Business Law Case Study: Misrepresentation, Negligence, and Consumer Protection

Business Law
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Table of Contents
Introduction................................................................................................................................3
Question 1..................................................................................................................................4
Question 2..................................................................................................................................7
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
The business report provides a complete discussion about the principles which are followed
in the common laws. This report covers the principles which are based on the principles of
the Australian laws and the cases. The facts and the issues which are involved in the case
scenario given are provided in this report. The negotiation and the negligence provisions are
also provided herein to develop the effective understanding. The case study includes the
complete discussion about the common law rights of the Angela. The liabilities impose on the
manufacturer and the company is also provided in the report. All the facts and the provisions
are discussed taking into consideration the Australian acts and the regulations which develop
the effectiveness of the report.
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Question 1
Case scenario:
The scenario is related to the negotiation provisions and the laws. Herein the negotiation
agreement was formed between Angela and Jessica to purchase the shares of the restaurant.
In this case, the amount of the profits incurred by the restaurant chains is wrongly
misrepresented by the Jessica who induces her to purchase the restaurant. But in fact, the
restaurant business is low for the last years.
Issue:
Herein there is involved the acts of the misrepresentation by the Jessica. In this case, Angels
seek advice regarding the common law rights and the protection which is provided to her in
terms of the Australian laws.
Rule:
This case provides the case application regarding the provisions which are provided in the
common law. The provisions of misrepresentation are applicable herein where the statement
made by the parties is false or misleading (Howells and Wilhelmsson, 2017). As per the
provisions of Australian consumer laws the acts of misrepresentation takes the form of
innocent, fraudulent and the negligent. The provisions provide that in this case there is
observed the fraudulent misrepresentation.
Analysis:
The act which is applicable in the present case is related to the Misrepresentation Act 1972
(SA). As per the act provisions, it is provided that any acts of the parties or individuals which
induce the other to enter into such agreement which is false and misleading are treated as an
offence and parties are liable under such acts.
The penalty provisions are also levied on the individuals and the corporations both. The
penalty of $100000 is levied on the corporates while the penalty of $20000 is applicable to
the company.
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