Business Law
a.)
The scenario relates to formation issues; the implied terms of the Supply of Goods and Services Act 1982 (SGSA 1982) and the validity of the exclusion term, concerning Jeremy. The contract between Widgets plc and Crankit is a contract for service, under the SGSA 1982; this means that it applies to contracts for work and materials, also if the service done was careless.
a) When carrying out the first annual service, Crankit fits a new fuel pump. This malfunctions 24 hours later, causing an explosion. Injuries result to Jeremy, who lives next door to the factory and the explosion also causes business interruption for 3 weeks.
Contract of works and materials - service and goods being provided - SUPPLY OF GOODS AND SERVICES ACT 1982
The fuel pump is defective (not clear if its defective)- s4(2) and (3) - it seems that C supplied this. Discuss
There is exclusion term discuss courts approach and Unfair Contract Terms Act 1977 s7 is relevant note W is a non consumer and the term is subject to the test of reasonableness The term may be considered to be unfair and as such not binding - UNFAIR TERMS IN CONSUMER CONTRACT REGULATIONS 1999 providing the term is not negotiated If the pump was okay and the explosion was caused by the service by C - breach of s13 not taking reasonable care and skill (see if the service was defective) Discuss remedies unliquidated damages - note the rules on remoteness Jeremy cannot sue C for breach of contract as he is not a party to the contract - if W has to pay damages to Jeremy for the injuries then C should indemnify W
b) Twenty months into the contract, Crankit is called upon by Widgets, which reports that a major mechanical failure has brought its production line to a halt. Crankit replies that due to a lack of staff it will be unable to attend for 3 days. Next day, Widgets tells Crankit that it is opting out of the contract as immediate servicing is obtainable from Best &
The scenario relates to formation issues; the implied terms of the Supply of Goods and Services Act 1982 (SGSA 1982) and the validity of the exclusion term, concerning Jeremy. The contract between Widgets plc and Crankit is a contract for service, under the SGSA 1982; this means that it applies to contracts for work and materials, also if the service done was careless.
a) When carrying out the first annual service, Crankit fits a new fuel pump. This malfunctions 24 hours later, causing an explosion. Injuries result to Jeremy, who lives next door to the factory and the explosion also causes business interruption for 3 weeks.
Contract of works and materials - service and goods being provided - SUPPLY OF GOODS AND SERVICES ACT 1982
The fuel pump is defective (not clear if its defective)- s4(2) and (3) - it seems that C supplied this. Discuss
There is exclusion term discuss courts approach and Unfair Contract Terms Act 1977 s7 is relevant note W is a non consumer and the term is subject to the test of reasonableness The term may be considered to be unfair and as such not binding - UNFAIR TERMS IN CONSUMER CONTRACT REGULATIONS 1999 providing the term is not negotiated If the pump was okay and the explosion was caused by the service by C - breach of s13 not taking reasonable care and skill (see if the service was defective) Discuss remedies unliquidated damages - note the rules on remoteness Jeremy cannot sue C for breach of contract as he is not a party to the contract - if W has to pay damages to Jeremy for the injuries then C should indemnify W
b) Twenty months into the contract, Crankit is called upon by Widgets, which reports that a major mechanical failure has brought its production line to a halt. Crankit replies that due to a lack of staff it will be unable to attend for 3 days. Next day, Widgets tells Crankit that it is opting out of the contract as immediate servicing is obtainable from Best &