BL Chapter 9

8/13/2019 BL Chapter 9

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CHAPTER 9

Sale of Goods




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OBJECTIVES

This chapter:

lays down the basic principles of the law

governing sale of goods




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PREVIEW

Applicable Laws

Definition of ‘Goods’

The Contract of Sale

Agreement to Sell Formation of the Contract

Terms of the Contract

Transfer of Property

Transfer of Title Performance of the Contract

Remedies for Breach

Consumer Protection Legislation




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APPLICABLE LAWS

Sale of Goods Act 1957 (SOGA 1957) applies inMalaysia (except Penang, Malacca, Sabah andSarawak) – Section 1 of the Sale of Goods Act 1957

Penang, Malacca, Sabah and Sarawak is governedby the English Sale of Goods Act 1893

see Seng Djit Hin v Nagurdas Purshotumdas & Co

the provisions of the Contracts Act 1950 (Revised1974) continues to apply to contracts for the sale ofgoods unless they are inconsistent with the expressprovisions of the Sale of Goods Act – section 3 ofthe Sale of Goods Act 1957




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DEFINITION OF ‘GOODS’

‘every kind of movable property other thanactionable claims and money; and includes stockand shares, growing crops, grass and thingsattached to or forming part of the land which are

agreed to be severed before sale or under thecontract of sale’ – section 2, SOGA 1957

it does not include: – land

– things attached to land (though it does include timber and

growing crops which are to be harvested before sale orunder the contract of sale)

– choses in action or rights, e.g. debts, negotiableinstruments and patents

– services, such as work and labour, or repair




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DEFINITION OF ‘GOODS’ (cont.)

classifications of goods:1. Existing

2. Future

3. Specific

goods which form the subject of a contract of salemay either be existing goods or future goods – section 6 of SOGA 1957

existing goods – goods already owned or possessedby the seller, and may be either specified or agreedupon at the time a contract of sale is made

4. Unascertained

5. Ascertained




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DEFINITION OF ‘GOODS’ (cont.)

specific goods – goods identified and agreed uponat the time a contract of sale is made

ascertained goods – goods which, in a contract for

the sale of unascertained goods, have becomeidentified and agreed upon by the parties

unascertained goods – those identified by

description only

future goods – goods to be manufactured or

produced or acquired by the seller after the making

of the contract of sale: section 2 of SOGA 1957




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THE CONTRACT OF SALE

a contract whereby the seller transfers or agrees to

transfer the property in goods [the ownership] to the

buyer for a price [a money consideration] – section

4(1) of SOGA 1957

there must be:

1. Goods

2. Money consideration (price)3. Transfer of property




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AGREEMENT TO SELL

a contract under which the transfer of the

property in the goods is to take place at a future

time or subject to some condition thereafter to be

fulfilled – section 4(3), SOGA 1957

an agreement to sell becomes a sale when the

time elapses or the conditions are fulfilled subject

to which the property in the goods is to be

transferred – section 4(4), SOGA 1957




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FORMATION OF THE CONTRACT

Format ion

a contract of sale is made by an offer to buy or sellgoods at a price and by the acceptance of such an

offer – section 5(1), SOGA 1957 the contract may provide for the immediate delivery

of the goods or the immediate payment of the priceor both

delivery or payment may even be by instalments – section 5(1), SOGA 1957

price – the money consideration for the sale ofgoods




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(cont.)

Formali t ies

a contract of sale may be made in writing or by wordof mouth, or partly in writing and partly by word of

mouth, or may be implied from the conduct of theparties – section 5(2), SOGA 1957

Price

may be fixed in the following manner:1. It may be fixed by the contract

2. It may be left to be fixed in a manner agreed inthe contract



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(cont.)

