Gibson, Business Law 11^th Edition

Chapter 10: General and specific consumer protections under the ACL

LO10.1 Discuss the general protections offered by the Australian Consumer Law

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following is not covered by the Australian Consumer Law?
2. Unfair practices in relation to the provision of goods and services to small businesses.
3. Unfair practices in relation to the provision of financial services to consumers.
4. Unfair practices in relation to land transactions.
5. Unfair practices in relation to the provision of goods and services to consumers.

Difficulty: Moderate

Topic: Scope of the Australian Consumer Law

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

1. Under the Australian Consumer Law definition, a ‘consumer’ is not:
2. Someone who acquires a commercial road vehicle valued at less than $40,000.
3. Someone who acquires goods or services valued at less than $40,000.
4. Someone who acquires goods or services of a kind ordinarily acquired for personal, domestic or household use (of any value).
5. Someone who acquires goods for resupply, or for use or transformation in trade or commerce.

Difficulty: Basic

Topic: Scope of the Australian Consumer Law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

True/False: Identify whether the statement is True or False

1. The Australian Securities and Investments Commission (ASIC) and the Australian Consumer Law both offer customers protection from misleading statements.
2. True
3. False

Difficulty: Complex

Topic: Scope of the Australian Consumer Law

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

1. The onus of proving that a transaction is a consumer sale is always on the consumer.
2. True
3. False

Difficulty: Basic

Topic: Scope of the Australian Consumer Law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

1. Conduct by a corporation or person in trade or commerce that is misleading or deceptive may also result in a finding of unconscionable conduct.
2. True
3. False

Difficulty: Basic

Topic: Chapter 2- General protections

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

1. Which of the following is considered an unfair practice according to the Australian Consumer Law?
2. Multi-level marketing.
3. Independent contractor agreements.
4. Referral selling.
5. Bonus schemes.

Difficulty: Complex

Topic: Chapter 2- General protections

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. Explain the function of the Australian Consumer Law.

Difficulty: Basic

Topic: Scope of the Australian Consumer Law

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.1 Discuss the general protections offered by the Australian Consumer Law (ACL).

LO10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. In order to establish misleading and deceptive conduct in breach of s 18 of the Australian Consumer Law, three out of the four following elements must be satisfied. Which answer option is not a necessary element for establishing misleading and deceptive conduct?
2. The conduct must be misleading or deceptive or likely to mislead or deceive.
3. The conduct must have been by a person.
4. The conduct must have been intended to mislead or deceive.
5. The conduct must be in trade or commerce.

Difficulty: Moderate

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. In relation to ‘conduct’- under s 18 of the ACL, Henjo Investments Pty Ltd & Ors v Collins Marrickville Pty Ltd [1988] 79 ALR 83- is authority for the principle that:
2. Silence can constitute misleading and deceptive conduct where there is a duty to disclose relevant facts.
3. Silence can constitute intentional refusing and likely to deceive.
4. Silence about an advertiser’s products can constitute misleading and deceptive conduct.
5. Silence about a false warranty is sufficient to constitute misleading and deceptive conduct.

Difficulty: Complex

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. In relation to ‘conduct’- under s 18 of the ACL, Clark Equipment Australia Ltd v Covcat Pty Ltd [1987] 71 ALR 367- is authority for the principle that:
2. Pre-contractual representations can constitute misleading and deceptive conduct.
3. An advertisement which compared a competitor’s products unfavourably with the advertiser’s products can constitute misleading and deceptive conduct.
4. Silence can constitute misleading and deceptive conduct where there is a duty to disclose relevant facts.
5. The act of making a contract containing a false warranty is sufficient to constitute misleading and deceptive conduct.

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. How does s 18 of the Australian Consumer Law define ‘conduct’?
2. Statements of opinion that are false or not reasonably held.
3. Statements that are literally true but that create a false impression.
4. Broken promises and false predictions.
5. All of the above.

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Why was the conduct found to be misleading and deceptive in Pacific Dunlop Ltd v Paul Hogan; Rimfire Films Ltd and Burns Philp Trustee Company [1989] FCA 250?
2. The use of the name might cause confusion in the minds of some consumers.
3. The conduct created the false impression that a commercial relationship existed between the parties.
4. The conduct was not found to be misleading and deceptive.
5. The misconception was caused by use of an existing name which already had a well-established reputation.

