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Eco-Reasonableness. Possibilities of Incorporating Green Principles Into General Private Law Clauses

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Quo vadis Commercial Contract?

Part of the book series: LCF Studies in Commercial and Financial Law ((LCFSCFL,volume 1))

Abstract

This chapter looks at the possibility of promoting ecological sustainability through contract law and contracting. The author considers the introduction of the ecological standard into one of the general private law clauses, namely the reasonableness criterion. The reasonableness clause is the first one to be applied when assessing both the content and the binding power of the contract. It is analyzed how the criterion of reasonableness intermingles with the legitimate consumer expectations standard under EU sales law. In this context, it is demonstrated that introducing ecological concerns into the legitimate consumer expectations standard is already taking place within EU sales law (that is under the directive 2019/771). The main challenge in this regard is to establish the point of reference for eco-reasonableness. When interpreting the contract possible points of reference could be the expectations of the consumer based either on objective and standardized or subjective and individual elements; consumer expectations that stem from their daily experience and standard factual circumstances; or the applicable normative framework. Based on the research findings, the overall effectiveness of incorporating ecological standards into contract law by way of the use of a general reasonableness clause is assessed.

This article is part of the research within the project Homo consumens, Homo ecologicus - ecological efficiency test of the new directive on certain aspects concerning contracts for the sale of goods financed by Narodowe Centrum Nauki, (NCN) [National Science Centre] in Kraków, Poland, with the number of 2019/34/A/HS5/00124.

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Notes

  1. 1.

    Schlechtriemm (2006), pp. 48–55. In private law, it is especially the principle of equity. Safjan (2012), p. 357.

  2. 2.

    Rott-Pietrzyk (2007), pp. 116, 284–285.

  3. 3.

    In Polish zasady współżycia społecznego. “The principles of social coexistence are understood either as a set of social moral rules, to some extent subject to specification and concretization, or on the contrary – as a comprehensive and plural concept, collectively illustrating informal moral rules that cannot be specified.” Doliwa (2020), pp. 46–47 (Author’s own translation).

  4. 4.

    Rott-Pietrzyk (2007), p. 389. Whether such a general clause is already present in the Polish law is, however, not clear: Radwański and Zieliński (2012), p. 406.

  5. 5.

    Rott-Pietrzyk (2007), p. 123, pp. 355–359 (in the context of Polish law).

  6. 6.

    Mularski and Radwański (2019), p. 69, 78.

  7. 7.

    In the context of Polish law: Sobolewski (2020), Art. 65 CC, point 36; Mularski and Radwański (2019), pp. 129–130.

  8. 8.

    Jędrzejewska (1992), pp. 184–185.

  9. 9.

    Under Polish law an act in law which is inconsistent with the principles of social coexistence shall be null and void (Art. 58 § 2 Polish Civil Code).

  10. 10.

    The function of this standard can be perceived differently: Balarin (2014), p. 36. Also, the legitimate expectations may be arise from different basis: Mitchell (2003), pp. 654–663.

  11. 11.

    36. Study Group on a European Civil Code and the Research Group on EC Private Law (Acquis Group) (2009), pp. 73–74.

  12. 12.

    In the context of EU law see: Pfeiffer and Ebers (2007), p. 68; Howells and Wilhelmsson (2017), p. 320.

  13. 13.

    Rott-Pietrzyk (2007), pp. 116–117, 355; e.g. in Polish law Art. 65 of the Civil Code.

  14. 14.

    Zoll (2018), pp. 103–108; Południak-Gierz (2019), p. 18; Schulze and Zoll (2021b), Chapter 2, I. 1. Marginal no 10.

  15. 15.

    Schulze and Zoll (2021b), pp. 42–44.

  16. 16.

    Stuyck (2000), pp. 393–395; Balarin (2014), pp. 33–34; Schulze and Zoll (2021a), pp. 42–44; Zoll (2018), pp. 120–134; Południak-Gierz (2020), pp. 15–22.

  17. 17.

    Pfeiffer and Ebers (2007), p. 70; Howells and Wilhelmsson (2017), p. 320.

  18. 18.

    Howells and Wilhelmsson (2017). Rec. 25 dir. 2019/771.

  19. 19.

    Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC, OJ L 136, 22.5.2019, pp. 28–50.

  20. 20.

    Art. 6-7 Directive (EU) 2019/771.

  21. 21.

    Components which need to be taken into account are listed in: Rec. 15, 24, 29, 31, 32, Art. 7 dir. 2019/771.

