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RES exam question on Regulation & the CEA Framework: he bring his claim

HardRegulation of the Estate Agency Industry · Paper 2

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?

  1. AA CEA Disciplinary Committee, which can order the contractor to pay him damages directly
  2. BThe Small Claims Tribunals, as $18,000 is within their $20,000 limit, or else the courts
  3. CThe Strata Titles Board, which hears consumer claims against contractors working in strata units
  4. 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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