(1)This Part applies to a contract between a trader and a consumer.
(2)This does not include a contract of employment or apprenticeship.
(3) A contract to which this Part applies is referred to in this Part as a “consumer contract”.
(4)This Part applies to a notice to the extent that it—
(a)relates to rights or obligations as between a trader and a consumer, or
(b)purports to exclude or restrict a trader's liability to a consumer.
(5)This does not include a notice relating to rights, obligations or liabilities as between an employer and an employee.
(6)It does not matter for the purposes of subsection (4) whether the notice is expressed to apply to a consumer, as long as it is reasonable to assume it is intended to be seen or heard by a consumer.
(7) A notice to which this Part applies is referred to in this Part as a “consumer notice”.
(8) In this section “notice” includes an announcement, whether or not in writing, and any other communication or purported communication.
295.This section sets out the scope of Part 2 of the Act:
It covers contracts between a trader and a consumer. For ease of reference, trader to consumer contracts are called ‘consumer contracts’ in this Part.
Whilst Part 2 concerns contracts, it also includes consumer notices – both contractual and non-contractual consumer notices. A consumer notice includes an announcement or other communication which it is reasonable to assume is intended to be read by a consumer. Non-contractual consumer notices (e.g. a sign in a car park) do not include an exchange of something in return for something else of value (known as “consideration”) as a contract does.
This Part does not cover employment contacts, as they are regulated by specific employment legislation.
296.This Part covers terms in End User Licence Agreements to the extent that they are either consumer contracts or consumer notices. Research suggests that some End User Licence Agreements, for example those known as “click-wrap licences”, which the consumer must explicitly agree to before they are able to download digital content, may have contractual status. Consumer contracts are subject to the provisions of Part 2 and if they contain terms listed in Schedule 2, those terms are assessable for fairness. Other types of End User Licence Agreements, such as those known as “shrink-wrap” or “browse-wrap” licences, may not have contractual status but may alternatively be consumer notices, and therefore also be subject to the provisions in Part 2. End User Licence Agreements may also set out for the consumer legal provisions in other pieces of legislation, such as those in relation to intellectual property. Section 73 makes clear that the Act’s unfair terms provisions do not override legal requirements in other legislation, therefore if a term reflects other law, then it will be exempt from the provisions in Part 2.