Quantitative Suitability in Consumer Law (1)

On current consumer contract law before rivised, Art.4, stipulates the consumer right of cancellation to the contract; it says that a consumer can  annul the consumer contact only based on misleading or aggressive solicitation by business.

(Rescission of the Manifestation of an Intention to Offer or Accept a Consumer Contract)

Article 4　(1)　A consumer may rescind the manifestation of his/her intention to offer or accept a Consumer Contract if either of the actions listed in the following items in which the Business Operator engaged when soliciting the Consumer to enter into such a Consumer Contract caused the Consumer to be under the mistaken belief listed in the relevant item, based on which the Consumer manifested the intention to offer or accept the relevant Consumer Contract:

(i)　Misrepresentation as to an Important Matter:　Mistaken belief that said misrepresentation is true; or

(ii)　Providing conclusive evaluations of future prices, amounts of money that a Consumer should receive in the future and other uncertain items subject to future change with respect to goods, rights, services and other matters that are to be the subject of a Consumer Contract:　Mistaken belief that the content of said conclusive evaluations is certain.

(2)　A Consumer may rescind the manifestation of his/her intention to offer or accept a Consumer Contract if a Business Operator, when soliciting said Consumer to enter into said contract, represents only the advantages of an Important Matter or a matter related thereto but intentionally omits disadvantageous facts (limited to facts that a Consumer would normally consider to be non-existent by such omission), about such Important Matter, causing said Consumer to mistakenly believe the non-existence of such facts. However, this shall not apply where said Business Operator has attempted to communicate such facts to said Consumer and said Consumer refused to hear such attempted communications.

(3)　A Consumer may rescind the manifestation of his/her intention to offer or accept a Consumer Contract if he/she is distressed as a result of either of the following acts engaged in by a Business Operator when soliciting said Consumer to enter into said Consumer Contract:

(i)　Failure to leave a Consumer’s residence or place of business in defiance of the Consumer’s request that the Business Operator leave such place; or

(ii)　Preventing a Consumer from leaving a place where the Business Operator is soliciting the Consumer to enter into a Consumer Contract in defiance of the Consumer’s request to leave.

(4)　The term “Important Matter” as used in item (i) under paragraphs (1) and paragraph (2) means the following matters that, if included in a Consumer Contract, would normally affect a Consumer’s decision as to whether to conclude such Consumer Contract:

(i)　Quality, purpose of use and other details of the objects of a Consumer Contract, such as goods, rights and services; and

(ii)　Price and other conditions of a transaction involving the objects of a Consumer Contract, such as goods, rights and services.

(5)　The rescission of the manifestation of an intention to offer or accept a Consumer Contract under paragraphs (1) to (3) may not be asserted against a third party without such knowledge.

The revised law has added the new article of cancelation; the breach of sales conducts as quantitative suitability.

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