1Q 1Issue: the issue in this case is if BikeHike Ltd is liable under the Australian Consumer Law forthe false statement made by its accountant, Gary.Rule: The Australian Consumer Law, which is a part of Competition and Consumer Act, 2010provides that any statement related with the products or services of the business need to beaccurate, true and capable of being substantiated. On the other hand, if the consumers have beenmisled, points may be prescribed. In such a case it does not matter if the false statement wasmade intentionally or not. Therefore the Australian Consumer Law provides that it is illegal for abusiness to make an incorrect statement or a statement that may create the false impression..Such statements include the statements or advertisements issued in the media (including print,television, radio or social media) or on the packaging of the product. Similarly, it also representsany statement that has been made a person who represents the business. Although the lawprovides that competitive advertising can be used for the purpose of promoting the superiority ofthe products or services of the company as compared to its competitors, but in such a case theclaim should be accurate. Such a comparison can be related with the quality, price or the range ofthe product or services.Application: By applying the above mentioned legal rules to the facts of this question, it can besaid that BikeHike Ltd is liable for the statement made by Gary. The reason is that this statementwas a false statement and it has been made on the social media. Similarly, the statement wasmade by a person who represented the business.

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