Business and Marketing

In order to make efficiency and effectiveness of transactions, almost all companies are engaged in the financial sector such as banks, insurance, financing using a standard agreement governing the rights and obligations of the parties to a transaction, in this case between the company and the customer or consumer. Standard agreement is an agreement that nearly all points have been standardized by the user and other parties who basically do not have the opportunity to negotiate or ask for changes. Actually, the raw agreement can be legally justified throughout the terms of validity of an agreement that are met as the agreement binds to the ability to make treaties and others. However, in reality, often a raw deal raises several issues related to ethical business practices.

In the agreement, there are several potential problems: first, from the preparation of the deal. Generally the agreement between the company and with customers or consumers has been prepared by the company as a standard, which is then applied generally to all customers or consumers. Because it is compiled by the company, without involving the customer, then the agreement would tend to bias, with more important interests of the company.

Second, related to the subjects who will perform the contract, in the principle of freedom of contract, the parties are free to make or not make an appointment, free to determine with whom the agreement was made, and are free to determine the contents of the agreement. The standard agreement form has been standardized to reduce the implementation of the principle of freedom of contract because its contents have been prepared unilaterally by finance companies. In a position where the bargaining power of the higher financing company, the company can implement policies of take it or leave it. This means that the contents of the agreement is not negotiable, if the customer agrees with its contents, he may take the deal. Meanwhile if the customer does not agree, he should look for other companies.

Third, if the demand for financing by the customer is approved, then the customer does not have sufficient opportunity to understand the contents of the agreement. In practice after a client request is approved, then the firm will “thrust” file standard contract and it is not provided sufficient time for customers to understand the contents of the agreement carefully. More than that, the company emphasizes that the process is easy and fast, and liabilities to be borne by the customer also mild. The three issues must be addressed urgently because it is full of potential problems later on. Generally, companies could suffer losses or the consumer gets unfair treatment.