The Protection of Small Enterprises in South Africa: A Comparison with Jurisdictions in the USA, India and the UK
DOI:
https://doi.org/10.25159/2522-3062/16258Keywords:
comparative analysis, consumer protection theory, consumer thresholds, franchisees, juristic person consumers, small enterprisesAbstract
Small enterprises form the backbone of many economies. However, despite their contribution to sustained economic growth, most small enterprises fail within five years. The Consumer Protection Act 68 of 2008 (CPA) in South Africa encompasses a mechanism that provides protection to small enterprises as consumers. This article assesses the extent of protection that is provided to small enterprises as consumers in terms of the CPA and seeks to establish whether this protection is warranted. Desktop research was conducted to draw a comparative analysis with three other jurisdictions, namely Michigan in the United States of America, India and the United Kingdom. The article posits that protecting small enterprises as consumers under the CPA is warranted. However, the article recommends revisiting the threshold applicable to juristic persons under the CPA and also applying it to franchisees that operate as juristic persons.
References
References
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Cases
South Africa
Dadoo v Dadoo 1920 AD 530
Dibley v Furter 1951 (4) SA 73 (C)
Doyle v Killeen and Others [2014] ZANCT
Eskom Holdings Limited v Halstead-Cleak (599/2015) [2016] ZASCA
Imperial Group (Pty) Ltd v Dipico 2016 ZANCHC 1
Imperial Group t/a Auto Niche Bloemfontein v MEC: Economic Development, Environmental Affairs and Tourism Free State Government and Others 2016 (3) SA 564 (FB)
Joroy 4440 v Potgieter 2016 (3) SA 465 (FB)
Motus Corporation v Wentzel [2021] ZASCA 40; Barnado v National Consumer Commission and Others [2021] ZAGPPHC 531.
Phame v Paizes 1973 (3) SA 397 (A) <https://doi.org/10.1016/0090-6980(73)90145-7> DOI: https://doi.org/10.1016/0090-6980(73)90145-7
Salomon v Salomon & Co [1897] AC
USA
Catallo Associates, Inc v MacDonald and Goren, PC 186 Mich App 571 (1990), 465 North Western Reporter, 2d series 29
FOMCO, LLC v Hearthside Grove Association Dist Court, WD Michigan 2021
Jackson County Hog Producers v Consumers Power Co 234 Mich App 72 (1999)
Noggles v Battle Creek Wrecking, Inc 153 Mich App 363, 395 NW2d 322 (1986)
Robertson v State Farm Fire & Casualty 890 F Supp 671 (1995)
Watkins & Son Pet Supplies v Iams Co 107 F Supp 2d 883 (SD Ohio 1999)
Zine v Chrysler Corp 236 Mich App 261; 600 NW2d 384 (1999)
Legislation and Supporting Legislation
India
Consumer Protection Act, 2019
Micro, Small and Medium Enterprise Development Act, 2006
Sale of Goods Act, 1930
South Africa
Alienation of Land Act 68 of 1981
Companies Act 71 of 2008
Consumer Protection Act 68 of 2008
Consumer Protection Act regulations, 2011 (GN R293 (1 April 2011) in GG 34180).
Electronic Communications and Transactions Act 25 of 2002
Foodstuffs, Cosmetics and Disinfectants Act 54 of 1972
Income Tax Act 58 of 1962
Measurement Units and Measurement Standards Act 18 of 2006
Memorandum of Objects on the Consumer Protection Bill, 2008.
Merchandise Marks Act 17 of 1941
National Credit Act 34 of 2005
National Small Business Act 102 of 1996
National Small Business Amendment Act 29 of 2004
National Small Enterprise Act 102 of 1996
Property Time-Sharing Control Act 75 of 1983
Protection of Personal Information Act 4 of 2013
Threshold Determination (GN 294 (1 April 2011) in GG 34181)
Trust Property Control Act 57 of 1988 <https://doi.org/10.1002/crq.39019882007>
United Kingdom
Consumer Rights Act 2015
Enterprise Act 2016
Sale of Goods Act 1979
Supply of Goods (Implied Terms) Act 1973
Small Business Commissioner (Scope and Scheme) Regulations 2017
Supply of Goods and Services Act 1994
United Nations
UN Guidelines (United Nations Conference on Trade and Development, July 2016) <https://unctad.org/system/files/official-document/ditccplpmisc2016d1_en.pdf> accessed 9 March 2024.
United States of America
Restatement of the Law, Consumer Contracts (2022)
Uniform Laws Annotated Uniform Commercial Code
Michigan Consumer Protection Act 331 of 1976
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