3. It may be determined by the course of dealingbetween the parties

4. Where the price is not determined in any one ofthe aforesaid ways, the buyer must pay areasonable price

what is a reasonable price is a question of factdependent on the circumstances of each particularcase – section 9, SOGA 1957

Capaci ty to Contract

the legal principles and the law on contractgoverning capacity in ordinary contract law apply tocontracts of sale




TERMS OF THE CONTRACT

Condit ion s and Warrant ies

where it is possible to discover, by inspection, thequality and condition of the goods and their fitness

for a particular purpose, the buyer will generally loseany legal rights that may have existed against theseller if the goods are not satisfactory

a stipulation in a contract of sale with reference to

goods which are the subject thereof may be acondition or a warranty – section 12(1), SOGA 1957





(cont.)

whether a stipulation is a condition or warrantydepends in each case on the construction of thecontract. The stipulation may be a condition,

though called a warranty in the contract – section 12(4), SOGA 1957

1. Condition

‘a stipulation essential to the main purpose of the

contract, the breach of which gives rise to a rightto treat the contract as repudiated’ – section12(2), SOGA 1957





(cont.)

a breach of condition entitles the innocent party torepudiate the contract

however, in the following circumstances, the

innocent party cannot repudiate the contract butcan merely claim damages: – where the buyer waives the condition

– where the buyer elects to treat the breach of condition asa breach of warranty and claims damages only

– where the contract of sale is not severable and the buyerhas accepted the goods or part thereof, the breach ofany condition must be accepted as a breach of warrantyunless otherwise provided in the contract





(cont.)

– where the contract is for specific goods theproperty in which has passed to the buyer, thebreach of any condition must be accepted as abreach of warranty unless otherwise provided inthe contract

2. Warranty

a warranty is ‘a stipulation collateral to the mainpurpose of the contract, the breach of which gives

rise to a claim for damages but not to a right toreject the goods and treat the contract asrepudiated’ – section 12(3), SOGA 1957





(cont.)

Stipulat ion as to Time

unless a different intention appears from the termsof the contract, stipulations as to time of paymentare not deemed to be of the essence with respect tothe contract of sale – section 11, SOGA 1957

whether any other stipulation as to time (e.g. time fordelivery) is of the essence of the contract or not

depends on the terms of the contract – section 11,SOGA 1957





(cont.)

Impl ied Terms

Sale of Goods Act 1957, sections 14 to 17: – Implied condition as to title

– Implied warranty that buyer shall have quietpossession of the goods

– Implied warranty that the goods are unencumbered – Implied condition that in a sale of goods by

description, the goods must correspond with the

description – Goods must be reasonably fit for purposes for which

the buyer wants them – Goods must be of merchantable quality





(cont.)

– In a contract for the sale of goods by sample, impliedconditions are as follows:

a) the bulk shall correspond with the sample in quality

b) the buyer shall have a reasonable opportunity ofcomparing the bulk with the sample before acceptance

c) the goods are free from the defect rendering themunmerchantable which would not be apparent onreasonable examination of the sample

3. Implied Condition as to Title there is an implied condition that the seller:

– has the right to sell the goods in the case of a sale





(cont.)

– in the case of an agreement to sell, will have the right tosell the goods when the time comes for the buyer tobecome the owner (that is, by the time property is topass)

a breach of this condition entitles the buyer torepudiate the contract – section 14(a) SOGA 1957

4. Implied Warranty that the Buyer shall have andEnjoy Quiet Possession of the Goods

in a contract of sale, unless the circumstances of thecontract are such as to show a different intention,there is an implied warranty that the buyer shall haveand enjoy quiet possession of the goods – section14(b), SOGA 1957





(cont.)

a breach of this stipulation will not entitle the innocentparty to repudiate the contract

5. Implied Warranty that the Goods are Unencumbered there is an implied warranty that the goods are free

from any charge in favour of a third party who isunknown to the buyer; for example, storage charges

which have to be paid before the goods can becollected – section 14(c) of SOGA 1957





(cont.)

6. Condition that in a Sale of Goods by Description, theGoods Must Correspond with the Description

where the sale is by sample as well as by description, it is

not sufficient that the bulk of the goods correspond withthe sample if the goods do not also correspond with thedescription – section 15, SOGA 1957

see Lau Yaw Seng v Cooperativa Ceramica D’Imola,Nagurdas Purshotumdas & Co v Mitsui Bussan Kaisha

Ltd, Beale v Taylor





(cont.)

