HOME > CASES >

Consumers who purchase yachts are protected by the Law of the People’s Republic of China on the Protection of Consumers’ Rights and Interests, and producers shall bear punitive compensation liability for their frauds


Updated:2021-10-27    Views:

In the case of dispute over contract of sale and purchase of ship between Yu

X as the plaintiff and Dalian Cihang Yacht Co., Ltd. (hereinafter referred to as

Cihang Company) as the defendant and Wehai JinyunYacht Co., Ltd. (hereinafter

referred to as Jinyun Company) as the defendant32, Yu X ordered a new yacht

from the seller, Cihang Company. As agreed, Cihang Company was responsible

for handling the ship inspection procedures of the yacht. Later, Cihang Company

delivered a yacht and ship inspection certificates of the same model built by the

manufacturer Jinyun Company. In the process of negotiating and handling the

case of a bottom break of the yacht, Yu X discovered that there were discrepancies

in the ship inspection procedures on where the yacht left the factory and where

it was naturalized. Yu X believed that Cihang Company and Jinyun Company

had sales fraud, and requested to rescind the yacht sales contract, and requested

Cihang Company and Jinyun Company to jointly refund RMB 180,000 of the

purchase price and jointly compensate for the loss of RMB 360,000. The Court

held that, Cihang Company delivered an unqualified yacht as the subject of the

sales contract, and failed to prove that he had ordered a new yacht from Jinyun

Company, paid the price, transported the new yacht to Dalian or done the related

things. It was presumed that Cihang Company intentionally concealed the true

status of the yacht when he entered into the contract, which constituted a fraud.

The design and purpose of this yacht were for private use, which was within the

scope of commodities specified in Article 2 of the Law of the People’s Republic of

China on the Protection of Consumers’ Rights and Interests. According to the Law,

the Court ruled to rescind the yacht sales contract signed between Yu X and Cihang

Company, ordered Cihang Company to refund the purchase price of the yacht to

Yu X and bear punitive compensation liability, and rejected Yu X’s claim against

Jinyun Company.


Copyright 2019-2020 Dalian Maritime Court. All Rights Reserved