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PROPERTY TALK

Property Talk

A new Act that works for consumersThe Procedural Consumer Act BE 2551 has been effective since August 24 and has had a great impact on all developers, particularly those who show less concern and care for consumer interests.



 

 The aim of this Act is to minimise and resolve disputes between business entities and conŽsumers that have arisen due to prodŽuct defects, inferior quality and poor service. Most business entities have an advantage because of finance, knowledge and legal advisers. Therefore consumers normally face many difficulties in court.

To give both parties equal rights, this Act will apply the Procedural Consumer Act BE 2551 instead of the Procedural of Civil Law Act BE 2548 in cases where consumers file a comŽplaint against business entities. Secondly, the president of the Supreme Court of Justice has the right to issue additional regulations, with the consensus of the Supreme Court Meeting, on any point that is not menŽtioned in the Act. Lastly, if there is any issue that this Act does not mention and no regulation from the Supreme Court applies, the Procedure of Civil Law Act BE 2548 shall be applied as a "last resort".

Under the new articles in this law, some issues that need to be considŽered by developers are as follows;

Articles 10 and 11: There is no requirement for written documents in the execution. Any terms and conŽditions the developer expresses to the consumer, written or oral, are conŽsider a "promise" to perform. The promise can be an advertisement, notice or written document.

Article 12: The philosophy of "Utmost Good Faith" shall be considŽered the first priority of all developŽers in this Act. The developer shall run his business using proper standards and be honest with the consumer. If any act or behaviour contravenes business standard, it shall be deemed an infringement of this law.

Article 13: In case of any damage to life, body or health of the conŽsumer with or without an obvious symptom, the validity period for this Act will be a threeyear count from the consumer's notice but shall not exceed 10 years from the damage or occurrence.

Article 17: There is a change in court jurisdiction. Under this Act, the consumer has the right to bring the dispute and claim on the developer to the court nearest to his/her residence to help the consumer in proceeding with the litigation.

Article 29: Under this law, the burden of proof shall be borne by the developer to disprove his/her guilt or fault. If the developer cannot defend himself, he shall compensate for all costs and expenses as claimed. The developer is considered to have exclusive knowledge of his business standard.

Article 30: Precedent shall apply if all facts in the present case are similar to the previous case.

Article 40: The court reserves the right to correct any claims of expensŽes if the consumer can prove that there has been damage as a consequence of the developer's actions, despite its being noticed later. The court also reserves the right to correct its deciŽsion within 10 years of the date of the first decision.

Article 41: The consumer has the right to stake a claim due to a defecŽtive product by exchanging it for a new one or getting it fixed at the develŽoper's expense.

Article 42: If the developer is proved guilty of running his business below standard, the court has the right to claim punitive damages for the conŽsumer.

Article 43: Even if the developer is not proved guilty but the product is considered hazardous to the conŽsumer, the court has the right to order the developer to recall all products from the market at the developer's expense. If the developer does not comply, the court can have him detained until the order has been satŽisfactorily performed.


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