Business Law: Consumer Rights & Contracts

This business law assignment explores key legal concepts including consumer guarantees under the Australian Consumer Law, the principle of negligence with its four elements, methods of contract termination (frustration, breach, discharge), and different types of contract terms (express, implied, conditions, warranties). Additionally, it delves into restrictive trade practices governed by the Competition and Consumer Act 2010 (Cth) and their impact on fair market competition.

Running head: BUSINESS LAW
Business law
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Consumer guarantees
The Australian Consumer Law provided through Schedule 2 of the Australian Competition and
Consumer Act 2010 (Cth) gives provisions in relation to consumer guarantees. The consumer
guarantees are applicable on any product which is of a value of less than $400000. The
guarantees are also applicable on products such which are of a value more than $400000 but are
used to for the purpose of household and domestic use. Through the consumer guarantees the law
provides for the provisions of repair, replace or refund. When the goods are not of an acceptable
quality and cause damages the consumer can also clam compensation for such damages.
Negligence
The concept of negligence has been introduced so that individuals in the society can exercise
their civil rights freely. The provisions in relation to negligence were officially brought to the
legal world through the case of Donoghue v Stevenson 1932 AC 522. When a party commits
negligence and the other party is hurt or injured the other party can claim compensation for the
injury. There are four elements which are required for constitute negligence namely duty of
care, breach of duty of care, causation and remoteness of damages. The civil liability acts of
different states deal with negligence.
Contract termination
A contract is a agreement which has legal effects on the parties which gets into it. A contract can
be terminated through various processes such frustration, breach of contract, discharge of
contract, prior agreements and rescission. Frustration is a situation where the contract cannot be
completed due to impossibilities such as act of God or natural disasters. Recession can be done
by the parties when there is misrepresentation duress or fraud or a mistake. Discharge is done

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when the contract is completed. When the terms are violated to accounts to breach of contract
and When there is another prior agreement contract can end based on its terms.
Contract terms
A contract may contains various types of terms such as expressed terms and implied terms.
Terms can be further classified into conditions and warranties. Express terms are those which are
mentioned in a written or oral contract which the parties agree. Implied terms are usually
determined by the court on the basis of president. They have to be obvious and necessary to be
present. Conditions are dominant terms which when breached results in contract termination. The
breach of warranties only results in damages.
Restrictive trade practices
Competition is a necessity for the proper development of the market place and the promotion of
free trade. However few organization in the pursuit of profit maximization indulge in unfair and
restrictive trade practices. In Australia Anti-competitive activities are governed by the
Competition and Consumer Act 2010 (Cth). Restrictive trade practices include activities like
multiple pricing, insiders trading, hoarding, price fixing, market sharing and bid rigging. The
government has taken measures to protect the consumer from deceptive or unfair treatment. The
legislation has also laid down provisions through division 1 part iv against cartel conduct. The
legalizations provides strict penalties for non compliance.