SOGA consequential loss

silver144

Hi all.
I am after some clarification and guidance on SOGA.

If a seller sells goods which are fitted and go faulty within the warranty period, and the fail rate of the products it supplies is high (3%), what options does the buyer have?

1. Is the buyer entitled to request that the entire order is returned?
2. Is the buyer entitled to monies back for the losses incurred by them in attending to the faulty products supplied by the seller?
3. Can the seller merely pass responsibility back to their supplier?
4. What is an acceptable failure rate according to SOGA?

This is a business to business transaction, if that makes any difference.

wealdroam

silver144 wrote: »

This is a business to business transaction, if that makes any difference.

Yes, it does make a difference.
What does your contract say?

Please note: this is a Consumer Rights board.

Here is a link to SoGA which may help you...

http://www.legislation.gov.uk/ukpga/1979/54/contents

arcon5

Their overall failure rate is of no relevance.

Being a B2B contract makes a major difference, in that they can contract out aspects of legislation in favour of their own fair terms and conditions. So it's no good us advising you on SoGA issues as they may not even be relevant.

Esqui

Even if it were a consumer contract, I don't think consequential loss forms part of the SoGA. Quite prepared to be told I'm wrong here though

Jakg

I also wouldn't call 3 in 100 a "high" failure rate.

fred7777

In general

silver144 wrote: »

1. Is the buyer entitled to request that the entire order is returned?

Yes, (you can request anything) but the seller doesn't have to accept unless you have a contract saying so.

silver144 wrote: »

2. Is the buyer entitled to monies back for the losses incurred by them in attending to the faulty products supplied by the seller?

Not unless the contract says so.

silver144 wrote: »

3. Can the seller merely pass responsibility back to their supplier?

No but they can appoint another person or company to handle their responsibility and this can the their supplier.

silver144 wrote: »

4. What is an acceptable failure rate according to SOGA?

0% SOGA views every failure on it's own terms the size of the population of working items is irrelevant. So does normal contract law,(eg you pay for 100 working items you should be supplied with 100 working items) unless your contract says different.

silver144 wrote: »

This is a business to business transaction, if that makes any difference.

Massive difference because SOGA doesn't apply. However general principle is the same that if you pay for working items you should get working items.

fred7777

Jakg wrote: »

I also wouldn't call 3 in 100 a "high" failure rate.

Depends on the item.

There are 15000000 rivets on a 747 would you fly on a plane with 45000 broken rivets.:D

bod1467

Jakg wrote: »

I also wouldn't call 3 in 100 a "high" failure rate.

Neither would I - I'd call it abominable! In a manufacturing environment the target is 6 Sigma failure rate - 3 ppm. 3% is 30,000 ppm!

wealdroam

fred7777 wrote: »

silver144 wrote: »

This is a business to business transaction, if that makes any difference.

Massive difference because SOGA doesn't apply. However general principle is the same that if you pay for working items you should get working items.

Wow!

SoGA doesn't apply because it is a business to business transaction?

That is most definitely wrong.

It is however true that there are some parts of SoGA, part 5A for example, that only apply to consumer transactions.

unholyangel

fred7777 wrote: »

Massive difference because SOGA doesn't apply. However general principle is the same that if you pay for working items you should get working items.

As above, SoGA does apply to B2B contracts - just consumer have additional rights, its possible to contract out of certain obligations/liabilities in B2B where a consumer cannot sign away their rights (businesses should be more familiar with contracts so dont require the same protection consumers do).

UCTA also covers both consumer and business contracts (where UTCCR is consumer only).

vaio

Esqui wrote: »

Even if it were a consumer contract, I don't think consequential loss forms part of the SoGA. Quite prepared to be told I'm wrong here though

Consumers can claim consequential costs under SOG. B2B contracts can exclude consequential costs