  22. 22.

    Directive 1999/44/EC of the European Parliament and of the Council of 25 May 1999 on certain aspects of the sale of consumer goods and associated guarantees OJ L 171, 7.7.1999, p. 12–16.

  23. 23.

    It is not clear how the term “usage” should be understood. The legislature could either mean the purpose for which the item is used or the manner in which it is used—in the second scenario, when assessing the conformity of the good it would be necessary also to take into account what kind of maintenance it requires.

  24. 24.

    This interpretation seems especially justified if the rules on negative description of the good are taken into account. However, opposite conclusions are reached by Staudenmayer and Vanherpe. Staudenmayer (2020), p. 236; Vanherpe (2020), p. 262.

  25. 25.

    De Franceschi (2018), p. 220.

  26. 26.

    Interestingly, the pre-contractual information form part of the contract and thus they are regarded as constituting subjective requirements, although, as a rule, they are not individually negotiated and they provide an objective, standardized ground for the consumer’s expectations.

  27. 27.

    Bach and Wöbbeking (2020), p. 2672, I.1; Zoll (2021), p. 643; Zoll et al. (2020), p. 527.

  28. 28.

    Południak-Gierz (2020), p. 187.

  29. 29.

    Examples are the European Commission’s Proposal for an 8th Environment Action Programme (2020)) of 14 Oct 2020 (COM(2020) 652 final)horizontal strategies such as the Communication from the Commission “Europe 2020 A strategy for smart, sustainable and inclusive growth” COM(2010) 2020 final and international environmental cooperation (e.g. the 2015 United Nations Declaration “Transforming our world: the 2030 Agenda for Sustainable Development”.

  30. 30.

    Discussed in part 4.

  31. 31.

    Koszowski (2012a), p. 46.

  32. 32.

    Koszowski (2012a), p. 45, 51.

  33. 33.

    Author’s own translation. Koszowski (2012a), p. 53.

  34. 34.

    Łętowska (2010), pp. 37–38, 47.

  35. 35.

    Koszowski (2012b), p. 66.

  36. 36.

    The doctrine proposes to go even further and apply the green principles during interpretation of the contracts and of the private law norms in general. Mattei and Quarta (2018), pp. 118–120.

  37. 37.

    Południak-Gierz (2019), pp. 170–173; Bar-Gill (2019), passim, esp. p. 229.

  38. 38.

    This, however, does not exclude trader’s liability for an unfair (misleading) commercial practice.

  39. 39.

    As to the eventual entitlements of the consumer rising from the application of a misleading commercial practice see: Art. 11a dir. 2005/29 added by directive 2019/2161. Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards the better enforcement and modernisation of Union consumer protection rules OJ L 328, 18.12.2019, pp. 7–28.

  40. 40.

    Transport & Environment (2016); Carrington (2017).

  41. 41.

    Similar issues arise also in other sectors including in the context of household appliances such as televisions, dishwashers and refrigerators. Often, their power consumption is tested only under favorable but uncommon circumstances, e.g. running TVs with an old video clip of low quality, or fridges without opening their doors. Zachariadis (2020), p. 38.

  42. 42.

    Zachariadis (2020), p. 38.

  43. 43.

    This problem has already been addressed in the context of monetary policies (see: Goodhart’s law).

  44. 44.

    So in Polish legal literature, instead of many see: Brzozowski (2020), Art. 5561 CC, Marginal number 7; Tulibacka (2020), Art. 5561 KC, point 7.1, passim.

  45. 45.

    Judgment of the Supreme Court 9.3.2006, I CSK 147/05, http://www.sn.pl/sites/orzecznictwo/Orzeczenia2/I%20CSK%20147-05-1.pdf Accessed 12 April 2021. p. 8. Similarly: judgment of the Supreme Court 30.12.1988, III CZP 48/88, Legalis; judgment of the Supreme Court 20.05.1997, II CKN 115/97, Legalis; judgment of the Supreme Court 2.04.2003, I CKN 244/01; judgment of the Court of Appeal in Kraków 16.4.2013, I ACa 235/13, Legalis.

  46. 46.

    Judgment of the Supreme Court 20.05.1997, II CKN 115/97, Legalis.

  47. 47.

    Eyckmans (2019), p. 43.

  48. 48.

    Motivation to do so may, however, come from the regulatory instruments setting the eco-standards such as administrative fines.

  49. 49.