7. Goods Must be Reasonably Fit for Purposes forwhich the Buyer Wants Them

the common law rule is ‘Let the buyer beware’ – a buyermust exercise care when he makes purchases. If hedoes not, he must bear the consequences.

this rule is restated in section 16 of the SOGA 1957 – there is no implied warranty or condition as to the qualityor fitness for any particular purpose of goods supplied

under a contract of sale exceptions to this rule are:

a) Goods must be reasonably fit for purposes for whichthe buyer wants them

b) Goods must be of merchantable quality





(cont.)

where the goods have only one purpose, thedescription of the goods is enough to indicate theirpurpose – see Grant v Australian Knitting Mills

however, even when goods may have only oneobvious use, if the goods are required for a specialpurpose, the buyer must expressly notify the sellerof that purpose and rely on the seller to providehim with a suitable article

see Griffiths v Peter Conway Ltd, Cammell Laird &Co. v Manganese Bronze and Brass Co Ltd





(cont.)

8. Goods Must be of Merchantable Quality quality of goods refers to their state or condition

factors to be taken into account to determine

‘merchantability’ include:

a) price

b) the description applied to the goods

c) whether the purpose for the goods had been made

known to the seller

d) any other circumstances relevant to the sale





(cont.)

if the description in the contract is so general thatgoods sold under it can normally be used for severalpurposes, then goods would be merchantable under

that description if they were fit for any one of thosepurposes – see Henry Kendall & Sons v William Lillico& Sons Ltd, Wren v Holt

sometimes there can be a breach of both of the

conditions of fitness for purpose and merchantablequality on the same set of facts – Grant v AustralianKnitting Mills, McWilliams Wines Ltd v Liaweena(NSW) Pty Ltd





(cont.)

9. Sale by Sample

a contract is a contract of sale by sample where there isan express or implied term to that effect in the contractthe bulk of the goods must correspond with the sample – section 17, SOGA 1957

3 implied conditions in contracts of sale by sample:

a) the bulk shall correspond with the sample in quality

b) if the differences are only of a minor nature and the quality of

the goods is still the same, this condition will not be breachedc) the buyer shall have a reasonable opportunity of comparingthe bulk with the sample

see Drummond v Van Ingen, Godley v Perry, Lau YawSeng v Cooperativa Ceramica D’Imola



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(cont.)

10. Privity of Contract

terms implied in a contract of sale are only between

the contracting parties, i.e. the buyer and the seller

if a third party uses goods purchased by another

and is injured as a result of some defects in the

goods, he cannot sue the seller in an action under

contract

his remedy would be to sue the manufacturer under

tort – see Donoghue v Stevenson



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TRANSFER OF PROPERTY

when property passes to the buyer, the goods areat the buyer’s risk irrespective of whether the goodshave been actually delivered to the buyer or not – section 26, SOGA 1957

the importance of transfer of ownership is that riskof loss of the goods goes with the person who hasthe ownership in the goods – section 26, SOGA1957

unless the parties agree otherwise, risk is borne bythe owner regardless of whether he is in possessionor not – section 26, SOGA 195



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(cont.)

in the case of a contract for the sale of unascertainedgoods, the property in the goods can only betransferred to the buyer after the goods areascertained – section 18, SOGA 1957

in the case of a contract for the sale of specific orascertained goods, the property in them is transferredto the buyer at such time as the parties to the contractintend it to be transferred – section 19(1), SOGA 1957

in order to ascertain the intention of the parties, thefollowing are to be considered:

a) The terms of the contract

b) The conduct of the parties and the circumstances of thecase



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(cont.)

unless otherwise determined by the parties, the rulesof ascertaining the intention of the parties as to thetime at which the property in the goods is to pass tothe buyer are those laid down in sections 20 –24,SOGA 1957. They are:

– where there is an unconditional contract for the sale of

specific goods in a deliverable state, the property in goods

passes to the buyer when the contract is made. It is

immaterial whether the time of payment of the price, or thetime of delivery of the goods, or both, is postponed –

section 20, SOGA 1957



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(cont.)

