The examination at hand concerns two parties who are in a scenario that requires legal action. Most of the facts presented in the statement are tenable and give rise to difficulty, and this requires an answer that is not conclusive.
Jerry bought two items from Nosh With Notions, a Hipster Cook (HC), and a box of new champagne glasses under the legal title: s. 71(1) (a), Sale of Goods Act 1983. He intended to use the cooker at his gastropub and the champagne glasses for a birthday party. The goods delivered were not what the buyer was after, and pers. 14 (6), Breach of Contract and Termination, he had the right to reject the goods till they were in good terms per s. 27 of the Sale of Goods Act. Jerry asked for a refund even though the delivery was early because per (Law Com, Working Paper, Sale and Supply of Goods, No. 85, para 283, [1994] LMCMP525, Mak, ‘The Seller’s Claims to Cure Defective Performance’), a consumer can annul the contract even when the transfer was early. There would be time for the dealer to cure the defects before the due date for delivery under the contract.
There is, however another judgment, that the buyer cannot terminate the contract in cases of early delivery, there being no technical breach yet, so the buyer must allow the seller to cure the goods if he offers and then re-deliver. This scenario is mentioned in Phillips v Free and Hollis[1] and Lancashire Insurance Company Ltd v M.S. Frontier Reinsurance Ltd[1]. ‘If the time for delivery has not expired, the seller is still entitled to make a fresh tender which conforms with the contract, in which even the buyer is bound to accept the goods so tendered’ (Lord Goff, 399).
Jerry’s following action is determined by how well he knows and trusts NWN as a customer. If a seller’s right to cure an early tender, it will not apply if the early delivery was unsatisfying. There are cases where there is a significant breach that the buyer loses confidence in the seller or when the initial tender is so close to the deadline for performance; there is no time to fix the time perch problems. 14 Commercial Law[2]. Section 15 of the SGA provides that unless agreed to the contrary in the contract, the buyer cannot reject the goods if the seller proves that the buyer is a no-consumer and that the breach is so slight that repudiation is unsubstantiated. Jerry wanted Waterford Crystal champagne glasses, but the Waterford Hertfordshire stock was delivered instead, so there were a Performance and Breach.[3], he was also aware that if NWN were to replace the goods, it would be well after the delivery time.
The buyer can lose the right to reject the goods by ‘Acceptance’ through either acceptance by an intimation as per ss. 35(1)(a) and 35(2)(a) of the SGA or approval by inconsistent act where the buyer should not act in a way which is incompatible with retaining a right to reject, i.e., in a way that makes it appear that he would never think of returning the goods. Acceptance by the inconsistent act is mentioned in the Kwei Tek Chao v British Traders & Shippers Ltd.[4]. Another instance of this would be the Mechan & Sons Ltd v Bow, McLachlan & Co Ltd[5] although this might not always be conclusive, as it might only be when the goods are so incorporated, it could become clear that they are defective.
Giving the seller a chance to repair the goods does not necessarily amount to an inconsistent act, as explained in s.35 (6) (b) of the SGA. It is taken as acceptance of the repair ends up being successful, and this might suggest that the buyer has no intention of later rejecting the goods. Acceptance by the inconsistent act is also mentioned in Ritchie v Lloyd.[1] The seller should respond to the buyer’s request to be notified of the defect’s definite nature and what had to be done to repair it. Such action will help the buyer make a good choice between acceptance and rejection.
In this case, a separate implied term is imposed on the seller requiring him to communicate about the repair’s progress to the buyer. If the seller is uncooperative about the repair, the buyer is then entitled to reject the goods.
There is also ‘acceptance by lapse of time’ where the buyer retained the goods without informing the seller that he has rejected them per s. 35(4) of SGA. The court should consider whether the buyer has had a reasonable opportunity to examine the goods to see if they conform to s.35 (5). The ‘reasonable opportunity is determined by considering the circumstances in s. 59 and the seriousness of the defects. The reasonable time will sometimes stop if the buyer is seen partly at fault in introducing new defects that had not been mentioned initially, as seen in Jones v Gallagher.[2]
In the Bernstein v Pamson Motors[3] case, a car had been delivered to the buyer three weeks before the said rejection, and Rougier J, the Judge said:
‘In my judgment, the nature of the particular defect discovered ex post facto, and the speed with which it might have been discovered, are irrelevant to the concept of reasonable time in s. 35 as drafted’.
