Final Exam - Consumer Protection

Question 1

3 things Australian Consumer Law protects against:

Answer 1

o Misleading or deceptive conduct
o False or misleading representations
o Consumer guarantees

Question 2

Scenario: Misinterpretation
Law provides several different potential causes of action.
What could be at fault with Contract (common law)? (3 points)

Answer 2

a. False representation induces entry into contract
b. Argue no genuine consent – invalid contract
c. Argue it was part of contract - breach of contract

Question 3

Scenario: Misinterpretation
Law provides several different potential causes of action.
What could be at fault with Tort (common law)? (3 points)

Answer 3

a. Negligent misstatement – giving expert advice
b. Passing off
c. Defamation (e.g. Rebel Wilson case)

Question 4

Scenario: Misinterpretation
Law provides several different potential causes of action.
What could be at fault with 1. ACL - Australian consumer law (statutory law)? (5 points)

Answer 4

a. In trade and commerce
b. Misleading conduct (s18)
c. Misleading representations (s29)
d. Goods must be of acceptable quality (s54) and fit for purpose (s55)
e. Services must be delivered with due care and skill (s60) and be fit for purpose (s61)

Question 5

What law does ACL stand for?

Answer 5

Australian Consumer Law

Question 6

The ACL is enforced by the:

Answer 6

Australian Competition & Consumer Commission (ACCC)

Question 7

Regarding good and service, the ACL provides certain guarantees: (3)

Answer 7

• Guarantee that goods are of acceptable quality (s54)
• Guarantee that services will be rendered with due care and skill (s60)
• Guarantee as to fitness for a particular purpose (s 55 and s61)

Question 8

Someone who spends under _____ is classified as a consumer.

Answer 8

$40, 000.

• Or above this amount if for personal, domestic or 
household use or consumption
• NOT if you are purchasing goods for resale or use in manufacturing

Question 9

Types of misleading or deceptive conduct (6 points)

Answer 9

• An express statement if it is untrue
• Silence e.g. selling computer cable when you know its not compatible
• Implied falsehoods – half-truths e.g. a famous person endorsing a product that they do not actually use
• The adoption or use of a competitor’s business name
• Copying a competitors design or product get-up
• Unauthorised character merchandising

Question 10

Remedies under the ACL

A consumer, business or the ACCC can apply to the court for: (5 points)

Answer 10

• Injunction e.g. to stop an advertising campaign
• Damages – $$ - to return to position as if no breach –need to show loss
• Compensation orders e.g. for refunds or contract performance
• Corrective Advertising (disclosure) order
• Pecuniary Penalties - maximum fines recently been increased:

Question 11

Passing off: A cause of action arises if (AKA example of passing off)

Answer 11

Someone seeks to pass off their own goods or services as those of a more successful competitor (perhaps by copying their business name, or logo, or photo)