HIRE PURCHASE SYSTEM

Dominion, Volume 32, Issue 257, 28 July 1939, Page 10

HIRE PURCHASE SYSTEM

Protection Of Buyers DEFAULT IN MAKING PAYMENTS Retrieving Of Rights Greater protection for purchasers tinder lure purcuase agreements is to be given by the Hire Purchase Agreements Bill, which was introduced and read a first time in tiie House of Representatives yesterday. Tile., purpose of the Bill is to prevent unconscionable action by vendors under the lure purchase system in cases where purchasers have defaulted in making their payments or have otherwise faued to carry out the terms of the agreement. While proper remedies are preserved for vendors in such cases, purchasers are given reasonable opportunities of retrieving their rights to the possession and use of the goods they have purchased.

The Bill requires the vendor to refrain for 21 days from selling any goods seized, except with the consent of the purchaser, and in the meantime notice must be given to the purchaser setting out his indebtedness and Hie value of the goods. The purchaser may then, b„, bringing his payments up to date and paying the costs of the seizure, obtain redenvery of the goods. If circumstances prevent a purchaser from taking advantage of these provisions and he loses his right to retain the goods, further provision is made enabling him to recover from the vendor a fair proportion of the amount already paid. This amount will depend on the value of the goods at the time of seizure. Similarly, the vendor will not be able to recover from the purchaser. on seizure of the goods any sum which, together with the then value of the goods, exceeds the original purchase price. Suitable provision is also made for the protecton of guarantors of a purchaser’s obligations, but tit the same time the Bill preserves the reasonable and proper rights of the vendor against, guarantors. The Court is given power to reopen unconscionable hire purchase transactions and to adjust the rights and liabilities of the parties on a fair basis.

A further provision protects the position of a person who lias a lien for work done to any goods the subject of a hire purchase agreement, unless the agreement prohibits tiie creation of any lien.

LEGITIMATION LAW

Children Of Unmarried Parents

Children born out of wedlock maybe automatically legitimized by the subsequent marriage of the parents tinder an amending clause in the Legitimation Bill, introduced and read a first time in the House of Representatives yesterday. Tiie Bill also consolidates the existing law. The necessity for lite amendment arose from the existing application of the system of registration of births, deaths, and marriages to unmarried parents. The present law provides that a child born before wedlock, whose parents subsequently marry, is considered legitimate for purposes of inheritance. Tills, it is stated, lias always been the law of most Christian countries, but in New Zealand the legitimation has depended on tiie parents registering the child as legitimate after marriage. This formality has sometimes been overlooked, with consequent injustice to the child. The Bill makes the legitimation follow immediately upon marriage, and the registration may be effected at anytime, even though the parents or one of them may have meantime died. Thus the Inheritance of the child will not. be lost through the parents’ ignorance of the law as to registration in such cases. PAYMENT OF FINES Amending Legislation Procedure whereby the sending of people to j'*>' for Hie* non-payment of lines will be avoided as far as possible is set out in the Summary Proceedings Bill, which is to be introduced in the House of Representatives soon. The Attorney-General, Mr. Mason, said yesterday that it was felt that the imposition of a fine was an indication that the tine should lie the penalty really inflicted and not imprisonment. In such a case the Bill provided for the issue of the distress warrant or other proceedings and only as a last resort could imprison in-, nt be imposed on a person who failed to pay a tine. Even at that, imprisonment could not be imposed till the case bad been reviewed by a magistrate. The Bill contained a large numtier of clauses, most of which related to procedure, and certain exceptions were made to the main danse in respect of tines imposed on persons for intoxication. INCENTIVE TO STRIKE? Arbitration Amendment Tiie contention that it is clear that the amendment passed last week to the Industrial Conciliation and Arbitration Act will act as an incentive rather than a deterrent to strikes was made by Mr. Doidge (Opposition. Tattratiga) in a note to a question of which he gave notice in lite House of Representatives yesterday. Mr. Doidge will ask whet iter the Minister of Laliour lias noted tin- first resuit of the amendment, and if so what lidion he proposes to take. “The Minister in introducing tiie Bill, declared its purpose was to act as a deterrent to strikes,” said Mr. Doidge. "Within ii week of (lie Bill passing into law. a union on strike in Auckland made use of its provisions to obtain an increase in pay of ltd. an hour, making it dear that tiie measure will ad not as a deterrent but as an incentive to strike.”