The purpose of this article is two-fold. First, to analyze the policy
rationale in holding display of goods as an invitation to treat, rather than an
offer. Second, to examine whether statutes with criminal offences should be
interpreted in light of the general law applicable to civil law matters.
For the purpose of the analysis, the case has been selected as the focal point
of reference. The reason is, the case serves as a leading example to hold
display of goods in a self-store as an invitation to treat and also engages with
the interpretation provided to a criminal statute.
Facts:
In this case, medicines that did not require a doctor's prescription were
displayed by Boots Cash Chemists on shelves for self-service by customers. A
customer intending to purchase a medicine could pick the medicine and place it
in a receptacle (container). After touring the shop, the customer could place
goods from the receptacle at the cash desk (checkout counter) and outlay money
for the purchase.
At the time, the Pharmacy and Poisons Act, 1933 (U.K.) (the Act), a statue in
the United Kingdom made it unlawful to sell any poison listed in the Poison
List, unless it was sold by an authorised seller of poisons at a registered
premises and the sale was effected by or under the supervision of a registered
pharmacist.
Two customers of Boots Cash Chemists purchased medicines which fell within the
ambit of the Act. The Pharmaceutical Society of Great Britain, a regulatory body
tasked with enforcing the provisions of the Act commenced legal proceedings
against Boots Cash Chemists for violating the Act.
First Part:
Substitute Factor
An analogy was also drawn between display of books in a bookshop. Here,
customers are free to pick up and inspect any book or read its back cover. Yet,
they are not bound to purchase the book until they take it to the cash counter
as request the shopkeeper to let them purchase it. An agreement is only formed
when the shopkeeper says,
yes, you can have it. This is when a contract
is formed. This gives the customer the flexibility required to purchase what is
desired or to put down a book he/she dislikes for another one. Such a system
also allows the shopkeeper to refuse to sell for any reason.
To this, Mc Kendrick stated that, due to these reasons,
one should not
distinguish between the operation systems of a self-service store and a normal
transaction shop[1]. The shopkeeper does not make an offer to sell any
article in the shop to any person who steps in. I believe, the Main issue in
treating display of goods as an offer is the Substitute factor. It is a general
practice for customers to inspect the goods they need to buy, to collect several
items and then shortlist the ones they want, to pick up items in order to read
their ingredients (foodstuff) or other details.
If this was not the case, customers would not be able to estimate the quality of
the product they desire and hence might not end up purchasing items. Once an
item is picked up, the customer would be under a legal obligation to purchase
even without the desire to do so. This would also act as a detriment to the
seller. Due to lack of purchases, profits would reduce. Also, seller would be
bound to sell any item in the shop to any person who enters the shop and picks
up an item, even in cases where he is not willing to sell to that particular
person.
Rule concluded
Display of goods in a store is an invitation to treat and not an offer. Meaning-
When the customer says,
I want this (offer is made), 999 out of 1,000
times the bookseller or the bookseller's assistant will say, That's alright
(acceptance is communicated). The money changes hands (consideration) and the
transaction is complete.
In case goods displayed in a shop window was constituted as an offer: In this
case, even if goods displayed are an offer, the question arises as to what is
acceptance? Here, the acceptance is complete, I believe, when goods are
taken to the cash counter and the acceptance is communicated to the offeror
(shopkeeper/representative).
If this is to be applied, it means that the sale in Boots took place at the cash
counter and not when goods (non-dangerous medicines) were picked up. This
suggests that no offence was committed under section 18. In Boots, the Court's
ruling on what is constituted an offer and what is constituted as an acceptance
is ideal and does not leave any scope for any varied judgement to be passed.
Reasons for treating display of goods as an invitation to treat and not an
offer
Party freedom- freedom should be given to the shopkeeper to choose with whom he
wants to contract. He should not be bound to sell to any person who comes into
the store and picks up any number of articles. Main purpose can be considered
that the acceptance must be delayed to a point where the customer is still
deciding whether or not he wants to purchase the product(as buyer makes an offer
and seller accepts it).
