Consumer Law Flashcards
Define Caveat Emptor
‘Let the buyer beware’. Implies that consumers should use their own knowldge and care to protect themselves from exploitation.
Define Laissez-faire Economy
An economic system in which the state refrains from interfering with markets by regulation or other means
Define Consumer
A consumer is any person who acquires goods and services for an amount not exceeding $100,000.
Define Remedy
A means by which redress or reparation is provided for the breach of a legal right
Define Contract
An agreement made between two or more people that is recognised by the courts as being legally binding on the parties
Define Offeror
The person making an offer of an agreement
Define Offeree
The person whom the offer of an agreement is made
What are benefits of a WRITTEN CONTRACT?
- not having to prove the contract existed
- not forgetting what the terms were/are
- limits obligations to what is on paper rather than what is understood or said in negotiations
What are problems with WRITTEN CONTRACTS?
- May be long and difficult to read
- Consumer may rely on represeantations made to them at POS by the retailer. Hence, the written contract won’t be a fair representation of the consumer’s understanding of an issue
How can ORAL CONTRACTS be proven in court?
-Behaviour of both parties before and after an agreement
-specific actions
-past dealings
Define Parol Evidence Rule
if a written agreement appears to be a complete record of the agreement, it will be accepted against a contradictory term made orally.
What are the 5 elements of a contract?
- Intention to create legal relations
- The offer by one party
- The acceptance of that offer
- Consideration from the offeree
- Legal capacity of both parties
Define Offer
A firm proposal to form a binding contract, made with a willingness to be bound by its terms.
Define Invitation to Treat
An initial invitation to others to make an offer
Define Consideration
Something given, done or suffered by the promise in return for a promise in a contract
When do obligations become negated?
If voluntary consent is not given, it is a mistake, misrepresentation or situation of duress.
Define Condition
term of fundamental and essential importance; if a condition is breached by a party the other party is entitled to terminate the contract and can sue for damages
Define Warranty
A minor term of a contract whose breach entitles the aggrieved party to sue for damages, but not to end the contract
Define Express Terms
A contractual term that has been specifically stated and agreed to by both parties at the time the contract is made, either in writing or orally
Define Implied Terms
A contractual term that has not been included in the formal agreement; terms can be implied by custom or law, or because of the presumed intentions of the parties.
What is an example of an implied term in ACL?
Acceptable quality
What will a party relying on an exclusion cause have to do?
Must show they took reasonable steps to give notice of the clause to the other party before or at the time the contract was made
Define unconsciousable conduct
One party’s exploitation of the vulnerability of another party to a contract; the victim may have been impaired by some external factor (such as age, disability or lack of education) or may have been deceived or threatened by the stronger party.
Define undue influence
One party exploits a relationship of influence to induce the other party into entering a contract
