If you purchase a second-hand item from a business or trader, the consumer rights that you are entitled to are extremely similar to those you have when buying an item that's brand new. Namely the goods should be:
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• Fit for the purpose the item was sold for.
• Be of satisfactory quality.
• Be as described in any advert or marketing materials.

These rights in the UK are defined in the Consumer Rights Act and cover any purchase from a trader made since October 2015.

If you discover a fault with an item, this act gives you the right to return it for a full refund within the first 30 day of purchase. After the first 30 days (but within the first 6 months) you can still return the item, but you must give the retailer the opportunity to replace or repair the fault.

After 6 months, to return the item you must prove that the fault was present when it was first purchased, which can be more difficult if a product was second hand or pre-owned from the outset.

Second hand products may have imperfections and faults that are attributed to normal wear and tear. In some cases, there may be quality issues with a product due to its age and how it has been previously used.

When considering your consumer rights, it's important to remember that second hand products or refurbished goods do not have to be of the same quality as new items. Therefore, you cannot simply reject an item because it is not of the same standard as you would expect if it was brand new.

Fit for purpose means that the item must function correctly and last for a period of time that is 'reasonable'. In relation to used goods the item should function fully for the purpose it was designed and sold for. However, being a used item, it may show signs of being pre-owned and not last as long as you would expect a brand-new item to last.
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For example:

• When buying a used vehicle from a car dealership, it should be roadworthy and safe to drive at the point of sale. However depending on its age and history, maintenance and servicing may be required much sooner than the equivalent brand-new vehicle.
• If purchasing an ex-display or refurbished laptop from a computer store, you should expect that all components are fully working. However, if it's being sold as ex-display it’s battery life may be less pristine than an unused laptop.

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Satisfactory quality is basically a standard that a reasonable person would consider as acceptable taking into consideration the item's description, price and circumstances of the purchase. It is most often relating to a product's appearance, freedom from defect, durability and safety. Obviously, the quality of an item can be subjective, but expectations should generally be lower if you purchase an item that has been previously used.

For example:

• A pre-owned vehicle is unlikely to have pristine paintwork and interior, so it may not be considered reasonable to reject a used vehicle on this basis.
• If you purchase a used four-year-old washing machine from a discount appliance retailer that failed after nine months. The reasonableness of it being of an 'unsatisfactory quality' may be difficult to prove if you only paid £10 for it.

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As described means that an item must be accurately advertised and described by the trader. If you asked questions about the product in store prior to purchasing, such as its warranty status, service history or how it currently operates, the information given should all be correct. Likewise, if the salesperson advises you of a fault with an item, then it is 'as described' and you can't reject it due to it having the fault.

For example: 

• If you purchase a car that is advertised as being a repaired 'category S write off', the car should be roadworthy however you can't return it only because of past structural damage or involvement in an accident.
• If a shop assistant offers to sell you a discounted furniture set that is water damaged, you can't later reject the items due to stains or damage that the water has caused.

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When buying second hand goods online, over the telephone, at home or through mail order from a retailer you will also benefit from additional protections. Namely the Consumer Contract Regulations, or to give it its full name The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

These regulations cover what was previously known as 'Distance Selling' and provides some extra rights, even when purchasing a used product. These rights include:

• a right to clear information on how the goods can be paid for, the delivery charges and who pays for returns
• a 14 day right to cancel or change your mind on the purchase for any reason
• a right to a refund within 14 days of returning an item

The retailer is entitled to expect that anything sent back is returned in the exact condition as it was received. This can sometimes be a point of dispute when returning second hand goods as they are likely to have not been in original packaging etc. in the first instance.

An important point to remember when buying second hand products online is that not every website purchase is classed as buying from a business. When you buy from sites such as eBay, Gumtree, Shpock or Amazon Marketplace you will need to check if the seller is a business or trader. As if they are a private individual, then consumer rights and contract protections will not apply to your purchase.
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If you purchase items from a private seller via a web advertisement, local newspaper ad or car boot sale it is important to be aware that you don't have any consumer rights. For the Consumer Rights Act to apply you need to be an individual making a purchase from a business.

If you do buy a second-hand item from a private individual it only has to match any advertised description. This limited protection falls under The Misrepresentation Act for when an untrue fact or statement is made by the seller to convince a buyer to make a purchase.

A private seller isn't under any obligation to tell you about any faults or defects, and there's no requirement for the item to be of satisfactory quality or suitable for any specific purpose.

So, as you may have heard, purchasing from a private seller is a matter of 'buyer beware'. You should check the product thoroughly to ensure you are 100% happy before buying it.

For example:

• Should you consider buying a used car privately, you ideally should have your own mechanic examine it and undertake checks on its history (HPI etc.) before purchasing, as you can't return it if faults are found at a later date.
• If you privately purchase a caravan that turns out to have faults with it's electrics, cooker and shower. It will not have been misrepresented to you unless the seller specifically said all these components were in full working order.

