In the process of formulating the "model text of the automobile sales contract," the planners injected many fresh elements into the auto sales contract. Here, Wu Dong, the lawyer of Shanghai Huiye Law Firm, who has been invited to participate in this "Contract" for the entire time, has detailed explanations for us. , In-depth understanding of this "line regulation" meaning contract text. Separation of sales contracts from service contracts The separation of sales contracts from service contracts is the largest advancement of the Model Contract. From January to February 2004, the Shanghai Municipal Committee for Consumer Protection of Consumers received 69 complaints about car consumption. Of these complaints, the complaints that actually involved the breach of the contract were not many, mainly complaints about auto products and car services. Shanghai Wuye Law Firm’s lawyer Wu Dong believes that separating the sales contract from the service contract will help further segment the responsibilities. For consumers, since the “Entrusted Service Agreement†clarifies the contents and charges of various services, it can avoid the “service fee is a confused account†that often appears in the car purchase process; for dealers, the agreement is passed. It can be explained to consumers that the service is also the dealer's business scope. The reason why free services are provided is that the dealers provide value-added services for the promotion of automobile sales. At the same time, since the distributor and the consumer have signed a commission contract, the dealer is only responsible for the service process, and is not responsible for the results of the service. The ultimate responsibility for clarifying the service is the consumer. Dealer Fraud Consumers can return the vehicle knowing that the vehicle is flawed and knowingly concealing it; knowing that it was a test drive, the red flag was redistributed at the price of the new car... In the past, due to the lack of strong penalties in the auto sales market , This behavior has continued for many times. In response to these "flicky" phenomena in the auto sales market, the "Model Contract" strengthened the penalties for fraud in the car sales process. Article 5 of the “Model Contract†Article 8 of the liability for breach of contract stipulates that, after being certified by an automobile inspection agency authorized by the State, the vehicle purchased by Party B does have design and manufacturing defects. If Party A (refers to the dealer) has no fault, Party B (refers to the purchase of a car). (A) have the right to seek compensation from the manufacturer, Party A has the obligation to actively assist. If Party A is in a defective condition or has other special requirements for use, it should be explicitly informed and not explicitly informed, and Party A should bear corresponding liability. If Party A intentionally conceals the fraudulent activities of auto products, shoddy goods, provision of false materials, etc., Party B has the right to request the return of the vehicle and compensation for the losses. The car can directly find the dealer's product, it should indeed belong to the manufacturer's scope of responsibility, the manufacturer responsible for the recall or repair. Once consumers have complaints about defective products, some dealers often hold the attitude of “don’t care about themselves and hang highâ€, often causing consumers to spend a lot of time and effort in negotiating with manufacturers. . Article 3, item 3 of the “Model Contract†clearly stipulates that if the vehicle delivered by the distributor does not meet the quality standards stated in the specification, it has the right to require the distributor to undertake free repair, or to compensate for the loss, or to reduce the liability for breach of the price. This clarifies that once a consumer encounters a product defect, he no longer has to look for a manufacturer and he can directly find a dealer to solve it on the spot. In addition, the "model contract" of the breach of contract responsibility also stressed that "because of body overweight, exhaust gas failure and other circumstances lead to Party B (car buyers) can not be on the license, Party B has the right to return the car and ask Party A to compensate for the loss." This is for the consumer The “policy risk†brought about by the factors such as the overweight of the vehicle body and the exhaust gas that did not meet the new regulations was lifted. Consumers can rest assured that the previous agreement in the sales contract for insurance agents is not clear, there are many car insurance traps, fraud insurance, false insurance and other conditions occur from time to time. In the entrusted service agreement in Attachment II of the “Model Contractâ€, a detailed and explicit agreement was made on the insurance of the agent, such as the name and location of the insurance company, insurance period, types of insurance, premiums, etc., which are listed in detail so that the consumer insurance car insurance is guaranteed. . In addition, the contract also stipulates that when an accident occurs during the service of a vehicle-licensing service for a consumer agent, the dealer shall first claim compensation from the insurance company, and the shortage shall be the responsibility of the dealer. Moreover, the “Model Contract†also stipulates the exemption of insurance companies. If an insurance vehicle fails to obtain a legitimate driving license or number plate from the public security traffic control department when an insurance accident occurs, the insurance company may not exempt the liability for compensation. In other words, if the vehicle is a temporary license or a blank period, an insurance accident insurance company should also claim compensation. For their own car insurance is a very important step in the process of buying a car. The formulation of this clause in the "Model Contract" fully protects the interests of consumers. Improve vehicle handover procedures Who is inadvertently handing over vehicles? Consumers