Sale of Goods and Supply of Services
(HKLRC Report)
The Commission's 1990 report recommends a number of reforms to the law relating to sale of goods and supply of services to enhance consumer protection.
The report makes a number of recommendations for changes to the Sale of Goods Ordinance (Cap 26). Firstly, the definition of "merchantable quality" should be clarified by listing aspects of quality to which the court should have regard. These would include the appearance and finish of the goods and their safety and durability. Secondly, the existing section 16 should be redrafted in a positive form to emphasis the fact that there is a positive requirement for goods to comply with the quality standard. Thirdly, there should be legislative provision which makes it clear that the signing of an acceptance note does not result in the buyer's loss of his right of rejection of the goods unless he has in fact had a reasonable opportunity to examine them.
On the obligations of a supplier of services, the report recommends adopting the English Supply of Goods and Services Act 1982 which sets out the main common law obligations concerning the quality of the services, the time for performance and the consideration. Provisions should also be made to prohibit the exclusion or restriction of liability for breach of these obligations in consumer transactions.
A series of legislative enactments in 1994 implemented the report's recommendations. These were the Sales of Goods (Amendment) Ordinance, the Unconscionable Contracts Ordinance and the Supply of Services (Implied Terms) Ordinance.
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| Report (PDF) (MS Word) |