A bank sends its customer a standard form with a fee term hidden in small print. Under Part 2 of the Consumer Rights Act 2015, when may a term in a consumer contract be assessed for fairness?
Answer and explanation
Correct answer: C. A term is unfair if, contrary to good faith, it causes a significant imbalance to the consumer's detriment
- Step 1: Section 62 sets the test of unfairness.
- Step 2: Core terms on price and subject matter are exempt if they are transparent and prominent.
Answer
A term is unfair if, contrary to good faith, it causes a significant imbalance to the consumer's detriment.
Why not the others: A one-sided term is not enough; signature does not decide fairness; print size is relevant to transparency but is not the test.
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