The European Communities (Unfair Terms in Consumer Contracts) Regulations, 1995 apply to standard contracts taken out by:

• A. Small companies.
• B. Large companies.
• C. An individual acting in the course of his or her business.
• D. An individual acting outside his or her business.

Answer: (D)

These regulations protect individuals who enter into contracts with traders when the terms are standard and not negotiated. A consumer is a natural person acting outside their trade, business, craft, or profession. The rules target standard terms used in consumer contracts between a trader and such a consumer, to prevent unfairness. They do not cover contracts where the party is acting in the course of their business, even if that party is an individual. Therefore, the scenario that fits is an individual acting outside his or her business, i.e., a consumer.