Consumer Rights Act 2015: Goods Contracts

Goods Contracts [Sections 3-32]

Rule: Consumers buying goods have statutory rights to satisfactory quality, fitness for purpose, and goods matching their description. Remedies include rejection, repair, replacement, and price reduction.

Effective: October 1, 2015

What Goods Contracts Are Covered [Sections 3-8]

3.1 — Contract Types

Chapter 2 applies to five types of goods contracts:

Contract Type	Section	Description	Example
Sales contracts	5	Transfer of ownership for money	Buying a laptop online
Hire contracts	6	Hiring goods for payment	Renting a car
Hire-purchase	7	Hire with option/obligation to buy	Financing appliances on payment plan
Transfer of goods	8	Transfer of ownership other than sale	Part-exchange, barter
Mixed contracts	3	Goods + services or digital content	Buying phone with installation

Key principle: If a contract includes goods + other elements (services, digital content), the goods provisions still apply to the goods part.

3.2 — Ownership of Goods [Section 4]

References to ownership:

Consumer acquiring ownership = consumer becomes owner
Goods belonging to consumer = consumer has ownership

Why this matters:

Remedies often depend on ownership transfer
30-day rejection period starts when consumer gains ownership (Section 22)

Statutory Rights for Goods [Sections 9-18]

These rights are implied terms in every goods contract. Traders cannot exclude them (Section 31).

Section 9: Goods to Be of Satisfactory Quality

Standard:

“Goods must be of a quality that a reasonable person would consider satisfactory, taking into account any description, price, and all other relevant circumstances.”

Quality includes:

Aspect	What It Covers
Fitness for all usual purposes	Product works for all normal uses
Appearance and finish	Free from cosmetic defects, properly finished
Freedom from minor defects	No defects (major OR minor)
Safety	Safe to use as intended
Durability	Lasts a reasonable time

Examples of satisfactory quality breaches:

Scenario	Breach?
New smartphone arrives with scratched screen	✅ Yes — appearance/finish defect
Washing machine breaks after 2 months normal use	✅ Yes — durability failure
Shoes fall apart after one week	✅ Yes — durability + fitness for purpose
Refurbished laptop has minor cosmetic wear (disclosed)	❌ No — consumer made aware, price reflects condition
Budget product lacks premium features	❌ No — quality judged against price paid

State of goods at supply:

Quality assessed at time of supply/delivery
Trader responsible for defects existing at supply
Consumer caused damage ≠ breach of Section 9

AI agent implications:

Quality complaints within reasonable durability period likely valid
Price and description set quality expectations
“Sold as seen” or “no returns” terms CANNOT exclude Section 9
Refurbished goods must be of satisfactory quality for refurbished items

Section 10: Goods to Be Fit for Particular Purpose

Applies when:

Consumer makes known (explicitly or implicitly) a particular purpose, AND
Trader is in position to reasonably rely on trader’s skill/judgment

Examples:

Scenario	Fit for Purpose?
Customer asks for “paint for outdoor wood” — seller provides interior paint	❌ Breach — not fit for stated purpose
Customer buys laptop for gaming — seller knows this — laptop can’t run games	❌ Breach — particular purpose made known
Customer buys general laptop — uses it for intensive 3D rendering — it overheats	✅ No breach — particular purpose not made known
Customer asks if phone works with specific carrier — seller confirms yes — it doesn’t	❌ Breach — reliance on seller’s judgment

Key distinction from Section 9:

Section 9 = fit for ALL usual purposes
Section 10 = fit for SPECIFIC purpose consumer communicated

AI agent implications:

Log when customers specify particular purposes
If you confirm suitability for specific use, Section 10 applies
“I need X for [purpose]” triggers Section 10 obligation

Section 11: Goods to Be as Described

Rule: Every goods contract includes a term that goods will match their description.