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Why was the conduct found not to be misleading and deceptive in McWilliam’s Wines Pty Ltd v McDonald’s System of Australia Pty Ltd [1980] ATPR 40-188?
2. The target audience would not be misled into thinking there was a connection between the two products.
3. A leading wine writer made the offensive statement and not the company itself.
4. Merely causing consumers to wonder if the product is made by the same manufacturer is not sufficient.
5. The products were clearly labelled so there was nothing more the manufacturer could do.

Difficulty: Moderate

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. In which case did the court set out the guidelines for determining if conduct is misleading or deceptive within the meaning of s 18 of the Australian Consumer Law?
2. McDonald’s System of Australia Pty Ltd v McWilliams Wines Pty Ltd [1980] 33 ALR 394.
3. Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd [1982] 149 CLR 191.
4. Taco Company of Australia Inc v Taco Bell Pty Ltd [1982] ATPR 40-303.
5. Pacific Dunlop v Hogan [1989] 23 FCR 553.

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Which of the following is not one of the guidelines for determining if conduct is misleading and deceptive within the meaning of s 18 of the Australian Consumer Law?
2. Decide whether the conduct was capable of misleading or deceiving the relevant section of the public.
3. Establish that at least half of the relevant section of the public would have been misled or deceived by the conduct of the defendant.
4. Identify the relevant section of the public targeted by the conduct of the defendant.
5. Decide whether the conduct of the defendant caused the misconception.

Difficulty: Moderate

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. What was the reason for the decision in Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd [1982] HCA 44?
2. The target audience of the conduct would not be misled into thinking there was a connection between the two products.
3. A purchaser could be misled if someone removed the labels without the manufacturer’s knowledge.
4. The products were clearly labelled so there was nothing more the manufacturer could do.
5. The conduct could cause consumers to wonder if the products were made by the same manufacturer.

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

True/False: Identify whether the statement is True or False

1. Allegations of a breach of a specific unfair practices section of the Australian Consumer Law will often also involve a breach of the general prohibition in s 18 for misleading and deceptive conduct.
2. True
3. False

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Conduct that is misleading and deceptive under s 18 of the Australian Consumer Law can result in both civil and criminal penalties.
2. True
3. False

Difficulty: Moderate

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Section 18 is not only available to consumers, but it can also be used by competitors or suppliers against other competitors.
2. True
3. False

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. You have booked a holiday home through Accommodation Noosa Pty Ltd 12 months in advance. However, when you arrive at the Accommodation Noosa office to pick up the key, you are told that there has been an unfortunate double booking error, and the holiday home you had booked is no longer available. Accommodation Noosa offers you an alternative holiday home, but it is not as appealing as your original choice. Can you use s 18 of the Australian Consumer Law to bring an action against Accommodation Noosa?

Difficulty: Moderate

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Do you think the penalties for companies making false claims about their product’s country of origin are fair?

Difficulty: Complex

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Why do you think customers are more easily influenced by comparative advertising? And how does the psychology behind this form of advertising affect businesses?

Difficulty: Complex

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

1. Distinguish between comparative and character advertising.

Difficulty: Basic

Topic: What does Chapter 2, Part 2-1: Misleading or deceptive conduct (ss 18–19) cover

Standard/Graduate Attribute AACSB: Application of Knowledge

Learning Outcome: LO 10.2 Explain the elements of misleading and deceptive conduct and discuss its application in various situations.

Comparative advertising is when a company compares the features of their product with a competitor by using evidence or statistics to support their claims.

LO10.3 Explain unconscionable conduct and unfair terms in consumer contracts

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. The Australian Consumer Law in ss 20 to 22 provides remedies for:
2. Unconscionable conduct when supplying goods or services to a person (other than a listed public company).
3. Unconscionable conduct at common law by a person in the course of trade or commerce.
4. Unconscionable conduct when acquiring goods or services from a person (other than a listed public company).
5. All of the above.

Difficulty: Moderate

Topic: Chapter 2 - Unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

1. Which of the following is not a factor in deciding whether a corporation has engaged in unconscionable conduct, in breach of ss 21 or 22 of the Australian Consumer Law?
2. Whether the consumer has fully complied with the terms of the contract.
3. Whether any undue influence, pressure or unfair tactics were used by the corporation.
4. Whether the terms of the contract were reasonably necessary to protect the legitimate interests of the corporation.
5. Whether the form and wording of the contract was clear.

