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TRM COPY CENTRES (UK) & ORS v LANWALL SERVICES LTD

An agreement under which a photocopier was placed in a shop or sub-post office and the provider of the machine paid the retailer a commission based on the use made of the machine by customers was not a consumer hire agreement within the meaning of the Consumer Credit Act 1974 s.15, as the retailer was not obliged to pay anything in cash or kind for the hire of the machine.

23 June 2009

The appellant (L) appealed against a decision ((2008) EWCA Civ 382, (2008) Bus LR 1231) that "location agreements" entered into by the respondent (T) with operators of retail businesses in shops and sub-post offices were not consumer hire agreements within the meaning of the Consumer Credit Act 1974 s.15. L and T were both dealers in photocopiers. T leased its photocopiers from a finance company and then installed them in shops and sub-post offices under an agreement, which was described as a location agreement, with the retailer. Under the agreement, the retailer agreed to the installation of a photocopier on his premises and undertook to provide a location for it which was easily visible and accessible by his customers. The customers and the retailer himself could use the photocopier. If they did, they were charged the rate per copy that was provided for in the agreement. The retailer undertook to collect all sums paid for copies made on the photocopier and to account for them to ...

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