Legal Aid for small business dispute?

nightofjoy

Hi.

I started a small business concern in 2013. Very small, a bedroom/cottage business if you like. I was on ESA at the time, and have remained so, as the business merely brings in a few extra pounds.

I had a quantity of items produced by a factory in the UK. Down the line, it became clear that some of these items were substandard.

We had a friendly relationship at the time, and I mentioned the faulty items but said we could sort it out further down the line, however as things went on and I discovered more items were dud than I'd assumed, I decided I'd like something done about them sooner rather than later.

I asked the factory if I could return the items for either replacements or refunds on the duds. They said return them so they could take a look, which I did.

Firstly, I should say that the factory are unable to replace the items due to buying costs of raw materials.

The factory are now saying that there isn't a problem with the items, and there will always be a few imperfections in a new batch. However it's not tiny imperfections we're talking about, it's a fairly large variance in the stock, with there in all being approx three different grades of product, and a number of about 500 which have been returned.

Communication has broken down now, so I need to know what I can do to take things further.

From what I've read so far, mediation would appear to be the next step, but I'm wondering, seeing as I'm still on ESA, can I get legal aid to help with costs?

Any advice welcome.

Thanks.

System

I don't believe that legal aid is available for business disputes.

leveller2911

Always worth joining the FSB Federation of Small Business where you get free legal cover with your membership. I've been a memeber for about 12 years and have used the service a couple of times.

Mistral001

It is rare to receive legal aid for civil cases. I think some people get it for divorces etc. Never heard about a business getting it.

phill99

This is a civil dispute and doesn't come under Legal Aid. Unfortunately, you are now in business and this is one of the business risks.

jjlandlord

Yes, you are a business and thus no longer under the protective arm of the nanny state.

Manufacturing and supply chain are complex areas and it can be a mine field.
Quality control, acceptance procedures, rejects, etc. are big parts of manufacturing contracts. Then, there's always the expect ratio of defects.

Pennywise

Sadly, I agree with the other posters. People are too conditioned to rely on the nanny state to protect them and it's a shock when they start a business and find out that they're on their own.

I know a lot of small business owners are being caught out these days.

Often they find that they can't send back supplies or equipment that they've changed their minds for, i.e. under shop returns/refunds policies or the distance selling regulations as these only apply to domestic/consumer purchases. Someone else I know got conned on Ebay when they bought some business equipment from a conman only to find the ebay/paypal guarantees didn't apply to business transactions.

Often the remedy is to take court action against the other party, which like in the OPs' case, they can't actually afford to do if they're running their business on a shoestring. Even with legal protection from the likes of the FSB or their business insurance policy, it's often limited to advice and doesn't cover the costs of actually starting and pursuing a court case.

patman99

One question that needs to be asked. Were these parts made to a specification set out by you ?. Or, was it just a case of 'can you make these for me ?' without any mention of what was required on a quality front.

I am an ex-QC Tech. for a major multi-national and we always specified every part of an item, from size tolerances down to the finish and even how they should be packed. This info was laid-out in spec sheets that were also referred to in the drawings.

If you failed to do this with the product that you commissioned the factory to build, then they can say that what ever they send you meets your requirements.

martindow

I fear other posters are correct. However, if you are operating as a sole trader you are in effect an individual and I wonder if retail consumer law may apply. Would it make a difference if you ordered as Mr/Mrs Nightofjoy rather than Nightofjoy Trading?

As you have been trading at a profit even if 'only a few pounds' you should have been declaring this. I've no idea if ESA would be affected by a small income.

Mistral001

martindow wrote: »

I fear other posters are correct. However, if you are operating as a sole trader you are in effect an individual and I wonder if retail consumer law may apply. Would it make a difference if you ordered as Mr/Mrs Nightofjoy rather than Nightofjoy Trading?

As you have been trading at a profit even if 'only a few pounds' you should have been declaring this. I've no idea if ESA would be affected by a small income.

Even if the Op was being treated just as a consumer then she would still not get Legal Aid.

lincroft1710

martindow wrote: »

However, if you are operating as a sole trader you are in effect an individual and I wonder if retail consumer law may apply.

The items were purchased by the OP for business use, so her "status" is irrelevant, it is still a B2B transaction.