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Fair Trading (Oppressive Contracts) Amendment Bill (Consistent) [2018] NZBORARp 36 (28 March 2018)
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Fair Trading (Oppressive Contracts) Amendment Bill (Consistent) [2018] NZBORARp 36 (28 March 2018)
Last Updated: 3 January 2019
28 March 2018
Hon David Parker, Attorney-General
LEGAL ADVICE
LPA 01 01 23
Consistency with the New Zealand Bill of Rights Act 1990: Fair Trading
(Oppressive Contracts) Amendment Bill
- We
have considered whether the Fair Trading (Oppressive Contracts) Amendment Bill
(‘the Bill’), a member’s Bill
in the name of Duncan Webb MP,
is consistent with the rights and freedoms affirmed in the New Zealand Bill of
Rights Act 1990 (‘the
Bill of Rights Act’).
- The
Bill amends the Fair Trading Act 1986 (‘the principal Act’). It aims
to redress the power imbalance between consumers
and suppliers, particularly in
respect of standard form contracts. The Bill:
- inserts
new definitions for ‘questionable’ contract terms,
‘oppressive’ contract terms and enforcement, and
‘standard
form contract’;
- replaces
s 26A of the principal Act, which relates to contract terms in standard form
consumer contracts that the High Court or District
Court have declared to be
unfair, with new ss 26A and 26B. New ss 26A and 26B prohibit a person in trade
from including or enforcing
an unfair contract term in a standard form contract,
and prohibit enforcement of a standard form contract term if to do so would
be
oppressive;
- repeals
ss 46H to 46M of the principal Act to remove the Commerce Commission’s
ability to apply to the High Court or District
Court for a declaration that a
term in a standard form consumer contract is an unfair contract term;
and
- places
restrictions on the circumstances in which a person in trade can rely on a
limitation defence in respect of civil proceedings
brought by a consumer
relating to a consumer contract.
- We
have concluded that the Bill appears to be consistent with the rights and
freedoms affirmed in the Bill of Rights Act.
Jeff Orr
Chief Legal Counsel Office of Legal Counsel
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