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LAW 529 (123)
Chapter 6

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Law and Business
LAW 529
Nick Iannazzo

Chapter 6: Consumer Protection Act (CPA), 2002 Consumer – individual acting for personal, family or household purposes and does not include a person who is acting for business purposes Supplier – person in business of selling, leasing or trading in goods or services and include a suppliers agent and person who holds themselves out as S or S’s agent S.2 (1) CPA applies to all CT’s if C or person engaging in transaction with C is located in Cont. When the transaction takes place, except those mentioned in S.2 and 2(3) (Financial markets. S.3 Anti-avoidance in determining weather CPA applies one shall consider the real substance... and may disregard the outside form. S.5 Disclosure of Info – Disclosure by S per CPA must be: 1. Clear, comprehensible and prominent 2. Delivered in a form that can be retained by C C’s Rights and Warranties S.6 still has all other rights or remedies in law S.7 (1) rights given under CPA apply despite any agrmt and waiver to the contrary S.7 (2) – mandatory arbitration in a CA is invalid; C has right to go to court. S.7 (3) – after a dispute arises the parties may agree to ADR (eg. Arbitration) S.7 (4) – settlement or decision per s. 7(3) is binding. S.8 Class action – prohibition on class actions is invalid. S.8 (2) – after a dispute arises the parties may agree to ADR (eg. Arbitration) S.8 (3) – settlement or decision per s. 8(2) is binding. S.9 Quality of G and S – Quality of Service – S warrants services under a CA are of reasonably acceptable quality Quality of Goods – Implied conditions and warranties under Sales of Goods Act apply also to g’s leased, traded or otherwise supplied under CA. (implies, fitness for purpose, )’ (3) – any term or acknowledgement that attempts to negate or vary any implied condition or warranty under he SGA or CPA are VOID. (4) – any offending term referred in to in s.9(3) is severable S.10 (1) – Estimates – If a CA includes an estimate the S must not exceed that estimate by more that 10% S.10 (2) – C entitled to g’s or s’s at estimates if s.10 (1) violated (i.e. S charges prices more than 10% over estimate) S.10 (3) – S and C amend estimate or price if additional or different g’s or s’s S.11 ambiguities Ambiguities in a CA shall be interpreted to the benefit of the C S.12 Charging C for Assistance No person shall charge a C to assist him/her in obtaining statutory rights of CPA unless C is advised of the rights and that he/she can apply himself/herself and the cost. S.13 – Unsolicited G or S 1. If a person receives unsolicited g’s or s’s he/she has no legal obligation to use or dispose 2. No supplier shall demand payment for unsolicited g’s or s’s despite their use, receipt, misuse, loss, damage or theft. 3. Request for g’s or s’s shall not be inferred solely by payment, inaction or time. 4. Material change deemed unsolicited. – Eg. Magazine subscription, they start sending you other magazine as well, and they start charging you., “material change” and which is considered deemed unsolicited. 5. C’s consent to Material Change – Onus on supplier to prove. (6)(7)(8) – C can demand refund of payment for an unsolicited g or s w/I 1 year and supplier must refund; C can commence action. s.14, 15, 16 Unfair Practices (UP) S.17 – No person shall engage in and UP, unfair practice S.17 (2) – one act deemed a practice S.16 – Renegotiation of Price It is UP to use custody or control of a C’s g’s to pressure him/her into renegotiating the CT e.g. movers S.14 – False, Misleading or Deceptive Rep. S.14(1) – It is an UP to make a false, misleading or d
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