14.—(1) The Unfair Contract Terms Act 1977(1) is amended as follows.
(2) In section 12, after subsection (1) there is inserted the following subsection—
“(1A) But if the first party mentioned in subsection (1) is an individual paragraph (c) of that subsection must be ignored.”.
(3) For subsection (2) of section 12 there is substituted the following subsection—
“(2) But the buyer is not in any circumstances to be regarded as dealing as consumer—
(a)if he is an individual and the goods are second hand goods sold at public auction at which individuals have the opportunity of attending the sale in person;
(b)if he is not an individual and the goods are sold by auction or by competitive tender.”.
(4) In section 25—
(a)in subsection (1), the definition of “consumer contract”—
(i)after the word “means” there is inserted “subject to subsections (1A) and (1B) below”;
(ii)the words “(not being a contract of sale by auction or competitive tender)” are repealed.
(b)after subsection (1) there is inserted—
“(1A) Where the consumer is an individual, paragraph (b) in the definition of “consumer contract” in subsection (1) must be disregarded.
(1B) The expression of “consumer contract” does not include a contract in which—
(a)the buyer is an individual and the goods are second hand goods sold by public auction at which individuals have the opportunity of attending in person; or
(b)the buyer is not an individual and the goods are sold by auction or competitive tender.”.