1998/99 Legislative Session: 3rd Session, 36th Parliament
THIRD READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


Certified correct as passed Third Reading on the 2nd day of June, 1999
Ian D. Izard, Law Clerk


HONOURABLE UJJAL DOSANJH
ATTORNEY GENERAL AND MINISTER RESPONSIBLE FOR
MULTICULTURALISM, HUMAN RIGHTS AND IMMIGRATION


BILL 61 -- 1999

CONSUMER PROTECTION AMENDMENT ACT, 1999

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the Consumer Protection Act, R.S.B.C. 1996, c. 69, is amended by repealing the definitions of "buyer", "direct sale" and "trade-in allowance" and substituting the following:

"buyer" means an individual who leases or purchases goods or services under a contract with a seller, and includes the individual's agent;

"direct sale" means a contract for the sale of goods or services, or both, made by a seller

(a) in the ordinary course of business, and

(b) at a place other than the seller's permanent place of business,

but does not include a contract where the sale, offering for sale or soliciting of orders is made by telephone, mail, fax or any other method that does not involve face to face contact with the intended purchaser;

"trade-in allowance" means the greater of the following:

(a) the sum that, under a trade-in arrangement, is agreed to be allowed in payment or in part payment for goods or services, or both, sold or to be sold under an executory contract;

(b) the fair market value of the trade-in at the time the trade-in arrangement is made; .

2 Part 1 is amended by repealing the heading to that Part and substituting the following:

Part 1 -- Direct Sales and Executory Contracts .

3 Section 10 (2) is repealed and the following substituted:

(2) A direct sale that a direct seller, other than a direct seller referred to in section 11 (4), solicits, negotiates or concludes at a place other than his or her business address, is not binding on the buyer unless

(a) the contract is made in accordance with this section, sections 13 and 14 and the regulations,

(b) it is signed by the buyer, and the guarantor if applicable, and

(c) at the time it is signed under paragraph (b),

(i) the direct seller advises the buyer, in the prescribed manner, of the buyer's rights of cancellation under section 11, and

(ii) the buyer, and the guarantor if applicable, each receive a copy of it.

4 Section 11 is repealed and the following substituted:

Buyer's right to cancel direct sales and contracts for future services

11 (1) A direct sale is cancelled if the buyer gives notice of cancellation to the direct seller not later than 10 days after the date that the buyer receives a copy of the contract.

(2) A direct sale is cancelled if any of the following apply and the buyer gives notice of cancellation to the direct seller not later than one year after the date of entering into the contract with the direct seller:

(a) at the time the contract was made, the direct seller or the salesperson, if applicable, was not

(i) licensed as required by Part 2, or

(ii) in compliance with a condition imposed on his or her licence under section 27;

(b) the contract does not contain the information required under section 14 or the regulations;

(c) the goods or services to be supplied under the contract are not supplied to the buyer within 30 days of the supply date specified in that contract.

(3) If a buyer accepts delivery of goods or supply of services after the 30 day period described in subsection (2) (c) has ended, the buyer is not entitled to cancel the contract under that provision.

(4) If a direct seller only occasionally carries on his or her business outside of his or her permanent place of business, subsections (1) and (2) do not apply to a contract that the direct seller or his or her agent or employee solicits, negotiates or concludes at a place other than the direct seller's permanent place of business.

(5) In a dispute over the application of subsection (1) or (2), the onus is on a seller to prove that the seller carries on his or her business only occasionally outside of his or her permanent place of business.

(6) For the purposes of subsection (3), the Sale of Goods Act determines whether the buyer has accepted delivery of goods.

(7) Unless otherwise provided by regulation, a buyer may cancel a contract for future services by giving notice of cancellation to the seller not later than 10 days after the date on which the buyer received the copy of the contract.

(8) A buyer or his or her personal representative may, at any time, cancel a contract for future services

(a) if there has been a material change in the circumstances of the buyer, by giving notice of cancellation to the seller, or

(b) if there has been a material change in the services provided by the seller, by giving notice of cancellation to the seller.

