Exemption of Liability in Consumer Contracts in Malaysia

Consumerism loaded with paternalistic ideals of protecting customers is by all means a paradigm shift from the so-calledfreedom of contract ideology. The aim of consumerism is to regulate andintervene in the market in their noble cause of upholding andempowering consumers in trade. Nevertheless in the area of exclusion of trader s sliability in consumer contracts, the move towards upholding consumer rights has been veryrrzinimal. Absence ofappropriate legal mechanism in the form of a specific legislation to curb the use of unfair terms in consumer contracts has lead to oppression of consumers and the spread of unethical conduct of traders. In Malaysia however, the legal development in the area of exemption clauses in consumer contracts appears to be minimal. In the area of exemption of liability in Malaysia, by virtue of section 3 and 5 of the Civil Law Act 1956, the common law principles have been applied However the case law development in Malaysia on exemption o fliability, especially when the parties are of unequal bargaining power. causes a serious concern in consumer protectioll. This article explores the status of exemption clauses within the theoretical corpus of contract. It then examines the extent of the legal treatment on exemption clauses in consumer contracts as illustrated in reported cases.