Intellectual Property Rights from Publicly Financed Research and
R 385
Consumer Protection Act, 2008 (Act No. 68 of 2008)Chapter 2 : Fundamental Consumer RightsPart F : Right to fair and honest dealing47. Over-selling and over-booking |
| 1) | This section does not apply to— |
| a) | a franchise agreement; or |
| b) | a consumer agreement pertaining to the supply of any special-order goods. |
| 2) | A supplier must not accept payment or other consideration for any goods or services if the supplier— |
| a) | has no reasonable basis to assert an intention to supply those goods or provide those services; or |
| b) | intends to supply goods or services that are materially different from the goods or services in respect of which the payment or consideration was accepted. |
| 3) | If a supplier makes a commitment or accepts a reservation to supply goods or services on a specified date or at a specified time and, on the date and at the time contemplated in the commitment or reservation, fails because of insufficient stock or capacity to supply those goods or services, or similar or comparable goods or services of the same or better quality, class or nature, the supplier must— |
| a) | refund to the consumer the amount, if any, paid in respect of that commitment or reservation, together with interest at the prescribed rate from the date on which the amount was paid until the date of reimbursement; and |
| b) | in addition, compensate the consumer for costs directly incidental to the supplier’s breach of the contract, except to the extent that subsection (5) provides otherwise. |
| 4) | It is a defence to an alleged failure to supply any goods or services, as contemplated in subsection (3), if— |
| a) | the supplier offered to supply or procure another person to supply a consumer with comparable goods or services of the relevant kind to satisfy the consumer’s request; and |
| b) | the consumer— |
| i) | accepted the offer, and the supplier has supplied or procured another person to supply the goods or services so offered and accepted; or |
| ii) | unreasonably refused that offer. |
| 5) | Subsection (3)(b) does not apply if— |
| a) | the shortage of stock or capacity is due to circumstances beyond the supplier’s control, subject to subsection (6); and |
| b) | the supplier took reasonable steps to inform the consumer of the shortage of stock or capacity as soon as it was practicable to do so in the circumstances. |
| 6) | Without limiting the generality of subsection (5)(a), a shortage of stock or capacity is not ‘‘due to circumstances beyond the supplier’s control’’ if the shortage results partially, completely, directly or indirectly from a failure on the part of the supplier to adequately and diligently carry out any ordinary or routine matter pertaining to the supplier’s business. |
