ACCC actions against Ultra Tune and Geowash

COMMERCIAL LAW
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Table of Contents
Introduction......................................................................................................................................3
Article: ACCC actions against Ultra Tune and Geowash...............................................................3
Summary of article..........................................................................................................................3
Discussion about significance of article..........................................................................................4
Conclusion.......................................................................................................................................4
Reference list...................................................................................................................................5
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Introduction
This assignment is focusing on article based on action taken by Australian Competition and
Consumer Commission (ACCC) against Geowash and Ultra Tune for breaching of the Australian
Consumer Law (ACL). Relevance of this article to the corporate Act of Australia is being
discussed in this study.
Article: ACCC actions against Ultra Tune and Geowash
Summary of article
Cowell Clarke, a renowned commercial lawyer, has developed this article to mention penalty for
breach of duty of directs and franchises code of practice. This article has focused on two
different judgments made in January and February of 2019 respectively regarding breach of ACL
by Ultra Tune and Geowash. At first, this article has mentioned about the case study of ACCC v
Ultra Tune. In that case, ACCC has found that director of Ultra Tune has failed to provide proper
legal disclosure to their franchises. On another hand, it has been found that this company has
made false representation to franchises. Breach of the obligation of “good faith” was the central
point of this case. It has been mentioned that franchisors are not supposed to use power and
opportunity to misrepresent their business to anyone. As mentioned by Hedges et al. (2016), it is
important for directors of a company to co-operate with franchisees and this cannot be possible
with any kind of misrepresentation. At the end of this case, the federal court has ordered Ultra
Tune to pay a penalty of $2.6 due to breach of “Good Faith” duty of franchises and Australian
consumer law.
On another hand, this article has been focused on describing the case study of ACCC v Geowash
Pty Ltd. This company has provided false information regarding corporate clients, monthly
income and expense of establishment for franchises. It has been found that directors of this firm
have breached legal system related to prohibition on misleading as well as deceptive conduct.
Federal court has accused directors of this company as they have failed to act in good faith as
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