The Late Payment of Commercial Debts (Scotland) Amendment Regulations 2018
S.S.I. 2018/160 · Made 17 May 2018
Contracts
Made 17th May 2018
Laid before the Scottish Parliament 21st May 2018
Coming into force 29th June 2018
The Scottish Ministers make the following Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972f1 and all other powers enabling them to do so.
Annotations to the whole text
Footnotes
- f1
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1972 c.68. Section 2(2) was amended by the Scotland Act 1998 (c.46) (“the 1998 Act”), schedule 8, paragraph 15(3) (which was amended by section 27(4) of the Legislative and Regulatory Reform Act 2006 (c.51), (“the 2006 Act”)). Section 2(2) was also amended by section 27(1)(a) of the 2006 Act and by the European Union (Amendment) Act 2008 (c.7), section 3(3) and schedule 1, Part 1. The functions conferred upon the Minister of the Crown under section 2(2), insofar as within devolved competence, were transferred to the Scottish Ministers by virtue of section 53 of the 1998 Act.
Contents
- 1Citation and commencement
- 2Amendment of the Late Payment of Commercial Debts (Scotland) Regulations 2002
- 3Saving for existing contracts
- Signature
- Explanatory note
1Citation and commencement
These Regulations may be cited as the Late Payment of Commercial Debts (Scotland) Amendment Regulations 2018 and come into force on 29th June 2018.
2Amendment of the Late Payment of Commercial Debts (Scotland) Regulations 2002
The Late Payment of Commercial Debts (Scotland) Regulations 2002f1 are amended in accordance with paragraph (2).
For regulation 3 (proceedings restraining use of grossly unfair terms), substitute—
“Proceedings restraining grossly unfair terms or practices
3.(1)In this regulation, “representative body” means an organisation established to represent the collective interests of any undertaking, either in general or in a particular sector or area.
(2)Paragraph (3) applies where a person acting in the course of a business enters (or intends to enter) as purchaser into a contract to which the Late Payment of Commercial Debts (Interest) Act 1998f2 applies.
(3)On the application of a representative body, the Court of Session may grant an interdict on such terms as it thinks fit restraining the person from relying on a term in the contract, or engaging in a practice in relation to the contract, where that term or practice relates to—
(a)the date or period for payment of a debt;
(b)the right to interest for late payment of a debt; or
(c)compensation arising out of late payment of a debt,
and in all the circumstances of the case that term or practice appears to the Court of Session to be grossly unfair.”.
3Saving for existing contracts
These Regulations do not affect contracts made before the date these Regulations come into force.
Signature
PAUL WHEELHOUSE
Authorised to sign by the Scottish Ministers
St Andrew’s House,
Edinburgh
17th May 2018
Explanatory note
(This note is not part of the Regulations)
These Regulations transpose Article 7(5) of Directive 2011/7/EU of the European Parliament and of the Council of 16th February 2011 on combating late payment in commercial transactions (OJ L 48, 23.2.2011, p.1).
These Regulations amend the Late Payment of Commercial Debts (Scotland) Regulations 2002 (“the principal Regulations”). Regulation 2(2) substitutes a new regulation 3 in the principal Regulations which clarifies that representative bodies are able to challenge in the Court of Session (on behalf of undertakings of all sizes, not just small and medium enterprises) the use of certain grossly unfair terms or practices in, or in relation to, contracts to which the Late Payment of Commercial Debts (Interest) Act 1998 applies.
Regulation 3 provides that these Regulations do not affect contracts made before the date these Regulations come into force.
No business and regulatory impact assessment has been prepared as no costs to business are foreseen.