Australian Consumer Law Assignment (ACL) - Assignment
Added on 2020-05-16
8 Pages1816 Words193 Views
Running head: ACLAustralia Consumer LawName of the StudentName of the UniversityAuthor’s Note
ACL1[#Date#][#Your name#][#Your address#]Ms Melissa RogersLegal Compliance OfficerMunchkins R Us[#Address#]Dear Ms RogersRe: The legal implications of ACCC v Woolworths Limited [2016] FCA 1472; ACCC v ColesSupermarkets Australia Pty Ltd [2014] FCA 1405We refer to your request for advice regarding the legal implications of the two recentFederal Court judgments referred to above.You advised us that you recently established a new ‘Special Suppliers Club’. In relationto the club you have sent invitations to all suppliers where they are required to $200 on amonthly basis in order to attain the membership of the club. In addition it has been provided byyou that all suppliers who are able to gain the membership of the club would be entitled toreceive ‘member benefits’ which consists of an annual Christmas party and monthly e-newsletter. However it has also been provided by you that those suppliers who do not becomemembers of the club, their products would no longer be eligible for display in stores having hightraffic or for promotion. In the given situation there are possibilities that your conduct may be
ACL2regarded as an unconscionable conduct. This is because section 21 of the Australian ConsumerLaw given in Schedule 2 of the Australian Competition and Consumer Act 2010 prohibits aperson in trade of commerce to indulge in a conduct which may be regarded as unconscionable.There is no precise and well defined definition of an unconscionable conduct, however section22 gives out a few circumstances in which Unconscionable conduct may take place. Accordingto this section a unconscionable conduct may include the consideration of the seller and thebuyer, whether the conditions which have been imposed by the seller is required reasonable toprotect business interest, whether the document was understood properly by the buyer, whetherthe seller exerted any pressure or undue influence on the buyer and whether good faith wasobserved during the transaction. So in the given situation in case it is determined that the conductwhich have been indulged into by you in relation to the club and the suppliers is unconscionablethen you may be subjected to financial penalties. The two most important cases the implicationsof which may be applied to determine your situation and derive appropriate advice as the case ofCole’s and Woolworth’s case as named above. Our advice to you is based on these instructions.Advice:In the case of ASIC v Coles it was found by the court that the defendant companyindulged in a conduct which is unconscionable in nature with respect to the provisions of section21 of the ACL. In the proceedings it has been stated by the court that misconduct of thedefendant company was very serious, repeated and deliberate in nature. There was a misuse ofbargaining power by Cole and the conduct which was indulged into was not in good conscience.The manner in which the company treated its suppliers were not in consistency with acceptable
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