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Title: Loss allocation rules in the electronic payment systems : consumer protection approaches in Malaysia, the United Kingdom and the United States of America
Author: Razak, Abd Adilah
Awarding Body: University of Edinburgh
Current Institution: University of Edinburgh
Date of Award: 2008
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Electronic payment systems are important infrastructures in the electronic commerce market. However, like the conventional systems, they are also prone to the risk of fraudulent payment which imposes financial losses on the participants. Therefore it is essentially important that the losses are fairly and properly allocated between the parties to enable them to receive the benefit from the systems. In as far as the consumer and the electronic payment issuer are concern the losses are commonly allocated through the terms of their contract. Since contractual loss allocation may be prejudice to the consumer, loss allocation rules were introduced in respective jurisdictions to supplement the process of allocating the losses between the parties. These specifically drafted loss allocation rules are influenced by the loss allocation principles, and employed a combination of liability rules including the capped liability rule, and/or tort-based rule and/or negligence-based rules. Apart from that, the loss allocation regimes also employ the rules governing the use of an exclusion clause or unfair contract terms to protect the consumer against unfair contractual loss allocation. It is to be noted that although, the loss allocation models are identical yet their details rules vary from one jurisdiction to another. Despite the differences, they share common aim, i.e. to prescribe the rights and liabilities of the parties in relation to the losses. In particular, they provide protection to the consumer against unfair loss allocation. The success of the different loss allocation regimes in achieving the said objectives, in view of the different stature of the consumer and the issuer in term of their knowledge and financial ability, depends among other things on the clarity and the practicality of the rules and also the ability of the rules to induce the parties' precautionary action. More importantly, perfect loss allocation scheme must be comprehensive in the sense that there isn't any space left for the issuer to manoeuvre around its rules to unfairly use its contract terms to allocate the losses to the consumer. Failure of the rules to have these characteristics affects the protection of the consumer against fraudulent payment losses, hence the need for review and reform.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available