However, according to Richard Stone[2], this freedom can be used in a
discriminatory sense. It allows the freedom to the shopkeeper to choose the
customers he wants to contract with, wherein he/she can discriminate in terms or
race, sex, caste, creed, gender, etc. In case of display in a shop window, it
also allows the shopkeeper to change the price which had initially been on the
price tag in the shop window. This increases the purchase price which benefits
the shopkeeper.
Allowing customers to change their mind- as stated above, main aim is to allow
substituting. Broadening the scope for customers to purchase as per their choice
and requirement, so as to retain the benefit of buyer as well as sellers.
However, in case of display of goods being treated as an offer, this is not
essential. Because, if the goods are on display, there can be two actions which
are done by the customer.
Either the customer states that he/she wants to buy the items displayed in the
window (anyway retaining the choice and freedom of buyer as he wants only that
particular product at that price) or the customer will state his interest in
buying the product displayed and ask questions regarding it. This is a request
for more information and not an acceptance. Here too, the interests of buyer are
retained.
Therefore, it is not absolutely essential for display of goods in a shop window
to be treated as an invitation to treat if the essence is to protect the buyer's
interests. The court may have interpreted the willingness signified to another
with a view to obtain assent differently. It could be that a display was an
offer which was complete when the acceptor paid for the goods and the offer was
available till stock lasts. In this way, the goods could have been considered an
offer which was complete upon payment. The payment demonstrated acceptance.
Concluding this section
However, the policy rationale in the actual case favoured the seller. It was to
protect to the seller from incurring multiple liability with every person who
picked up the goods. However, taking the line of thought by McKendrick, the
court may have interpreted the willingness signified to another with a view to
obtain assent differently.
It could be that a display was an offer which was complete when the acceptor
paid for the goods and the offer was available till stock lasts. In this way,
the goods could have been considered an offer which was complete upon payment.
The payment demonstrated acceptance. Also treating this case as an invitation to
treat is not only supported by law but also by common sense and ordinary logic.
Second Part- Comparative Analysis:
Facts and Background
The facts of the case are similar to the facts of
Fisher v. Bell[3]. The
defendant shopkeeper displayed in his shop window a flick knife accompanied by a
price ticket displayed just behind it. He was charged with offering for sale a
flick knife, contrary to s. 1 (1) of the Restriction of Offensive Weapons Act
1959.
The issue in this case was whether the display of the knife constituted an offer
for sale or an invitation to treat. Section 1(1) of the Restriction of offensive
Weapons Act 1959 contained the words
offer for sale and not
exposing
for sale. This implied that only an actual offer would be an illegal
offense under this particular Act.
Therefore, it was concluded that the respondent (Bell) was not guilty. Here, the
object who's display is argued upon is the knife (dangerous object), similarly
in Boots the object who's display is argued upon are the medicines which are
poisonous in nature (dangerous). The display of both was considered not to be an
offense under the respective Acts, applying the rule; display of good in a store
is an invitation to treat and not an offer. The buyer makes an offer when he
brings the object to the cash counter, the seller accepts the offer thereupon.
Approach
In Fisher[4], the judge used the literal interpretation of the rule under
Section 1(1) Restriction of offensive Weapons Act 1959-a flick knife cannot be
manufactured, sold, hired, offered for sale or hire, lent or given to another
person. The Act did not contain the activity of
exposing for sale.
As the judge applied the literal rule, the exposing of goods did not seem to be
an offense to him. It is evident that there is a loophole in the statute. It can
be seen that the main aim of the Act was to prevent/reduce the possibility of
any person to use a flick knife. The purpose here is to warn people that usage
of a flick knife is dangerous in case of accidents and there will be a penalty
on any such person who makes, encourages another to use it by lending, hiring,
or selling this knife.
The purpose is the protection of the people from it. The mere fact that the Act
did not include the word expose does not necessarily imply that shop owners,
taking advantage of the rule of display of goods being an invitation to treat,
can encourage people to purchase a flick knife by displaying it in a shop
window. This too, goes against the intention and purpose of the Act. If the
judges had used the purposive approach of interpretation, they would, I believe,
arrive at a different conclusion.
