Clause 5

by deleting subsections (2) and (3) and substituting the following subsections:“(2) Where, under such a contract, the bailor bails goods in the course of a business, there is an implied condition that the goods supplied under the contract are of satisfactory quality.(2A) For the purposes of this section and section 10, goods are of satisfactory quality if they meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the consideration for the bailment (if relevant) and all the other relevant circumstances.(3) The condition implied by subsection (2) does not extend to any matter making the quality of goods unsatisfactory —

which is specifically drawn to the bailee’s attention before the contract is made;

where the bailee examines the goods before the contract is made, which that examination ought to reveal; or

where the goods are bailed by reference to a sample, which would have been apparent on a reasonable examination of the sample.”; and

by deleting subsection (9).