Question
Consumer Guarantees Act 1993 Frankie decides to start selling cakes from a caravan. She purchases an oven from Kevins Kitchens. Two weeks after the oven
Consumer Guarantees Act 1993
Frankie decides to start selling cakes from a caravan. She purchases an oven from Kevins Kitchens. Two weeks after the oven is delivered, Frankie gets a letter from a bank saying they loaned Kevins Kitchens money to purchase stock, including Frankies oven, and have a security interest over the stock. They advise that since Kevins Kitchens has not paid, they are entitled to take the oven.
a) Frankie contacts Kevin, but Kevin says the Consumer Guarantees Act 1993 does not apply because she bought the oven for her business and is therefore not a consumer. Identify the section in the Consumer Guarantees Act 1993 that defines a consumer and apply this section to determine whether Kevin is correct.
b) Kevin says that, even if Frankie is a consumer, there has been no breach of the Consumer Guarantees Act 1993 because when they entered into the contract he told her that he had borrowed heavily to stock his shop. Assuming Frankie is a consumer, identify the guarantee that Kevins Kitchens might have breached and explain whether his argument is correct.
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