The court should adopt an interpretation to avoid expanding the scope of the
legislation to an unintended domain. Here, the courts did not dwell over the
fact that the goods themselves were dangerous. It was a flick knife. However,
what the courts did not do was consider the extent of the danger as they did in
Pharmaceutical case. How dangerous- more or less was not considered.
Distinguishing Boots from Fisher
In Boots, Section 18(1) of the Pharmacy and Poisons Act, 1933 provided that:
It shall not be lawful:
- for a person to sell any poison included in Part I of the Poisons List,
unless:
- he is an authorized seller of poisons; and
- the sale is effected on premises duly registered under Part I of this
Act; and
- the sale is effected by, or under the supervision of, a registered
pharmacist
Here, On 13
April 1951 two customers purchased medicines which fell within the scope of the
Act and the issue for the court was whether or not these sales were effected by
or under the supervision of a registered pharmacist. Somervell LJ states that:
It is not disputed that in a chemist's shop where this self-service system does
not prevail a customer may go in and ask a young woman assistant, who will not
herself be a registered pharmacist, for one of these articles on the list, and
the transaction may be completed and the article paid for, although the
registered pharmacist, who will no doubt be on the premises, will not know
anything himself of the transaction, unless the assistant serving the customer,
or the customer, requires to put a question to him.[5]
Analysis
We emphasise on the fact that these drugs were not dangerous. They were
substances which contain very small proportions of poison, and I imagine that
many of them are the type of drug which has a warning as to what doses are to be
taken. They are drugs which can be obtained, under the law, without a doctor's
prescription.
If in case of self-service stores, if the rule stated that display
of goods should be constituted as an offer, then Boots Cash Chemist would be
liable under the Pharmacy and Poisons Act 1933 because- in such a a case; if the
sale was made under the supervision of the pharmacist, the pharmacist could say,
sorry, you cannot purchase this. This item contains poison(while the
allegedely poisonous item is being picked up by the customer.
But, here, I
believe the sale took place under the supervision of a pharmacist who was
registered. The actual Rule applied in the current case clearly stated that
display of goods is an invitation to treat. Therefore, sale is not effected when
product is picked up by the customer.
The sale is not complete until the
customer offers to purchase the product, offer is accepted by accepting the
money and this whole transaction takes place under the supervision of a
pharmacist. This is what exactly happens in the current case. Therefore,
applying the literal approach of interpretation of Pharmacy and Poisons Act
1933, Boots Cash Chemist is not liable under the said Act.
Criminal law vs contract law
According to Roderick Munday, contractual rules are intended to regulate the
mating ritual of offer and acceptance � often, it is said, because the
shopkeeper impliedly reserves to himself a right of selecting his customer A
shop is a place for bargaining, not for compulsory sales �[6], the aim of the
Criminal Law.
But the criminal law often deviates from the interpretation laid
down by the contract law and analyses the interpretation with its relevant
language and that the courts can properly take account of mischief to which the
statute is directed. The criminal law interpretation states that the main aim of
the statute (Pharmacy and Poisons Act 1933) was to prohibit the sale of flick
knives.
While criminal law focuses on the implied and analytical meanings of the
statute, the contract law lays emphasis on the direct and man in the street's
understanding of the expression. This interpretation is essentially
legislative. Also, Denning LJ in
Magor & St Mellons RDC v Newport Corp stated
that it is the duty of the judge to fill in gaps left by the legislature (what
criminal law portrays)
The judgement declared by the judge in the case of
Pharmaceutical Society can be said to have been a naked usurpation of the law
which was laid down in the disguise of interpretation. Criminal law and contract
law pursue different objectives. But, when judges emphasise on the contractual
and technical meaning of statutes, they fail to engage with the sole rationale
and purpose of the statutes.
