FRIDAY, NOVEMBER 16, 1990

ORDINANCE WAS TO "A PARTY то A

MR CHAN SAID THE PRIMARY OBJECTIVE OF THE PROTECT THE RIGHTS OF CONSUMERS, WHOM HE DEFINED AS: CONTRACT 'DEALS AS A CONSUMER' IF HE DOES NOT MAKE THE CONTRACT IN THE COURSE OF A BUSINESS, WHILE THE OTHER PARTY DOES MAKE THE CONTRACT IN THE COURSE OF A BUSINESS."

BESIDES, A PARTY ALSO DEALT AS A CONSUMER IF THE CONTRACT GOVERNED BY THE LAW OF SALE OF GOODS AND THE GOODS WERE OF A SUPPLIED FOR PRIVATE USE OR CONSUMPTION, HE SAID.

WAS

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WERE

HE SAID IN APPLYING THE TEST OF REASONABLENESS THE COURTS REQUIRED TO HAVE REGARD TO THE CIRCUMSTANCES SPECIFIED IN THE ORDINANCE, INCLUDING THE BARGAINING STRENGTH OF THE PARTIES TO A CONTRACT, THE LANGUAGE IN WHICH THE TERM OR NOTICE WAS EXPRESSED, AND THE KNOWLEDGE OF A CONSUMER REGARDING THE EXISTENCE AND APPLICATION OF THE EXEMPTION CLAUSES.

"THE ROLE OF THE COURTS IS TO DETERMINE, THE CLAUSES ARE FAIR AND REASONABLE, HE SAID.

TI

ON THE WHOLE, WHETHER

MR CHAN SAID: "YOU MAY WONDER AS THE ORDINANCE WAS ENACTED IN NOVEMBER LAST YEAR WHY SHOULD IT BECOME EFFECTIVE ON DECEMBER 1 THIS YEAR?

"IN MAKING THIS DECISION, THE GOVERNMENT HAS TAKEN INTO CONSIDERATION THAT IT SHOULD GIVE ADEQUATE AND REASONABLE TIME FOR THE BUSINESS SECTOR TO REVIEW THEIR CONTRACTS IN USE AND TO MAKE SUITABLE AMENDMENTS.

"IN FACT, AFTER THE PASSAGE OF THE ORDINANCE, THE GOVERNMENT WROTE TO VARIOUS BUSINESS FIRMS EXPLAINING THE RELATED CHANGES.

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THE CONSUMER COUNCIL HAD ALSO MADE SUITABLE ARRANGEMENTS TO HELP CONSUMERS AND BUSINESS FIRMS TO UNDERSTAND THE CONTENT OF THE ORDINANCE.

MR CHAN SAID BASED ON THE PRINCIPLES OF JUSTICE AND TRUTH, IF A CONSUMER SUSTAINED A LOSS BECAUSE THE OTHER PARTY FAILED TO FULFIL HIS DUTY, THE CONSUMER SHOULD NOT BE BLOCKED FROM THE CHANNELS OF COMPLAINT JUST BECAUSE THE OTHER PARTY WAS RICH AND POWERFUL.

"THE OBJECTIVE OF THE CONTROL OF EXEMPTION CLAUSES ORDINANCE IS TO CHANGE 'NO LIABILITY' INTO 'UNSHIRKABLE LIABILITY', HE SAID.

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