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Summary VBB220: EVERYTHING FOR SEMESTER TEST 1 (2023) - CPA R100,00   Add to cart

Summary

Summary VBB220: EVERYTHING FOR SEMESTER TEST 1 (2023) - CPA

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INCLUDES LECTURE NOTES + CASE LAW + LEGISLATION.

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  • January 16, 2024
  • 16
  • 2023/2024
  • Summary
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What consumer protection measures were there before the CPA?

1. Legislation

- Unfair Business Practices Act

o Enabling rather than proscribing à did not prohibit but enabled the

Committee to investigate.

o Unfair business practices à criminal act but SARS was too

overwhelmed (Pepsi-Cola).

- Other legi à only applied to certain agreements.

*** Main problem à legi is scattered and inconsistent ***



2. Industry self-regulation

- Disadvantages

o Many companies don’t know Code applies.

o Voluntary membership à difficult to enforce code.



3. Common law

- Consumers might not know they have these remedies

- Can be contractually excluded.

- Not good for large corps

o Defective consent à pressuring to quickly enter agreements.

o Deception of consumers à false statements about the product.

o Unfair contract terms à contract in favor of selling (condemning this

must be done sparingly: Napier).

o Defective goods.

,What are the theories?

1. Classic model

- Freedom-orientated

o Freedom of contract à pacta sunt servanda.



2. Neoliberalism

- Consumer protection à equal bargaining power.



What theories do courts use?

1. Before CPA

- Classic model à good faith is not self-standing rule

o Just underlying value given expression by existing rules.



2. After CPA

- Neoliberalism à Good faith and dignity is important in consumer contracts.



What is procedural and substantive fairness?

1. Procedural fairness

- Circumstances around conclusion of contract are fair

o Transparency and balancing interests.

- CPA à prohibit against deception of consumers.



2. Substantive fairness

- Person-orientated approach à advancing social and economic justice

- CPA à fair T&C’s.

, When was the CPA enacted?

1. Early effective date 24 APRIL 2010

- Schedule 2 in force à agreements before CPA existed are not subject to CPA

o Unless

(1) Agreement would have been subject to CPA had it existed.

(2) Agreement still in force 2yrs after CPA’s gen effective date.



2. General effective date 31 MARCH 2021

- Most sections but also S61 in force à transactions that happened on / after

gen effective date

o Consumer can hold supplier liable for defective goods.



What is the purpose of the CPA?

1. Advance social and economic welfare of consumers

- Legal framework.

- Rebalance bargaining power

- Ensure vulnerable consumers are protected

o Low income.

o Remote areas.

o Minors and seniors.

o Can’t read / comprehend products.



Who must enforce the CPA?

1. The NCC

- Promote the purpose of the CPA.

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