An intersection between criminal law and contract law according to Roderick
Munday would be that, when a court encountered a statute which provided that
anyone who offers for sale a flick knife was to be guilty of an offence, the
obvious inference was that it was intended that, despite the fact that such a
construction might diminish the effectiveness of the statute, this expression,
unusual in the criminal context, was meant to bear its technical, contractual
meaning.
When the words offer for sale are used, it provides a leeway to the
shopkeepers to display the poisonous substances. This weakens the Act[7] as it
takes away the sole purpose behind it. Therefore, it also gives the judges the
capacity to emphasize on the technical meaning of the statute.
In the interpretation of the relevant language, the contract law notably
diverges from the criminal law. The courts can also take an account of the
mischief to which a statute is directed. As rightly stated by Roderick Munday,
whereas the contractual rules are intended to regulate the mating ritual of
offer and acceptance � often, it is said, because the shopkeeper impliedly
reserves to himself a right of selecting his customer.
A shop is a place for
bargaining, not for compulsory sales[8] ,the aim of the Criminal Law is to
outlaw certain categories of transaction. As was pointed out in an annotation in
the Criminal Law Review, in the principal case under review the object of the
statutes was variously to prohibit the trade in flick knives. (fisher v. bell)
Extent to which Goods were dangerous
On the other hand, in Boot Cash Chemists carrying poisons was an offence under
s. 18 Pharmacy and Poisons Act 1933 (U.K.). However, the interpretation adopted
was more flexible since Somervell J considered the extent to which goods subject
to the dispute were
dangerous.
He found the goods in question were not
dangerous drugs. He stated that, they were substances which contain very small
proportions of poison, and I imagine that many of them are the type of drug
which has a warning as to what doses are to be taken. They are drugs which can
be obtained, under the law, without a doctor's prescription.
Therefore, he did
not aim to interpret s. 18 and what may be included within its ambit. Rather, he
adopted an approach which considered whether the goods in the dispute were
dangerous or not. One could argue, the extent of danger posed by the goods may
have led Somervell J to imply that a self-service system such as the one in Boot
Cash Chemists was sufficient to meet the objective under the Poisons Act.
Degree of Supervision Required to Protect Public In Case Dangerous Medicines
Being Displayed:
Evolution of Rule stated in Fisher v. Bell-After Lord Parker CJ's judgement, the
Restrictions of Weapons Act 1959 was amended to form the Restriction of Weapons
Act 1961 to include the term
expose or
has in possession for the purpose of
sale or hire. I believe, this would retain the soul purpose of the Act as
stated above. Therefore, if any person would keep a flick knife on display(expose) in a store, it would be constituted as an offer, thereby being
an offence under Restriction of Weapons Act 1961.
As stated by Roderick Munday, statutes cannot list every offence within the
ambit of every provision. It would be a never-ending writing process. It can be
said that a statute with criminal offences ought to have been read to curb the
offence of offering to sell. However, by reading the statute in light of civil
law, the court may have subverted the meaning. What if the Parliament, while
drafting the legislation, was thinking that it was the seller who was offering
to sell through the display and may have thought to criminalise the seller.
After
Fisher v Bell, there was clarity on invitation to treat and an
offer. It was clearer that a display in a shop window was an invitation to treat
because there was a business sense in the display. If
offer to sell was treated
differently in criminal context and civil context (offer by seller in criminal
and offer by buyer in civil) then- there would be different set of rules for
both.
These would be unwarranted. Instead, I feel, there should be a single set
of rules which state the display of goods being either an invitation to treat or
an offer. The interpretation would have been contradictory if taken to its
logical conclusion and for no other reason but to give a strict interpretation
to a statute with criminal implication.
Current Scenario:
Today, if an analogy was to be drawn between Boots and Fisher,
display of medicines (dangerous) for sale in a self-service store would be
constituted as exposing which is an offence. These medicines would be required
to be kept behind the counter where there would be a constant supervision by a
registered pharmacist on who purchases which kind of medicines.
