RES exam question on Regulation & the CEA Framework: he bring his claim
Mr Tan believes a renovation contractor misled him about the materials it would use in his new flat, under a contract worth about $18,000. He has paid in full, the work is finished, and he wants a civil remedy under the Consumer Protection (Fair Trading) Act 2003. Where can he bring his claim?
- AA CEA Disciplinary Committee, which can order the contractor to pay him damages directly
- BThe Small Claims Tribunals, as $18,000 is within their $20,000 limit, or else the courts
- CThe Strata Titles Board, which hears consumer claims against contractors working in strata units
- DThe Small Claims Tribunals, once both parties have signed a Memorandum of Consent to the hearing
Show answer & explanation
Answer
B. The Small Claims Tribunals, as $18,000 is within their $20,000 limit, or else the courts
Explanation
Answer: The Small Claims Tribunals, as $18,000 is within their $20,000 limit, or else the courts. No Memorandum of Consent is needed at that size.Rule: A consumer who has entered a consumer transaction involving an unfair practice may sue the supplier in a court of competent jurisdiction, where the claim is within the Act's $30,000 limit. The Small Claims Tribunals hear such a claim on a contract for goods or services up to $20,000, or up to $30,000 where both parties sign a Memorandum of Consent.Source: Consumer Protection (Fair Trading) Act 2003, ss 6(1), 6(6) and 7(1) (sso.agc.gov.sg, current version at 1 Oct 2026); Small Claims Tribunals Act 1984, ss 2 and 5(4) and Schedule para 1(a), limits of $20,000 and $30,000 in force from 1 November 2019
Why the other options are wrong
- CEA Disciplinary Committee awarding him damages: A Disciplinary Committee disciplines estate agents and salespersons. It does not award damages.
- Strata Titles Board hearing claims against contractors: The Board hears disputes under the strata legislation, not consumer claims against a contractor.
- Tribunals only after a Memorandum of Consent: A Memorandum of Consent is required only for claims above $20,000 and up to $30,000. $18,000 is below that band.
Study the concept behind this question: Consumer Protection (Fair Trading) Act (CPFTA)
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