(9) For the purposes of

(a) subsection (8) (a), a material change in the circumstances of the buyer includes, without limitation,

(i) the buyer's death,

(ii) permanent physical, medical or mental disability of the buyer, to be substantiated by the provision of a certificate of a medical practitioner showing that the buyer's continued participation is unreasonable, because of the buyer's condition, or is likely to endanger the buyer's health, or

(iii) permanent relocation of the buyer so that the buyer and the seller are more than 30 km further distant from each other than they were when the executory contract was entered into, if the seller does not provide reasonably comparable alternative facilities for the use of the buyer not more than 30 km from the buyer's new location, and

(b) subsection (8) (b), a material change in the services provided by the seller occurs

(i) when, for reasons that are wholly or partly the fault of the seller, the services are not completed or at any time appear unable to be reasonably completed within the period of time stated by the seller under section 21,

(ii) when the services are no longer available or substantially available as provided in the contract because of the seller's discontinuance of operation or substantial change in operation, or

(iii) when the seller relocates his or her facility so that the seller and buyer are more than 30 km further distant from each other than they were when the contract was entered into, and the seller does not provide reasonably comparable alternative facilities for the use of the buyer, not more than 30 km from the buyer's location.

(10) In subsection (9) (a) (ii) and (iii), "permanent" means for the remainder of the executory contract period or for the remainder of the time stated by the seller under section 21.

(11) A notice of cancellation under this section may be given by any method that permits a person to produce evidence that he or she cancelled the contract, including

(a) delivering the notice in person, and

(b) sending it by registered mail, electronic mail or fax, to

(i) the seller, or

(ii) the postal address, electronic mail address or fax number shown in the contract for the person named in the contract as a person to whom notice of cancellation may be given.

(12) A notice of cancellation under this section is sufficient if it indicates, in any way, the intention of the buyer to terminate, cancel or withdraw from the contract and, in the case of cancellation under subsection (8) (a) or (b), it states the reason for cancellation.

(13) For the purposes of this section, a notice of cancellation is given at the time it is mailed or sent.

5 The following sections are added:

Contract for credit

11.1 If, in relation to a direct sale, credit is extended or arranged by a direct seller, then

(a) the credit contract is conditional on the direct sale, and

(b) if the direct sale is cancelled under section 11, the credit contract is cancelled.

Maximum down payments for direct sales

11.2 A direct sale is unenforceable by the direct seller if the direct seller requires the buyer to make a down payment in excess of the prescribed amount.

6 Section 12 is amended

(a) in subsections (1) and (4) (a) by striking out "7 days" and substituting "10 days",

(b) in subsection (2) (b) (ii) by striking out "the address, electronic mail number or fax number" and substituting "the postal address, electronic mail address or fax number" , and

(c) in subsection (4) (b) by striking out "mailing address" and substituting "postal address".

7 Section 14 (a) is repealed and the following substituted:

(a) a notice of the buyer's rights of cancellation, in the prescribed form and manner, .

8 Sections 16 (1) and 17 are amended by striking out "section 11 (2)" and substituting "section 11 (1) or (2)".

9 Section 26 (1) is amended by striking out "using a form required by regulation." and substituting "using a form required by the registrar."

10 Sections 48 (4) (b) and 54 (3) are amended by striking out "mailing address" and substituting "postal address".

11 Sections 48 (5) and 54 (4) are amended by adding "postal" before "address".

12 Section 52 is repealed.

13 Section 75 (1) (a) is amended

(a) by striking out "21.2 (1) (b), 21.3 (1) (b), 21.4 (2), 21.5 (1) or (3),", and

(b) by striking out "52 (3), (4) or (6),".

14 Section 77 is amended

(a) by repealing subsection (1) (b) and substituting the following:

(b) prescribing the form of an executory contract, a direct sales contract, notice of a buyer's cancellation rights or statement of the cost of borrowing, and prescribing the size, type and colour of lettering used in any provision of the contract, notice or statement; ,

(b) in subsection (1) by adding the following paragraph:

(h.1) providing for issuance by the registrar of a duplicate licence, or a copy of an application for licence or licence renewal, and prescribing a fee payable for that duplicate or copy; , and

(c) in subsection (2) by adding the following paragraph:

(e.1) prescribing the amount or method of calculating the amount of a maximum down payment under section 11.2; .

Commencement

15 Sections 1 to 14 come into force by regulation of the Lieutenant Governor in Council.


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