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18.1 Reasons for regulating unfair contract terms

Exclusion clauses deter liability for breaching a contract;
This can mean that:
Businesses can become unscrupulous;
They can exploit consumers;
And they can stop them from receiving a remedy.

18.2. Controls developed by the…

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o Thornton v Shoe Lane Parking Ltd (1971) ­ an exclusion clause made to avoid liability for injuries
caused in a car park was ruled invalid as there was an insufficient effort to make the consumer aware
and there was no chance of negotiation before the agreement as the terms…

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The consumer does not make the contract in the course of a business;
The other party does make the contract in the course of a business;
The goods passing under the contract are of a type ordinarily supplied for private use or

18.4.3. Types of exclusion clauses that are…

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However, the Act still has limitations:
It does not cover all ECs;
It is mainly restricted to ECs;
It ignores a lot of unfair terms that may be found in contracts;
In these senses it is perhaps limited in its scope and application.

18.4.7 The Unfair Terms in Consumer Contracts…

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Consumer groups that may have wished to police contracts have no power under the regulations, so a
significant degree of help that the consumer may have had is not available to them.

Three differences between the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts
Regulations 1999:…


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