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  • International and Comparative Law Quarterly, Volume 60, Issue 4
  • October 2011, pp. 933-963

DIRECTIVE 93/13 AND THE ‘PRICE TERM EXEMPTION’: A COMPARATIVE ANALYSIS IN THE LIGHT OF THE ‘MARKET FOR LEMONS’ RATIONALE

  • Michael Schillig (a1)
  • DOI: http://dx.doi.org/10.1017/S0020589311000443
  • Published online: 28 November 2011
Abstract
Abstract

In the light of the Supreme Court decision in OFT v Abbey National on unarranged overdraft fees in current account contracts, this article analyses the price term exemption at the heart of Directive 93/13 in its European context, and on a comparative basis. It argues for an interpretation in line with the ‘market for lemons’ rationale, which best fits the regulatory outline of Directive 93/13, and the European Court of Justice's case law. Under this approach, only those contract terms that are subject to the correcting forces of markets and competition are part of the ‘main subject matter of the contract’ and should be exempt from assessment of fairness under Directive 93/13.

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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

G Akerlof , ‘The Market for “Lemons”: Quality Uncertainty and the Market Mechanism’ (1970) 84 QJ of Economics 488

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International & Comparative Law Quarterly
  • ISSN: 0020-5893
  • EISSN: 1471-6895
  • URL: /core/journals/international-and-comparative-law-quarterly
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