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CONSUMER LAW (PROHIBITION OF MISLEADING OR DECEPTIVE CONDUCT s18 (Elements…
CONSUMER LAW
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Remedies
Damages s236
*Note: individuals involved in contravention are liable for damages, not just the corporation
Pecuniary penalties s224
For each act or omission up to:
-Corporation $1.1 million
-Individual $220,000
Defences
Reasonable mistake of fact defence
1) if the defendant proves that the contravention was caused by a reasonable mistake of fact, including mistake of fact caused by reasonable reliance on information supplied by another person
2) However, subsection 1) does not apply in relation to information relied upon by the defendant by another person who was
a) an employee or agent of the defendant
b) if the defendant is a body corporate - a director, employee or agent of the defendant
CONSUMER GUARANTEES
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Remedies
Major failure : :green_cross: Goods would not have been acquired by a consumer who knew about the failure :green_cross: Goods substantially unfit for a purpose and cannot be easily redeemed :green_cross: unsafe
under s259(3) of ACL a consumer can :check: reject the goods, or :check: recover compensation for any reduction in the value of the goods below the price paid
UNCONSIONABLE CONDUCT
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Remedies: Pecuniary penalties may be imposed for contravention of the unconscionable conduct provisions
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UNFAIR CONTRACT TERMS
Elements
Consumer contract: one for the supply of goods or services or the sale of land to an individual who acquires them wholly or predominantly for personal, domestic or household use or consumption
Unfair: a term is unfair if it a) would cause a significant imbalance in the parties rights and obligations b) is not reasonably necessary to protect the legitimate interests of the advantaged party and c) would cause detriment to a party if it was applied
Unfair terms : Examples: a) permits only one party to avoid performing the contract b) permits only one party to terminate contract c) penalises only one party for breach/termination of contract etc.
Standard form contract: used by businesses for common business transactions, e.g. banks, electricity companies and phone companies use standard form contracts when contracting comsumers