Civil Law Amendment

For the first time in the 196-year-long history, the Civil Law of Japan is facing a major change. Council for Legislature, a consultative committee of Minister of Justice, reached an agreement on about two hundred amendments in the law, mainly focusing on adjustment of provisions for commercial exchanges to modern internet-based contracts. While the changes were directed to protect consumers, thefts or coercion will not be eliminated. It is unclear whether the law can be a firewall between innocent citizen and ill-tempered sales person.

One of the major changes is establishment of regulation on terms and conditions. When a consumer buys good or service, the seller has to present conditions about the contract. They are too long and complicated for the buyer to understand all or find trivial trap in the document. There was a case of discounting insurance for missing smart phone, in which compensation was not paid, because the terms and conditions were renewed without announcement. In old document, there was a short description that the conditions might be changed any time, which the buyer did not notice.

According to the agreement, new provision of Civil Law will prohibit contracts excessively unbeneficial for consumers. Unilateral change of terms and conditions will also be regulated. Contract with a consumer who has mental disease, including Alzheimer’s disease, will be cancelled. The council is taking further consideration on this issue, after a member representing Nippon Keidanren.

Expiration of rending contract will also be changed. In current adoption of the law, the expiration term is determined dependent on each case. Rending money for dinner will disappear one year later. Responsibility of rewarding for hiring a lawyer will end two years later, while it extends to three years, if it were for medical treatment. New provision will set a comprehensive expiration time on five years.

On the other hand, individual guaranty for small or midsize business, which causes coercive burden on a person, will be partly allowed. Although the agreement basically prohibits individual guaranty, it sets an exception, when the person realized its risk with consultation to public notary.

Some lawyers expect fewer troubles with the amendment, while others still demand stricter regulation on unscrupulous businesses. In extremely high age society coming, there should be generational gap on consuming customs. For aged people, the world of internet shopping is still a modern wonderland. Efforts of social education are indispensable.