are amateurs and do not understand the criteria for handover. Distributors are often left out due to negligence and other reasons. What's more, some involve procedures for file transfer. If there is no detailed receipt as a certificate, distribution is likely to occur. Businesses and consumers are wrangling with each other. To this end, the "model contract" has attached "vehicle transfer order" and "vehicle acceptance memorandum" in the annex. The “Vehicle Transfer Order†is mainly the transfer of documents related to vehicles and accompanying documents such as invoices, certificates of conformity, and purchase tax certificates between consumers and distributors; the “Motor Vehicle Acceptance Memorandum†mainly focuses on the quality problems of consumers for automotive products. The acceptance status of the project, such as whether the appearance is intact, the lighting is bright, etc. Adding an installment payment method There were two main payment methods in the automobile consumption process. They were one-time payment and mortgage payment. The "model contract" also appeared in the third payment method - installments. In the third payment method of the “Model Contractâ€, there are three options for payment: the one-time payment, auto consumption loans, and installments. According to Wu Dong’s introduction, “phased payment†is a relatively common payment method abroad. The current reason why China does not have such a payment method is because it was basically still in the seller's market; on the other hand, China has not yet established a perfect credit system. Mr. Wu believes that with the advent of the buyer's market and the improvement of the credit system, installment payments will soon become a feasible new payment method that suits the needs of the market. Force Majeure Disclaimer: The State tightens macro-control and tightens loans. Some consumers have failed to complete a lawsuit to bring the dealer to court; Insurance companies have increased their premiums, and consumers have refused to pay more than the original agreed premium; Vehicle management has caused power outages. The dealer fails to sign a license and can not deliver the car within the agreed time limit. Consumers demand compensation. The car sales process is a complicated process and is constrained by all factors. In the past, some consumers thought that these services were not in place and even believed that they were distributors' breach of contract and should assume responsibility. The "Model Contract", in line with the principle of fairness, added the powerlessness of these dealers as force majeure to the exclusion clause, which would avoid many disputes that should not have occurred. Must provide Chinese instructions "Product Quality Law" provides that manufacturers must provide Chinese manuals, but in the car sales process, some products due to the small number, especially some imported special engineering vehicles, often do not accompanied by Chinese instructions. Although sellers who provide English manuals must be approved by the buyer in advance, once there are quality problems in use, it is very likely that there will be no ambiguity in translation due to the lack of Chinese manuals, and it will be difficult to maintain the rights and interests of consumers. For this reason, the "Model Contract" clearly stipulates that it is the manufacturer's obligation to provide Chinese instructions. More methods for resolving disputes The "Model Contract" stipulates that disputes between parties A and B in the signing of the contract can be settled through negotiation, and may also request the sales industry association or the Consumer Protection Committee to preside over mediation. Whereas negotiation cannot be resolved or mediation fails, it can be resolved in two ways: applying for arbitration and prosecuting according to law. Arbitration can be selected by the Shanghai Arbitration Commission, the Shanghai Branch of the International Economic and Trade Arbitration Commission, and the Arbitration Commission; lawsuits can be filed against the vehicles, the location of Party A, and the People's Court where Party B is located. Wu Dong introduced that other car sales contracts have not yet had such a detailed solution, and the location of the lawsuit has been fully considered in terms of convenience in all aspects. The vehicle is not repaired properly for 5 times. The "Model Contract" is particularly eye-catching. In Article 7 "Regulations on Repair, Replacement, and Returns", 9 sub-sections are used to describe in detail. This is the most described in the 11th article of the entire contract text. Detailed one. Article 3 provides that: “After the vehicle has been used for 1 year or within 20,000 km, the same serious safety performance failure has not been eliminated after 2 cumulative repairs, or the total critical cause quality problem has not been eliminated after 2 cumulative replacements. Party B has The right to withdraw the car.†In addition, Article 4 also states: “After the vehicle is used for 1 year or within 20,000 kilometers, the same key parts or the total cause of quality problems, the cumulative repairs can not be resumed 2 times; or due to quality Problems and repairs have caused the cumulative working days for the decommissioning of the vehicle to exceed 60 days (after deducting the time at which the imported parts are in transit) or the cumulative repairs are still not able to proceed normally for more than 5 times. Party A shall be responsible for changing or returning the vehicle for Party B.†It is the most controversial item in the current "Contract." Dealers generally reflect this requirement is too strict, dealers feel that this is entirely determined by the manufacturer's production quality, and has nothing to do with their own, but it is up to them to "pay the bill." For this article, Wu Dong lawyer explained that dealers can negotiate on this article to the automakers, not because the manufacturers can not resist the pressure of consumer damage. â– Text/Language
