Authorized specialists have stated that current legal guidelines are adequate to guard customers, due to this fact there isn’t any have to rush the lemon regulation which is being thought-about for automobiles consumers, 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 might 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 stated. “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 stated.
Earlier this month, the ministry of home commerce and value of residing (KPDN) launched two interim methods geared toward defending customers concerning the proper to assert compensation for faulty or defective merchandise – notably for motorized vehicle 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, particularly the absence of a transparent definition of merchantable high quality as acknowledged underneath Part 16 of the Sale of Items Act. Whereas the CPA presents supplementary client safety, the act additionally permits events to override client rights by particular agreements which weaken its effectiveness in some instances, Salim added.
On this, Salim cited the case of Puncak Niaga Sdn Bhd v NZ Wheels Sdn Bhd in 2012, through which the courtroom voided the contract over a faulty automobile that failed to fulfill acceptable high quality requirements underneath 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 enable curiosity teams to file lawsuits on behalf of customers, thus limiting collective motion.
In the meantime, Datuk Abdul Fareed Abdul Gafoor, who can be a former Bar Council president, voiced his help for a lemon regulation particularly for automobiles. 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 stated.
The ability disparity between customers and enormous automotive corporations complicates efforts for a client to claim their rights underneath the CPA, the place negotiating repairs of refunds might be troublesome, resulting in dissatisfaction and disputes.
A lemon regulation sometimes 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 stated.
“Introducing a lemon regulation will provide clearer treatments and shift the burden of proof to producers, giving customers extra safety,” Abdul Fareed stated.
Whereas there are positively potential advantages of a lemon regulation, he warned of unintended penalties akin to elevated litigation and better prices for each companies and customers. “Cautious implementation with clear tips is crucial to stability client rights with enterprise pursuits and keep away from a unfavorable financial impression,” he added.
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