Core Skills in Consumer Affairs and Trading Standards LAW OF CONTRACT NOVEMBER 2014

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1 Core Skills in Consumer Affairs and Trading Standards LAW OF CONTRACT NOVEMBER 2014 Candidates answering the questions from the Scottish or Welsh law viewpoint: Please ensure you write Scottish or Welsh 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 subjectmatter 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 their own unannotated copies of: Consumer Law Statutes (Monitor Press); Consumer Law Statutes (Sweet & Maxwell); Butterworths Commercial Law Handbook; Butterworths Commercial and Consumer Law Handbook; Blackstone s Statutes on Commercial and Consumer Law; Core Statutes on Commercial & Consumer Law (Avizandum); Statutes on Scots Commercial & Consumer Law (Avizandum); or OPSI original copies of: Sale of Goods Act 1979; Sale and Supply of Goods Act 1994; Supply of Goods & Services Act The examination paper has six pages, including this front sheet exam paper LC version3 March 2012 Page: 1

2 Candidates are not required to answer on the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, or the new The Consumer Protection (Amendment) Regulations 2014 Part 4A rights in this paper. Section A Candidates should attempt to answer all questions - total of 25 marks. 1. Use examples briefly to explain what the difference is between a pre-contractual opinion, and a pre-contractual misrepresentation. 2. Briefly discuss the circumstances in which a third party may be able to enforce a contract even though he or she is not a party to the agreement. 3. Outline the idea of remoteness of damages as it applies in contract law. 4. English and Welsh Candidates only: Briefly explain the concept of mistake in contract law. Scottish Candidates only: Briefly explain the concept of error in contract law. 5. Use examples to briefly explain why causation is an essential element of proving a negligence claim. End of Section A. Section A total of 25 marks. Page: 2

3 Section B Candidates should attempt to answer one from two questions - total of 25 marks. 6. The civil law provides protections for the contracting consumer which do not exist for businesses or other contracting parties. Set out relevant examples of this from legislation, and explain what, in your view, are the reasons policy makers have made this distinction. Your answer should also include an assessment of the advantages and disadvantages of treating consumers differently in law. 7. Someone injured by a defective product may choose to take action using the law of negligence, or using the Consumer Protection Act 1987 Part I. Set out the relative advantages and disadvantages of each, using examples to illustrate your points. Section B total of 25 marks. End of Section B. Page: 3

4 Section C Candidates should attempt to answer two from three questions - total of 50 marks. 8. Eric is a keen bodybuilder, and in March he visited The Gym Shorts, a high street shop owned and run by Margo which specialises in fitness and bodybuilding accessories. On this visit, Eric bought an abdominal belt made by Wimpo Ltd of Milan, and a large tub of Beefcake protein diet supplement, which is made by a firm in Bristol but labelled with the logo of The Gym Shorts and the statement Made to Margo s Gym Shorts recipe!. The Beefcake diet supplement is in the form of tablets. It works by giving a huge calorie and protein boost, and is only meant to be used by people doing lots of weightlifting exercises, so that the extra energy is turned into muscle (though the instructions don t actually spell this out specifically). Eric is pleased with the added muscle bulk he gains in the first month of using Beefcake. However, in early May he sustains an injury and has to stop working out. Mistakenly, though, he continues to take the Beefcake tablets. As a result, he gains large amounts of fat, and puts on two stone in a few weeks. Once his injury has healed, Eric returns to the gym, keen to get rid of the excess weight and to tone up. At the gym, he puts the abdominal belt round his stomach prior to starting his workout, and begins his session. As he strains to lift a bar fitted with heavy weights, the buckles on the belt give way, flinging the belt across the gym at speed. It hits another gym user, Ali, in the face, causing her to drop the bar bell she was holding at the time. This lands on Ali s foot, breaking several bones. The next day, Eric is feeling ill and goes to the doctor. He is told that he has sustained liver damage as his body has struggled to process the huge amounts of protein from the supplements. Apply the laws of contract, negligence and product liability to suggest possible remedies for Eric and Ali. Your answer in all cases should specify against whom any action might lie, and what defences may exist. Section C is continued over the page. Page: 4

5 9. Mona is due to get married in December Some time ago, she and her fiancé, Brian, booked the wedding reception with the Hotel Boutique. She and Brian had only gone there to check out the facilities, but Mona eventually signed an agreement, at the end of the visit, having been shown around the hotel and even given four free glasses of champagne as she toured the building. The initial agreement detailed a three course meal for 120 guests at 50 per head, and included the musical entertainment of Mickey Tomlin, a noted singer whose music is loved by Mona and Brian. Unfortunately, in the meantime, Brian lost his job, so Mona contacts the hotel to tell it that she wants to reduce the number of guests from 120 to 40 but, of course, she is happy to pay 40 x 50. At this, the hotel points out a clause on the inside back page of the signed contract which says The price quoted per head is based on a minimum of 80 guests. Mona does not remember seeing this clause when she signed the document. The hotel says that the best it can do, if the numbers are reduced to 40, is to charge 100 a head. Otherwise, the hotel will cook and serve 120 dinners, and charge Mona 50 a head. In addition, Hotel Boutique has told Mona that Mickey Tomlin is no longer available, as he has undergone a throat operation which has altered his voice, among other things. The hotel tells the couple that, instead, the music will be provided by Rab Rough and the Heidbangerz. Mona and Brian have never heard of them and are not sure that they want to. With reference to legal authority, set out the contractual position in relation to the change of guest numbers, and the substitution of the musical entertainment. Section C is continued over the page. Page: 5

6 10. Audrey is a sole trader who runs a catering business. One day she is contacted by Daniel, who wants her to provide the food and drink for his wife s upcoming 40 th birthday party, in three weeks time. Audrey provides an estimate of 800, and Daniel agrees for her to provide the catering on that basis.* Almost 100 guests are expected at the party, so Audrey hires Jason as an assistant for the day. Jason has no cooking experience, so Audrey firmly tells him that he must not cook anything. Instead, he is to serve food and drink, collect used dishes and glasses, and generally help out as instructed. The party goes off well, until Audrey gets an urgent phone call about her son, who has been in an accident. She has to leave things to Jason while she temporarily leaves the venue, and instructs him to Just look after things for me. Audrey returns to the party and resumes charge 45 minutes later. Two days after the party, Audrey gets an irate phone call from Daniel. He has several complaints: Jason managed to smash several glasses while collecting, resulting in one guest getting a badly cut leg. Several more guests are complaining that they are suffering food poisoning. A further guest claims that, while Audrey was gone, Jason was selling class A drugs to some guests, some of whom were also taken ill. The bill Audrey has sent Daniel is for over 900, way beyond what was agreed. Audrey explains that the higher bill is simply down to her having to buy more expensive ingredients on the day. On the food poisoning, Audrey makes enquiries and it turns out that, when she was absent, Jason served up some mussels in white wine, which it seems were undercooked. As to the cut leg and allegations of drug dealing, Audrey resolves never to hire Jason to work for her again. Daniel and his injured guests want to sue Audrey and Jason. Audrey wants to be paid. Use the laws of contract and tort [delict] to set out the rights and liabilities of Audrey, Jason and Daniel. *NOTE TO CANDIDATE: You can assume, when answering this question, that all requirements under The Consumer Contracts (Information, Cancellation & Additional Charges) Regulations 2013 were met. Section C total of 50 marks. END OF EXAMINATION PAPER. Page: 6