– where there is a contract for the sale of specific goods and

the seller is bound to do something to the goods for the

purpose of putting them into a deliverable state, the

property does not pass until such thing is done, and the

buyer has notice of it – section 21, SOGA 1957

– where there is a contract for the sale of specific goods in a

deliverable state, but the seller is bound to weigh,

measure, test or do some other act or thing with reference

to the goods for the purpose of ascertaining the price, theproperty passes after such act or thing is done and the

buyer has notice of it – section 22, SOGA 1957



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(cont.)

– where there is a contract for the sale of unascertained or

future goods by description and the goods of that

description and in a deliverable state are unconditionally

appropriated to the contract, either by the seller with the

assent of the buyer or by the buyer with the assent of the

seller, the property in the goods thereupon passes to the

buyer. Such assent may be express or implied; and may

be given either before or after the appropriation is made – section 23(1), SOGA 1957



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(cont.)

– when goods are delivered to the buyer on approval or

‘sale or return’ or other similar terms, the property in the

goods passes to the buyer:

a) when he signifies his approval or acceptance to the selleror does any other act adopting that transaction

b) if he does not signify his approval or acceptance to the

seller but retains the goods without giving notice of

rejection upon expiration of the time fixed for the return of

the goods, or where no time has been fixed for the returnof the goods, upon expiration of a reasonable time



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TRANSFER OF TITLE

according to section 27, SOGA 1957, when aperson takes goods (e.g. a buyer), he or she getsonly the same rights to the goods as the person

from whom he or she took them (e.g. a seller) – nemo dat quod non habet

see Lim Chui Lai v Zeno Ltd, Ng Ngat Siang v Arab-Malaysian Finance Bhd & Anor



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TRANSFER OF TITLE (cont.)

exceptions to the nemo dat quod non habet rule:

1. Estoppel

2. Sale by mercantile agent

3. Sale by one of jointowners

4. Sale under a voidable title

5. Sale by a seller in possession after sale6. Sale by a buyer in possession



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1. Estoppel where the owner by his conduct makes it appear to the

buyer that the person who sells the goods has his authorityto do so and the buyer relies on that conduct, the buyer

obtains a good title because the owner is precluded by hisconduct from denying the seller’s authority to sell – section27, SOGA 1957

2. Sale by Mercantile Agent where a mercantile agent is, with the consent of the owner,

in possession of the goods or of a document of title to thegoods, any sale made by him when acting in the ordinarycourse of business of a mercantile agent shall be as validas if he were expressly authorized by the owner of thegoods to make the same – section 27, SOGA 1957



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however, the buyer must have acted in good faith and, at thetime of the contract of sale, had not received notice that theseller has no authority to sell

‘a mercantile agent having in the customary course of business

as such agent authority either to sell goods, or to consigngoods for the purpose of sale, or to buy goods, or raise moneyon the security of goods’ – section 2, SOGA 1957

3. Sale by One of Joint Owners

if one of several joint owners of goods has the sole possession

of them by permission of the co-owners, the property in thegoods is transferred to any person who buys them from such

joint owner in good faith and has not at the time of the contractof sale notice that the seller has no authority to sell – section28, SOGA 1957



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4. Sale under a Voidable Title

where the seller of goods has obtained possession thereofunder a contract voidable under sections 19 or 20,Contracts Act 1950 (Revised 1974), but the contract has

not been rescinded at the time of the sale, the buyeracquires a good title to the goods provided he buys them ingood faith and without notice of the seller’s defect of title – sections 29, SOGA 1957

a contract is voidable under either section 19 or section 20

of the Contracts Act 1950 when the consent of the originalowner is caused by coercion, fraud, misrepresentation orundue influence