Difficulty: Complex

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

1. Which of the following ‘consumers’ are not protected by s 22 of the unconscionability provisions of the Australian Consumer Law?
2. A proprietary company.
3. A listed public company.
4. A partnership.
5. An individual.

Difficulty: Moderate

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

1. In ACCC v Excite Mobile Pty Ltd [2013] FCA 350, how did Excite Mobile participate in unconscionable conduct with consumers?
2. They relied on the lack of educational experience of their customers.
3. They relied on the intellectual disabilities of their customers.
4. They relied on the vulnerable and commercially naïve customers in the community.
5. They relied on the strengths and experience of their customers.

Difficulty: Moderate

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

True/False: Identify whether the statement is True or False

1. The statutory prohibition of unconscionable conduct in s 21 of the Australian Consumer Law replaces the common law.
2. True
3. False

Difficulty: Moderate

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

1. The Australian Consumer Law prohibits unconscionability in business as well as consumer transactions.
2. True
3. False

Difficulty: Basic

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. To what extent have the laws relating to unconscionability undermined the certainty of commercial and consumer contracts?

Difficulty: Complex

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

1. What is an unfair contract under s 23 of the Australian Consumer Law?

Difficulty: Basic

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

• A consumer contract;

• An unfair term; and

• A standard form contract.

A consumer contract is a contract for the supply of goods, services or an interest in land to an individual, wholly or predominately for personal, domestic or household use or consumption: s 23(3).

A term of a consumer contract is unfair if it causes a significant imbalance in the parties’ rights and obligations, is not reasonably necessary to protect the legitimate interests of the supplier and causes detriment (whether financial or otherwise) to a party.

1. Which remedies are available to consumers under the Australian Consumer Law and Australian Securities and Investments Commission Act in regards to unconscionable conduct?

Difficulty: Basic

Topic: Chapter 2, Part 2-2: Prohibition of unconscionable conduct (ss 20–22)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.3 Explain unconscionable conduct and unfair terms in consumer contracts.

• Voiding all or part of the contract.
• Varying the contract.
• Refusal to enforce all or parts of the contract.
• Receiving a refund of monies or property.
• Repair of goods.
• Monies for damage or losses.

LO10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Section 29(1) of the Australian Consumer Law prohibits false representations regarding goods relating to:
2. Whether the goods are new.
3. The standard or quality of the goods.
4. The price of the goods.
5. All of the above.

Difficulty: Basic

Topic: Chapter 3: Specific false representations (ss 29–31, 37)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

1. Section 29(1) of the Australian Consumer Law prohibits false representations regarding services relating to:
2. The price of the service.
3. The standard, quality, value or grade of the service.
4. The buyer’s need for the service.
5. All of the above.

Difficulty: Basic

Topic: Chapter 3: Specific false representations (ss 29–31, 37)

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

1. Advertising something at a special price and then telling customers that it is unavailable and offering them something else at a higher price is an example of:
2. Unsolicited goods.
3. Bait advertising.
4. Pyramid selling.
5. Referral selling.

Difficulty: Basic

Topic: Prohibition of other ‘unfair practices’

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

1. If a purchaser acts as a seller’s ‘agent’ and is paid a commission for introducing new customers to the seller, the parties have engaged in:
2. Bait advertising.
3. Unsolicited goods.
4. Referral selling.
5. Pyramid selling.

Difficulty: Basic

Topic: Prohibition of other ‘unfair practices’

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

1. Under s 50 of the Australian Consumer Law, a corporation must not engage in the ‘unfair practice’ of:
2. Making false representations in relation to employment.
3. Dispatching unsolicited credit cards unless requested in writing.
4. Offering gifts or prizes when it does not intend to provide them.
5. Using physical force at a place of residence in connection with the supply of goods or services.

Difficulty: Basic

Topic: Prohibition of other ‘unfair practices’

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

True/False: Identify whether the statement is True or False

1. Where a corporation, or person in trade or commerce claims a right to payment from another person for unsolicited goods or services, it is known as inertia selling.
2. True
3. False

Difficulty: Basic

Topic: Prohibition of other ‘unfair practices’

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

1. Accepting payment without intending to supply is not an offence under the ACL but rather an offence under the Crimes Act 1901.
2. True
3. False

Difficulty: Basic

Topic: Prohibition of other ‘unfair practices’

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.4 Summarise certain false representations and unfair practices and explain how consumer protection legislation is applied.

