Authorized consultants have mentioned that current legal guidelines are adequate to guard customers, subsequently there is no such thing as a have to rush the lemon regulation which is being thought-about for autos patrons, reported The Star.
Current client safety legal guidelines, such because the Sale of Items Act 1957, Shopper Safety Act 1999 (CPA), Contract Act 1950, Management of Provides Act 1961, and Rent Buy Act 1967 may very well be strengthened to boost client safety, based on former president of the Malaysian Bar Salim Bashir who led the Bar Council from 2020 to 2021.
Whereas these legal guidelines provide customers recourse for faulty items, particular provisions required amendments for higher safety, Salim mentioned. “It’s crucial to fine-tune current legal guidelines by the use of amendments with out introducing a brand new lemon regulation in Parliament,” he mentioned.
Earlier this month, the ministry of home commerce and value of residing (KPDN) launched two interim methods geared toward defending customers relating to the proper to assert compensation for faulty or defective merchandise – notably for motorcar purchases – earlier than a brand new authorized framework earlier than the proposed lemon regulation is finalised, based on its minister Armizan Mohd Ali.
A number of shortcomings had been highlighted by Salim, specifically the absence of a transparent definition of merchantable high quality as said below Part 16 of the Sale of Items Act. Whereas the CPA provides supplementary client safety, the act additionally permits events to override client rights by way of particular agreements which weaken its effectiveness in some circumstances, Salim added.
On this, Salim cited the case of Puncak Niaga Sdn Bhd v NZ Wheels Sdn Bhd in 2012, by which the court docket voided the contract over a faulty automotive that failed to fulfill acceptable high quality requirements below Part 12 (2) of the Shopper Safety Act.
Part 51 of the CPA didn’t provide redress in opposition to producers if defects arose from exterior elements after the product has left the manufacturing facility, and the CPA additionally didn’t permit curiosity teams to file lawsuits on behalf of customers, thus limiting collective motion.
In the meantime, Datuk Abdul Fareed Abdul Gafoor, who can also be a former Bar Council president, voiced his help for a lemon regulation particularly for autos. Whereas the CPA and Sale of Items Act provide some client safety, they lack specifics in addressing recurring automobile defects which go away customers with out clear treatments.
Abdul Fareed, who led the Malaysian Bar from 2019 to 2020, highlighted the absence of guarantee requirements and restore closing dates, which regularly left customers ready for prolonged durations for repairs with out a correct framework for claiming damages. “We want clearer guarantee requirements and cheap restore closing dates,” he mentioned.
The facility disparity between customers and enormous automotive corporations complicates efforts for a client to say their rights below the CPA, the place negotiating repairs of refunds may very well be troublesome, resulting in dissatisfaction and disputes.
A lemon regulation usually shifted the burden of proof to the producer as soon as a automobile was deemed faulty, forcing corporations to behave in good religion whereas offering stronger client safety with out extended authorized battles, Abdul Fareed mentioned.
“Introducing a lemon regulation will provide clearer treatments and shift the burden of proof to producers, giving customers extra safety,” Abdul Fareed mentioned.
Whereas there are positively potential advantages of a lemon regulation, he warned of unintended penalties corresponding to elevated litigation and better prices for each companies and customers. “Cautious implementation with clear pointers is important to stability client rights with enterprise pursuits and keep away from a adverse financial influence,” he added.
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