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5. Sale by a Seller in Possession after Sale

if a seller resells to a second buyer the goods sold by himpreviously to the first buyer, the second buyer will obtaingood title to the goods if he has received the goods in good

faith and without notice of the previous sale – section 30(1),SOGA 1957

6. Sale by a Buyer in Possession if a buyer, having bought or agreed to buy goods, obtains

possession of the goods or the documents of title with theconsent of the seller, he can pass a good title to a

subsequent buyer acting in good faith, even if under the first

transaction he has not obtained a good title – section 30(2),

SOGA 1957



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PERFORMANCE OF THE

CONTRACT

Chapter IV, SOGA 1957 – the physicalperformance of the terms of the contract whichincludes:a) Delivery

Delivery

it is the duty of the seller to deliver the goods whilstthe buyer’s duty is to accept and pay for them inaccordance with the terms of the contract of sale –

section 31 unless otherwise agreed, delivery of the goods and

payment of the price are concurrent conditions – sections 32

b) Acceptance



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PERFORMANCE OF THE

CONTRACT (cont.)

1. Definition of Delivery

voluntary transfer of possession from one person toanother

delivery of goods may be made by doing anythingwhich the parties agree shall be treated as delivery orwhich has the effect of putting the goods in thepossession of the buyer or of any person authorizedto hold them on his behalf – section 33

if the seller wrongfully neglects or refuses to deliverthe goods to the buyer, the buyer may sue the sellerfor damages for non-delivery



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PERFORMANCE OF THE

CONTRACT (cont.)

2. Place of Delivery

whether the seller is required to send the goods to thebuyer or the buyer has to take possession of the goodsdepends on what has been agreed upon between them

– section 36(1), SOGA 1957 goods agreed to be sold are to be delivered at the place

at which they are at the time of the agreement to sell, or,in the case of goods which are still non-existent, at theplace of manufacture or production – section 36(1),SOGA 1957

unless the parties agree otherwise, the expenses of andgoods incidental to putting the goods into a deliverablestate shall be borne by the seller – section 36(5)



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PERFORMANCE OF THE

CONTRACT (cont.)

3. Time of Delivery where under the contract of sale the seller is bound to

send the goods to the buyer, but no time for sendingthem is fixed, the seller is bound to send them within a

reasonable time what is deemed ‘reasonable’ time is a question of fact

4. Delivery of Wrong Quantity where the seller delivers to the buyer a quantity of goods

less than that which he contracted to sell, the buyer mayreject all the goods so delivered. If the buyer accepts thegoods so delivered, he is bound to pay for them at thecontract rate – section 37(1)



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PERFORMANCE OF THE

CONTRACT (cont.)

if the seller delivers to the buyer a larger quantity ofgoods than that which was contracted, the buyer may:

a) Accept the goods included in the contract and reject therest

b) Reject all the goods

c) Accept all the goods

where the seller delivers to the buyer the goods hecontracted to sell mixed with goods of a different

description not included in the contract, the buyer may:a) Accept the goods which are in accordance with the

contract and reject the rest

b) Reject the whole



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PERFORMANCE OF THE CONTRACT

(cont.)

5. Instalment Delivery

unless agreed by the parties, the buyer is not bound to

accept delivery by instalments

6. Delivery to Carrier or Wharfingers

where the seller is authorized or required to send goods

sold to the buyer and the goods are delivered to a carrier

for transmission to the buyer or to a wharfinger for safecustody, such delivery to the carrier or wharfinger is

prima facie deemed to be a delivery of the goods to the

buyer



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PERFORMANCE OF THE

CONTRACT (cont.)

however, unless otherwise authorized by the buyer,the seller shall make such contract with the carrier orwharfinger on behalf of the buyer as may bereasonable having regard to the nature of the goods

and the other circumstances of the case if the seller omits to do so, and if the goods are lost or

damaged in the course of transit or whilst in thecustody of the wharfinger, the buyer may:

a) Decline to treat the delivery to the carrier orwharfinger as a delivery to himself

b) Hold the seller responsible in damages



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PERFORMANCE OF THE

CONTRACT (cont.)