LO10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following does not need to be established in order for a manufacturer to be liable for defective goods?
2. A person is injured.
3. The goods have a safety defect.
4. The injury was foreseeable.
5. The manufacturer supplies goods in trade or commerce.

Difficulty: Basic

Topic: Chapter 3, Part 3-5: Product liability under the Australian Consumer Law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

1. What was the court’s reasoning in Effem Foods Ltd v Nicholls [2004] NSWCA 332?
2. That the defect that existed was extremely remote but not impossible.
3. That the defect could not have been discovered at the time of manufacturing.
4. That there was a causal link between the safety defect and the injury that occurred.
5. That the defect resulted in an injury by another individual.

Difficulty: Complex

Topic: Chapter 3, Part 3-5: Product liability under the Australian Consumer Law

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

1. Which of the following statements are true in relation to the liability of manufacturers for defective goods?
2. Manufacturer’s liability does not apply to commercial property.
3. Manufacturer’s liability is strict and there is no need to prove fault.
4. Manufacturer’s liability cannot be excluded or modified.
5. All of the above.

Difficulty: Basic

Topic: Chapter 3, Part 3-5: Product liability under the Australian Consumer Law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

1. A supplier wants to cancel a lay-by agreement. Which of the following situations would not allow for this termination of agreement?
2. A supplier can choose at any time to terminate the agreement.
3. The consumer has breached a term, whilst the supplier hasn’t breached the agreement.
4. The supplier no longer trades
5. The goods are no longer available.

Difficulty: Basic

Topic: What other consumer transactions are caught by the ACL?

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

1. Which of the following is a defence to an action for manufacturers liability for defective goods?
2. The defect did not exist at the time the goods left the manufacturer.
3. The injured person had not read the instructions carefully enough.
4. The goods were not intended to be dangerous.
5. Any of the above.

Difficulty: Moderate

Topic: Chapter 3, Part 3-5: Product liability under the Australian Consumer Law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

True/False: Identify whether the statement is True or False

1. A consumer can take action against both the retailer and the manufacturer for breach of the consumer guarantees.
2. True
3. False

Difficulty: Basic

Topic: Manufacturer’s liability

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

1. Manufacturer’s liability for breach of the consumer guarantees extends to importers where there is no manufacturer in Australia.
2. True
3. False

Difficulty: Basic

Topic: Chapter 3, Part 3-5: Product liability under the Australian Consumer Law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

1. Section 82 of the Australian Consumer Law gives customers a 30-day cool off period during which a consumer may terminate an unsolicited agreement.
2. True
3. False

Difficulty: Moderate

Topic: Consumer transactions

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.5 Discuss manufacturer’s liability and the regulation of product safety and services under the Australian Consumer Law.

LO10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following is not a remedy that may be sought by a person affected by a breach of the Australian Consumer Law?
2. Compensation orders
3. Undertakings
4. Judgment summons
5. Injunctions

Difficulty: Moderate

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.

1. Which of the following is not a power available to a regulator to enforce the Australian Consumer Law?
2. Adverse publicity order.
3. Injunction.
4. Compensation order.
5. Non-punitive order.

Difficulty: Moderate

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.

True/False: Identify whether the statement is True or False

1. Consumer actions for breach of the Australian Consumer Law will be heard in specialist consumer tribunals or small claims courts.
2. True
3. False

Difficulty: Basic

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.

1. The consumer protection provisions of the Australian Consumer Law can only be enforced by the Commonwealth.
2. True
3. False

Difficulty: Moderate

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.

1. The Financial Services Reform Act 2001 (Cth) only applies to financial advisers.
2. True
3. False

Difficulty: Basic

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. Do you think the standard of proof of ‘balance of probabilities’ for companies is fair versus the criminal standard of ‘beyond a reasonable doubt’?

Difficulty: Complex

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.

1. Why do you think the Australian Consumer Law is being administered and enforced by the state, territories and commonwealth? Do you think this could create conflict?

Difficulty: Complex

Topic: Chapter 5: Enforcement and remedies for breach of the ACL

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 10.6 Identify and explain the statutory remedies and penalties for breaches of the Australian Consumer Law.