The essence lies
in the fact that the rule applies to only dangerous medicines which require
supervision. In the current case, as Somervell LJ stated,
the goods were less
dangerous.[9]
Therefore, even today, applying the new Rule under Fisher, Boots
Cash Chemist would still NOT be liable. Taking into consideration a different
scenario (case where goods displayed (Medicines) were dangerous. The purpose of
this Act is to protect people from wrong dosage or harmful use of such
substances.
In case the dangerous medicines are kept on display and the
pharmacist is available near the cash counter where a buyer will go to make the
payment (where complete transaction takes place), there might be situations in
which the medicines on display, even if a registered pharmacist is available at
cash counter, could prove to be harmful.
For eg, if a person, not having much
knowledge regarding a particular dangerous drug, picks it up from a rack and
consumes it on the spot, or if a child, mischievously picks it up and throws it
around or consumes too many tablets, or in case where the store is entered by a
thief who secretly places them in his pocket and further makes harmful use of
it, etc.
These conditions not necessarily but are likely to happen. A shop owner
must reasonable foresee such situations and thereby, to avoid this and retain
the purpose of the Pharmacy and Poisons Act 1933 (protection of people), must
keep such dangerous drugs at a place where they will be under constant (possibility of mishap if supervision is lost for any amount of time,
even a minute) supervision, like behind the counter.
Customers who require such
drugs can, along with a doctors prescription, come to the counter and ask the
shopkeeper who will further direct him/her to the pharmacist, or can directly go
to the pharmacist and ask him for the drugs he requires. These precautions are
necessary in case of DANGEROUS drugs, not for non- dangerous or less dangerous
ones, as was the case in Boots Cash Chemist.
Therefore, if this case was to be
based on the rule laid down in Fisher after the Amendment and application of
Restriction of Weapons Act 1961, then displaying the goods only dangerous
medicines, not less dangerous or non- dangerous drugs) on racks in the self
service store and not behind the counter would make Boots Cash Chemist liable.
Closing Statements:
Firstly, a criminal statute should be wide enough, such that it does not
coincide or oppose a contract law on similar lines. This is essentially to
retain the sole purpose of the criminal statute. Secondly, the display of goods
is an invitation to offer and once you give cashier the money, it is an offer.
This offer is further accepted when the cashier accepts the payment. After
viewing all angles and possibilities of happenings in the case of
Pharmaceutical
Society of Great Britain v. Boots Cash Chemist, I would abide by the judgement
given by Somervell LJ as all scenarios directed the Boots Cash Chemist to be
held not liable.
References:
- Pharmaceutical Society of Great Britain v. Boots Cash Chemists [1953] 1 QB
401
- Fisher v Bell [1961] 1 QB 394
- Ewan McKendrick, Contract Law: Texts, Cases, and Materials, 5th Edition
(Oxford University Press), pages 63, 64, 65.
- Roderick Munday, Fisher v Bell Revisited: Misjudging the Legislative Craft,
(March 2013)
- The Modern Law of Contracts by Richard Stone, The Modern Law of
Contracts, (pages 40 and 41)
- Nilima Bhadbhade, Pollock & Mulla Indian Contract and Specific Relief Acts,
14th Edition (Lexis Nexis Butterworths Wadhwa) Pages 38- 41, Pages 178-183
End-Notes:
- Ewan McKendrick, Contract Law: Texts, Cases, and Materials, 5th Edition
(Oxford University Press
- The Modern Law of Contracts by Richard Stone, The Modern Law of
Contracts, (pages 40 and 41)
- Fisher v Bell [1961] 1 QB 394
- Fisher v Bell [1961] 1 QB 394
- Pharmaceutical Society of Great Britain v. Boots Cash Chemists [1953] 1 QB
401
- Roderick Munday, Fisher v Bell Revisited: Misjudging The Legislative Craft,
(March 2013)
- Pharmacy and Poisons Act,1933.
- Roderick Munday, Fisher v Bell Revisited: Misjudging The Legislative Craft,
(March 2013)
- Pharmaceutical Society of Great Britain v. Boots Cash Chemists [1953] 1 QB
401
Award Winning Article Is Written By: Ms.Shriya S. Patil
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