1BUSINESS LAW AND ETHICS Answer to question 1 Issue: The main issue of the case is to determine whether all the transaction made by Sangita falls under the purview of Australian Consumer Law or not. Rule: The subject matter of the case is based on the general principle of Australian Consumer Law. Provisionson AustralianConsumer Lawhave been engraved under schedule 2 of Competition and Consumer Act 2010. According to section 2 of the Act, the main object of the Act is to protect the interest of the consumers by promoting the fair trade practice. Australian Consumer Law has defined the term “consumer” as any person who has bought goods priced not more than $40,000 or bought goods for personal or domestic use. Further, the Australian Consumer Law secures the rights of the consumers. According to the consumer law, when a consumer buys certain goods, it will come under the purview of guarantee automatically (Brody and Temple 2016.). The product should be safe, without any fault, acceptable and expected materials. Further, it has been stated that proper care should be taken during delivery of the goods. Further, it has been observed that every company is liable to supply reasonable goods to the consumers. There should be no dispute from their part. InACCC v TPG Internet Pty Ltd [2013] HCA 54,it has been held that in case of a deceptive act, the supplier or the company will be held liable. In such case, the acts of the company will attract the provision of section 52 of Unfair Trade Practice Act 1974 (Cth).
2BUSINESS LAW AND ETHICS Application: In this case, it has been observed that Sangita has made many order from the online store of Myers and placed certain orders for her domestic use. However, it has been observed certain disputes have been arisen in this case. First dispute arise in case of the rice cooker. It has been found that wrong material has been served in the place of the rice cooker. Further, disputes have also been observed in the case of electric that has been ordered by her. It has been observed that the drilling machine has not been worked properly. Last dispute has been observed in the case of electric toothbrush. In this case, Sangita had a discussion with the online expert who had assured her that the product could be work with battery, but when the same has been delivered, it has found that there is no option but the main charge. There are certain grounds that can assure that Australian Consumer Law will be applying on this case. first, Sangita comes under the definition of consumer, as she placed offer regarding all the goods for domestic use and each of them priced lower that $40,000. Further, according to TPG Internet’s case it can be stated that all the products were defective and she can claim for replace or refund regarding the disputed goods. Conclusion: It can, therefore be stated that transaction made by Sangita falls under the purview of Australian Consumer Law. Answer to question 2 Issue: The main issue of the case is to determine what are the implied guarantees could Sangita argued have been breached by the stores.
3BUSINESS LAW AND ETHICS Rule: The present subject matter of the case is based on the provisions of Australian Consumer Law. According to Section 51 of the Competition and Consumer Act 2010, there are certain implied guarantees that imposed on the consumers (Howells and Weatherill 2017). However, there are certain essentials that should be met for proper application of the implied guarantee. According to the first principle, a buyer should enjoy the goods without all encumbrances. Further, it has been required that no one should have an undisclosed interest over the goods (Taylor and McNamara 2014). In case if any deceptive or misleading act has been done in the part of the supplier or the manufacturer, it will be invalid in nature and the matter could be taken to the Federal Circuit Court (Corones, Christensen and Howell 2016). When the consumers have purchased goods, it assumes that he has entered into a contract with the company and therefore, no misstatement or deceptive activities should be done on the part of the supplier. In case of any wrong thing supply, the affected party should have to inform the Australian Competition and Consumer Commission (ACCC) at the first glance. In case of any deceptive act on the part of the supplier, it will come under section 18 of the Australian Consumer Law (Alexander 2016). In this case, proof regarding the intention of the parties regarding the matter is not required. Further, according to the Australian Consumer Law (ACL), suppliers should not take any illegal advantage from the consumer (Sims 2016). He should have to serve all the goods in good faith. In case of any adverse situation, the consumer can apply their impliedguarantees. The application of these guarantees is depending on the way of working capabilities of the suppliers. If all the duties have been done in good faith, the question of implied guarantees will not crop up (North and Flitcroft 2016). However, if the goods are served in proper way and in good condition, it will be regarded as per the terms of the Australian Consumer Law. In case of any
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4BUSINESS LAW AND ETHICS adverse situation, the consumer is allowed to apply their guarantees. However, certain changes have been done in the year 2011 regarding the consumer guarantee either express guarantee or implied guarantee. According to section 54 of the Act, it has been stated that all the goods should be in acceptable quality and ‘merchantable quality’ (Tsui 2014). Further, it has been observed that a consumer could apply for full compensation if the provision mentioned under section 54(1) does not maintained. However, before making the claim, it is required to fulfill all the relevant matters as stated in section 54(3) of the Act (Dietrich 2015). Application: In this case, it has been observed that the Myers Stores had failed to meet all the requirements stated in this case. it has been observed that the goods were not in good conditions and in certain condition, the goods are not serving according to the placed order. Further, it has been observed that proper goods are not placed or delivered. For an instance, fried pan was served in place of rice cooker. Further, disputed drilling machine has been served and in case of the electric brush, it was assured that the product could be run with battery, but after the delivery of the goods, it has been observed that there is no option for battery. According to the given condition, it can be stated that the goods delivered to Sangita were not in accordance with the provision given under section 54(1) of the Act. Further, it can be said that a failure has been made in section 54(2) of the Act, as the goods were not free from all encumbrances and they were not safe at all. Therefore, it can be stated that the matter of implied guarantee can be claimed in this circumstances. Conclusion: Sangita can claim implied guarantee from the store.
