Lesson 3:Sale of Goods and

Supply of Services Act 1980Part 2:

The Responsibilities of the Retailer

Overview of Lesson

Responsibilities of retailers with regard to:• Selling goods and services• Redress• Resolving complaints• Guarantees and warranties• Signs/statements

Retailers must ensure goods are…

• Of merchantable quality• Fit for the purpose intended• As described• Conforming to sample

And services are…• Provided with necessary care and attention

by a suitably qualified person

Redress

• If a consumer has a valid complaint, they are entitled to one of the “Three Rs”:– Refund – Replacement– Repair

• The best outcome for the consumer is a full refund. However, the length of time between the date of purchase and the date of the fault occurring (and complaint being made) will affect the resolution offered

Redress – “Three R’s”

• Refund – getting your money back. • Your right to a refund depends on how quickly

you act once the fault occurs, and on how big an issue the fault is (i.e. would a repair be sufficient to fix the problem quickly)

Redress – “Three R’s”

• Replacement – a new model of the same or similar quality is given in its place (graphic of new kettle being exchanged for faulty one)

Redress – “Three R’s”

• Repair – the product is repaired to the same condition it was before the fault occurred

Is a credit note an acceptable form of redress?

• If there is a fault with an item you could be entitled to a refund

• A credit note is not a refund as it still restricts you to shopping in that shop

• Some shops might offer a credit note if you change your mind about an item – this is OK as you are legally entitled to nothing

When resolving complaints…

• The retailer enters into a contract when he/she sells goods to a consumer

• Therefore if there is any fault, the retailer must deal with the complaint and cannot pass the responsibility to the manufacturer

• The consumer can if they wish go to the manufacturer but the retailer cannot claim to be not responsible

Guarantees and Warranties• Guarantees and warranties add to the consumer’s

rights, but do not replace the retailer’s responsibilities under consumer law

• Consumer rights do not end when a warranty runs out, if the goods would reasonably be expected to last beyond the warranty period

• You can expect better performance from a €1,600 watch than a €10 watch, although both might have a one-year warranty. Each watch should still be of merchantable quality, fit for its purpose and as described

Signs/statements

Retailers cannot limit consumer rights by displaying signs or making statements such as:

• “No refunds• “No refund on sale items”• “Credit notes only on returns”The retailer should qualify these words with “does

not affect your statutory/consumer rights”A verbal statement by the retailer can form part of the

contract, but try to get it in writing too

Role Play

• A consumer buys a hairdryer from the local electrical shop

• After using it, he/she notices a strong smell of burning

• Role play what might occur when he/she returns to the shop

Summary of Lesson

Responsibilities of retailers with regard to:• Selling goods and services• Redress• Resolving complaints• Guarantees and warranties• Signs