to her house. It is delivered the next day. Shami engages George, a registered gas engineer, to remove the old boiler and install the new one for 500. George completes the work in two days and the boiler appears to be working satisfactorily when tested, although the weather is mild at the time. He is paid in full. But, two days later, the weather becomes a lot colder and the house is noticeably cooler than it should be; the radiators are not working to their full capacity. Despite several attempts to contact Constance, she does not respond to Shami. Exasperated, Shami then pays 100 for advice from Rio, a consultant with relevant expertise. Rio tells Shami that the boiler is not sufficiently powerful to heat a house of that size and she should have chosen the Premium version, not the Compact one. The Premium version would have cost 750. At the same time, due to faulty wiring by George when carrying out the installation, a small explosion occurs when the gas catches fire. No one is in the house at the time but Shami is nearby and able to call the emergency services, who isolate the gas supply and extinguish the flames. No one is hurt, but there is considerable damage to Shami s house and to its contents. Shami and the children have to move out to a friend s house for six months, while repairs are carried out. She pays 400 a month to the friend (this includes bills but not food). She also pays for transport to take the children to and from school (they could walk before). Advise Shami on any potential claims that she might have, in the law of contract and the law of negligence, against Constance and George. Section C total of 50 marks. END OF EXAMINATION PAPER. 6