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(1)For section 4 of the M1 Trading Stamps Act 1964 (warranties to be implied on redemption of trading stamps for goods) there shall be substituted the following section:—
(1)In every redemption of trading stamps for goods, notwithstanding any terms to the contrary on which the redemption is made, there is—
(a)an implied warranty on the part of the promoter of the trading stamp scheme that he has a right to give the goods in exchange;
(b)an implied warranty that the goods are free from any charge or encumbrance not disclosed or known to the person obtaining the goods before, or at the time of, redemption and that that person will enjoy quiet possession of the goods except so far as it may be disturbed by the owner or other person entitled to the benefit of any charge or encumbrance so disclosed or known;
(c)an implied warranty that the goods are of merchantable quality, except that there is no such warranty—
(i)as regards defects specifically drawn to the attention of the person obtaining the goods before or at the time of redemption; or
(ii)if that person examines the goods before or at the time of redemption, as regards defects which that examination ought to reveal.
(2)Goods of any kind are of merchantable quality within the meaning of this section if they are as fit for the purpose or purposes for which goods of that kind are commonly bought as it is reasonable to expect having regard to any description applied to them and all the other relevant circumstances.
(3)In the application of this section to Scotland for any reference to a warranty there shall be substituted a reference to a stipulation.”
(2)The section so substituted, without subsection (3) thereof, shall be substituted for section 4 of the M2 Trading Stamps Act (Northern Ireland) 1965 (warranties to be implied on redemption of trading stamps for goods).
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