Competition and Consumer Act 2010 - PDF
Added on 2021-05-31
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Running head: LAW FOR COMMERCELAW FOR COMMERCEName of the StudentName of the UniversityAuthor Note
1LAW FOR COMMERCEConsumer Guarantees“Consumer” under the Competition and Consumer Act 2010 (Cth) (“the ACL”)Schedule 2 of the Competition and Consumer Act 2010 (Cth) embodies the consumerprotection laws in force within the jurisdiction of the Australian commonwealth. In this part ofthe act the term “consumer” is defined under Section 3 (1) of Schedule 2 as a purchaser of goodsthat are required for personal, household or domestic purposes. In such purchases the amountshould not exceed $40,000 and this also includes any vehicle employed for transportation of thegoods. Section 3 (2) of the act provides that the good so purchased should not be bought for thepurpose of resupply or for use in production or repair of other goods. Thus for an individual to beconsidered as a consumer and for the application of this to a transaction the goods in questionmust be of a personal or domestic nature and it must not be purchased for the purpose ofreselling it or for enhancing or producing other goods. In all other circumstances the provisionsof the act would not apply as the individual would not be considered a consumer.Rule that goods must be of acceptable qualityIn transactions of sale of consumer goods, the good in question must be of a quality thatis acceptable to the consumer. This requirement is statutorily provided for in Section 54 of theact. Section 54 (2) of the act mandates that the goods sold to a consumer must be safe for the useof the consumer. Section 54 (3) of the act mandates durability of goods sold in such a transactionto consumers. This means that in case the goods sold do not embody these qualities they wouldnot be considered acceptable and hence would be in contravention of the provisions of this act.This position has also been stated in E v Australian Red Cross Society(1992) 31 FCR 299. Thusin case of such a contravention of the act the person in question would be in breach of the terms
2LAW FOR COMMERCEof the act and can be legally pursued by the consumer in court. There would be liabilities asprovided for in the act and the consumer would be entitled to compensation.Rule that goods must be fit for the described purposeThere are other requirements for fitness as prescribed under Section 55 of the act. Thissection mandates that when the purpose for the goods purchased are made clear to the seller ormanufacturer, such a seller or manufacturer has an obligation to ensure that the goods suppliedare fit for the purpose stated by the consumer. This position has also been reiterated in thejudgment in Merck Sharp & Dohme (Australia) Pty Ltd v Peterson(2011) 284 ALR 1. Section56 also states that if the goods in question are sold by virtue of description the goods sold mustcorrespond to the description given. Thus in contravention of such a position the seller ormanufacturer in question would be in breach of his statutory duties and maybe legally pursuedby the consumer for the same. The court can award damages as provided for in the act tocompensate the consumer for any such misleading or deceptive behaviour regarding the fitnessof the goods that are provided to the consumer.Exclusion of Consumer GuaranteesThe Competition and Consumer Act 2010 (Cth) provides for a wide range of consumerguarantees that are offered to all consumers who transact with sellers or manufacturers. Theseguarantees are:As provided for in section 51 of the act the consumer has a guarantee as to the title of thegoods thus the goods sold have good title and the same is transferred to the consumerwhen the purchase is made.
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