Monthly Archives: October 2011

The new Consumer Protection Act: An Overview (Part 3)

Contract terms

The CPA contains wide-ranging prescriptions on the avoidance of unfair, unreasonable or unjust contract provisions and special notice required to the consumer in respect of various terms which may appear to be unusual or disadvantageous to the consumer. Sections 48 and 49 of the CPA will prevent suppliers from limiting their liability or obtaining indemnification against claims from the consumer. While these restrictions even the playing fields, it may ultimately lead to increased transaction costs for the consumer since the supplier will have to factor in higher provisions for possible returns and insurance costs when determining its prices. The supplier may also not include anything in its standard terms and conditions which purports to limit or circumvent the applicability of the CPA. Continue reading

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