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Lemon Law
What are “Lemon Laws”?
• Lawsprotectingconsumers againstdefectivegoodsthatfail toconformtocontractorareof unsatisfactoryqualityor performancestandardsatthe timeofpurchase.• Suchgoodsarecolloquially knownas“lemons”.• Thelawobligatesbusinessesto repair,replace,refundorreduce thepriceofthosedefectivegoods.
Background of the Lemon Law in Singapore
• CASElobbiedforaLemon Lawin2007,inresponsetothe increasingcomplaintsregarding defectivegoods.• ALemonLawtaskforce co-chairedbytheMinistryof TradeandIndustryandCASE formedinSeptember2008to studythefeasibilityoflemon lawsinSingapore.• Thepublicwasconsultedon theproposedlegislation,with responsefoundtobepositive.
Situation before the Lemon Law
• Taskforcenotedthatsome “LemonLaw”provisionswere alreadyprovidedforin Singapore’sexistinglaws (e.g.SaleofGoodsAct).• However,thelimitationsofthe SaleofGoodsActnecessitated theneedformore comprehensiveprovisions, includingaddingrepairand replacementasrecoursefor consumers.
Coverage
• TheLemonLawcoversall generalconsumerproducts purchasedinSingapore (e.g.stationery,apparel, electronics,bedding,andbig- ticketitemssuchas motorcyclesandcars).• Second-handgoodsandvehicles areincludedbut“satisfactory quality”wouldtakeinto accountitsageatthetimeof delivery,andthepricepaid.• Servicesarenotincluded.
When does it apply?
• Whengoodsdonotconformtosalescontractatthetimeofdelivery.• Courtwillpresumethatadefectreportedwithinsixmonthsofdelivery existedatthetimeofdelivery,andtheLemonLawprovisionsapply.• Beyondthesix-monthperiod,consumersmayseekrecourse butwillneedtoprovethatthedefectexistedatthetimeofdelivery.
Consumers are not entitled to a remedy if:-
• Theyhaddamagedtheitem• Theyhadmisuseditandcaused thefault• Theyhadtriedtorepairit themselvesorhadsomeone elsetrytorepairit,which damagedtheitem• Theconsumerhadknownaboutthe faultbeforetheyboughtthe goods• Theyhadsimplychangedtheir mindandnolongerwanted theitem
Hotline: 6100 0315 | www.case.org.sg
Implementation of Lemon Law
• Effectivedate:September 2012.• Provisionstobeaddedtothe ConsumerProtection(Fair Trading)Act,withrelated amendmentstotheHire PurchaseActandRoad TrafficAct.
