RES exam question on Regulation & the CEA Framework: avenue can he use
A buyer, Mr Tan, believes a supplier misled him in a transaction worth about $18,000 and wants a civil remedy under the Consumer Protection (Fair Trading) Act 2003. Which avenue can he use?
- AThe Strata Titles Board, which hears disputes between parties to a sale
- BThe CEA Disciplinary Committee, which can order the supplier to pay damages
- CThe Monetary Authority of Singapore, under its consumer-lending powers
- DThe Small Claims Tribunals, as $18,000 is within their limit, or the courts
Show answer & explanation
Answer
D. The Small Claims Tribunals, as $18,000 is within their limit, or the courts
Explanation
Issue: where a consumer brings a civil claim under the CPFTA. Rule: the CPFTA gives a consumer who has been subject to an unfair practice a right to sue the supplier, and a claim of this size can go to the Small Claims Tribunals. The Tribunals hear claims up to $20,000, or up to $30,000 where both parties sign a Memorandum of Consent (judiciary.gov.sg; limits raised on 1 November 2019). Larger claims go to the courts. Application: $18,000 is within the $20,000 limit, so no consent is needed. The Strata Titles Board hears strata disputes, a CEA Disciplinary Committee disciplines estate agents and salespersons without awarding damages to consumers, and MAS regulates financial institutions. Conclusion: the Small Claims Tribunals, or the courts.
Study the concept behind this question: Consumer Protection (Fair Trading) Act (CPFTA)
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