The Trading Schemes Regulations 1997

Right to return goods to promoter on termination

6.—(1) The rights referred to in regulation 5(i) are, that if a participant or the promoter or any of the promoters terminates an agreement referred to in regulation 4 or any agreement entered into in consequence of such an agreement with a participant, the participant shall, subject to subsection (2) below, have the right to be released from all future contractual obligations and to return to the promoter or any of the promoters or any other participant any goods the participant has purchased within a period of 90 days prior to such termination under the scheme and which remain unsold and to recover from the promoter or such other participant who supplied the goods–

(a) where the participant has terminated the agreement, the price (inclusive of Value Added Tax) which the participant paid for them less:

(i) in the case of any goods the condition of which has deteriorated due to an act or default on the part of the participant, an amount equal to the diminution in their value resulting from such deterioration; and

(ii) a reasonable handling charge;

(b) where the promoter or any of the promoters or any other participant has terminated the agreement the price (inclusive of Value Added Tax) which the participant paid for them together with any costs incurred by the participant for returning the goods to the promoter or any other participant;

(c) on terms whereby the purchase price is payable upon delivery of the goods or, if the goods are already held by the promoter or any of the promoters, forthwith, and

(d) on terms whereby the goods not already held by the promoter or any of the promoters will be delivered within 21 days of such termination at the promoter’s expense to the address stated in the agreement.

(2) Where an agreement referred to in regulation 4 contains an obligation on the participant not to compete with the business of the promoter after termination of such agreement, such non-competition provision shall continue in force after the date of termination.