Acceptance

performance of the contract and transfer ofownership

unless otherwise agreed, when the seller deliversthe goods to the buyer, the seller is bound whenrequested by the buyer to allow the buyer areasonable opportunity of examining the goods in

order to ascertain whether they conform to thecontract



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PERFORMANCE OF THE

CONTRACT (cont.)

the buyer is deemed to have accepted the goods inthe following circumstances:

1. When he intimates to the seller that he has accepted them

2. When the goods have been delivered to him and he doesany act in relation to them that is inconsistent with (orwhich would prejudice) the ownership of the goods by theseller

3. When, after the lapse of a reasonable time, he retains the

goods without intimating to the seller that he has rejectedthem general rule is that a buyer is not bound to returnrejected goods since it is sufficient if he intimates to theseller that he is rejecting the goods

PERFORMANCE OF THE



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PERFORMANCE OF THE

CONTRACT (cont.)

when a buyer neglects or refuses delivery of goods,

he is liable to the seller for any loss caused by his

neglect or refusal to take delivery. He is also liable

to pay a reasonable charge for the care and custodyof the goods – section 44, SOGA 1957

where the buyer wrongfully neglects or refuses to

accept and pay for the goods, the seller may sue

him for damages for non-acceptance – section 56,SOGA 1957



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REMEDIES FOR BREACH

Chapters V and VI of the Sale of Goods Act 1957

deal with the:

1. Rights of the unpaid seller against the goods

2. Rights to sue for breach of the contract3. Rights of the buyer to sue for damages for non-

delivery

4. Rights of the buyer to bring an action for specific

performance

5. Remedies available to the buyer for breach of

warranty

6. Buyer’s action in tort



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REMEDIES FOR BREACH (cont.)

1. Rights of Unpaid Seller against the Goods

an ‘unpaid seller’ is a seller to whom:

– the whole of the price has not been paid or

tendered

– where a bill of exchange or other negotiableinstrument has been received as conditionalpayment, and the condition on which it was receivedhas not been fulfilled due to the instrument beingdishonoured or for some other reason



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the rights of an unpaid seller against the goods are:

– (where he is in possession of the goods) a lien onthe goods for the price – section 46(1)(a)

– (where he has parted with the possession of thegoods) a right of stopping the goods in transit in thecase of the buyer’s insolvency – section 46(1)(b)

– (subject to section 54), a right of resale – section46(1)(c)

– (where the property in goods has not passed to thebuyer) a right of withholding delivery – section 46(2)



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Lien

the unpaid seller of goods who still possesses themis entitled to retain possession of them until paymentor tender of the price in any of the following events:

1. The goods have been sold without any stipulationas to credit

2. The goods have been sold on credit, but the termof credit has expired

3. The buyer becomes insolvent



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the unpaid seller loses his lien in the followingcircumstances:

1. When he delivers the goods to a carrier or other

bailee in order that the goods be transmitted to thebuyer without reserving the right of disposal of thegoods

2. The buyer or his agent lawfully obtains

possession of the goods3. When the seller waives his lien



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Stoppage in Trans i t

when the buyer of goods becomes insolvent and theunpaid seller has parted with the possession of the

goods, the seller has the right of stopping them intransit so long as the goods are in the course oftransit. This means that the seller may resumepossession of the goods and retain them untilpayment or tender of the price



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stoppage in transit is effected by the unpaid seller inthe following ways:

1. By taking actual possession of the goods

2. By giving notice of the seller’s claim to the carrier orbailee in whose possession the goods are the unpaidseller’s right of lien or stoppage in transit is not affectedby any sale or disposition of the goods which the buyermay have made unless the seller has assented to it

Resale a contract of sale is not rescinded by the mere

exercise by an unpaid seller of his right of lien orstoppage in transit – section 54(1), SOGA 1957



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since the contract is not rescinded, the seller would

not be allowed to resell the goods

however, section 54(2), SOGA 1957 provides that

the seller has authority to resell where:1. The goods are of a perishable nature – section 54(2)