    The matter of the impact the non-conformity of the contract with the technical standard provided by law on the existence of the contract discussed in detail in: Zoll et al. (2020), pp. 537-539.

  50. 50.

    For instance: Regulation (EU) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC) No 842/2006, OJ L 150, 20.5.2014, p. 195–230 (refrigerators); Commission Regulation (EU) No 459/2012 of 29 May 2012 amending Regulation (EC) No 715/2007 of the European Parliament and of the Council and Commission Regulation (EC) No 692/2008 as regards emissions from light passenger and commercial vehicles (Euro 6) OJ L 142, 1.6.2012, p. 16–24; Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles, and repealing Regulations (EC) No 443/2009 and (EU) No 510/2011, OJ L 111, 25.4.2019, p. 13–53 (cars); on eco-design and energy labeling for different types of products (e.g. computers, dishwashers, ovens, water pumps, ventilators): Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products, OJ L 285, 31.10.2009, p. 10–35; Regulation (EU) 2017/1369 of the European Parliament and of the Council of 4 July 2017 setting a framework for energy labelling and repealing Directive 2010/30/EU OJ L 198, 28.7.2017, p. 1–23 and implementing measures.

  51. 51.

    Zoll et al. (2020), pp. 537-538.

  52. 52.

    Zoll et al. (2020), p. 538.

  53. 53.

    Zoll et al. (2020), pp. 538-539. Such consensus is sufficient to go below the standard quality of the good of such type in their contract—co-called negative description of the good. For example the parties may describe a car as lacking one of its typical characteristics such as not having any tires or a broken engine.

  54. 54.

    For a general overview see e.g.: Saliko and Bezatlliu (2018), pp. 20–23.

  55. 55.

    That could be the case if the parties aim at concluding a sales contract regarding an item which price is lowered precisely because of the ecological externalities the good produces (either when being used or when disposed of).

  56. 56.

    E.g. in Polish law, Art. 56 of Civil Code explicitly states that “an act in law shall have not only the effects expressed in it but also those which follow from statutory law, the principles of community life, and the established customs.”

  57. 57.

    Vehicle requirements in Belgium can be seen on Uber's webpage under this link: https://www.uber.com/be/en/drive/requirements/vehicle-requirements/. Accessed 12 April 2021.

  58. 58.

    Doliwa (2020), pp. 4–29; Zbiegień-Turzańska (2020), p. 56, Art. 5, letter A, Radwański and Zieliński (2012), pp. 396–397.

  59. 59.

    Official Journal 34, item. 311 as amended (no longer in force), Art. 3, 41 § 1, 47 § 1, 82.

  60. 60.

    Doliwa (2020), pp. 5–6.

  61. 61.

    Doliwa (2020), p. 5.

  62. 62.

    See especially Judgment The Constitutional Tribunal of 17 October 2000, SK 5/99, Legalis No 49086.

  63. 63.

    Doliwa (2020), p. 8, 13.

  64. 64.

    The flexible character of a norm might not necessarily decrease legal certainty in the context of long-term legal relationships. Piaskowy (2012), p. 54. On the interplay between flexibility and legal certainty see: Study Group on a European Civil Code and the Research Group on EC Private Law (Acquis Group) (2009), p. 75.

  65. 65.

    Grochowski (2012), p. 195.

  66. 66.

    Zoll et al. (2020), pp. 528-529.

  67. 67.

    On the impact of anti-discrimination, environmental and labour-law related policies on contract law instruments see Micklitz (2018).

  68. 68.

    Zoll et al. (2020), p. 532.

  69. 69.

    Green products are usually more expensive than the regular ones, the difference in price tends to be more than 50%. For comparison of prices of eco-friendly and regular products in Poland see: IMAS International Sp. z o.o (2017) ŻYWNOŚĆ EKOLOGICZNA W POLSCE. https://docplayer.pl/47642952-Zywnosc-ekologiczna-w-polsce-imas-international-sp-z-o-o.html p. 14.

  70. 70.

    Howells and Wilhelmsson (2017), p. 321.

  71. 71.

    Zoll et al. (2020), pp. 546-547.

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    Katarzyna Południak-Gierz

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Południak-Gierz, K. (2023). Eco-Reasonableness. Possibilities of Incorporating Green Principles Into General Private Law Clauses. In: Andenas, M., Heidemann, M. (eds) Quo vadis Commercial Contract?. LCF Studies in Commercial and Financial Law, vol 1. Springer, Cham. https://doi.org/10.1007/978-3-031-14105-8_4

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