The objective of the European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995 is to:

• A. Promote competition in the marketplace
• B. Protect consumers from the abuse of power by the sellers of goods and services
• C. Prevent discrimination against consumers on grounds of gender or ethnic origin
• D. Promote the provision of goods and services on an EU cross-border basis

Answer: (B)

The main idea being tested is protecting consumers from unfair terms in consumer contracts, especially when those terms are drafted by the seller and the consumer has little room to negotiate. The regulation targets terms that create a significant imbalance to the consumer’s detriment, and it treats such terms as not binding or subject to strict scrutiny. In practice, this means terms that exclude or limit liability, impose unfair penalties, or otherwise tilt the contract in favor of the seller can be deemed unfair and unenforceable, safeguarding the consumer from abuse of power. While promoting competition, preventing discrimination, and supporting cross-border trade are important goals in EU law, they are not the specific objective of this regulation.