Business Law and Ethics
Added on 2023-01-18
11 Pages2746 Words29 Views
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Business Law and Ethic 1
Business Law and Ethics
Name:
Institution:
Business Law and Ethics
Name:
Institution:
Business Law and Ethics 2
Introduction
Erin innocently purchased three items from Ausslae through their website in Australia.
The products supplied to Erin did not meet her expectations and some were faulty. The hair
straightener Erin bought for her daughter Tracey was meant to produce curls and not only
straighten the hair. The second item Erin bought was an air fryer which was faulty and lastly a T-
shirt that was of a different material from the one ordered. Despite Ausslae advertising in their
website that there products were of good quality. Ausslae refused to neither refund nor exchange
the items purchased by Erin. This assignment will focus on the legal options Erin should follow
to get justice. It’s the responsibility of the law to protect its citizens through the Consumer
Protection Act of 2010 from suppliers who do not deliver on their products. The Consumer Act
of 2010 will provide the basis for Erin’s legal argument against Ausslae. This paper will analyze
how Erin’s consumer rights were violated and the legal precedence to be followed for her to get
justice. The assignment will conclude by giving recommendations on how consumer rights can
improved.
The Consumer Act of 2010
The Competition and Consumer Act of 2010 was developed from the 1974 Trade
Practice Act. These Acts were formed to ensure both the buyers and sellers are protected from
any form of exploitation (Broni, 2010). Erin rights as a consumer were violated at three instances
in this case. Amongst the provisions of the Consumer Act is to ensure fair trading practices are
followed and consumers gain value for their money.
Introduction
Erin innocently purchased three items from Ausslae through their website in Australia.
The products supplied to Erin did not meet her expectations and some were faulty. The hair
straightener Erin bought for her daughter Tracey was meant to produce curls and not only
straighten the hair. The second item Erin bought was an air fryer which was faulty and lastly a T-
shirt that was of a different material from the one ordered. Despite Ausslae advertising in their
website that there products were of good quality. Ausslae refused to neither refund nor exchange
the items purchased by Erin. This assignment will focus on the legal options Erin should follow
to get justice. It’s the responsibility of the law to protect its citizens through the Consumer
Protection Act of 2010 from suppliers who do not deliver on their products. The Consumer Act
of 2010 will provide the basis for Erin’s legal argument against Ausslae. This paper will analyze
how Erin’s consumer rights were violated and the legal precedence to be followed for her to get
justice. The assignment will conclude by giving recommendations on how consumer rights can
improved.
The Consumer Act of 2010
The Competition and Consumer Act of 2010 was developed from the 1974 Trade
Practice Act. These Acts were formed to ensure both the buyers and sellers are protected from
any form of exploitation (Broni, 2010). Erin rights as a consumer were violated at three instances
in this case. Amongst the provisions of the Consumer Act is to ensure fair trading practices are
followed and consumers gain value for their money.
Business Law and Ethics 3
Facts of Erin v Ausslae Cases
The Australian Competition and Consumer Commission cautions’ retailers like Ausslae
from providing misleading information to the consumers. The information that was posted on
Ausslae’s website was misleading to Erin and the general public (Cavaliere, 2010). The facts in
Erin’s case are very clear. The three items purchased were faulty. The cases will be advised and
argued using one point of view. This is because they have similar facts and characteristics. The
nature of response from the retailer was also similar to all the three products purchased. The only
difference in the facts of this case is the pricing of the different commodities purchased.
Electronics warranty laws in the EU provide for a period of 2 years. Erin having
purchased her hair straightener and air fryer from Ausslae was automatically guaranteed
replacements. This law also applies to online retailers. This means that Ausslae is obliged to
either refund or replace Erin’s goods.
The law also provides provisions to refuse accepting back bought goods (Heath, 2011).
This only applies in cases where the consumer changes his or her mind or finds a cheaper
product (Thompson, 2015). This case did not apply in the case of Erin. Erin did not change her
mind or find a cheaper place to buy the same products.
Under the ACCC clothes bought from either retail stores or online stores can be returned
and replaced. The law gives a period of 14 days for the buyer to return the products (Halbert,
2011). The same laws that apply to electronic warrantee and guarantee laws also apply for
clothing’s. The retailer is at liberty to refuse to exchange the goods bought if there are no valid
reasons. The facts of the case clearly indicate the consumer rights for Erin were violated.
