Chapter Two - Consumer Interests
Section Two – Standard Contracts
The terms and conditions adopted in the standard contracts shall be conformed to the principles of equality and reciprocity.
Where there is any ambiguity in the wording of the standard terms and conditions, interpretations shall be made in favor of consumer.
Traders shall provide a reasonable period, not longer than 30 days, for consumers to review all contract clauses, before entering into a standard contract.
The terms and conditions adopted by traders in standard contracts made consumer waive the right prescribe in the previous paragraph shall be invalid.
Where standard terms and conditions in violation for provisions prescribed in the first paragraph shall not constitute part of the contract, but consumers may still propose that the terms and conditions make up as part of the standard contract.
The central competent authority may select particular industries and proclaim the appropriate contract reviewing period with reference to the importance of the standard terms and conditions, the coverage and complexity of the matters related in a standard contract.
Any standard terms and conditions in violation of the good faith requirements are unconscionable to consumers, shall be rendered null and void.
The use of standard contracts are presumed unconscionable where the terms and conditions provided fall within any of the following:
1. Where the terms and conditions of the contracts are in violation of the principle of equality and reciprocity.
2. Where the terms and conditions of the contracts which are excluded by the suppletory rules are obviously contradicted to legislative intent.
3. Where the purposes of the contracts cannot be achieved due to the major rights or obligations of the contracts are restricted by such terms and conditions.
Traders shall express the standard terms and conditions in full, but where it is obviously difficult to meet with the requirements, traders shall use other conspicuous methods to put the terms and conditions in public notice, thereby such terms and conditions shall constitute as part of the contract upon consumer’s consent.
Traders shall provide consumers copies of the standard contracts except for when it is obviously difficult to provide due to the nature of the contract.
Traders shall provide consumers the original copies of standard contracts which have been signed or stamped by the consumers.
For terms and conditions not specified in standard contracts and not foreseeable by the consumers under normal circumstances shall not constitute as part of the contract.
Any standard terms and conditions shall be null and void when it is contradicted to individually negotiated terms.
Where by removing any standard terms and conditions, or part of the terms and conditions thereof are held to be null or void, or do not constitute as part of the standard contracts, do not affect the contract formation, the remaining part of the contract shall still be valid, except for it is obviously unconscionable to one party, then the entire contract shall be null and void.
In order to prevent consumer disputes, protect consumer interests, and promote the fairness for the use of standard contracts, the competent authorities at the central government may set, mandatory or prohibitory provisions of standard contracts which required certain industries to apply after approved by the Executive Yuan and proclaimed by the competent authorities.
The mandatory provisions set forth in the previous paragraph may include the following matters depending on the nature and purpose of the contract:
1. The major contractual rights or obligations.
2. The effects of contract breach.
3. The performance guarantee of the prepaid transactions.
4. The right to termination, recessions and the legal effects.
5. Other matters relating to contract performance.
The prohibitory provisions set forth in the previous paragraph may include the following matters depending on the nature and purpose of the contract:
1. Traders retain the right of interpretation and modification of contract provisions and period.
2. Limitation or waiver traders’ liability or obligations.
3. Restriction or deprivation of consumers to exercise their rights, or aggravation of consumers to fulfill their obligation.
4. Other matters obviously unfair to consumers.
Where contract in violation of the mandatory or prohibitory provisions prescribed in the first paragraph, shall be null and void. Whereas the validity of contract would be decided in accordance with previous Article.
For provisions required and proclaimed by the central competent authority not described in the standard contracts shall still constitute as part of the contract.
The competent authority may examine traders on the use of standard contracts whenever necessary.
Traders shall bear the burden of proof when asserting that the standard terms and conditions have complied with the provisions in this section.