Overview

This bill mandates the acceptance of Scottish banknotes as legal tender throughout the United Kingdom, eliminating discrimination against them in transactions. Businesses refusing to accept them face investigation and potential penalties by the Office of Fair Trading (OFT).

Description

This Act aims to ensure equal treatment for Scottish banknotes across the UK. Key provisions include:

• Section 1: Mandatory Acceptance: Businesses must accept Scottish banknotes for goods and services, barring exceptions (see Section 3).
• Section 2: OFT Enforcement: The OFT can investigate complaints of non-compliance. Persistent refusal to accept Scottish banknotes may result in notices requiring corrective action, potentially including public notices about the law.
• Section 3: Forgery Defence: Businesses can refuse banknotes suspected of being forgeries, provided they have reasonable grounds for suspicion. The OFT will not penalize businesses acting in good faith to prevent fraud.
• Section 4: Short Title and Extent: The Act's short title is the Scottish Banknotes (Acceptability in United Kingdom) Act 2009. It applies to England, Wales, Scotland, and Northern Ireland.

Government Spending

The bill's impact on government spending is not explicitly stated in the provided text. The cost of enforcing the act through the OFT would need to be considered. No figures are given.

Groups Affected

The bill primarily affects:

• Businesses: They are legally obligated to accept Scottish banknotes. Failure to comply can lead to OFT investigation and potential penalties.
• Consumers in England, Wales, and Northern Ireland: They will experience greater convenience and less discrimination in using Scottish banknotes.
• Scottish Banks: The bill could boost the circulation and acceptance of their banknotes.
• The Office of Fair Trading (OFT): They are tasked with enforcing the bill and will likely experience an increase in workload.

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