Lawyer's Interpretation of "Model Car Contract"
In the process of formulating the "model text of the automobile sales contract," the planners injected many fresh elements into the auto sales contract. Here, Wu Dong, the lawyer of Shanghai Huiye Law Firm, who has been invited to participate in this "Contract" for the entire time, has detailed explanations for us. , In-depth understanding of this "line regulation" meaning contract text. Separation of sales contracts from service contracts The separation of sales contracts from service contracts is the largest advancement of the Model Contract. From January to February 2004, the Shanghai Municipal Committee for Consumer Protection of Consumers received 69 complaints about car consumption. Of these complaints, the complaints that actually involved the breach of the contract were not many, mainly complaints about auto products and car services. Shanghai Wuye Law Firm’s lawyer Wu Dong believes that separating the sales contract from the service contract will help further segment the responsibilities. For consumers, since the “Entrusted Service Agreement†clarifies the contents and charges of various services, it can avoid the “service fee is a confused account†that often appears in the car purchase process; for dealers, the agreement is passed. It can be explained to consumers that the service is also the dealer's business scope. The reason why free services are provided is that the dealers provide value-added services for the promotion of automobile sales. At the same time, since the distributor and the consumer have signed a commission contract, the dealer is only responsible for the service process, and is not responsible for the results of the service. The ultimate responsibility for clarifying the service is the consumer. Dealer Fraud Consumers can return the vehicle knowing that the vehicle is flawed and knowingly concealing it; knowing that it was a test drive, the red flag was redistributed at the price of the new car... In the past, due to the lack of strong penalties in the auto sales market , This behavior has continued for many times. In response to these "flicky" phenomena in the auto sales market, the "Model Contract" strengthened the penalties for fraud in the car sales process. Article 5 of the “Model Contract†Article 8 of the liability for breach of contract stipulates that, after being certified by an automobile inspection agency authorized by the State, the vehicle purchased by Party B does have design and manufacturing defects. If Party A (refers to the dealer) has no fault, Party B (refers to the purchase of a car). (A) have the right to seek compensation from the manufacturer, Party A has the obligation to actively assist. If Party A is in a defective condition or has other special requirements for use, it should be explicitly informed and not explicitly informed, and Party A should bear corresponding liability. If Party A intentionally conceals the fraudulent activities of auto products, shoddy goods, provision of false materials, etc., Party B has the right to request the return of the vehicle and compensation for the losses. The car can directly find the dealer's product, it should indeed belong to the manufacturer's scope of responsibility, the manufacturer responsible for the recall or repair. Once consumers have complaints about defective products, some dealers often hold the attitude of “don’t care about themselves and hang highâ€, often causing consumers to spend a lot of time and effort in negotiating with manufacturers. . Article 3, item 3 of the “Model Contract†clearly stipulates that if the vehicle delivered by the distributor does not meet the quality standards stated in the specification, it has the right to require the distributor to undertake free repair, or to compensate for the loss, or to reduce the liability for breach of the price. This clarifies that once a consumer encounters a product defect, he no longer has to look for a manufacturer and he can directly find a dealer to solve it on the spot. In addition, the "model contract" of the breach of contract responsibility also stressed that "because of body overweight, exhaust gas failure and other circumstances lead to Party B (car buyers) can not be on the license, Party B has the right to return the car and ask Party A to compensate for the loss." This is for the consumer The “policy risk†brought about by the factors such as the overweight of the vehicle body and the exhaust gas that did not meet the new regulations was lifted. Consumers can rest assured that the previous agreement in the sales contract for insurance agents is not clear, there are many car insurance traps, fraud insurance, false insurance and other conditions occur from time to time. In the entrusted service agreement in Attachment II of the “Model Contractâ€, a detailed and explicit agreement was made on the insurance of the agent, such as the name and location of the insurance company, insurance period, types of insurance, premiums, etc., which are listed in detail so that the consumer insurance car insurance is guaranteed. . In addition, the contract also stipulates that when an accident occurs during the service of a vehicle-licensing service for a consumer agent, the dealer shall first claim compensation from the insurance company, and the shortage shall be the responsibility of the dealer. Moreover, the “Model Contract†also stipulates the exemption of insurance companies. If an insurance vehicle fails to obtain a legitimate driving license or number plate from the public security traffic control department when an insurance accident occurs, the insurance company may not exempt the liability for compensation. In other words, if the vehicle is a temporary license or a blank period, an insurance accident insurance company should also claim compensation. For their own car insurance is a very important step in the process of buying a car. The formulation of this clause in the "Model Contract" fully protects the interests of consumers. Improve vehicle handover procedures Who is inadvertently handing