- 22nd May 2012 15:37 View
Quote from Dusty - 22nd May 2012 15:24 View
In a previous posting you were talking about business-to-business. Do you actually mean business-to-consumer?
Is it really that hard to understand? I was talking about the distinction between the legal definition of a 'consumer transaction' vs the legal definition of a 'business transaction' i.e. the criteria that the law applies to decide whether parties to a contract are to be regarded as consumers or business customers.
In ascertaining whether either party is B (dealing as a business) or C (dealing as a consumer) it's totally irrelevant whether that's B2B, C2C, B2C or even C2B.
However it is vital to know what kind of transaction is taking place because the laws governing the transaction are very different. The CPU's protect consumers to a very high level. Business transactions are protected to a lesser degree.
Dealing as a Consumer: Can be a business or an individual. Purchase or sales are protected by the UTCCR
If a business, then they must be acting outside of their normal trade. As an example: If I buy paint to paint my shop window, I'm acting as a consumer and consumer law applies. (B2C) If I have extra paint left over I can put it on Ebay and sell it as a consumer because it's outside of my normal business activity and I didn't buy it to sell it. C2C (or C2B)
Dealing as a Business Can be a business or an individual. Neither purchase nor sale are protected by the UTCCR
If I buy till rolls for the shop, I'm buying as a business customer. B2B
If I buy 500 litres of paint from a shop with the intention of selling the excess on Ebay, the purchase and the sale are 'business' transactions. The purchase is B2B and the resale is B2C (or B2B)
So let's say the paint seller adds a clause saying colour may vary from that shown. As a consumer, I'm covered to get my money back. That term is 'unfair' in a consumer contract. However, as soon as I buy with the intention of reselling, the contract is a business one and I've agreed to that term by entering into the transaction. As a business buyer I would need to prove the terms of the contract were 'unreasonable'. "colour may vary" is not "unreasonable".
There are two basic criteria for deciding whether an entity is acting as a consumer or acting as a business. Neither relate to the identity of the parties i.e. it is irrelevant whether the party is an individual or a business.
The first is trading. i.e. buying or creating to resell. That is always a business transaction.
The second is 'regularity' There's no specific criteria. For instance. I'm a garage mechanic. I like to do up cars for personal use and then sell them and 'do up' a new one. The regularity with which I do that defines whether selling the cars a business sale.
So...to answer your question in context.
B2B: Primary agent to Reseller (who bought to resell)
B2C: Primary agent to consumer. Reseller (who bought to resell) to consumer.