BUYERS AND SELLERS
Bigbeef Ltd is in the business of butchery trade as a wholesale supplier of fresh meat. While supplying the products they give customers a detailed description of the standard terms and conditions of trading which has to be strictly followed. It includes a clause. According to this clause until buyer pays the amount in full the ownership of the goods supplied will remain with the seller, which in this case is Bigbeef Ltd. If the buyer hasn’t paid in full or paid some amount then the seller has every right to take action by recovering and selling the goods and may enter buyer’s premises for that purpose. Afterwards legal action would be taken against the buyer to recover the dues.
Before the payment of the dues if the buyer alters the supplied goods in any way then the seller has the whole property rights on those altered and processed goods until such payments has been made and seller’ s would be extended to those altered or processed goods. Until the buyer pays the amount in full for the goods relationship between them would be money related in respect of the goods.
Bigbeef Ltd supplied 100 sides of fresh British beef to Frosty Ltd that is a frozen meat distributor and a regular customer. Frosty Ltd hasn’t paid any amount regarding the supply of the British beef.
Of the 100 sides 75 were cut into joints, packaged and frozen ready for resale. Because of the stringent government laws and regulations regarding labelling of beef the original supplier of the goods can be easily traced.
Frosty Ltd sold the remaining 25 sides to a local super market that were supplied by Bigbeef Ltd to Frosty Ltd. Frosty Ltd made no profits from this trade to local super market.
The above is the scenario in which one party supplies goods to the second party without receiving any payment. The second party sells a part of the supplies to the third party without making any profits. Due to UK’s strict laws with respect to labelling of the goods the second party cannot sell the goods supplied by first party without prior permission from them or until full payment is made.
The General Consumer council for Northern Ireland (The Consumer Council) is a statutory body, whose aim is to promote the interests of all consumers. The Consumer Council campaigns on behalf of consumers for the best possible standards of service and protection, undertakes research and gives advice and information and issues publications.
The Consumer Council also manages consumer line that gives advice and information to consumers on:
Practical help on how you can deal with your problem.
Sources of additional help.
Advice on using Small Claims Court.
Your legal rights as a consumer.
The Council has an Environmental Health Department (EHD) employing Environmental Health Officers (EHO). The EHO try to make sure that the Council's area is a healthy place for you to live, work and play.
The law makes it a criminal offence to sell consumer goods which are unsafe, or food which is unfit for you to eat or which would be harmful to your health. There are also laws on how food is labeled and the cleanliness of places where food is sold. If you buy an item like a toy, which is unsafe or buy food that is of poor quality, you should contact the local EHD.
The Office of Fair Trading (OFT) is responsible for making markets work well for consumers. They achieve this by promoting and protecting consumer interests throughout the UK, while ensuring that businesses are fair and competitive.
You have no real grounds for a complaint if you:
Were told about the fault before you purchased the item.
Examined the item when you bought it and should have seen the fault.
Made a mistake when purchasing the item.
Simply changed your mind about the item.
In the case of Bigbeef Ltd, Frosty Ltd has clearly breached the contract terms and conditions. According to the contract until and unless full payment is done the ownership of the good will remain with the seller. Of the supplied 100 sides of the British beef Frosty Ltd kept 75 of them in frozen state and sold remaining 25 to a local super market.
Bigbeef Ltd can recover the amount either by reselling the supplied beef or approach Small Claims Court to take legal actions. Most probably the verdict goes in favour of Bigbeef Ltd. Since Frosty Ltd breached the contract by selling the good to the third party without paying the full amount of the goods supplied by Bigbeef Ltd.
Frosty Ltd can avoid actions if full payment is done. If they are short of amount they can sell those goods with prior permission from Bigbeef Ltd and repay them from the amount acquired.
Crown. (2003). Labelling. Retrieved December 18, 2005, from Food Standard Agency (FSA): http://www.food.gov.uk/foodindustry/guidancenotes/labelregsguidance/foodlabelregsguid-->
Citizens Advice. (2005). What If The Supplier Goes Out Of Business. Retrieved December 18, 2005, from The National Association of Citizens Advice Bureaux: http://www.euroconsumer.org.uk/index/using_your_rights/supplier_goes_bust.htm -->
Crown. (2005). Directgov. Retrieved December 18, 2005, from? : http://www.direct.gov.uk/RightsAndResponsibi lities/RightsAndResponsibilitiesArticles/fs/en?CONTENT_ID=10015892&chk=I8hfA1-->
? . (2005). Your rights when shopping – buying goods. Retrieved December 18, 2005, from? : http://www.oft.gov.uk/Consumer/Your+Rights+When+Shopping/your+rights+buying+goods.htm