PPSA and Customer Engagement
The Personal Property Securities Act 2009 (PPSA) has been in operation since 30 January 2012. The smart operators among us see this change in the trading landscape as an opportunity to make sure what we have in place in terms of front end customer (and supplier) engagement is up to the task. Not just from a PPSA perspective, but from a general trading risk perspective.
We have worked with a number of our clients over the last few months to provide assistance in reviewing customer and supplier engagement processes and documents. During this time we have found that there are often far more serious contractual and liability issues that are discovered and rectified in the review process over and above PPSA compliance.
Benefits (both PPSA and other) of a process and terms review in your business:
- Confirmation that your retention of title or hire provisions are adequately drafted to allow you to register a security interest on the PPS Register.
- Provides yourself a contractual right to pass on registration costs and discharge costs to your customers.
- Allows you to contract out of some of the new and little known notice obligations set out in the PPSA.
- Making sure your terms are keeping up with how you do business (for example, email and web-based ordering and sales). How are your terms accepted/agreed to? Are you still collecting the right information?
- Ensuring your terms have priority: Do you review every purchase order that comes in? Do they ever refer to someone else’s terms? If so, by accepting that PO you may be accepting those other terms.
- Gives you a chance to review your own supplier terms to make sure where possible you are “back to backing” your obligations to customers.
- Allows you to make sure your warranty and limitation of liability provisions up to date.
For further information on the PPSA, please contact Tim Osborn on 02 4925 2077.