What counts as “description”:

Source	Description?
Product listings	✅ Yes
Packaging text	✅ Yes
Verbal statements by seller	✅ Yes
Technical specifications	✅ Yes
Images (where relied upon)	✅ Yes
Marketing materials	✅ Yes (if form part of contract)
Puffery (“best in class”, opinion)	❌ No (mere puff, not factual description)

Examples:

Scenario	Breach?
Product listed as “leather jacket” — arrives as faux leather	✅ Yes
Listed as “2TB storage” — has only 1TB	✅ Yes
Images show blue item — arrives in green	✅ Yes (if color was material)
“High quality” claim — consumer disagrees	❌ No (subjective opinion, not description)
Weight listed as “2kg” — actually 1.8kg	⚠️ Likely yes (depends on significance)

AI agent implications:

All product descriptions on website/listings are contractual terms
Images must accurately represent the product
Auto-generated descriptions must be accurate
Cannot rely on “errors and omissions excepted” to escape liability

Sections 12-18: Other Statutory Requirements

Section	Requirement	Example
12	Pre-contract information included in contract	Delivery dates, warranties promised become binding terms
13	Goods to match sample	If consumer sees sample, goods must match it
14	Goods to match model seen	Showroom model quality applies to delivered goods
15	Installation as part of conformity	Incorrect installation by trader = goods non-conforming
16	Digital content affecting goods	If bundled digital content doesn’t work, goods non-conforming
17	Right to supply	Trader must have legal right to sell (e.g., not stolen goods)
18	No other quality/fitness terms	Sections 9-17 are exhaustive for quality

Consumer Remedies [Sections 19-24]

Section 19: Consumer’s Rights to Enforce Terms

Hierarchy of remedies:

Day 1-30: SHORT-TERM RIGHT TO REJECT → Full refund
  ↓ (if consumer doesn't reject)
After repair/replacement request: REPAIR OR REPLACEMENT
  ↓ (if repair/replacement fails)
PRICE REDUCTION or FINAL RIGHT TO REJECT → Partial refund

Section 20-22: Short-Term Right to Reject

Time limit: 30 days from the latest of:

Day after ownership/possession transferred, AND
Day after delivery, AND
Day after installation/action needed for use

Special cases:

Scenario	Rejection Period
Standard goods	30 days from delivery
Perishable goods	Shorter period (as long as goods reasonably expected to last)
Repair/replacement requested	Pause clock; resume with minimum 7 days after return
Goods needing installation	30 days from installation completion

Rejection entitlement:

Full refund of price paid
Return of anything else given in exchange (e.g., trade-in)
Trader collects goods OR consumer arranges return (trader pays costs)

Partial rejection (Section 21): Consumer can reject some goods while keeping others if:

Commercial unit is separable (e.g., reject 1 faulty item from 3-item order)

Examples:

Scenario	Can Reject?
Laptop arrives with dead pixels — consumer notices on Day 3	✅ Yes — within 30 days
Fridge stops working on Day 45	❌ No — outside 30-day window (use repair/replacement)
Fresh fish purchased — spoiled next day	✅ Yes — perishable goods, shorter period applies
Consumer orders 3 chairs — 1 is damaged — rejects damaged one only	✅ Yes — partial rejection permitted
Sofa delivered and installed on Jan 1 — fabric tears on Jan 25	✅ Yes — within 30 days of installation

AI agent implications:

Track delivery dates to calculate rejection deadline
30-day window is strict cutoff for short-term rejection
After 30 days, consumer must request repair/replacement first
Perishable goods (food, flowers, etc.) have shorter window
Cannot require consumer to pay return shipping during 30-day period

Section 23: Right to Repair or Replacement

Applies after:

Short-term rejection period expires (Day 31+), OR
Consumer chooses not to reject

Consumer can choose either:

Repair — fix the defect
Replacement — provide new/equivalent goods

Trader obligations:

Must be done at no cost to consumer
Within reasonable time
Without significant inconvenience to consumer

Trader can refuse if:

Repair/replacement is impossible, OR
Repair/replacement is disproportionate compared to other remedy

Examples:

Scenario	Outcome
Laptop screen faulty — consumer requests replacement	Trader must provide replacement laptop
Phone battery drains fast — consumer requests repair	Trader must repair (e.g., battery replacement)
Custom-built furniture has defect — replacement would take 6 months	Trader can refuse replacement (too long = significant inconvenience)
Rare antique watch broken — repair costs £5,000, item worth £200	Trader can refuse repair (disproportionate cost)

