XN000022-1989-05-19 — Page 2

FRIDAY, MAY 19, 1989

J

BILL WILL BETTER PROTECT CONSUMERS RIGHTS

THE CONTROL OF EXEMPTION CLAUSES BILL 1989 WILL GIVE BETTER PROTECTION TO CONSUMERS' LEGITIMATE RIGHTS AND EXPECTATIONS, THE SECRETARY FOR TRADE AND INDUSTRY, MR JOHN CHAN, SAID TODAY (FRIDAY).

SPEAKING AT A PRESS CONFERENCE то ANNOUNCE DETAILS OF THE OFTEN USED PROPOSED LEGISLATION, MR CHAN SAID EXEMPTION CLAUSES WERE IN CONTRACTS TO EXCLUDE OR RESTRICT LIABILITY FOR BREACH OF CONTRACT OR NEGLIGENCE.

"IN SOME CASES THEY ARE USED TO DENY A PERSON'S RIGHTS AND EXPECTATIONS. HE SAID.

"

LEGITIMATE

FOR EXAMPLE, HE SAID, A PERSON IN A STRONG BARGAINING POSITION MIGHT TRY TO IMPOSE ON A WEAKER OR LESS SOPHISTICATED PERSON A CLAUSE EXCLUDING LIABILITY FOR HIS NEGLIGENCE, OR A CLAUSE ENABLING HIM TO DELIVER GOODS OR SERVICES THAT WERE DIFFERENT FROM THOSE REASONABLY EXPECTED.

HE

RECOURSE "IN OTHER CASES

TO THE COURTS MAY BE DENIED BY CLAUSES PROVIDING THAT DISPUTES MUST BE REFERRED TO ARBITRATION." SAID.

MR CHAN SAID THE PROPOSED LEGISLATION WOULD LIMIT THE BY MEANS AVOIDANCE OF LIABILTIY FOR BREACH OF CONTRACT OR NEGLIGENCE OF EXEMPTION CLAUSES.

"IN GENERAL. THE LIMITATIONS APPLY WHERE THE LIABILITY QUESTION ARISES IN THE COURSE OF A BUSINESS.

IN

"HOWEVER, THE LIMITATIONS ALSO APPLY ΤΟ LIABILITY ARISING.

BY VIRTUE OTHERWISE THAN IN THE COURSE OF BUSINESS.

OF THE IMPLIED UNDERTAKINGS IN A CONTRACT FOR THE SALE OF GOODS, " HE SAID.

IS RESTRICT

UNDER THE PROPOSED LEGISLATION, AN EXEMPTION CLAUSE

INEFFECTIVE AUTOMATICALLY

IF IT PURPORTS то

OR EXCLUDE LIABILITY FOR DEATH OR PERSONAL INJURY RESULTING FROM NEGLIGENCE.

THUS. IF A NEGLIGENTLY INSTALLED LIFT CAUSES THE DEATH OF A AT THE WORKMAN ON A CONSTRUCTION SITE. AN EXEMPTION CLAUSE EXHIBITED SITE COULD NOT EXCLUDE THE LIABILITY OF

PERSON RESPONSIBLE FOR

INSTALLING THE LIFT.

THE

EXCLUDED SIMILARLY, LIABILITY FOR LOSS OR DAMAGE CANNOT BE

CONSUMER RESTRICTED BY AN EXEMPTION CLAUSE IN A GUARANTEE OF

REING DEFECTIVE OR IF LOSS OR DAMAGE AROSE FROM THE GOODS FROM NEGLIGENT MANUFACTURE OR DISTRIBUTION.

OR GOODS, RESULTED

FOR

IF EXAMPLE,

NEGLIGENTLY MANUFACTURED GUARANTEE OF THE HAIRDRIER LIABILITY FOR THAT DAMAGE.

A CONSUMER'S

HAIRDRIER, COULD

CLOTHES ARE

AN EXEMPTION NOT RELIEVE THE

BURNT BY CLAUSE IN MANUFACTURER

A

OF

/AN EXEMPTION