Monday, November 18, 2013

Satisfactory quality


The SSGA 1994 repealed the implied condition of ‘merchantable quality’ and replaced it with the current s 14

            There is an implied term that the goods shall be of satisfactory quality, according to s 14 of the SoGA 1979. While s 14 uses the word ‘term’, it is clear from s 14 that the term is a condition. Unlike s 13, s 14 does not apply to private sales; that is, the goods must be sold in the course of a business. The term ‘sale in the course of a business’ is not defined in the SoGA 1979, but in Stevenson v Rogers it was heldthat a fisherman ‘acted in the course of business’ when he sold his trawler. Even though he did not deal in vessels, it was a sale connected with his business.  which discusses the meaning of ‘in the course of business’ in the context of s 12 of the Unfair Contract Terms Act 1977  Thus, goods which come within s 14 include not only goods sold in the normal course of business, but also goods used in or connected with the business, for example, the sale of a van which has been used in a grocery business.
            The meaning of the requirement of ‘satisfactory quality’ must also be considered. Section 14 states that ‘goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price  and all other relevant circumstances’. In Jewson v Kelly the buyer purchased heating boilers for the flats he wasrefurbishing for sale as low cost/energy efficient. The boilers did not comply with low cost/energy efficient ratings but did provide adequate heating. At first instance, the boilers were found not to be of satisfactory quality under s 14 because a reasonable person buying such a flat would expect it to be possible to show evidence of the low cost/energy efficient claim, that is, what a ‘reasonable person’ would expect had to be looked at in the context of the particular requirements of the contract. However, the Court of Appeal found there was no breach of s 14 the particular requirements of a buyer in the context of a particular contract were a matter for s 14 of the SoGA 1979 not s 14 Under s 14 the factor to consider was the intrinsic quality of the goods; the court should determine what quality a reasonable person would expect from a heating boiler. The court decided a reasonable person would expect a boiler to heat adequately, which these boilers did; the expectations of a reasonable person in relation to these particular boilers  should be decided under s 14 Section 14 must be read subject to s 14 which states:
... the quality of the goods includes their state and condition and the following factors (among others) are in appropriate cases aspects of the quality of goods:
(i) fitness for all the purposes for which goods of the kind in question are commonly supplied;
(ii) appearance and finish;
(iii) freedom from minor defects;
(iv) safety; and

(v) durability.

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