2. He gives notice to the buyer of his intention to resell

and the buyer does not within a reasonable time pay or

tender the price – section 54(2), SOGA 19573. The seller expressly reserves a right of resale in case

the buyer should make default and the buyer makes

such default – section 54(4), SOGA 1957



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2. Right of the Seller to Sue for Breach ofContract

the seller can sue for the price of the goods where:

– the property in the goods has passed to the buyerand the buyer wrongfully neglects or refuses topay for the goods

– where it is contracted that the price be paid on acertain date irrespective of delivery and the buyer

wrongfully neglects or refuses to pay such price eventhough the property in the goods has not passed andthe goods have not been appropriated to the contract



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3. Right of Buyer to Bring an Action for Non-delivery

where the seller wrongfully neglects or refuses todeliver the goods to the buyer, the buyer may sue theseller for damages for non-delivery – section 57,SOGA 1957

4. Right of Buyer to Bring an Action for SpecificPerformance the buyer may bring an action for the specific

performance of the contract by the delivery of specificor ascertained goods. But this remedy is availableonly at the discretion of the courts – section 58



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5. Remedies Available to Buyer for Breach ofWarranty

where the seller commits a breach of warranty orwhere the buyer elects or is compelled to treat abreach of condition by the seller as a breach ofwarranty, the buyer cannot reject the goods but hemay:

– set up against the seller the breach of warranty indiminution or extinction of the price

– sue the seller for damages for breach of warranty



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6. Buyer’s Action in Tort

the buyer can sue the seller in tort by bringing anaction in detinue and conversion

detinue – wrongful detention of chattels belongingto the plaintiff after their return has beendemanded

conversion – the dealing with the goods in a

manner inconsistent with the ownership of thebuyer

CONSUMER PROTECTION



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CONSUMER PROTECTION

LEGISLATION

The Consumer Protection Act 1999 provides for:1. The protection of consumers

2. The establishment of the National ConsumerAdvisory Council and the Tribunal for Consumer

Claims3. Matters connected to consumer protection

definition of ‘goods’ – goods which are primarilypurchased, used or consumed for personal, domestic

or household purposes, and includes fixtures, vesselsand vehicles but does not include negotiableinstruments, shares, debentures and money – section3, SOGA 1957

CONSUMER PROTECTION



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CONSUMER PROTECTION

LEGISLATION (cont.)

protects consumers against misleading and deceptiveconduct, false representation and unfair practice;ensures safety standards and requirement for goods andprohibits unsafe goods; provides guarantees in respect

of supply of goods; such as:1. Implied guarantee as to title – section 31

2. Implied guarantee as to acceptable quality – section 32

3. Implied guarantee as to fitness for particular purpose –

section 334. Implied guarantee that goods comply with description –

section 34

CONSUMER PROTECTION



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CONSUMER PROTECTION

LEGISLATION (cont.)

5. Implied guarantee that goods comply with sample – section 35

6. Implied guarantee as to price – section 36

7. Implied guarantee as to repairs and spare parts –

section 88. Manufacturer’s express guarantee – section 38

Part VI of the Act – provides consumers with certainrights against suppliers in respect of guarantees in the

supply of goods Part VII – provides consumers with rights against

manufacturers in respect of guarantees in the supplyof goods

CONSUMER PROTECTION



Business Law


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CONSUMER PROTECTION

LEGISLATION (cont.)

Part X of the Act – concerns product liability

Tribunal for Consumer Claims:1. Hears claims of up to a value of RM10,000

2. No jurisdiction over land matters (except fixtures), wills orintestacy, goodwill, chose in action, trade secret orintellectual property

3. No representation by advocates and proceedings are opento the public

4. Agreed settlements and awards are final and binding anddeemed an order of Magistrate’s Court and are enforceable

5. Failure to comply with an award within 14 days – fine of upto RM5,000 or 2 years imprisonment or both



REVIEW

Applicable Laws

Definition of ‘Goods’

The Contract of Sale

Agreement to Sell Formation of the Contract

Terms of the Contract

Transfer of Property

Transfer of Title Performance of the Contract

Remedies for Breach

Consumer Protection Legislation

Documents

BL Chapter 9