Business Law Case Studies: Misrepresentation and Product Liability in Australia

Business Law
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Contents
Introduction................................................................................................................................2
Question1...................................................................................................................................3
Question2...................................................................................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................10
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Introduction
Common law principles were the traditional method by which all legal issues were resolved
in Australia. Now with the development of time phase legislation is taking effective role over
the common law principles. Australia consumer law and remedies available under that is
discussed in relation to consumer who buys the products. The roles and duties of the
manufacturer and supplier is also discussed and appropriate advice has been given to Sandra.
The remedies available for contract affected by the misrepresentation is also discussed and
the cases decided by the court in relation to applicable situation is also considered to examine
the claims mentioned in the case studies.
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Question1.
Issue
1. Whether Angela was subjected to fraud by Jessica to sale her business?
2. Whether remedies are there for Angela on the discovery of fact of misrepresentation
under the law?
Applicable Law
The contract is the manner in which various agreements are concluded for the sale and
purchase of goods, property etc. The common law principles states out that every contract is
legally enforceable if it is free from all defects. Fraud, misrepresentation, undue influences
etc. are there which renders the contract unenforceable. So every contract must be free from
all these elements (DLA Piper, 2017).
While concluding contract if exchange of statements take place between two parties for the
purpose of inducing the other party for reliance over that. Such statements becomes the terms
of contract. The terms misrepresentation connotes the statement made by one with the
intention of casing other person to believe on that (Lexi Psl, 2018). The case law of
Futuretronics International Pty Ltd v Gadzhis, in a Fair Trading Act 1985 (Vic) states the
question of misrepresentation is a question of fact and depends of the individual
circumstances of the case. In the case of Google Inc v ACCC that court held that BskyB was
induced to enter into contract and the court estimated the total damages payable in the case
£200 million or more than that. The effect of misrepresentation is that it renders the contract
voidable at the option of the party on whom such misrepresentation was exercised (Craddock,
2014). For proving misrepresentation inducement has to be proved and the nature of
misrepresentation like false, fraudulent, innocent and negligent misrepresentation. Mire-
representation is governed by section 18 of the Consumer Law (McKendrick, 2014.). From,
proving it:
 False statement on the part of the one party is necessary to be proved.
 It must be made to representee in the contract.
 The person to whom it was made fully relied over the statement has to be there.
The misrepresentation act 1972 under section 2 (2) provide the remedy of recession of
contract.
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