Advertising Misrepresentation Case Study

This assignment analyzes a case study where a defendant advertised an old truck as new, violating the provisions of the Competition and Consumer Act 2010. It explores the legal principles of deceptive representations and misleading conduct under Australian law, applying them to the specific facts of the case. The analysis concludes that the defendant's actions constitute a breach of law, leading to potential penalties.

Running Head: CLWM4000 BUSINESS & CORPS LAW T2 2017 ASSIGNMENT
Assignment on Business and Corporations Law
Name of Student
Name of University

CLWM4000 BUSINESS & CORPS LAW T2 2017 ASSIGNMENT 2
Issues
One of the key issues of the case is whether the defendant committed any breach of any
law by advertising an old truck as a new one.
Rules
According to provisions of the Australian Consumer Law a person should not make
deceitful or deceptive representation about the goods that they are new. Any such
misrepresentation invites penalty of pecuniary nature. The law prohibits a person from engaging
in an act which has effects of misleading or deceptive nature (Competition and Consumer Act
2010- Schedule 2 (Cth) s 18).
Application
In this case the defendant made a breach of the provisions of the Competition and
Consumer Act as even after having knowledge of the fact that the truck had oil leakages he
induced Chong that the truck was almost new and was in a perfect condition and had no
mechanical fault. The defendant here made a misrepresentation to the plaintiff by showing him
goods of defective nature as a brand new product having no fault of technical or physical nature.
The conduct of the defendant was also in contravention of section 18 of the Australian
Consumer Law as he presented his product in a way that was misleading the plaintiff.
Conclusion
Therefore, it can be concluded in this case that the defendant has committed breach of
law by advertising an old truck as a brand new one even after having the knowledge that the
goods had faults of technical nature. This conduct of the defendant makes him liable for penalty
of pecuniary nature.

CLWM4000 BUSINESS & CORPS LAW T2 2017 ASSIGNMENT 3
Reference List
Competition and Consumer Act, 2010- Schedule 2 (Cth).