Legal advice on pricing error

**YellowDog** · 27th August 2009, 18:21

I think that the legal term for it is: Errors and Omissions Excepted OR EOE.

This means that if they make an error, they cannot be legally be bound to it.

They used to have to state EOE, but I think you will find it somewhere in the Ts & Cs.

**davereid** · 27th August 2009, 18:48

Im not a lawyer, but I operate a business, and I have paid a lot of attention to contract law. We also do debt collection, so I have to read a lot of contracts.

I am of the opinion that if an offer has been made, and accepted, then the offer is binding, and could be enforced by the courts.

You are not bound by a sellers terms and conditions unless they are stated before you make the transaction - terms and conditions on the back of an invoice are useless. Same for E&OE. It must be part of the original contract or its not valid.

If someone offers an item for $1 buy now, and you buy it, I think you own it. And they may be bound by the sale of goods act as to quality, as it was buy now, not auction.

**CookMySock** · 27th August 2009, 18:57

Originally Posted by Bytor

I have seen something advertised on a reputable website with a buy now price of $11.00 that should really be $11,000.00, would I be legally entitled to purchase at $11.00? Someone has put the decimal point in wrong somewhere and I smell myself a steal!

No, you aren't. It's clearly an error and they don't have to sell you anything at any price, even if they said to you directly that they would.

Steve

**mossy1200** · 27th August 2009, 18:59

Originally Posted by davereid

Im not a lawyer, but I operate a business, and I have paid a lot of attention to contract law. We also do debt collection, so I have to read a lot of contracts.

I am of the opinion that if an offer has been made, and accepted, then the offer is binding, and could be enforced by the courts.

You are not bound by a sellers terms and conditions unless they are stated before you make the transaction - terms and conditions on the back of an invoice are useless. Same for E&OE. It must be part of the original contract or its not valid.

If someone offers an item for $1 buy now, and you buy it, I think you own it. And they may be bound by the sale of goods act as to quality, as it was buy now, not auction.

Its been tried and failed.Genuine error in figures are not enforcable as long as there was no intention to deceive.Sale figures are only classed as an OFFER to sell and the seller is able to not sell if chooses not to.Exception is an auction under hammer.
If money and goods have exchanged hands then sale is then final.

**Robert Taylor** · 27th August 2009, 19:16

Originally Posted by Bytor

Let's say for example that I have seen something advertised on a reputable website with a buy now price of $11.00 that should really be $11,000.00, would I be legally entitled to purchase at $11.00? Someone has put the decimal point in wrong somewhere and I smell myself a steal!

If you tried to get it at that price I think it would be morally unethical on your part. If the law allowed it then the law is an ass.

**ready4whatever** · 27th August 2009, 20:45

I'd buy and ask questions later

**Donor** · 27th August 2009, 20:50

The Fair Trading Act says a trader is not obliged to sell a mislabelled item at the advertised price if they can claim it is a "reasonable mistake".

**Metalor** · 27th August 2009, 20:53

I've seen a few listings for bikes where someone has done this with the pricing in my time of trademe browsing (wasting time).

I usually said them a humourous message to give them a hint.

**Virago** · 27th August 2009, 21:10

Originally Posted by Bytor

...should really be $11,000.00, would I be legally entitled to purchase at $11.00?...I smell myself a steal!

If you feel comfortable about stealing almost $11,000 from someone who has made a simple typo, then by all means give it a go.

But if your own conscience isn't strong enough to bite you, then surely Karma is...

**NDORFN** · 27th August 2009, 21:22

That's not cool Bytor.

**HenryDorsetCase** · 27th August 2009, 21:23

Originally Posted by klingon

Apparently an advertised price isn't a formal offer (in the contract sense) it's an invitation to offer (invitation to treat). The BUYER then makes the offer and the SELLER accepts the offer - only then you have an enforceable contract.

If it's a genuine mistake then there is no obligation to carry through with the deal on the seller's part. If, however, it was a deliberate effort to deceive someone, there can be other remedies/penalties.

Yay for studying Commercial Law all those years ago! (I hope it'sall still true... but being KB I'm sure someone will correct me if I got it wrong. In fact they will probably correct me if I got it right...

)

ding ding, we have a winner.

the Boots pharmacy case.

**HenryDorsetCase** · 27th August 2009, 21:24

Originally Posted by Donor

The Fair Trading Act says a trader is not obliged to sell a mislabelled item at the advertised price if they can claim it is a "reasonable mistake".

FTA appies to those "in trade": a private seller on tardme isnt covered. Nor are they covered by the CGA.

**Bytor** · 27th August 2009, 21:24

Well just for the hell of it I have completed the purchase and have a printed invoice for a grand total of $21.00 which includes $10.00 delivery.

I completed the order and at no stage did the price alter from $11.00. What is more frightening is that the Terms & Conditions page was blank other than a line of text saying 'Please edit the template file terms_conditions.tpl to modify Terms & Conditions text.'

I HAVE NO INTENTION OF COMPLETING THIS PURCHASE unless the dealer has won Lotto and I happen to be in the right place at the right time.

So why have I pursued the purchase? Basically to highlight the 'Buy Now' price to the dealer who probably isn't aware of it. Hopefully the said dealer will then contact his website people to ask WTF is going on. Of course the whole thing could be a deliberate way of boosting their database but that seems unlikely.

Whatever I would love to be a fly on the wall when someone opens up the purchase order email tomorrow morning.

I'm not going to name the dealer or product but it'll be interesting to see what kind of response I get.

Just as a matter of interest, I remember a while back KLM had to honour $15 return airfares ordered on their website that should have been $1500! Ok it wasn't in NZ and no doubt people will have actually purchased those tickets online whilst I have not made a financial transaction (choosing the phone option rather than the instant credit card option), but it shows that businesses need to be vigilant with their websites etc.

**Bytor** · 27th August 2009, 21:29

Originally Posted by Virago

If you feel comfortable about stealing almost $11,000 from someone who has made a simple typo, then by all means give it a go.

But if your own conscience isn't strong enough to bite you, then surely Karma is...

not stealing, just making the dealer aware that someone has f**ked up