Huntley Legal's Blog

If you do business with consumers, they have the right not to have unfair contract terms and notices imposed on them, in accordance with the Consumer Rights Act 2015. This states that, if something is unfair, consumers have the right to complain, withhold payment, and seek damages.

Last summer, the Competition and Markets Authority consulted 1,250 businesses. They found that 85% had a low level of awareness about what is "unfair", half didn't understand the rules, and most had engaged in "grey list" behaviours where it wasn't clear what the fair thing to do was.

It's important that B2C businesses understand the rules, so the CMA has issued new guidance that supplements the Consumer Rights Act 2015.

Do you ever start work, or authorise work to start, while you are still waiting for the details of the contract to be finalised?

Many people start work on the basis of a letter of intent, and sort out terms later. But this could be risky, as shown in this recent case...

As an investor buying or selling a company, it's important to know about restrictive covenants. Here are some reasons why:

What's your business model?

Many new business models are based on apps. Facebook doesn't create content. Alibaba doesn't hold stock. Airbnb doesn't own properties. And Uber doesn't own cars.

Staff costs reduce margin significantly. Instead, these businesses might pay self-employed people who only work when required, or - in some cases - when they want to work. The benefit is that the business doesn't have to cover holiday, sick leave, PAYE and National Insurance contributions.

This has become known as the gig economy, where people turn up 'for the gig', as compared with the traditional bricks-and-mortar economy, where employees or workers turn up to work at a set location. There are important distinctions between arrangements for self-employed people, employees and workers which can impact on your business model.

Last summer, I bought my partner a pair of walking boots in the sale. He tried them on at home, but they didn't fit. I wasn't able to get back to the shop for 28 days, but they refunded my money because the boots hadn't been worn outside and could be re-sold (not re-soled, haha!).

For most goods, consumers have the right to change their mind and cancel their order within 14 days from the date of sale or delivery. As the supplier, you have to return their money.

However, consumers can sometimes demand a refund after 14 days, depending on the reasons they return the goods.

Here are some of the situations where consumers are entitled to be given a refund after the initial 14 days:

When customers shop in a bricks-and-mortar store, they can touch, feel and try before they buy. But when people shop online, they don't have that opportunity. As a result, returns are high – around 60% for clothing, I'm told.

A picture (or video) tells 1,000 words

When displaying your products online, you probably use images (or video). Maybe you use manufacturers' images, or take your own photos.

Either way, you might be breaching trademark and copyright laws, and risk paying damages and legal fees.

Have you ever watched Dragons' Den on British TV? Or Shark Tank in the US?

I remember seeing one chap who turned down a really good offer from the Dragons. They offered them all the money he needed in return for 15% equity in his business, which was in the really early stages. He said no because he didn't want to give away that much.

People mistakenly think they should hang on to as much equity as possible – but 100% of nothing is nothing! It's often worth selling equity in return for something you need, whether that is funding, talent or connections. 85% of something wonderful is worth having. Even 50% can be staggeringly good.

A GP practice has recently been fined £40,000 by the Information Commissioner's Office.

The ICO press statement indicated that, if the practice had been a fully commercial company, the penalty could have been much more. (The ICO can impose fines of up to £500,000 and also has the power to apply criminal sanctions.)

In this case, their intention wasn't malicious, and it appears the ICO took pity on the partners because they were individually liable.

What did they do wrong?

As a small business, I might buy all my computers from Dell. But there is no way on earth that Dell will allow me to negotiate terms. I just have to deal with their standard T&Cs.

If I represented a big company that regularly spends £1 million or more on computers, there is every chance that Dell would be willing to negotiate, such as allowing me to order my next 10 computers on demand, without having to draw up a new agreement each time.

The first time you do business with someone new, you negotiate the terms of your agreement and put a one-off contract in place. A framework agreement is a version of the initial contract that acts like an umbrella for future orders. Some people call it a 'daddy agreement'.

The last thing you need when you are facing redundancy is uncertainty about what you are entitled to receive as part of your final settlement.

People often ask me what benefits should be included in their redundancy payment, and whether it is all tax-free. This article covers the main items that the agreement with your employer should cover: