Mr Arjun Agawal (A) seeks your legal advice. Two months ago A decided that he wanted a new mobile phone and contract for mobile services; A wanted to watch movies on his phone and to speak on Facetime with his mother in Delhi. A is a second-year engineering student at the University of Exeter. He saw an advertisement in a local mobile phone shop, Blue Yonder (Exeter) Ltd (B). This advertised ‘We are the best mobile phone service provider in the South West; we cannot be beaten on price or on service.’ A went into the shop and spoke with a sales assistant; A asked if there was any literature he might read. The sales assistant told A that all the terms of trading could be viewed on their website and that B had ‘gone green’ and had been able to reduce its prices by avoiding all use of paper. A was impressed with the look of the new phone, a ‘Zatac 1200’. The sales assistant told A that the prices advertised were sale prices and that the prices B was able to offer would end that same day. With the help of the sales assistant A completed the online order form. A did not look at B’s website because the shop was very busy. 1 hour later when A got home he received an email ‘in acknowledgement of order’. That email also said that credit checks were being done on A and that he would receive a further email shortly. 3 hours after receipt of the first email A received a second email in ‘confirmation of order’. That email noted reference to the standard terms and conditions on B’s website. It also stated that ‘customers are advised to familiarise themselves with B’s terms of trading’. 2 months later A regretted his decision: he has found a cheaper supplier and the Zatac 1200 now looks older than its true age: the plastic cover has not worn well. The connections are also sometimes slow and the Zatac 1200 is apt to disconnect without warning. A writes to B to say that he is cancelling the contract. A thinks a notice period of 1 month is fair because he pays monthly. 1 week later A receives an email from B’s customer service department which says that there is a cancellation fee of 12 times the monthly contract price; it is stated that the ‘fee covers B’s administration costs in dealing with cancellations’. When A queries this claim someone in B’s customer service department sends A an extract from B’s 12 page document of standard terms and conditions to say that clause 303 on page 11 refers to the cancellation fee. Some of the document is in font 8 including clause 303 which reads ‘In the event that the customer fails to pay the monthly charges herein agreed the company reserves the right to claim a fee of 1 year’s payments.’ Advise A. Note: You are not expected to deal with specific requirements of consumer and EU law beyond that within the Contract Law module; you are therefore NOT expected to deal with possible complaint procedures such as a complaint to an Ombudsman such as Ofcom.
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