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ACCA LW · Chapter 3 · Question 9 of 10

Under the Consumer Rights Act 2015, when is a term in a consumer contract regarded as unfair?

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Reveal answer & explanation

Correct answer: C) When, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer

Explanation

Section 62 of the Consumer Rights Act 2015 provides that a term is unfair if, contrary to good faith, it causes a significant imbalance to the consumer's detriment, and an unfair term is not binding on the consumer. Terms specifying the main subject matter or the price are not assessed for fairness if they are transparent and prominent. Failure to read a term or its typeface does not by itself make it unfair.

All 10 questions in Chapter 3Contract terms MCQs with answers

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