Select Committee on Enterprise and Economic Strategy debate -
Thursday, 28 Jul 1994

SECTION 67.

Mr. R. Bruton

I move amendment No. 178:

In page 39, subsection (2), lines 36 to 38, to delete paragraph (b).

In circumstances where a hirer examines goods for defects before an agreement is made, if he fails to spot them he has no rights. The implied undertakings as to quality or fitness go if he fails to spot a defect. I am wondering whether it is reasonable to expect a consumer's judgment to be good enough to simply pick up an item and to say that since the consumer saw it in the shop before he or she took it, the vendor's undertaking as to its quality is gone. Is that rather draconian?

Mrs. O'Rourke

I have questioned this provision several times because I could see that where a consumer lacks professional knowledge of an article it would be difficult to discern the fault on a cursory examination. A defect might later appear in the product. I asked the officials to look at it because a consumer could buy something and would not know about the springs of a couch, for example. He could test it but would not know how solid they were until they later proved to be faulty. I would have been of Deputy Bruton's opinion, but it already exists in the Sale of Goods and Supply of Services Act, 1980, and if it worked all right in that respect, an element of reasonableness comes into it. We want to protect consumers and that is what the Consumer Credit Bill is about. There are two sides in any transaction.

Mr. R. Bruton

It seems to imply that if you go into a shop and buy a faulty item that because you looked at the item before you bought it, you do not have redress. The owner of the shop might have spotted that it was faulty but because he did not notify the buyer of those defects and the buyer did not spot that the springs were flawed, the buyer is stuck with a faulty couch.

Mrs. O'Rourke

This provision covers defects which that examination ought to have revealed. As I said, I thought about this and asked for information and background information on it. If it is in the Sale of Goods and Supply of Services Act, 1980, and is deemed to be correct there it is not up to us to change it.

Mr. M. McDowell

Under the Sale of Goods and Supply of Services Act, 1980, some terms are regarded as unfair where somebody is dealing as a consumer and they are excluded. Does that apply to hire purchase agreements?

Mrs. O'Rourke

Yes, under this Act, from the hire purchase agreements.

Mr. M. McDowell

Are those provisions extended to hire purchase agreements under this Act?

Mrs. O'Rourke

They are, yes.

Mr. M. McDowell

By what section of this Act is that provision extended?

Mrs. O'Rourke

Section 48.

Mr. Rabbitte

What would happen if a consumer intended to buy a video and the video subsequently worked imperfectly?

Mrs. O'Rourke

The consumer would have examined it first and the goods would have to be of merchantable quality.

Mr. Rabbitte

Yes, but you would be saved as the consumer by the phrase "that the examination ought to have revealed", in other words it would not be claimed in that situation that the examination ought to have revealed or that the consumer could possibly have known that a modern electronic gadget would work imperfectly. Is that the interpretation that has been put on this provision since it was enacted?

Mrs. O'Rourke

Perhaps the Sale of Goods Act itself needs to be amended. It was one provision I felt uneasy about, that is the fairest way of putting it. It is possible to buy goods and find out later that perhaps a garment proved not to be of the quality you thought it was when you purchased it. I checked and checked and even yesterday again asked that it be looked up for me. It is the provision which exists in the Sale of Goods and Supply of Services Act, 1980.

Mr. Kemmy

Would the same provisions apply to leasing and hiring as well as to the purchase of goods? As Deputy Rabbitte said, people usually rent or lease videos, they even lease suits and hats now for a wedding, people do not buy suits any more, they just hire them for one day. Would the same provisions apply?

Mr. M. McDowell

Section 76 applies.

Mr. Kemmy

So the provision is extended to leasing as well as to buying?

Mrs. O'Rourke

That is covered under the consumer hire section. That is a separate part of the Bill.

Amendment, by leave, withdrawn.

Sections 67 and 68 agreed to.