Court: Court of Appeal
Judgment Date: 5 February 1953
Where Reported: [1953] 1 Q.B. 401; [1953] 2 W.L.R. 427; [1953] 1 All E.R. 482
Legal Issue in Pharmaceutical Society of Great Britain v Boots Cash Chemists
The legal issue in Pharmaceutical Society of Great Britain v Boots Cash Chemists concerned the moment at which a contract of sale is concluded in a self-service store.
Specifically, the question in Pharmaceutical Society of Great Britain v Boots Cash Chemists was whether the display of goods with a price tag in a self-service store constitutes an offer that can be accepted by the customer when they select the goods, or if it is merely an invitation to treat, with the actual offer being made at the cash desk.
Material Facts in Pharmaceutical Society of Great Britain v Boots Cash Chemists
Boots Cash Chemists adopted a self-service system in their store, where customers would pick items from shelves and pay at the cashier.
The store had a chemist’s department where drugs, including those listed in the Poisons List under the Pharmacy and Poisons Act 1933, were sold.
The process involved customers selecting items and placing them in a basket before proceeding to the cashier, where the items were paid for under the supervision of a registered pharmacist.
The Pharmaceutical Society of Great Britain raised a legal challenge, arguing that under the Pharmacy and Poisons Act, the sale of such drugs required supervision by a registered pharmacist, and this supervision was absent at the point of selection (which they argued was when the sale contract was concluded).
Judgment in Pharmaceutical Society of Great Britain v Boots Cash Chemists
The Court held that the display of goods in a self-service store does not constitute an offer but is merely an invitation to treat. The offer is made by the customer when they present the goods to the cashier at the checkout.
The acceptance of the offer occurs when the cashier accepts the payment. This means that the sale is concluded at the cash desk, not when the customer picks up the item from the shelf.
Therefore, the sale of the drugs was under the supervision of a registered pharmacist at the point of sale, as required by the Pharmacy and Poisons Act.
The Reason for the Decision in Pharmaceutical Society of Great Britain v Boots Cash Chemists
The Court’s decision was based on the interpretation of the contract formation process in the context of a self-service store. The Court differentiated between an offer and an invitation to treat, which is an essential distinction in contract law.
The display of goods with a price tag in a self-service store was seen as an invitation to customers to make an offer to buy, rather than an offer in itself.
This interpretation aligns with the fundamental principles of contract law, where an offer, once accepted, forms a binding contract.
In a self-service scenario, if the display of goods were considered an offer, any customer picking up an item would theoretically be accepting the offer, thereby concluding a contract.
Such an interpretation would be impractical and unworkable, as it would bind customers to purchase every item they picked up, regardless of whether they subsequently decided against buying it.
Furthermore, the Court emphasised the importance of the cashier’s role in the process.
The cashier, stationed at the exit and supervising the transaction, is crucial in this system, as they provide the final acceptance of the customer’s offer to buy the goods.
The decision in Pharmaceutical Society of Great Britain v Boots Cash Chemists also reflected the commercial reality and the operational model of self-service stores.
Acknowledging the customer’s freedom to browse, select, and ultimately choose whether to purchase items aligns with the typical shopping experience in such stores.
Moreover, in the context of the Pharmacy and Poisons Act, the Court’s interpretation ensured compliance with the statutory requirement that the sale of certain drugs be supervised by a registered pharmacist.
By ruling that the sale occurs at the cashier, under the pharmacist’s supervision, the Court upheld the legal requirements for selling such items.
Conclusion
In Pharmaceutical Society of Great Britain v Boots Cash Chemists, the Court clarified the nature of transactions in a self-service environment, establishing that the display of goods constitutes an invitation to treat, not an offer.
Pharmaceutical Society of Great Britain v Boots Cash Chemists has had significant implications for retail operations, affirming that a contract of sale is concluded at the cash desk, not at the point of item selection.
The ruling harmonises the legal understanding of contract formation with the practical realities of modern retail practices, ensuring that both consumer flexibility and statutory compliance are maintained in the self-service shopping model.
