Consumer Protection Act, 2008 (Act No. 68 of 2008)Chapter 2 : Fundamental Consumer RightsPart I : Supplier’s accountability to consumers62. Lay-bys |
| 1) | If a supplier agrees to sell particular goods to a consumer, to accept payment for those goods in periodic instalments, and to hold those goods until the consumer has paid the full price for the goods— |
| a) | each amount paid by the consumer to the supplier remains the property of the consumer, and is subject to section 65, until the goods have been delivered to the consumer; and |
| b) | the particular goods remain at the risk of the supplier until the goods have been delivered to the consumer. |
| 2) | If a supplier is unable to deliver any goods contemplated in subsection (1) when the consumer has paid the full price for those goods, the supplier must either, at the option of the consumer— |
| a) | supply the consumer with an equivalent quantity of goods that are comparable or superior in description, design and quality; or |
| b) | refund to the consumer— |
| i) | the money paid by the consumer, with interest in accordance with the Prescribed Rate of Interest Act, 1975 (Act No. 55 of 1975), if the inability to supply the goods is due to circumstances beyond the supplier’s control; or |
| ii) | double the amount paid by the consumer, as compensation for breach of contract in any circumstances not contemplated in subparagraph (i). |
| 3) | Without limiting the generality of subsection (2)(b)(i), a failure to supply the goods is not ‘‘due to circumstances beyond the supplier’s control’’ if the shortage results partially, completely, directly or indirectly from a failure on the part of the supplier to adequately and diligently carry out any ordinary or routine matter pertaining to the supplier’s business. |
| 4) | If a consumer contemplated in subsection (1) terminates the agreement before fully paying for the goods, or fails to complete the payment for the goods within 60 business days after the anticipated date of completion, the supplier— |
| a) | may charge a termination penalty in respect of those goods, subject to subsections (5) and (6); and |
| b) | after deducting any such termination penalty, must refund to the consumer any amount paid by the consumer under that agreement. |
| 5) | A cancellation penalty contemplated in subsection (4) may not be charged— |
| a) | if the consumer’s failure to complete payment was due to the death or hospitalisation of the consumer; or |
| b) | in any other case, unless the supplier informed the consumer of the fact and extent of the penalty before the consumer entered into the lay-by agreement. |
| 6) | The Minister may prescribe a basis for calculating the maximum amount of a cancellation penalty contemplated in subsection (4). |