Facts of Erin v Ausslae Cases
The Australian Competition and Consumer Commission cautions’ retailers like Ausslae
from providing misleading information to the consumers. The information that was posted on
Ausslae’s website was misleading to Erin and the general public (Cavaliere, 2010). The facts in
Erin’s case are very clear. The three items purchased were faulty. The cases will be advised and
argued using one point of view. This is because they have similar facts and characteristics. The
nature of response from the retailer was also similar to all the three products purchased. The only
difference in the facts of this case is the pricing of the different commodities purchased.
Electronics warranty laws in the EU provide for a period of 2 years. Erin having
purchased her hair straightener and air fryer from Ausslae was automatically guaranteed
replacements. This law also applies to online retailers. This means that Ausslae is obliged to
either refund or replace Erin’s goods.
The law also provides provisions to refuse accepting back bought goods (Heath, 2011).
This only applies in cases where the consumer changes his or her mind or finds a cheaper
product (Thompson, 2015). This case did not apply in the case of Erin. Erin did not change her
mind or find a cheaper place to buy the same products.
Under the ACCC clothes bought from either retail stores or online stores can be returned
and replaced. The law gives a period of 14 days for the buyer to return the products (Halbert,
2011). The same laws that apply to electronic warrantee and guarantee laws also apply for
clothing’s. The retailer is at liberty to refuse to exchange the goods bought if there are no valid
reasons. The facts of the case clearly indicate the consumer rights for Erin were violated.
Business Law and Ethics 4
ACCC v Reckitt Benckiser
The 2015 case between The Australian Competition and Consumer
Commission challenged Reckitt Benckiser presented the challenges consumers like Erin face.
The pharmaceutical company misled its consumers into buying Nurofen products which did not
provide intended medical solution. Nurofen had advertised to heal specific pains in the body
which it did not cure. According to Reckitt Benckiser website Nurofen was supposed to heal
migraine and back pains. The ACCC investigations found that the pharmaceutical company had
contravened sections 30, 32 and 35 of ACCC.
The court ruled that Reckitt Benckiser had lied to the consumers regarding the
components in Nurofen. The components in Nurofen were found to be offering general treatment
and not specific treatment alleged by Reckitt Benckiser. Judge Edelman restrained Reckitt
Benckiser from misleading consumers in his ruling and demanded the correct information be
used in its advertisement (Peterson, 2014). The court order the court to pay ACCC legal fees and
damages caused to consumers who had purchased Nurofen.
The ruling of ACCC v Reckitt Benckiser will be followed to determine the case between
Erin and Ausslae. The grounds for legal argument are similar. The same strategies were used by
Ausslae to get Erin to buy the faulty hair straightener were also used by Reckitt Benckiser in
misleading consumer to buy Nurofen.
ACCC v Whistle
Whistle in 2015 was accused by ACCC for using online advertisement to mislead
consumers. Whistle Company in their advertisement campaigns for mattress cleaning machines
ACCC v Reckitt Benckiser
The 2015 case between The Australian Competition and Consumer
Commission challenged Reckitt Benckiser presented the challenges consumers like Erin face.
The pharmaceutical company misled its consumers into buying Nurofen products which did not
provide intended medical solution. Nurofen had advertised to heal specific pains in the body
which it did not cure. According to Reckitt Benckiser website Nurofen was supposed to heal
migraine and back pains. The ACCC investigations found that the pharmaceutical company had
contravened sections 30, 32 and 35 of ACCC.
The court ruled that Reckitt Benckiser had lied to the consumers regarding the
components in Nurofen. The components in Nurofen were found to be offering general treatment
and not specific treatment alleged by Reckitt Benckiser. Judge Edelman restrained Reckitt
Benckiser from misleading consumers in his ruling and demanded the correct information be
used in its advertisement (Peterson, 2014). The court order the court to pay ACCC legal fees and
damages caused to consumers who had purchased Nurofen.
The ruling of ACCC v Reckitt Benckiser will be followed to determine the case between
Erin and Ausslae. The grounds for legal argument are similar. The same strategies were used by
Ausslae to get Erin to buy the faulty hair straightener were also used by Reckitt Benckiser in
misleading consumer to buy Nurofen.
ACCC v Whistle
Whistle in 2015 was accused by ACCC for using online advertisement to mislead
consumers. Whistle Company in their advertisement campaigns for mattress cleaning machines
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