As part of the purpose of the recently promulgated Federal Competition and Consumer Protection Act of 2018 (“FCCP Act”), which is directed at the maintenance of competitiveness in the Nigerian market and protecting the welfare of consumers, it has provided for certain implied warranties in relation to contracts for the supply of goods.
According to Sections 131 and 132 of the FCCP Act, the following warranties will be implied in a contract for the supply of goods to a consumer:
a. The goods are reasonably suitable for the purposes for which they are generally intended;
b. The goods are of good quality, in good working order and free of defects;
c. The goods will be usable and durable for a reasonable period of time having regard to the use to which they would normally be put and to all the surrounding circumstances of their supply;
d. The goods comply with any applicable standards set by industry sector regulators; and
e. Where the consumer has specifically informed an undertaking (i.e. any person involved in the production o, or the trade, in goods or the provision of services) of the particular purpose for which the consumer wishes to acquire any goods, or the use to which the consumer intends to apply those goods, and the undertaking ordinarily offers to supply such goods or acts in a manner consistent with being knowledgeable about the use of those goods, the consumer has a right to expect that the goods are reasonably suitable for the specific purpose that the consumer has indicated.
According to the FCCP Act, “consumer” is defined as including “any person – (a) who purchases or offers to purchase goods otherwise than for the purpose of resale but does not include a person who purchases any good for the purpose of using them in the production or manufacture of any other goods or articles for sale: or (b) to whom a service is rendered”.
The creation of the above implied warranties signifies progress in Nigerian legislation on the supply of goods. Prior to the enactment of the FCCP Act, the only notable legislation that generally regulates supply of goods in Nigeria is the old English Sale of Goods Act of 1863 imported into Nigeria as a statute of general application. Even though, different states in Nigeria have enacted their respective Sale of Goods Law (albeit, very similar to the English Sale of Goods Act of 1863), the provisions of the FCCP Act represent a modern legislation of general application on the issue of implied warranties in a supply of goods transaction. It is therefore important for manufacturers, importers, distributors and suppliers of goods to pay particular attention to the requirements of the FCCP Act.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: firstname.lastname@example.org
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140