Consumer Rights and Liabilities of Manufacturers under Australian Competition and Consumer Act 2010

Running head: COMPANY LAW
Company Law
Name of the Student
Name of the University
Author Note

1COMPANY LAW
1
The law for governing the protection to be provided to a consumer who indulges in purchasing
goods and services in Australia is provided through the Australian Competition and Consumer
Act 2010 (Cth) Schedule 2 and is known as ACL. Under this legislation consumer guarantees
have been provided to the consumer under part 3-2 division 1. The specific sections which
govern consumer guarantees are that of section 51-59 of the ACL.
Under the divisions dealing with consumer guarantees it has been provided that the goods which
are sold in purpose of trade and commerce unless they have been procured through an auction
have to be of an acceptable quality as per a reasonable consumer signifying that they must be
safe and durable. In addition it has been provided under the part that the goods must be in
compliance with the description by which they are sold. These guarantees are also applicable in
relation to services. When services are provided by the supplier it is guaranteed that the services
are to be provided with the prescribed time or a reasonable time where no time is stated, the
services has to show degree of due care and diligence and the services have to be fit in relation to
a particular purpose.
The provisions of section 260 and 261 of the ACL are applicable in the situation where there is a
breach of consumer guarantees. In relation to a major breach under section 260 the consumer can
reject the goods or services and claim damages for loss. Under section 261 the consumer has the
right to make a claim for repair, refund and replacements. In the case of ----- it had been ruled by
the court that the consumers are entitled to make a claim for any damages which may be
reasonably foreseeable and have been incurred due to the use of any goods or services supplied

2COMPANY LAW
in trader of commerce. In this case consequential damages had been awarded to the consumer by
the court.
It has been set out through the case study facts that melons have been directly bought by Jocelyn
from R’Us and upon consumption he was hospitalized. It has been further analyzed that the
bacteria in context which has caused the problem is related to the melons which had been
supplied by the ship.
Under the provisions of Part 3-2 section 54 of the ACL it is the duty of the supplier to provide
goods which are of an acceptable quality. However it has been provided through the facts that
the melons were not safe for consumption and thus not comply with the provisions under section
54(2) of the ACL. It has been provided that no harm was caused to the consumer or her baby.
However the consumer had to face significant difficulties in relation to the hospital bills. Thus
the consumer is entitled to consequential damages as was done in the case of ACCC v Hewlett-
Packard [2013] FCA 653. The damages would be equal to her hospital bills, care takers of
children and income lost while being hospitalized.
Thus it can be stated that Jocelyn has the right make a claim for compensation as her consumer
rights have been violated
2
A consumer under the provisions of part 3-5 of the ACL has the right to make a legal claim
against the manufacturer in situation where the issue is related to safety of products supplied in
trade and commerce. Under this part of the ACL a claim can be made for any loss or damages
which have been incurred or caused to the consumer because of a product supplied in trade or
commerce being defective. It has been further provided via the provisions of section 9 of the