The initial glass dispute between the two mentioned parties can be solved by s. 71(1) (a) of the Sale of Goods Act 1983, which helps identify a breach in any contractual terms during the selling of goods s. 27 of the SGA. The court, therefore, considers acceptance by inconsistent act by the seller as NWN will not be able to make the re-delivery on time, as also seen in Bernstein v Samson Motors.[1]. The right of rejection was used as there was no demand that the exercise of the right of repudiation should be subject to any theme of reasonableness. Jerry is therefore supposed to ask for a refund for the glasses
In the case concerning the H.C., the court should consider ‘acceptance by lapse of time’ as the buyer retained the goods without informing the seller that he has rejected them per s. 35(4) of SGA. The court should consider whether the buyer has had a reasonable opportunity to examine the goods to see if they conform to s.35 (5). The reasonable time stops if the buyer is seen partly at fault in the introduction of new defects that had not been mentioned initially, as seen in Jones v Gallagher[2]. Jerry is therefore obliged to accept the goods because he had a reasonable amount of time to examine the goods, and the dents and scratches on the H.C. appear to be apparent due to the buyer’s actions.
Q 2
Customer experience is now a driving brand, and consortiums are beginning to focus heavily on corporate social responsibility within supply and purchase chains. A company’s ethics are becoming evaluative differentiators in the global market. As organizations seek to strengthen their social value, they are building capital on traits like fairness, honesty, sustainability, and community. Companies are also searching for innovative ways to turn profits using socially and environmentally responsible methods.
Wanting to run a business with a higher purpose means that a person will always have to walk the talk. Their market placement, public identity, and growth potential will depend on their ability to consistently follow ethical standards for buying, partnering, and staffing. If a company’s mission contains an environmentally conscious charge to lower carbon footprint, the procurement team should focus on sourcing sustainable, non-toxic material from suppliers with similar values.
It is often buyers who engage with CSR, and businesses have policies to prevent slavery in the supply chain and promote sustainable sourcing. However, buyers need to have a comprehensive view of the supplier networks beyond the first tier to enforce CSR policies. This performance allows businesses to manage risk across complex supply chains and empower companies with information relating to whom they buy from and, in turn, who supplies their suppliers down the chain. Visibility and transparency are essential, as mentioned.
Solutions offered by CSR give clarity over who is in a buyer’s supply chain, show the potential points of failure, give information to support risk alleviation, tweak cognizance of how global events could cause disruption, and shows interdependencies in the supply chain. Businesses need to recognize the risks, but then visibility needs to be created that spreads across networks. Research from Achilles showed 40 percent of businesses buying only in the U.K. have no information on second-tier suppliers. Organizations need to map their supply chain and then ensure policies are in place to support continued visibility.
All this shows that working together can make what feels like a big task much easier, and some industries share the same suppliers, so there are opportunities to work collectively. Mr. Louis Olivie supports this thought. He claims that the best way to achieve social success in business is through a collaborative community, where businesses work together to split costs and time.
[1] [1987] 2 All ER 220, [1987] BTLC 37
[2] [2004] EWCA Civ. 10, January 13, 2004
[1] [2007] UKHL 9, Times 08-Mar-2007
[2] [2004] EWCA Civ. 10, January 13, 2004
[3] [1987] 2 All ER 220, [1987] BTLC 37
[1] Commercial Law, McKendrick, and Goode, 5th edn, ch. 14
[2] Commercial Law, McKendrick, and Goode, 5th edn, ch. 14
[3] Comparative Remedies for Breach of Contract, Cohen et al., p. 237
[4] [1954] 2 QB 459
[5] [1910] SLR 650
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