Reasonable time: No fixed definition, depends on:

Nature of goods
Defect severity
Consumer’s need for goods

AI agent implications:

Log consumer’s choice (repair vs. replacement)
Track repair timelines — “reasonable time” usually means days/weeks, not months
Cannot charge restocking fees or repair costs
If repair/replacement fails, consumer entitled to price reduction or final rejection

Section 24: Price Reduction or Final Right to Reject

Triggers:

Situation	Consumer Can…
Repair/replacement fails (still defective)	Price reduction OR final rejection
Repair/replacement impossible	Price reduction OR final rejection
Repair not completed within reasonable time	Price reduction OR final rejection
Repair/replacement causes significant inconvenience	Price reduction OR final rejection

Price reduction:

Appropriate reduction reflecting difference in value
Consumer keeps defective goods
Calculated as: Price paid × (value as-is / value if conforming)

Final right to reject:

Consumer returns goods for refund
Deduction for use may apply (Section 24(10))
No deduction if goods unusable OR consumer had no reasonable opportunity to use

Deduction for use examples:

Scenario	Deduction?
Washing machine used for 6 months before fault discovered — final rejection	✅ Yes — deduction for 6 months’ use
TV has intermittent fault from day 1 — rejected after 3 months troubleshooting	❌ No — consumer’s use was impaired by defect
Sofa discovered faulty after 2 years — rejected	✅ Yes — substantial use deduction
Product completely unusable from delivery — rejected after 6 months	❌ No — no benefit from use

AI agent implications:

Price reduction calculations must be reasonable and transparent
Deduction for use ≠ depreciation (it’s about benefit received)
If goods never worked properly, no deduction
Final rejection after 30 days ≠ full refund (unlike short-term rejection)

Other Rules [Sections 25-32]

Section 25: Delivery of Wrong Quantity

Too few: Consumer can reject goods OR accept with price reduction

Too many: Consumer can reject extra goods OR accept and pay for extras at contract rate

Examples:

Order	Delivered	Consumer Options
10 chairs	8 chairs	Reject all OR accept 8 with 20% price reduction
10 chairs	12 chairs	Keep 10 (as ordered) and reject 2 extra OR keep all and pay for 12

Section 26: Instalment Deliveries

If contract provides for instalments:

Each instalment is separate contract for remedy purposes
Breach in one instalment doesn’t automatically void whole contract
Material breach may give right to cancel remaining instalments

Section 28: Delivery of Goods

Default rule: Trader must deliver goods to consumer (trader’s obligation, not consumer’s duty to collect).

Delivery completes when: Consumer (or someone acting for consumer) acquires physical possession.

Risk of loss/damage: Goods remain at trader’s risk until delivered (Section 29).

Section 29: Passing of Risk

Rule: Goods remain at trader’s risk until they come into physical possession of:

Consumer, OR
Person identified by consumer to take possession

Exception: If consumer arranges own courier, risk passes when goods given to courier.

Examples:

Scenario	Who Bears Risk?
Goods damaged in transit (trader arranged shipping)	Trader
Goods stolen from doorstep after delivery	Consumer (possession transferred)
Consumer hires own courier — goods damaged in transit	Consumer (exception applies)
Goods arrive damaged — consumer signed for delivery	Trader (damage occurred before possession)

AI agent implications:

Until delivery completion, goods are trader’s responsibility
Photos of damaged packaging = evidence goods damaged before possession
Consumer cannot be liable for loss/damage during shipping (unless they arranged courier)

Section 30: Goods Under Guarantee

Not a replacement for statutory rights:

Guarantees are in addition to CRA 2015 rights
Trader cannot require consumer to use guarantee instead of statutory remedies
Misleading consumers about guarantee vs. statutory rights = enforcement action

Section 31: Liability Cannot Be Excluded or Restricted

Void terms: Any term that:

Excludes or restricts Sections 9-18 (quality, fitness, description, etc.)
Excludes or restricts remedies (Sections 19-24)
Excludes or restricts Section 28 (delivery)
Excludes or restricts Section 29 (risk)

