Business Law

1.0 Introduction

Over the years, Malaysia’s economic growth has been noteworthy. The spurring development of industrial activities and international trade has made the nation one of the most developed amongst the developing countries. Owing to such developments and growth the Malaysian consumer experiences an explosion of goods and services in the market making consumer protection a critical issue. In her thesis Nurhayati Binti Ismail reveals various aspects of consumer protection legislation in Malaysia. She sates that there are a number of statutes administered by various ministries dealing with consumer protection. She identifies the Sale of Goods Act 1957 as one of the statutes, stating its basis to be the old English Act of 1893. The English Act of 1893 was re-enacted almost in its entirety with some minor modifications such as the numbering of provisions (Vohrah & Aun, 2003). Lastly, it is further explained how the act is only applicable in Peninsular Malaysia including Penang and Malacca by the virtue of 1990 amendment, with no equivalent statute in Sabah and Sarawak and the law in these two states is governed by Section 5(2) of the Civil Law Act of 1956. Consequently, in these two states as held in Heng Leng Motor Trading v Osman bin Abdullah the law applicable is the 1979 English Act which is different from the Sale of Goods Act 1957. Similarly, the growing awakening of consumer awareness led to the formation of Article 2 of the Uniform Commercial Code in the United States. It particularly deals only with transactions involving the sale of goods. With the exception of Louisiana, Article 2 has been adopted by every State in the United States (LawInfo, 2013). With that insight, through this assignment I seek to thoroughly explore the various aspects of Sale of Goods Act 1957 and Article 2 of the Uniform Commercial Code.

2.0 Scope of SGA 1957 and Article 2, UCC

Like the English Act, the SGA applies to the sale of all types of goods, including...