Ommercial Law: The enforceability of Clause 4 under English common law and the Unfair Contract Terms Act 1977
The final summative task is set out below:
Bright Wheel Bicycles Limited (a?BWBa?) is a UK manufacturer of bicycles and has been supplying Top Gear Trading Ltd (a?TGTa?), a retailer based in Manchester, with its range of bikes for the last two years. TGT usually places its order by telephone and BWB supplies the bikes within ten days of the order being placed. TGT typically orders around 30-50 bikes each time it places an order and has been buying bikes about every four to six weeks. Employees at TGT have to sign a delivery note each time the bikes are supplied and BWBas terms of trading are printed on the reverse of the note.
The last order was for 40 bikes and most of these have been resold. However, 12 bikes have now been returned by the customers. Four have faulty gears which broke within a few days of the bikes being ridden. Six bikes have chrome which has quickly chipped and flaked and two have wheels which are not aligned correctly. Three customers have fallen from their bikes and been injured due to the bikesa defects.
TGT has complained to BWB about the defects. However, BWB has pointed out that Clause 4 of its terms of trading states the following:
a?4.1 The Supplier warrants that on delivery, and for a period of 12 months from the date of delivery (the a?warranty perioda?), the Goods shall:
(a) conform in all material respects with their description and the Supplieras specifications;
(b) be free from material defects in design, material and workmanship; and
(c) be of satisfactory quality (within the meaning of the Sale of Goods Act 1979).
4.2 The Supplier further warrants that if:
(a) the Customer gives notice in writing to the Supplier during the warranty period and within five days of delivery of the Goods in the case of defects evident at the date of delivery and within five days of the subsequent discovery of any defects not so evident on delivery;
(b) the Supplier is given a reasonable opportunity of examining such Goods; and
(c) the Customer (if asked to do so by the Supplier) returns such Goods to the Suppliers place of business at the Customers cost,
the Supplier shall, at its option, repair or replace the defective Goods, or refund the price of the defective Goods in full.
4.3 The Supplieras total liability in respect of any faulty or non-conforming goods is limited to the repair or replacement of the faulty Goods or a refund of the price thereof in accordance with Clause 4.2
4.4 Except as set out in these Conditions, all warranties, conditions and other terms implied by statute or common law are, to the fullest extent permitted by law, excluded from the Contract.a?
Advise TGT on the enforceability of Clause 4 under English common law and the Unfair Contract Terms Act 1977