Contract law in the age of the green transition

Due to the upcoming train strikes, this event will be in-person and online. For further information, please email law.events@lse.ac.uk

The presentation will explore the state of the discussion in the UK, the EU and the US. It will present the plans of the European Commission to amend the Consumer Sales Directive in a way which would deny consumers to choose between repair and replacement of a defective good at the time the sale entered into force. The presentation will also analyze the statutes of some US states, e.g. California, that are already granting a “right to repair” and further planned legislative steps, e.g. by the FTC. The presentation will contextualize the recent settlement reached by the manufacturer John Deere and the American Farm Bureau Federation granting customers of the former the “right to repair” for their purchased machines and giving them access to replacement parts.

The presentation will show that the European proposal falls short of fostering more sustainability. It does not address important issues linked to repair, e.g. access to replacement parts and repair manuals, and the impact of antitrust and intellectual property law on the discussion. It also neglects the fact that repair as the only remedy for defective goods will increase prices and hence lower social sustainability, making certain product groups no longer affordable by low-income consumers. Finally, due to the limited competence of the European Commission in the area of contract law, the proposed new law will only apply to end consumers who buy for their private use, not customers in general. The presentation will then show that the US approach – enabling repair and not prohibiting replacement – is more in line with party autonomy and freedom of contract and is more suitable for fostering sustainability. The presentation will end on the use of contract law as a means for the green transition.