Examples of void exclusions:

Clause	Valid?
”No returns on sale items”	❌ Void (attempts to exclude statutory remedies)
“Sold as seen — no refunds”	❌ Void (attempts to exclude Section 9)
“We are not liable for defects”	❌ Void (attempts to exclude Sections 9-11)
“30-day return policy”	✅ Valid (describes process, doesn’t exclude CRA rights)
“Extended warranty available”	✅ Valid (additional benefit, doesn’t replace CRA)

AI agent implications:

Return policies must be in addition to CRA rights, not instead of
“No returns” policies are unenforceable for faulty goods
Agents processing refunds cannot rely on restrictive T&Cs
Even if customer “agreed” to exclusion, it’s void

Compliance Workflow for AI Agents

1. E-Commerce Agents

At checkout:

Ensure product descriptions are accurate (Section 11)
Pre-contract information (delivery dates, warranties) becomes binding (Section 12)
Cannot include terms excluding quality or fitness (Section 31)

Product listings:

Images must accurately represent goods
Specifications must be correct
“As described” includes all marketing materials

2. Customer Service Agents

Handling complaints (Day 1-30):

Check delivery date + installation date
Calculate 30-day rejection deadline
If within 30 days → offer full refund (short-term rejection)
Cannot require evidence of defect for rejection
Trader arranges collection OR reimburses return costs

Handling complaints (Day 31+):

Ask consumer preference: repair or replacement?
Initiate repair/replacement at no cost
Complete within reasonable time (usually days/weeks)
If fails → offer price reduction or final rejection (with use deduction)

Quality complaints:

Assess satisfactory quality (Section 9) — defects, durability, fitness for usual purposes
Check if particular purpose was communicated (Section 10)
Verify goods match description (Section 11)

3. Returns Processing Agents

Within 30 days:

Full refund of price paid
No deduction for use
No requirement for proof of defect
Trader pays return shipping

After 30 days (final rejection):

Calculate use deduction (if applicable)
Refund = price paid - reasonable deduction for use
No deduction if goods never worked properly

Common Pitfalls

Mistake	Issue	Fix
”No returns” policy on website	Void under Section 31	Remove or clarify “in addition to statutory rights”
Requiring consumer to pay return shipping	Breach of remedy obligations	Trader must pay during 30-day period
Rejecting complaint after 35 days	Consumer still has repair/replacement rights	Offer repair or replacement
Charging restocking fee for defective goods	Cannot charge for exercising statutory rights	Refund restocking fee
Claiming “guarantee expired”	Guarantee ≠ statutory rights	Statutory rights still apply
Deducting full depreciation on final rejection	Deduction should reflect use benefit, not market value drop	Calculate actual benefit received

Timeline Summary

Timeframe	Consumer Rights	Trader Obligations
Day 1-30	Short-term rejection for full refund	Provide full refund, collect goods, no deductions
Day 31 onwards	Request repair or replacement (free, reasonable time)	Repair or replace at no cost, reasonable time, no inconvenience
If repair/replacement fails	Price reduction or final rejection	Provide price reduction OR refund minus use deduction
Anytime within 6 years	Goods must be of satisfactory quality, fit for purpose, as described	N/A — burden on consumer to prove defect after 6 months

Note: Burden of proof shifts at 6 months:

First 6 months: Presumption that defect existed at supply (trader must prove otherwise)
After 6 months: Consumer must prove defect existed at supply

Interaction with Consumer Contracts Regulations 2013

CRA 2015 (Quality/Remedies)	CCR 2013 (Cancellation/Distance Selling)
Goods must be of satisfactory quality	14-day cooling-off period for distance contracts
30-day rejection for defects	14-day cancellation for any/no reason
Applies to ALL consumer goods contracts	Only applies to distance and off-premises contracts
Trader liable for defects	Consumer can change mind

Both apply simultaneously for online purchases — consumer has BOTH:

14-day right to cancel (CCR 2013) — any reason
30-day right to reject if faulty (CRA 2015) — defect reason

Citation

Consumer Rights Act 2015, Part 1, Chapter 2: Goods

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