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SCHEDULES

Valid from 01/10/2015

SCHEDULE 4U.K.Amendments consequential on Part 2

Unfair Contract Terms Act 1977 (c. 50)U.K.

2U.K.The Unfair Contract Terms Act 1977 is amended as follows.

3U.K.In section 1(2) (scope of Part 1) for “to 4” substitute “ , 3 ”.

4U.K.In section 2 (negligence liability), after subsection (3) insert—

(4)This section does not apply to—

(a)a term in a consumer contract, or

(b)a notice to the extent that it is a consumer notice,

(but see the provision made about such contracts and notices in sections 62 and 65 of the Consumer Rights Act 2015).

5(1)Section 3 (liability arising in contract) is amended as follows.U.K.

(2)In subsection (1) omit “as consumer or”.

(3)After subsection (2) insert—

(3)This section does not apply to a term in a consumer contract (but see the provision made about such contracts in section 62 of the Consumer Rights Act 2015).

6U.K.Omit section 4 (unreasonable indemnity clauses).

7U.K.Omit section 5 (“guarantee” of consumer goods).

8(1)Section 6 (sale and hire-purchase) is amended as follows.U.K.

(2)After subsection (1) insert—

(1A)Liability for breach of the obligations arising from—

(a)section 13, 14 or 15 of the 1979 Act (seller's implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose);

(b)section 9, 10 or 11 of the 1973 Act (the corresponding things in relation to hire purchase),

cannot be excluded or restricted by reference to a contract term except in so far as the term satisfies the requirement of reasonableness.

(3)Omit subsections (2) and (3).

(4)After subsection (4) insert—

(5)This section does not apply to a consumer contract (but see the provision made about such contracts in section 31 of the Consumer Rights Act 2015).

9(1)Section 7 (miscellaneous contracts under which goods pass) is amended as follows.U.K.

(2)After subsection (1) insert—

(1A)Liability in respect of the goods' correspondence with description or sample, or their quality or fitness for any particular purpose, cannot be excluded or restricted by reference to such a term except in so far as the term satisfies the requirement of reasonableness.

(3)Omit subsections (2) and (3).

(4)After subsection (4) insert—

(4A)This section does not apply to a consumer contract (but see the provision made about such contracts in section 31 of the Consumer Rights Act 2015).

10U.K.Omit section 9 (effect of breach of contract).

11U.K.Omit section 12 (“dealing as consumer”).

12U.K.In section 13(1) (varieties of exemption clauses) for “and 5 to” substitute “ , 6 and ”.

13U.K.In section 14 (interpretation of Part 1), at the appropriate places insert—

consumer contract” has the same meaning as in the Consumer Rights Act 2015 (see section 61);;

consumer notice” has the same meaning as in the Consumer Rights Act 2015 (see section 61);.

14(1)Section 15 (scope of Part 2) is amended as follows.U.K.

(2)In subsection (2) for “to 18” substitute “ and 17 ”.

(3)In subsection (3)—

(a)for “to 18” substitute “ and 17 ”, and

(b)in paragraph (b) omit sub-paragraph (ii) and the “or” preceding it.

15U.K.In section 16 (liability for breach of duty), after subsection (3) insert—

(4)This section does not apply to—

(a)a term in a consumer contract, or

(b)a notice to the extent that it is a consumer notice,

(but see the provision made about such contracts and notices in sections 62 and 65 of the Consumer Rights Act 2015).

16(1)Section 17 (control of unreasonable exemptions in consumer or standard form contracts) is amended as follows.U.K.

(2)In the heading omit “consumer or”.

(3)In subsection (1)—

(a)omit “a consumer contract or”,

(b)in paragraph (a) omit “consumer or”, and

(c)in paragraph (b) omit “consumer or”.

(4)After subsection (2) insert—

(3)This section does not apply to a term in a consumer contract (but see the provision made about such contracts in section 62 of the Consumer Rights Act 2015).

17U.K.Omit section 18 (unreasonable indemnity clauses in consumer contracts).

18U.K.Omit section 19 (“guarantee” of consumer goods).

19(1)Section 20 (obligations implied by law in sale and hire-purchase contracts) is amended as follows.U.K.

(2)After subsection (1) insert—

(1A)Any term of a contract which purports to exclude or restrict liability for breach of the obligations arising from—

(a)section 13, 14 or 15 of the 1979 Act (seller's implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose);

(b)section 9, 10 or 11 of the 1973 Act (the corresponding things in relation to hire purchase),

shall have effect only if it was fair and reasonable to incorporate the term in the contract.

(1B)This section does not apply to a consumer contract (but see the provision made about such contracts in section 31 of the Consumer Rights Act 2015).

(3)Omit subsection (2).

20(1)Section 21 (obligations implied by law in other contracts for the supply of goods) is amended as follows.U.K.

(2)In subsection (1), for paragraphs (a) and (b) substitute “ such as is referred to in subsection (3) below shall have no effect if it was not fair and reasonable to incorporate the term in the contract. ”

(3)In subsection (2)(b) omit “unless it is a consumer contract (and then only in favour of the consumer)”.

(4)After subsection (3A) insert—

(3B)This section does not apply to a consumer contract (but see the provision made about such contracts in section 31 of the Consumer Rights Act 2015).

21U.K.Omit section 22 (consequence of breach of contract).

22(1)Section 25 (interpretation of Part 2) is amended as follows.U.K.

(2)In subsection (1)—

(a)omit the definition of “consumer”,

(b)for the definition of “consumer contract” substitute—

consumer contract” has the same meaning as in the Consumer Rights Act 2015 (see section 61);, and

(c)at the appropriate place insert—

consumer notice” has the same meaning as in the Consumer Rights Act 2015 (see section 61);.

(3)Omit subsections (1A) and (1B).

(4)In subsection (5), for “and 16 and 19 to” substitute “ , 16, 20 and ”.

23U.K.In section 26(2) (international supply contracts) omit “or 4”.

24(1)Section 27 (choice of law clauses) is amended as follows.U.K.

(2)In subsection (2)—

(a)omit “(either or both)”, and

(b)omit paragraph (b) and the “or” preceding it.

(3)Omit subsection (3).

25U.K.Omit section 28 (temporary provision for sea carriage of passengers).

26(1)Schedule 1 (scope of sections 2 to 4 and 7) is amended as follows.U.K.

(2)In the heading, for “to 4” substitute “ , 3 ”.

(3)In paragraph 1, for “to 4” substitute “ and 3 ”.

(4)In paragraph 2—

(a)for “to 4” substitute “ , 3 ”, and

(b)omit “except in favour of a person dealing as consumer”.

(5)In paragraph 3—

(a)for “, 3 and 4” substitute “ and 3 ”, and

(b)omit “, except in favour of a person dealing as consumer,”.

27U.K.In Schedule 2 (“guidelines” for application of reasonableness test), for “6(3), 7(3) and (4),” substitute “ 6(1A), 7(1A) and (4), ”.