over vehicles? Consumers are amateurs and do not understand the criteria for handover. Distributors are often left out due to negligence and other reasons. What's more, some involve procedures for file transfer. If there is no detailed receipt as a certificate, distribution is likely to occur. Businesses and consumers are wrangling with each other. To this end, the "model contract" has attached "vehicle transfer order" and "vehicle acceptance memorandum" in the annex. The “Vehicle Transfer Order†is mainly the transfer of documents related to vehicles and accompanying documents such as invoices, certificates of conformity, and purchase tax certificates between consumers and distributors; the “Motor Vehicle Acceptance Memorandum†mainly focuses on the quality problems of consumers for automotive products. The acceptance status of the project, such as whether the appearance is intact, the lighting is bright, etc. Adding an installment payment method There were two main payment methods in the automobile consumption process. They were one-time payment and mortgage payment. The "model contract" also appeared in the third payment method - installments. In the third payment method of the “Model Contractâ€, there are three options for payment: the one-time payment, auto consumption loans, and installments. According to Wu Dong’s introduction, “phased payment†is a relatively common payment method abroad. The current reason why China does not have such a payment method is because it was basically still in the seller's market; on the other hand, China has not yet established a perfect credit system. Mr. Wu believes that with the advent of the buyer's market and the improvement of the credit system, installment payments will soon become a feasible new payment method that suits the needs of the market. Force Majeure Disclaimer: The State tightens macro-control and tightens loans. Some consumers have failed to complete a lawsuit to bring the dealer to court; Insurance companies have increased their premiums, and consumers have refused to pay more than the original agreed premium; Vehicle management has caused power outages. The dealer fails to sign a license and can not deliver the car within the agreed time limit. Consumers demand compensation. The car sales process is a complicated process and is constrained by all factors. In the past, some consumers thought that these services were not in place and even believed that they were distributors' breach of contract and should assume responsibility. The "Model Contract", in line with the principle of fairness, added the powerlessness of these dealers as force majeure to the exclusion clause, which would avoid many disputes that should not have occurred. Must provide Chinese instructions "Product Quality Law" provides that manufacturers must provide Chinese manuals, but in the car sales process, some products due to the small number, especially some imported special engineering vehicles, often do not accompanied by Chinese instructions. Although sellers who provide English manuals must be approved by the buyer in advance, once there are quality problems in use, it is very likely that there will be no ambiguity in translation due to the lack of Chinese manuals, and it will be difficult to maintain the rights and interests of consumers. For this reason, the "Model Contract" clearly stipulates that it is the manufacturer's obligation to provide Chinese instructions. More methods for resolving disputes The "Model Contract" stipulates that disputes between parties A and B in the signing of the contract can be settled through negotiation, and may also request the sales industry association or the Consumer Protection Committee to preside over mediation. Whereas negotiation cannot be resolved or mediation fails, it can be resolved in two ways: applying for arbitration and prosecuting according to law. Arbitration can be selected by the Shanghai Arbitration Commission, the Shanghai Branch of the International Economic and Trade Arbitration Commission, and the Arbitration Commission; lawsuits can be filed against the vehicles, the location of Party A, and the People's Court where Party B is located. Wu Dong introduced that other car sales contracts have not yet had such a detailed solution, and the location of the lawsuit has been fully considered in terms of convenience in all aspects. The vehicle is not repaired properly for 5 times. The "Model Contract" is particularly eye-catching. In Article 7 "Regulations on Repair, Replacement, and Returns", 9 sub-sections are used to describe in detail. This is the most described in the 11th article of the entire contract text. Detailed one. Article 3 provides that: “After the vehicle has been used for 1 year or within 20,000 km, the same serious safety performance failure has not been eliminated after 2 cumulative repairs, or the total critical cause quality problem has not been eliminated after 2 cumulative replacements. Party B has The right to withdraw the car.†In addition, Article 4 also states: “After the vehicle is used for 1 year or within 20,000 kilometers, the same key parts or the total cause of quality problems, the cumulative repairs can not be resumed 2 times; or due to quality Problems and repairs have caused the cumulative working days for the decommissioning of the vehicle to exceed 60 days (after deducting the time at which the imported parts are in transit) or the cumulative repairs are still not able to proceed normally for more than 5 times. Party A shall be responsible for changing or returning the vehicle for Party B.†It is the most controversial item in the current "Contract." Dealers generally reflect this requirement is too strict, dealers feel that this is entirely determined by the manufacturer's production quality, and has nothing to do with their own, but it is up to them to "pay the bill." For this article, Wu Dong lawyer explained that dealers can negotiate on this article to the automakers, not because the manufacturers can not resist the pressure of consumer damage. â– Text/Language