B2B obligations regarding faulty items

[Kristen Lee]

Hiya,
We are the retailer in this situation. We had a customer purchase an item from us which is faulty. The supplier requires that we send the faulty item back to them before then replacing them. The customer unfortunately lives in Germany (but purchased in store in the UK).

We understand that under the consumer legislation we are required to cover postage for the item. We did some research and we are of the belief that we have the right to claim that postage back from the supplier too however they are saying that this is not the case as business to business is not covered.

This doesn't seem right to me.

Anyone shed any light on legislation?

 

[Mr D]

What does your contract with supplier say?

 

[Kristen Lee]

Very good question. We'll take a look. I guess we (perhaps naively) assumed that we were covered under legislation.

 

[The Byre]

B2C is covered by the various consumer laws. B2B is not. The only protection you have is normal contract law.

 

[The Resolver]

The supplier is correct in saying that the consumer legislation does not apply to them. But if the goods were faulty then you are entitled to have any losses you suffer to be compensated by the supplier. If, therefore, you have to pay for the return delivery then the supplier should reimburse you. You could withhold it from the next payment to them.

This is a good example of why retailers should attempt to insert into supply contracts a term under which the supplier either takes the hit for the return costs if its their fault or shares with the retailer if not (eg where the consumer just exercises his return right when no fault in the product).

BTW do not think B2B sales are totally without protection. There is an interesting, and often ignored and under utilised, piece of legislation called the The Business Protection from Misleading Marketing Regulations 2008.

 

[Mr D]

Very good question. We'll take a look. I guess we (perhaps naively) assumed that we were covered under legislation.

You will be covered by the contract that you both agreed.

Selling to consumers is like dealing with children, they have to be protected from their own mistakes and from predatory businesses.
Business selling to business is different, its like all concerned are adults. They are presumed able to decide for themselves the contract is worth agreeing. Lot less protection, unless breached.