[Obstruction of Business Crime] Legal Response to Unilateral Cancellation of Sold Goods

Law firm Veat received a request from Company A (hereinafter "the client") engaged in the accommodation industry to review the possibility of criminal, civil, and administrative measures regarding the case where a specific accommodation product was unilaterally restricted from use after being sold, inducing the customer to repurchase.

Such actions can cause legal issues beyond a simple contract termination, particularly there is a close relationship with Article 314 of the Criminal Code regarding obstruction of business and Article 750 of the Civil Code regarding claims for damages.

Legal response to unilateral cancellation of sold products

『Article 314 of the Criminal Code regarding obstruction of business』

Actions such as unilaterally restricting the use of an accommodation product after selling it, providing false reasons for cancellation, and inducing repurchase may be subject to Article 314 of the Criminal Code regarding obstruction of business. The relevant article prohibits actions that obstruct another’s business through the dissemination of false information or deception.

If a company sells an accommodation product and, before the customer can use it, unilaterally restricts its use and induces repurchase by providing false reasons for cancellation, this may be considered obstruction of business under Article 314 of the Criminal Code. The perpetrator may face criminal penalties, and the victimized company may protect its rights through legal action.

『Claims for damages under Article 750 of the Civil Code』

In addition to criminal measures, the victimized company should carefully review whether it can file claims for damages based on Article 750 of the Civil Code. Article 750 of the Civil Code stipulates the right to receive compensation for damages caused by another’s unlawful act. If the unilateral cancellation of sold products constitutes a breach of contractual obligations based on the specific facts, the victimized company may claim damages. Compensation can be requested for the economic losses or business losses resulting from the cancellation, which may be determined by the court based on reasonable standards.

Furthermore, the unilateral cancellation of the contract may also raise issues of breach of contract. This may be interpreted as the seller failing to fulfill its contractual obligations, which may lead to additional claims for contractual damages, making legal responses complex.

Such unilateral contract cancellations and repurchase inducements are issues that may involve criminal, civil, and administrative liability beyond simple consumer dissatisfaction. We recommend that you receive professional legal advice to protect your rights through thorough legal review.

Law firm Veat has handled various cases related to obstruction of business and has a deep understanding of complex criminal, civil, and administrative matters, providing clients with optimized legal advice.

If you have any questions regarding the Criminal Code, Civil Code, obstruction of business, or claims for damages, please feel free to contact Law firm Veat.

Thank you.
Law firm Veat