5BUSINESS LAW AND ETHICS Answer to question 3 Issue: The main issue of the case is to determine what are the remedies can be claimed for breach done against Australian Consumer Law. Rules: The process of serving quality goods has been described under section 18 of the Australian Consumer Law. The consumers can claim the remedies, they have certain rights, and obligations that have been imposed on them when they are purchasing certain products priced less than $40,000 and for their personal or domestic purposes (Howells and Weatherill 2017). The rights are known as the consumer guarantee and in case of any infringement regarding the same, the consumers can claim certain remedies as against the requirements made under section 18 of Competition and Consumer Act 2010. In this case, the consumers can directly approach to the Australian Competition and Consumer Commission (ACCC). The remedies can be divided into three parts such as repair or replacement, refund and compensation for consequential loss. However, there are certain restrictionsbefore the proper application of the remedy. The provision for remedies has been stated under section 259 of the ACL. In case of any minor fault, the consumers could not claim for refund and reject the entire goods. They can apply for fixing the fault. However, in order to send the goods for repairing, the consumers should first apply before the manufacturer and in case, the manufacturer does not wanted to return the goods; the consumer could make a complaint before ACCC and claim for total refund for the goods. If the dispute of the goods could not be fixed, the manufacturer or the shop is liable to make refund for the same (Pearson 2017). On the other hand, in case of major changes, the consumer could reject the goods and claim compensation for the same. Further, according to section 21 of the Act, no
6BUSINESS LAW AND ETHICS manufacturer is allowed to take any unreasonable advantage from the consumers regarding any goods or services. In addition to this, as per section 29 of the ACL, the manufacturer or any shop is restricted to make any misleading or false misrepresentation. In case the goods are differed significantly from the original order, it will be regarded as major problem and the consumers are allowed to claim for full price of the goods and reject the product entirely. Application: In this case, all the circumstances has proved the fact that the Myers Store has failed to keep all the requirements made by the Australian Consumer Law provision. All the delivered goods had certain defects and it has been observed that the goods are also differed from their actual kinds. Further, it has been observed that when Sangita went to the stores for changing the goods, the shop authorities had not response positively rather they tried to avoid their obligation. Therefore, it can be stated that the manufacturer has failed to make all their requirements. They had dealt with Sangita in unprofessional way. Further, the nature of the delivered goods proved the fact that all the products fall under the category of major problem. Conclusion: Therefore, it can be stated that Sangita can claim for full compensation and reject all the goods. Further, she could make an application before the ACCC.
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7BUSINESS LAW AND ETHICS Answer to question 4 Issue: The primary issue of this case is to determine the legal effect of all the statements made to Sangita. Rules: Considering the case study, it can be stated that there are certain legal issues cropped up to this effect. First, it can be stated that the condition of the goods were not good and most of them were defective. Further, certain goods were differed from their original order. Therefore, it can be stated that goods were not delivered according to the provisions of Australian consumer Law. Therefore, in this case, section 259 of the law has been maintained. Further, it has been stated by the ACL that no manufacturer is required to act with the consumers in deceptive way or in any way that goes against the policy of the consumer law. Further, no company is allowed to doanythingthatgoesagainsttheinterestoftheconsumers.Theyshouldprovideright information regarding the goods and should have to deliver right product to them. In case of any adverse situation, they should have to change or repair the same. In case of any failure, consumer guarantee will be applied against them. Further, in case of any relevant terms and conditions, the manufacturer should have to mention it clearly, so that confusion could not be raised to this effect.According to Section 21 of the Act, no manufacturer or store should apply any unfair tactics. In this case, the manufacturer will be responsible to make all the claims made by the consumers and they can face criminal penalties for instigating the deceptive tendency (Jones 2015).
8BUSINESS LAW AND ETHICS Application: Considering the case, it can be stated that the manufacturer will be held liable for deliveringwronganddefectivegoods.Further,thesupervisoroftheonlinemarketing department had provided wrong information regarding the goods. Therefore, it has been proved that the online store has failed to maintain the quality of the products and their acts reflects the nature of the unconscionable conduct. On the other hand, the reply of the store keeper was also not according to the provision of ACL. The store is required to make full compensation to Sangita and in case of adverse situation; criminal liabilities will be imposed on them. Conclusion: All the statements have legal effect under the Australian Consumer Law in their respective grounds.
9BUSINESS LAW AND ETHICS Reference: Alexander, P., 2016. Disclosure and consequencesof non-compliance.Precedent (Sydney, NSW), (135), p.64. Brody, G. and Temple, K., 2016. Unfair but not illegal: Are Australia's consumer protection laws allowing predatory businesses to flourish?.Alternative Law Journal,41(3), pp.169-173. Corones, S.G., Christensen, S.A. and Howell, N., 2016. Submission to Australian Consumer Law Review Issues Paper. Dietrich,J.O.A.C.H.I.M.,2015.Liabilityarisingfromcontractandundertheaustralian consumer law. Howells, G. and Weatherill, S., 2017.Consumer protection law. Routledge. Howells, G. and Weatherill, S., 2017.Consumer protection law. Routledge. Jones, M., 2015. Criminal procedure in Australia [Book Review].Ethos: Official Publication of the Law Society of the Australian Capital Territory, (236), p.42. North, J. and Flitcroft, R., 2016. Businesses beware When does the Australian Consumer Law apply?.Governance Directions,68(5), p.306. Pearson, G., 2017. Consumer sales law in Australia. InComparative Consumer Sales Law(pp. 23-38). Routledge.
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10BUSINESS LAW AND ETHICS Sims, R., 2016. " Your Rights Mob": Making Indigenous Consumer Protection an Enduring Priority.AUSTRALIAN JOURNAL OF COMPETITION AND CONSUMER LAW,24(4), pp.300-306. Taylor, D. and McNamara, N., 2014. The Australian consumer law after the first three years-is it a success?.Curtin Law and Taxation Review,1(1), pp.96-132. Tsui, M., 2014. An analysis of Australia's legal regime for imposing liability on manufacturers of pharmaceutical drugs.Journal of law and medicine,21(3), pp.700-716.