Difference between revisions of "Introduction to Consumer Protection (11:I)"

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An aggrieved party may have remedies under statututory law, the common law, or both. B.C. statutes provide better protection to consumers than  is afforded by the common law. Since legislation takes precedence over the common law, it is crucial that students check all relevant statutes  when faced with the legal matters of consumers. For example, some contracts that are enforceable at common law are rendered unenforceable by  relevant statutes.   
 
An aggrieved party may have remedies under statututory law, the common law, or both. B.C. statutes provide better protection to consumers than  is afforded by the common law. Since legislation takes precedence over the common law, it is crucial that students check all relevant statutes  when faced with the legal matters of consumers. For example, some contracts that are enforceable at common law are rendered unenforceable by  relevant statutes.   
  
== C. Governing Legislation, Regulations, and Resources ==
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== C. Governing Legislation and Resources ==
  
=== 1. Legislation and Regulations ===
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=== 1. Legislation ===
  
 
The statutes to consult include the following:  
 
The statutes to consult include the following:  
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''Motor Dealer Act'', RSBC 1996, c 316 [''MDA''].   
 
''Motor Dealer Act'', RSBC 1996, c 316 [''MDA''].   
*The ''MDA'' contains important disclosure requirements for dealers selling to consumers. It requires disclosure of the prior history of a car (for example, its use as a taxi) and any damage  suffered over $2,000, and other important information. The administration of this Act became  self-regulated as of April 1, 2004. Clients with consumer complaints regarding car dealers should now be directed to the Motor Vehicle Sales Authority of British Columbia.  
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*The ''MDA'' sets out the requirements for motor dealers selling vehicles to retail consumers. It requires disclosure of the prior history of a car (for example, its use as a taxi) and any damage  suffered over $2,000, and other important information. Clients with consumer complaints regarding car dealers should be directed to the Vehicle Sales Authority of British Columbia, which has the authority to investigate consumer complaints and provide dispute resolution.  Note that some amendments to the MDA regarding the Customer Compensation Fund recently came into force on 2016-05-19.  
  
 
''Personal Property Security Act'', RSBC 1996, c 359 [''PPSA''].  
 
''Personal Property Security Act'', RSBC 1996, c 359 [''PPSA''].  
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=== 2. Resources ===
 
=== 2. Resources ===
 +
 +
A list of resources which clients might find useful:
  
 
'''Consumer Protection BC (previously the Business Practices and Consumer Protection Authority)'''  
 
'''Consumer Protection BC (previously the Business Practices and Consumer Protection Authority)'''  
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*Consumer Protection BC operates at arm’s length from government and has responsibility for a range of licensing, inspection, investigation,  and enforcement activities. If consumer protection legislation appears to have been violated, the aggrieved party can phone Consumer Protection BC to report the infraction. This is the office to contact for students (on behalf of clients) seeking action by the Director under the statutory causes of action found in consumer protection legislation. This office also has a mandate to receive and act on consumer complaints generally.  
 
*Consumer Protection BC operates at arm’s length from government and has responsibility for a range of licensing, inspection, investigation,  and enforcement activities. If consumer protection legislation appears to have been violated, the aggrieved party can phone Consumer Protection BC to report the infraction. This is the office to contact for students (on behalf of clients) seeking action by the Director under the statutory causes of action found in consumer protection legislation. This office also has a mandate to receive and act on consumer complaints generally.  
  
'''Motor Vehicle Sales Authority of British Columbia (formally known as the Motor Dealer Council of BC)'''  
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'''Vehicle Sales Authority of British Columbia'''  
  
 
Telephone: (604) 574-5050  
 
Telephone: (604) 574-5050  
  
Website: http://www.mdcbc.com  
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Website: http://www.mvsabc.com
  
*This is the office to contact if one believes that the MDA has been violated or one has questions regarding the provisions in the MDA.  
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*The VSA is a regulatory agency that oversees the retail sales of motor vehicles in British Columbia. This is the office to contact if one believes that the MDA has been violated or one has questions regarding the provisions in the MDA.  
  
 
'''Better Business Bureau'''
 
'''Better Business Bureau'''
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Telephone: (604) 687-4680  
 
Telephone: (604) 687-4680  
  
Website: http://www.cba.org/BC/Public_Media/dal/  
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Website: http://www.cbabc.org/For-the-Public/Dial-A-Law
  
 
*This service provides pre-recorded summaries on the law pertaining to a wide variety of issues in consumer law. Some useful tapes include:
 
*This service provides pre-recorded summaries on the law pertaining to a wide variety of issues in consumer law. Some useful tapes include:
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{| class="wikitable"
 
{| class="wikitable"
 
|-
 
|-
| Door-to-Door Sales: 255 || Buying Goods by Mail Order: 256
+
| Door-to-Door Sales, Time-Shares and Contracts You Can Cancel: 255 || Shopping by Phone, Mail or the Internet: 256
|-
 
| Purchasing Defective Goods: 257 || Car Repairs: 198
 
|-
 
| Deceptive Trade Practices: 260 || Leasing a Car: 196
 
 
|-
 
|-
| Credit Cards: Unsolicited, Lost or Stolen: 259 || Buying a Used Car: 197
+
| Buying Defective Goods: 257 || Dishonest Business Practices and Schemes: 260
 
|}
 
|}

Revision as of 16:58, 12 August 2016



A. Introduction[edit]

This chapter provides a general discussion of consumer protections laws in British Columbia.

