Hi All, sorry for the late reply to this thread, but I put this question to the Chief Exec of Trading Standards for his views. As result the head of policy has sent me the following ..
There were some changes to sale of goods law in recent year such that the protections for business to consumer sales (B2C) contracts were stripped out of the Sale of Goods Act 1979 and are now enshrined in the Consumer Rights Act 2015 (CRA). These consumer rights were clarified and extended under the CRA.
However that means the provisions on business to business B2B contracts remain within the Sale of Goods Act 1979 and business sellers are under an obligation to ensure that the goods they sell to other businesses are as described, fit for purpose and of satisfactory quality, taking into account the description of the goods, the price, and all other relevant information. The business buyer’s remedy where that is not the case is to sue for breach of contract of one of these implied terms or another contractual term (or misrepresentation)
That said, the law deems B2B to be on a more even negotiating field, and the business seller can expressly exclude these terms from the contract, but this would have to be in the original agreement. (this cannot happen in B2C contracts – hence why ‘sold as seen’ was banned).
So, business sellers are still under obligations to their business buyers for the above, unless they specifically exclude the provisions of the Sale of Goods Act 1979 by agreement.
In summary, we would say that it would be good practice/due diligence to ensure that B2B contracts only take place where such contracts are normally formed, i.e. trade forums/auctions/sites. In that way there is no risk that an innocent consumer purchaser will buy a deathtrap. To be clear, the law doesn’t simply allow B2B to rip each other off and if there is a breach of contract, i.e. something is misdescribed or completely faulty, then the business buyer can still sue, based on the agreed terms of the contract.
We are working with National Trading Standards to update Guidance for the second hand car market on such issues.
I am going to keep in touch with them and maybe get more clarity on how we ensure that we are covered via a public forum if the buyer purports to be trade, but I thought I would share this
I will also try to get them to one of our upcoming events. We're hoping to announce some breakfast clubs in tehnear future which will take place around the country...
Andy