Meanwhile, an exoneration clause is a clause that limits or even completely eliminates the responsibility that should be borne by the producer or seller.
Is an Exoneration Clause Permissible?
In Indonesian positive law, restrictions or prohibitions on the use of exoneration clauses can be found in Article 18 of Law Number 8 of 1999 concerning Consumer Protection. This article prohibits business actors from creating or including standard clauses in any document or agreement if the clause:
- States the transfer of responsibility of the business actor.
- States that the business actor has the right to refuse the return of goods purchased by the consumer.
- States that the business actor has the right to refuse the return of money paid for goods and/or services purchased by the consumer.
- States the granting of power from the consumer to the business actor, either directly or indirectly, to take any unilateral action related to goods purchased by the consumer in installments.
- Regulates matters of proof of loss of utility of goods or utilization of services purchased by consumers.
- Gives the right to the business actor to reduce the benefits of services or reduce the assets of consumers which are the object of buying and selling services.
- States the consumer's submission to regulations in the form of new, additional, further and/or further changes made unilaterally by the business actor during the period the consumer uses the services purchased.
- States that the consumer authorizes the business actor to impose a mortgage, pledge, or security right on goods purchased by the consumer in installments.
What is the Legal Force of an Agreement Containing an Exoneration Clause?
The main objective of the prohibition to include standard clauses is to ensure that consumers have the same position as business actors in accordance with the principle of freedom of contract, which is the main principle in Indonesian contract law.
However, the parties are not allowed to make agreements that conflict with laws, morality, and public order. If a business actor includes a standard clause that is prohibited in a document or agreement, then the consequence is that the standard clause will be null and void. Violations of the provisions prohibiting standard clauses can result in a maximum imprisonment of 5 years or a maximum fine of IDR 2 billion.
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