1.

Discuss The Impact Of The Consumer Protection Act Upon The Law Of Contract With Reference To Its Aims, Objectives, Scope, National Regulatory Institutions, And Sanctions?

Answer»

The CPA is bound to have a huge impact on the conduct of businesses in South Africa, and the law of contract. The primary purpose of the Act is to protect consumers from exploitation in

the marketplace, and to promote their social and ECONOMIC welfare.

More specifically, it aims to:

  • ESTABLISH a legal framework for the achievement and maintenance of a consumer MARKET that is fair, accessible, efficient, and responsible, for the benefit of consumers generally;
  • Promote fair business practices;
  • Protect consumers from unconscionable, UNJUST, or unreasonable business practices.

The scope of the Act is very wide. It applies to:

  • Most transactions concluded in the ordinary course of business between suppliers and consumers within South Africa, as well as;
  • The promotion of goods and services that could lead to such transactions, and;
  • The goods and services themselves once the transaction has been concluded.

A supplier is any person (including a juristic person, trust, and organ of State) who markets any goods or services.

A consumer includes not only the end-consumer of goods and services but also:

  • Franchisees
  • Relatively small businesses in the supply chain (asset value or annual turnover below the threshold determined by the Minister)

The Act does not apply to any transaction in terms of which goods and services are promoted or supplied:

  • To the State
  • To a juristic person with an asset value or annual turnover above the threshold
  • Employment contracts
  • Credit agreements and Transactions exempted by the Minister

These rights are protected and enforced not only through the courts, but the National Consumer Commission and the National Consumer Tribunal. Failure to comply with provisions of the Act might attract various sanctions, commencing with compliance notices and LEADING possibly to the imposition of fines and criminal penalties. Contractual provisions in contravention of the Act may be declared null and void to the extent of non-compliance.

The CPA is bound to have a huge impact on the conduct of businesses in South Africa, and the law of contract. The primary purpose of the Act is to protect consumers from exploitation in

the marketplace, and to promote their social and economic welfare.

More specifically, it aims to:

The scope of the Act is very wide. It applies to:

A supplier is any person (including a juristic person, trust, and organ of State) who markets any goods or services.

A consumer includes not only the end-consumer of goods and services but also:

The Act does not apply to any transaction in terms of which goods and services are promoted or supplied:

These rights are protected and enforced not only through the courts, but the National Consumer Commission and the National Consumer Tribunal. Failure to comply with provisions of the Act might attract various sanctions, commencing with compliance notices and leading possibly to the imposition of fines and criminal penalties. Contractual provisions in contravention of the Act may be declared null and void to the extent of non-compliance.



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