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In the majority of cases once you make the retailer aware of the fault, they should deal with your concerns inline with your consumer rights. If they refuse, the next step is escalating the matter as a complaint and then involving any associated ombudsman which should be detailed in the retailer's terms and conditions.

If all these steps fail, your only available method of resolution may be to start court proceedings. If the value of your claim is less than £10,000, it will be treated as a 'small claim' which means there are set fees to issue the claim and only limited legal expenses are able to be added (see our guide on how much does it cost to take someone to court).

Therefore if the value of your consumer claim is significant, it will be worthwhile seeking legal advice on your dispute before beginning court action to ensure the consumers laws are on your side.

Being a business owner means that making agreements and signing contracts can be a regular occurrence. These formal agreements protect your business and ensure that suppliers, business partners and even customers uphold their end of the contract.

The clauses these contracts form the backbone of a business's operations, covering the supply of goods, delivery of services, timeframes for completion and when payments are due. As such not complying with any of the conditions in a contract will often lead to a dispute.

When a party fails to fulfil the terms and conditions in a written agreement, without a lawful or valid excuse, this is referred to as a breach of contract and you must decide how to deal with the breaking of the agreement.

But before you start filling out the court forms, a first step in dealing with a breach is to formally advise the other party with written notice, known as a 'Letter of Claim' or 'Letter Before Action'.

A Letter Before Action is the starting point of many forms of civil legal proceedings and basically sets out your legal claim. It's important to keep in mind that while a Letter Before Action is the first step in taking formal action, it should be the last step in trying to deal with the issue informally.

Calling in lawyers and involving the court at the first inkling of a problem usually won't be helpful. If an aspect of a contract hasn't been complied with or is outstanding, then a polite (but firm) enquiry to the other party on the reason and how they intend to resolve the should be your first act. 

Then if informal discussions don't start the process to resolve the issue, sending a Letter Before Action is often a low-cost route to opening a dialogue with the other side to achieve a resolution.
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Background and context
The letter should start by referencing the specific contract or agreement that has been breached, when it came into force and what it covers. You shouldn't assume that the person who deals with the letter is aware of the existing business relationship and that an agreement in place.

Circumstances and facts
Briefly explain what has occurred and how it is considered to be a breach of the agreement. Ideally point to a specific obligation or clause in the contract and how this obligation hasn't been met. If the failure has resulted in a loss or damage that can be calculated, then this should also be included.

Remedy and resolution 
State how the breach can be remedied and how the matter can be resolved to your satisfaction. This resolution will be down to the type of agreement and specifics of the breach, but could involve immediate payment of an outstanding amount, the return of a supplied product, cancelling of a service/contract or a monetary payment to cover a loss.

Timeframe and response
A reasonable period should be given for the other party to comply or at least acknowledge and respond to the letter. A timeframe of at least 14 days would be a minimum, and you also need to comply with any reasonable requests for additional information.

Consequences and legal action 
Finally, the whole point of the Letter Before Action is to set out your claim and place the other party on notice that a failure to act could lead to you starting legal proceedings. This should be stated in the letter along with highlighting that you will also be looking to recover any additional costs that are involved with court action from them as well.
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Before starting down the path of court action, it's always advisable to seek some initial legal advice. While the breach may be an obvious one, a contract dispute lawyer will be able to advise you on your prospects, how any damages would be calculated and what legal proceedings may cost.

Importantly they can also draft your Letter Before Action ensuring it accurately represents your claim and that it complies with the court's Civil Procedure Rules and Pre-action Protocols.

A well-researched and professionally drafted Letter Before Action is your best chance of achieving an early and cost-effective resolution to a contract dispute, so it's well worth getting a solicitor involved from the outset.
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If you've a consumer or business issue that you've been unable to resolve with informal discussions or negotiation, the next step is usually civil legal action.

As the Claimant in a claim it will cost you time and money to issue court proceedings and there are three 'tracks' which a claim can be allocated to depending on the complexity and value of the matter. 

• Under £10,000 in value should be allocated to the Small Claims Track
• £10,000 to £25,000 in value should be allocated to the Fast Track
• Over £25,000 in value should be allocated to the Multi Track

The majority of disputes and subsequent claims fall into the Small Claims Track which is designed for use without the need of a solicitor. However, in reality, the process can be complex with various procedures, dates and correspondence all to be complied with.

But before starting down the path of issuing a claim, you need to have an understanding of how much it may cost to take someone to the small claims court.

Being the Claimant, you will need to the pay fees to the County Court to start and run the claim. These Court Fees are payable at two key stages of the claim and are required in advance, so ensure you have these available prior to starting your claim.

Should your claim be successful, and a judgment be returned in your favour, all the Court Fees you have paid will be added to the amount the Defendant must pay you.

