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Are you unsure what to do with an unwanted present or faulty item? Maybe you've just purchased a dress in the sales, but have since decided you don't really like the colour after all. This article will help to inform you of your rights when out on the high street and when you return home.

Gift vouchers and gift cards

Gift vouchers and gift cards are sold subject to the terms and conditions stated in them. They may be exchanged for a service (for example, a facial or massage) or goods (such as a book voucher).

They can't be exchanged for their equivalent monetary value. If you want the recipient to have complete freedom over what they buy with the money you spend on them, give them a cheque or cash but don't send cash through the post.

Many gift vouchers/cards (not all) only last for a fixed period of time. So if you're thinking of buying vouchers/gift cards, check to see if there's an expiry date. If so, and you're buying well in advance of when you intend to give the voucher, try and get the voucher backdated.

Equally, if you receive a gift voucher/card as a present, check for any expiry date and ensure you use it before that date.

• When buying/receiving a gift voucher/card, check its terms and conditions (including expiry date).
• If you receive a voucher/gift card for which you have no real use and which can be transferred, think about selling it to someone else. You'll need to check the terms and conditions of the voucher/card.
• Keep vouchers/gift cards in a safe place. Replacement ones will not be issued.

What the issuer will not do is give you money in exchange for the voucher.

Whether the buyer of a gift or the recipient, everyone needs to know the law about returning an unsuitable item (for example, the shirt that doesn't fit, or the skirt that's the wrong colour) rather than simply having to rely on the goodwill of the shop.

The general rule is that only the parties to a contract have rights and responsibilities under it. So, in the context of sale of goods, this means that only the buyer will have any rights in relation to the goods (even if they're being bought as a gift).

Now, however, the Contracts (Rights of Third Parties) Act 1999 makes it possible for a buyer to ensure that the donee of a present has the same rights as the buyer. What the buyer needs to do is to tell the seller that he/she is buying the goods as a present for someone (for instance 'a friend' or 'my daughter'). The recipient doesn't actually have to be named.

'Unsuitable' (as opposed to defective or misdescribed) goods can only ever be returned if the seller expressly agreed that they could be returned after the given event for which they're being bought. Also shops will often impose a time limit within which unsuitable goods must be returned. This is understandable bearing in mind shops have no legal obligation in relation to unwanted (as opposed to defective) goods.

So, for example, if you're buying a Christmas present, check with the shop whether it can be returned after Christmas if it's unsuitable, and, if so, within what time period.

• Tell the sales person that you're buying a present for someone (such as a friend).
• Get an express assurance that the goods can be returned if they're unsuitable.
• Ask the sales assistant to write on the receipt that it's a gift.
• Keep the receipt. This will prove where you purchased the goods, and the price you paid.

Remember, goods are often reduced after Christmas and you'll want the buyer to get a full refund of the price paid, if suitable alternative goods aren't available.

If goods are defective or have been misdescribed, a consumer has a number of rights and remedies.

Where goods prove defective or to have been misdescribed within six months of delivery, it's presumed that the problem existed at the time of purchase, unless the seller can prove to the contrary.

If a consumer returns goods very soon after purchase, he/she is entitled to a full refund. If not, a consumer is first and foremost entitled to have goods repaired or replaced, provided this can be done within a reasonable time and without significant inconvenience to the consumer.

If repair and/or replacement of the goods is unreasonable/impossible, then a dissatisfied consumer is entitled to an appropriate price reduction or a refund. Note, however, that this refund may be reduced to take account of wear and tear.

Don't be misled into thinking that you must accept a credit note or prove an action against the manufacturers (such as, under a guarantee). Rights are first and foremost enforceable against the shop.

If you see a notice/sign to this effect in a shop be aware that it doesn't affect your statutory rights and remedies as outlined above. A shop can't legally exclude a consumer's right to a full refund in relation to defective or misdescribed goods which are returned promptly after purchase.

In fact, a shop will have committed a criminal offence and should be reported to Trading Standards Department of your local authority. Trading Standards may investigate and, if appropriate, decide to prosecute the offending store.

• Check goods thoroughly before you buy them.
• Seek redress from the shop immediately you become aware of a problem.

Sales

The most important statutory rights are contained in the Sale of Goods Act 1979 (as amended). Where goods are being sold at a reduced price for commercial (that is, stock clearance) purposes, a buyer has the same statutory rights as if he/she was paying the full retail price.

The most important statutory rights are contained in the Sale of Goods Act 1979 (as amended) and in particular the need for goods to be of 'satisfactory quality'.

Satisfactory quality

This is a relative standard and covers minor and cosmetic defects as well as substantial problems. It also means that goods must last for a reasonable time. It doesn't, however, give you any rights in relation to obvious faults, or defects which were specifically pointed out before you bought.

Example: a dress is reduced because it has a stain. You may feel sure the stain will come out in the wash, so you buy the dress and wash it in accordance with the washing instructions.

You'll have no cause of action against the shop if the stain can't be removed. If, however, the dress shrinks when it's washed (as per the instructions) you'll have a legitimate cause of complaint and can reject the dress and/or claim compensation from the shop.

If goods which are expected to last six months prove to be unsatisfactory within that time, a consumer will generally have a remedy against the shop. If they return the goods very soon after purchasing them, they'll be entitled to a full refund. If not, first and foremost, a consumer's remedy will be either to have the goods repaired or replaced.

If inappropriate or impossible to do this, a consumer is entitled to a price reduction or a refund (taking into account wear and tear).

Special purchase goods

Beware of 'special purchase' goods, because these are often bought in by the shop especially for sales.

They may be inferior quality goods or old stock, rather than superior quality goods which have been reduced in price simply for stock clearance purposes.

Amazing offers of massive reductions

'TV spectacular, 20 widescreen digital TVs with video and DVD at an amazing price of £100. First come, first served. Sale starts 27 December. Don't be disappointed!'

An advert such as the above would be regarded as a definite promise to sell the TVs for £100 to the first 20 customers who arrive at the shop and ask to buy one. If the shop doesn't honour such a promise it will be liable to pay a disappointed customer the difference between £100 and what the customer will have to pay to buy a similar TV, video and DVD set elsewhere.

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