XN000022-1994-04-27 — Page 26

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WEDNESDAY, APRIL 27, 1994

THREE BILLS INTRODUCED TO BETTER PROTECT CONSUMERS

THREE BILLS SEEKING TO IMPLEMENT RECOMMENDATIONS MADE BY THE LAW REFORM COMMISSION FOR THE BETTER PROTECTION OF CONSUMERS WERE INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THEY ARE THE SALE OF GOODS (AMENDMENT) BILL, THE SUPPLY OF SERVICES (IMPLIED TERMS) BILL AND THE UNCONSCIONABLE CONTRACTS BILL.

MOVING THE SECOND READING OF THE FIRST BILL, THE SECRETARY FOR TRADE AND INDUSTRY, MR TH CHAU, SAID THE BILL, PROPOSED FOUR ADDITIONAL CRITERIA TO BETTER DEFINE MERCHANTABLE QUALITY OF

SOLD.

GOODS

THEY COVER THE FREEDOM FROM DEFECTS,

APPEARANCE AND FINISH OF THE GOODS, THEIR DURABILITY AND SAFETY.

MR CHAU SAID THESE ADDITIONAL CRITERIA REPRESENTED A FAIR OF WHAT A BUYER COULD REASONABLY EXPECT ABOUT THE QUALITY OF

SUMMARY THE GOODS.

"ONCE INTRODUCED, THEY WILL ENHANCE THE AWARENESS OF SUPPLIERS AS TO THEIR OBLIGATION TO ENSURE THE MERCHANTABILITY OF THEIR GOODS.

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"THEY WILL ALSO PROVIDE GUIDELINES TO CONSUMERS AND THE COURT IN DECIDING WHETHER ANY PARTICULAR GOODS ARE OF MERCHANTABLE QUALITY, MR CHAU SAID.

REGARDING THE SUPPLY OF SERVICES (IMPLIED TERMS) BILL, MR CHAU SAID IT SOUGHT TO CODIFY SOME COMMON LAW PRINCIPLES ABOUT CONTRACTS FOR THE SUPPLY OF SERVICES.

UNDER THE BILL, A SUPPLIER OF SERVICES IS OBLIGED го PROVIDE THOSE SERVICES WITH REASONABLE CARE AND SKILL AND WITHIN A REASONABLE TIME. ON THE OTHER HAND, THE BUYER IS REQUIRED TO PAY A REASONABLE CHARGE.

"WE HOPE THAT' WITH THE CODIFICATION OF THESE COMMON LAW PRINCIPLES, THERE WOULD BE GREATER CLARITY AND OVERALL CONSISTENCY IN THEIR APPLICATION," HE SAID.

TURNING TO THE UNCONSCIONABLE CONTRACTS BILL, MR CHAU SAID 1T SOUGHT TO EMPOWER THE COURT TO REWRITE OR STRIKE DOWN UNCONSCIONABLE TERMS IN CONSUMER CONTRACTS.

1T PROVIDES JUDICIAL GUIDELINES FOR THE COURT IN DETERMINING UNCONSCIONABILITY AND IN EXERCISING ITS POWERS.

ΤΟ

THE BILL PROPOSES THE COURTS HAVE THE POWERS TO REFUSE ENFORCE THE CONTRACT; TO ENFORCE THE REMAINDER OF THE CONTRACT WITHOUT THE UNCONSCIONABLE PART; AND TO REVISE, ALTER OR LIMIT THE APPLICATION OF ANY UNCONSCIONABLE PART OF THE CONTRACT.

/THERE WILL