Small claim court fees and limits and can vary across the UK as well as with different types of claims (personal injury, housing disrepair etc). In this guide we'll be referring to the process in England and Wales for Money Claims.
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The Issue Fee is required when you first submit your Claim Form to the court and start your claim.

A claim can be submitted with a paper claim form or via the Internet using the Money Claim Online service. The benefit of submitting the claim online is that the Issue Fees are slightly lower, and you won’t have to print and post the documents. You will however need to register for an online account and you can’t use this service if you don’t know the exact amount you are claiming for.

Regardless of which method you use to submit your claim, the Issue Fee will be based on the amount you are claiming or the amount that you are estimating the claim is worth.
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​Correct as at 4 February 2019, but please see EX50 for full details and latest fees.
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If using the online service this fee is payable by credit or debit card prior to submission. If you use a paper claim form, you will need to include a cheque or postal order for the correct fee.

If your claim isn't disputed or defended, then judgment will be awarded in your favour and no other court fees will be payable.​
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If the claim is defended, then the case will need to proceed to a small claim hearing unless an agreement or settlement is reached beforehand. The court will send both parties a proposed allocation to the small claims track along with a Directions Questionnaire.

The Directions Questionnaire will ask you details about your claim in preparation for the hearing, including proposed court location, any expert evidence, witnesses and any hearing dates to avoid.  

Once both parties have submitted a Directions Questionnaire, this will lead to an order from the court giving a date for the hearing, exchange of evidence and a date for paying the hearing fee.

​As with the Issue Fee, the Hearing Fee will be based on the amount claimed:

Fees correct as at 4 February 2019, but please see EX50 for full details and latest information.
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The Directions Questionnaire will also ask if you agree to your claim being referred to the Small Claims Mediation Service. If both parties agree to this, then a mediation appointment will be organised by telephone and a mediator will attempt to reach a settlement over the course of an hour or so.

The HMCTS Small Claims Mediation Service is free of cost so should be seriously considered as an option. Also, mediation appointments will be available quicker than court hearings and you won't incur the Hearing Fee if the claim is settled at mediation.

If mediation fails, then the claim will proceed to a hearing and the Hearing Fee will become due.
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Depending on your dispute, you may require an expert to provide evidence to support your claim. You will need the court to grant permission to use an expert and if permission is granted you will then need to pay the expert to produce written evidence.

As with court fees, if using an expert has been approved and your claim is successful, the cost of the expert will be recovered from the defendant up to a maximum of £750.  

If your claim is successful, as well as the court fees and approved expert costs, there may be other items you can claim and recover from the losing party.

• Interest on the amount owed
• Travel expenses getting to/from the hearing
• Loss of earnings due to attending the hearing
• Legal representative’s costs if you’ve instructed a solicitor to make the claim on your behalf

There are various rules and limits around what can be claimed so it is always a good idea to get legal advice before starting your claim. Without legal advice then there is a risk you could miss out on recovering costs that you are entitled to claim from the opposing party. 
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Although the small claims process is designed to be conducted without legal representation, many people still choose to use a solicitor and can recover some of these costs as part of their claim.
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The way legal representation costs for small claim are calculated is complex and relates to the claim amount, how the Claim Form is served and the number of Defendants. There are then further costs that can be claimed if judgment is entered which depends on the amount claimed and how the judgment was obtained.

​Correct as at 4 February 2019, but please see CPR Part 45 for full details and latest fees.
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Therefore, if you choose to use a solicitor for you small claim, you can typically expect to receive around £60.00 to £100.00 awarded towards your legal costs if your claim was successful.

The relatively low legal representative costs that are recoverable in the Small Claims Court is the reason you don't see 'no win no fee' funding being an option when dealing with small claims. So, if you do decide to seek legal help with a claim ensure you look for a law firm offering fixed fee small claims services. 
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While you may not be able to recover all your legal costs as part of your claim, there are still some compelling reasons to consider instructing a solicitor for a small claim.

Firstly (and most importantly) a solicitor will be able to advise you on the law and your prospects of success. Spending money on issuing and attending a court hearing only to have no basis for a claim would be an expensive mistake.

Secondly a solicitor will be an expert on litigation and the court process, ensuring you comply with the relevant directions/deadlines and that your claim is comprehensive. If your claim is significant, missing out or even miscalculating an item such as your interest entitlement can prove costly.

Finally, even if your claim is successful and judgment is awarded in your favour you may still need to enforce that judgment. A lawyer can advise you on the most cost effective and productive enforcement methods that are available.

Taking a person or a business to the small claims court isn't free and not without risk. Knowing the potential costs along when fees will require paying is likely to influence your decision on if it is worthwhile process to undertake.

However, if your claim has merit and you can afford the court fees, then many of your costs will be awarded back to you should your small claim be successful.