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Course: The Control of Exemption Clauses Ordinance Part 2: Application
Code: LP02-CP04
Duration: 1.0 Hour
CPD Credit: 1 CPD Point
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In this second of two courses on the CECO, you will learn about the ordinance's controls on exclusion clauses used by parties where one may be a seller or a manufacturer. We will examine how the ordinance controls the exemption from liability and protects parties "dealing as a consumer". We will also look at unreasonable indemnity clauses and secondary contracts that purport to exclude liability.
Sellers and manufacturers use exemption clauses and notices as often as they sell and manufacture goods. Through the Sale of Goods Ordinance (SOGO), there are statutory provisions that denote distinct sets of liabilities, implied undertakings and obligations for the sale of goods. The CECO provides for the control of clauses seeking to restrict or exclude these liabilities.
We will examine both sellers and manufacturers and the statutory provisions controlling the use of exclusion clauses when either of these two are parties to a contract. In the process, we also deal with:
What does it mean to be "dealing as a consumer"?
What are the implied undertakings provided in the SOGO? How does the CECO control exclusion clauses that seek to exclude or restrict liability from these implied undertakings?
What is a "guarantee"? How does the CECO govern the use of guarantees?
How does the ordinance deal with unreasonable indemnity clauses and exclusion clauses arising from secondary contracts?
What are the limitations of the ordinance? What contracts does it not apply to?
Because the CECO is based on the United Kingdom's Unfair Contract Terms Act ("UCTA") of 1977, the course will cite more than a dozen relevant precedents from the UK and Hong Kong Special Administrative Region to illustrate the various statutory provisions and to test how well you understood them.
At the end of the course, you will take a test. Its results will determine your CPD accreditation for completing this course.
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Jeremy Leifer
Jeremy (jeremy.leifer@deacons.com.hk) is a partner at Deacons, one of Hong Kong's and Asia's leading corporate law firms providing an extensive range of legal services to local and international corporations with business interests in Asia.
Leiferšs main areas of practice are corporate finance (including corporate restructurings, listed company rescues, and takeovers) and corporate and commercial work. His experience includes: direct investment; joint venture/shareholders agreements; acquisitions and disposals (for public and private companies, cross border and domestic); corporate reorganisations;
and general corporate work and commercial agreements.
He was admitted to the Supreme Court of England and Wales in 1988 and the High Court of Hong Kong in 1990. Leiferšs educational achievements include the London School of Economics (LLB) and Solicitors Finals (England).
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