Ucta &Utccr, Lcr Proposals

Ucta &Utccr, Lcr Proposals

The Law Commission in its Report “Unfair Terms in Contracts” LC No 292 para 1.4 stated

“…the nature and scope of the combined protection afforded to consumers by these laws (Unfair Contract Terms Act 1977(UCTA) and The Unfair Terms In Consumer Contracts Regulation 1999(UTCCR)) are wholly obscure to the inexpert reader.”

Critically analyse and evaluate the recommendations made by the Law Commission to resolve these matters.

Table of Contents
Introduction 3
Issues 5
Common Law 7
The Act and Regulations 8
LCR Recommendations 10
The Draft Bill 14
Conclusion 15
Final Note 16
Bibliography 17


Introduction

In 2001, the Department of Trade and Industry asked the Law Commission and Scottish Law Commission (LC) to rewrite the law of unfair contract terms as a single regime, in clearer and more accessible language.   They were also asked to consider whether the law should do more to protect businesses, particularly small businesses . February 2005, saw the LC issue their No 292 report (LCR) and draft bill; their terms of reference required the respective members to consider the desirability and feasibility of unfair terms in contracts by:

• Replacing the Unfair Contract Terms Act 1977 (UCTA) and the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR) with a unified regime which would be consistent with Council Directive 93/13/EEC on Unfair Terms in Consumer Contracts.

• Extending the scope of the Unfair Terms in Consumer Contracts Regulations to protect businesses, in particular small enterprises.

• Making any replacement legislation clearer and more accessible to the reader, so far as is possible without making the law significantly less certain, by using language which is non-technical with simple sentences, by setting out the law in a simple structure following a clear logic and by using presentation which is easy to follow.

The recommendations have, by some, been considered radical;   however, with an aim of...