While parts of this chapter are concerned with the rights of sellers, the main objective is to aid consumers who want to enforce contractual obligations, get out of contractual obligations, obtain damages for a breach of contract, or file a complaint with the appropriate regulator. This chapter should also help in determining contractual and other obligations of the parties, and whether or not those obligations are enforceable.

B. Common Law vs. Statute[edit]

An aggrieved party may have remedies under statututory law, the common law, or both. B.C. statutes provide better protection to consumers than is afforded by the common law. Since legislation takes precedence over the common law, it is crucial that students check all relevant statutes when faced with the legal matters of consumers. For example, some contracts that are enforceable at common law are rendered unenforceable by relevant statutes.

C. Governing Legislation and Resources[edit]

1. Legislation[edit]

The statutes to consult include the following:

Sale of Goods Act, RSBC 1996, c 410 [SGA].

  • This legislation regulates contracts for the sale (or lease) of goods, but not services. The SGA is not concerned with the ethics of the transaction unless there is also a defect in the manner in which the contract is carried out (e.g. if the goods are not delivered, are damaged, or are unfit for the purpose for which they were sold). The protections are stronger for new goods than for goods that the purchaser knows are used.

Business Practices and Consumer Protection Act, SBC 2004, c 2 [BPCPA].

  • The BPCPA is concerned with the ethics of a transaction, such as deceptive and unconscionable practices as well as information requirements for many types of consumer contracts. The BPCPA also gives consumers the right under some circumstances to get out of contracts in which the consumer has ongoing obligations under the contract, such as time share, gym memberships, and book of the month contracts. If the client wishes to get out of future obligations under a contract, see Section V.A: Direct Sales, below. In addition, the Act regulates businesses that offer such contracts and other transactions that are open to abuse, such as direct sales and payday lenders. One of the key features of the Act is that it provides for statutory causes of action for certain kinds of consumer transactions.

Motor Dealer Act, RSBC 1996, c 316 [MDA].

  • The MDA sets out the requirements for motor dealers selling vehicles to retail consumers. It requires disclosure of the prior history of a car (for example, its use as a taxi) and any damage suffered over $2,000, and other important information. Clients with consumer complaints regarding car dealers should be directed to the Vehicle Sales Authority of British Columbia, which has the authority to investigate consumer complaints and provide dispute resolution. Note that some amendments to the MDA regarding the Customer Compensation Fund recently came into force on 2016-05-19.

Personal Property Security Act, RSBC 1996, c 359 [PPSA].

  • The PPSA governs all security agreements as well as chattel mortgages, conditional sales, floating charges, pledges, trust indentures, trust receipts, assignments, consignments, leases, trusts, and transfers of chattel paper that secure payment or performance of an obligation. A security interest is an interest in goods or other property that secures payment or performance of an obligation for a lender. It used to matter who retained title; however, recent cases abolished title as an important factor. See also Section VI: Conditional Sales Contracts and Security Agreements.

Bills of Exchange Act, RSC 1985, c. B-4, ss. 188-192.

  • This Act states that a promissory note is a written promise to pay a specified sum of money, at a fixed time or on demand. These are commonly used in conjunction with executory contracts, where one party has fulfilled his or her material obligations and the other party still has some or all outstanding.

2. Resources[edit]

A list of resources which clients might find useful:

Consumer Protection BC (previously the Business Practices and Consumer Protection Authority)

Toll-free: 1-888-564-9963

Website: http://www.consumerprotectionbc.ca

  • Consumer Protection BC operates at arm’s length from government and has responsibility for a range of licensing, inspection, investigation, and enforcement activities. If consumer protection legislation appears to have been violated, the aggrieved party can phone Consumer Protection BC to report the infraction. This is the office to contact for students (on behalf of clients) seeking action by the Director under the statutory causes of action found in consumer protection legislation. This office also has a mandate to receive and act on consumer complaints generally.

Vehicle Sales Authority of British Columbia

Telephone: (604) 574-5050

Website: http://www.mvsabc.com

  • The VSA is a regulatory agency that oversees the retail sales of motor vehicles in British Columbia. This is the office to contact if one believes that the MDA has been violated or one has questions regarding the provisions in the MDA.

Better Business Bureau

Telephone: (604) 682-2711

Website: http://www.bbb.org/mbc

  • Businesses voluntarily join this association, which provides self-policing of the business community. Complaints against a member company can be made at this office, which offers an extra-judicial resolution process for conflicts between consumers and member companies. Information about a specific member company can also be obtained.

Dial-a-Law

Telephone: (604) 687-4680

Website: http://www.cbabc.org/For-the-Public/Dial-A-Law

  • This service provides pre-recorded summaries on the law pertaining to a wide variety of issues in consumer law. Some useful tapes include:
Door-to-Door Sales, Time-Shares and Contracts You Can Cancel: 255 Shopping by Phone, Mail or the Internet: 256
Buying Defective Goods: 257 Dishonest Business Practices and Schemes: 260