Business Law

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................4
References..................................................................................................................................7

2BUSINESS LAW
Question 1
Issue
The issue of this test is to determine whether James has a case for getting a
replacement refrigerator under the Australian consumer law.
Rule
According to the Australian Consumer Law when a consumer buys a product or a
service that comes with an automatic guarantee; such guarantee works till the point of time
they are promised. Under the promised guarantee period, if the product does not prove to be
right then the consumer can derive his consumer rights against such defective product. it is
held by the consumer law that the businesses should guarantee products, sold leased or hired
for either under $40000 or over $40,000 comprising of things purchased for household or
personal use. The consumer law directs the businesses to provide such automatic guarantees
irrespective of any other warranties that it gives to its consumers. Consumers have their
consumer rights in case the business fails to deliver the following guarantees: a) repair,
replacement or refund, b) cancelling a service, and c) compensation for sustaining loss.
An automatic guarantee can be claimed from retailer if the product does not meet the
standards of the consumer guarantee; however it depends on the availability of the spares
parts for repairing the damaged portion of the product. The businesses mostly make excess
promises, verbally or in writing, pertaining to: a) the quality performance or characteristics of
the goods, b) the importance of the goods and c) availability of required parts of the goods
reported for repair or for identical goods to replace it if needed. It is held that even when the
warranty period has expired, the automatic guarantee laid down by the Australian Consumer
Law to all the goods and services exists. Most often, the automatic guarantee promised under
the ACL is operational along with the warranty provided by the manufacturer or supplier in