Exclusion clause Essay Example | Topics and Well Written Essays - 1500 words

Exclusion clause - Essay Example Exclusion clauses are guided by statutory provision and case law (Barker, 2007). In English Law, Simon (1981) noted the Unfair Contract Terms Act 1977 (UCTA) seeks to regulate exclusion clauses in contracts by limiting their applicability to cases where they are absolutely necessary. The Act regulates all contracts (Beale, 2012). One of the statute’s primary roles is to restrict the legality of disclaimers of liability to reasonableness, depending on the kind of the duty which is claimed to be exempted and whether the offerer who intended to benefit from such clauses harmed the consumer’s interests (Brawn, 2012). The UCTA is usually applied in combination with the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982 and the Unfair Terms in Consumer Contracts Regulations 1999. Firstly, under the UCTA, a party cannot excuse himself or herself from negligence under section 2(1) of UCTA 1977 when the breach of duty results in death or personal injury (Hughes-Jennett and Anslow, 2009). Secondly, under section 5(a), a company cannot exempt itself from liability caused by faulty goods or distributor negligence, particularly where commodities are meant for consumption (Stone, 2013). The doctrine that cushions the consumer is referred to as manufacturer liability. Thirdly, in light of the need to protect the consumer, sections 12-15 of the Sale of Goods Act 1979 outlaw the exclusion of implied terms or terms which provide details of value or sample of goods (Walsh, 2009). In addition, the Consumer Protection Act 1987, and the Occupiers Liability Act 1984 are also vital pieces of legislation whose enactment contributes to the regulation of exclusion clauses (Page, 1994). Despite the enactment of these rafts of legislation to regulate a relatively small area of law, the fundamental reason behind them is to protect unsuspecting consumers from death, personal injury or material losses