Busan Metropolitan City Ordinance on Distribution Dispute Mediation Committee : City Government

BUSAN METROPOLITAN CITY ORDINANCE ON DISTRIBUTION DISPUTE MEDIATION COMMITTEE

The purpose of this Ordinance is to prescribe matters necessary for establishment and operation of Busan Distribution Dispute Mediation Committee(hereinafter referred to as the "Committee") under Article 36 of the Distribution Industry Development Act.

The Committee may mediate the following disputes:
- 1. Disputes over business activities between superstores and wholesalers or retailers in the neighborhood: Provided, That this shall not include the matters subject to application of the Monopoly Regulation and Fair Trade Act;
- 2. Disputes over living environment between superstores and residents in the neighborhood: Provided, That this shall not include the matters subject to application of the Environmental Dispute Adjustment Act; an
- 3. Other disputes the mediation of which is inevitable for sound order of distribution.

(1) The Committee shall consist of not less than 11 but not more than 15 members, including one chairman.

(2) The chairman of the Committee shall be appointed by the Mayor of Busan Metropolitan City(hereinafter referred to as the "Busan").
(3) The members of the Committee shall be:
- 1. Persons falling under any of the following, who are commissioned by the Mayor:
  - (a) Persons who hold qualifications of judges, public prosecutors, or attorneys-at-law;
  - (b) Officers or employees of the Chamber of Commerce and Industry;
  - (c) Representatives of consumers’ associations;
  - (d) Persons with professional knowledge and experience in the field of the distribution industry; and
  - (e) Consumers residing in Busan; and
- 2. Director-General of Economic Promotion

The term of office of the commissioned members shall be two years, but the consecutive appointment may be permitted for only one time.

(1) The chairman shall represent the Committee and exercise the overall control of the affairs thereof.

(2) If the chairman is unable to perform his/her duties for any inevitable reason, the member, whom the chairman designates in advance, shall act on behalf of the chairman.

(1) The meeting of the Committee shall be convened by the chairman upon application for mediating dispute.

(2) When the Chairman intends to call the meeting of the Committee, he/she must notify every member of the date and time, venue, and agenda at least 5 days prior to the meeting: Provided, That this shall not apply in case of emergency or unavoidable causes.
(3) The meetings of the Committee shall convene with the presence of a majority of the members on the register, and decisions shall be made by a majority of the members present.
(4) The Chairman must take minutes of the meetings of the Committee.

(1) One executive secretary and one clerk shall be appointed in the Committee in order to manage its affairs.

(2) The director in charge of distribution disputes must be the executive secretary, and the deputy-director in charge of distribution disputes must be the clerk.

The allowances and travel expenses may be paid to the commissioned members of the Committee, to such an extent as the relevant budget permits.

(1) Any person who is dissatisfied with the draft mediation of the Committee of Gu, Gun(hereinafter referred to as the "Gu, Gun Committee" under Article 37 of the Distribution Industry Development Act may file an application for mediating the case with the Committee within 15 days from the date when the draft mediation is given.

(2) The applicant under paragraph (1) must submit the application letter which includes the following information:
- 1. Name and address of the applicant;
- 2. Draft mediation of the Gu, Gun Committee;
- 3. Reason of dissatisfaction; and
- 4. Other documents necessary for mediation.

If it is deemed necessary for mediating related distribution disputes, the Committee may join them into one mediation procedure.

(1) The Committee, when it receives an application filed for mediating any distribution dispute, must notify the Gu, Gun Committee and any party involved in the distribution dispute other than the applicant of the fact of the filing for mediating the distribution dispute and details of the application within 3 days from the date on which the application is filed.

(2) The Committee shall, upon receipt of an application for mediating a dispute under paragraph (1), examine the case and prepare a draft mediation within 30 days from the date of receiving such application: Provided, That if there are unavoidable circumstances, the Committee may resolve to extend the period.
(3) In the event that the period is extended in accordance with paragraph (2), the Committee shall notify the relevant parties of the reasons why the period is extended.
(4) The Committee must, when it prepares a draft mediation in accordance with paragraph (2), present such draft mediation to each of the parties without delay.
(5) Each of the parties presented with the draft mediation under paragraph (4) must serve a notice on the Committee as to whether or not he accepts the draft mediation within 15 days from the date on which he has received such draft mediation.
(6) If the parties accept the draft mediation, the Committee shall promptly prepare a written mediation, and the chairman and the parties shall subscribe their names thereto and affix their seals thereon.
(7) In the event that the mediation of any distribution dispute is effected under Article 39 of the Distribution Industry Development Act, the Committee shall notify without delay the parties and the head of Gu, Gun of the fact and its details.

When the parties accept the draft mediation under Article 11 and the parties subscribe their names thereto and affix their seals thereon, an agreement identical to the written mediation between the parties shall be deemed reached.

(1) The Committee may, in one of the following subparagraphs when it deems that it is inappropriate for it to mediate a dispute in the light of its nature or that an application for mediating a dispute is filed for an unfair purpose, reject the relevant mediation. In this case, a notice on the grounds, etc. of rejecting the mediation shall be served on the relevant parties:

- 1. When the dispute has minor effect on the rules of commercial transactions;
- 2. When the application for mediation is repetitive; and
- 3. When the application for mediation is about the matters on permit or approval given by relevant statutes.
(2) In the event that any of the parties to a medication case files a lawsuit in the process of examining the case, the Committee shall suspend handling the dispute and serve a notice thereon on the relevant parties.
(3) In the event that the mediation of any distribution dispute is rejected or suspended, the Committee shall notify without delay the parties and the head of Gu, Gun of the details thereof.

Any member of the Committee who is a interested party in the dispute shall be excluded from the dispute mediation.

(1) The Committee may ask parties involved in a dispute or other relevant witnesses to provide materials necessary to mediate the dispute. In this case, the relevant parties shall comply with the request unless the justifiable grounds exist that make it impossible for them to do so.

(2) The Committee may, when it is deemed necessary, get the relevant parties or witnesses to be present at a meeting of the Committee to hear their opinions.

In the event that the service of study is required to mediate any distribution dispute and parties agree to entrust the service of study, the parties shall equally bear expenses required to perform the service of study: Provided, That in the event that an agreement is reached between the parties with respect to the share of expenses, the share of such expenses shall be governed by such agreement.

Matters other than those as prescribed by this Ordinance, which are necessary for the operation of the Committee, shall be determined by the chairman through a decision of the Committee.

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City Government

Ordinances

Busan Metropolitan City Ordinance on Distribution Dispute Mediation Committee

BUSAN METROPOLITAN CITY ORDINANCE ON DISTRIBUTION DISPUTE MEDIATION COMMITTEE