Commercial Law Essay Example | Topics and Well Written Essays - 1000 words

Commercial Law - Essay Example However, AW Ltd made a claim of refund as well compensation for the damaged caused after ten days, which at the onset, releases Shah Ltd from bearing any obligation to compensate the losses incurred by AW Ltd. The case needs assessment as per the provisions of Commercial law in order to conclude whether Shah Ltd can be exempted from refunding AW Ltd and also compensating for the losses occurred and whether the case would have been treated separately if AW Ltd has bought the computer for personal use partly. Discussion In this case, to resolve the issue, the Sale of Goods Act 1979 (SOGA) can be applied. The SOGA signifies that rights, risks as well as ownership of a good purchased is passed from the seller to the buyer in consideration for a price (International Private Law, 2001). Correspondingly, there are certain factors under which the consumers are unable to have any refund, replacement as well as repair such as if goods and/or services are damaged accidentally, if misuse of prod ucts and/or services has caused a fault, if repair of products and/or services by consumers themselves or by others have caused the defect in accordance with provision mentioned in Part 5A subsection 48B [R & B Customs Brokers Ltd v United Dominions Trusts Ltd; Saunders Abbott Ltd (Third Party)] (The Law Society Gazette, 2013) and if buyers have intentionally consume faulty products and/or services (Crown, 2013; Bradgate & White, 2007). As was inferred from the case of Clegg v Andersson (trading as Nordic Marine) [2003] EWCA Civ 320; [2003] 1 All ER (Comm) 721, on the basis of section 13 and section 14 (2) of the SOGA (1979), the goods delivered should be of satisfactory quality and in accordance with prescribed description to be considered as chargeable for refund or compensation by the seller (Office of Fair Trading, 2012). However, the referral case does not disclose any fact to comply with these mentioned criteria and hence, it can be presumed that Shah Ltd, as the seller is lia ble to compensate AW Ltd for its damages. The provisions mentioned under Part 5 A and section 14 of the SOGA also imply that a consumer has legal rights for a period of six years to claim for the damages incurred through the transaction, which makes the exemption clause as mentioned in the invoice void. That is, from the date of purchasing any product and/or service till six years, a consumer can approach a retailer for repair, replacement as well as recovery [P & O Nedlloyd BV v Arab Metals Co & Ors [2005] EWHC 1276 (Comm)] (Bailii, 2005). The six year period signify that even after the expiry of the guarantee period, consumers still possess legal rights in case of faults or damages suffered by the client (Office of Fair Trading, 2008). Therefore, as the provisions mentioned under SOGA PART 5A subsection (1) (b), for the first six months from the date of purchase, AW Ltd is entitled to have repair or replacement services from its retailer, i.e. Shah Ltd. However, provided it is pro ved that nothing was wrong with the computer when purchased, Shah Ltd can be considered as exempted from paying refund to AW Ltd [Darren Egan vs. Motor Services (Bath) Ltd (18 October 2007)] (NADR, 2007). Subsequently, after six months, in order to obtain repair or replace