Building Laws | Australian Consumer Law ( ACL )

   

Added on  2020-03-04

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Building Laws | Australian Consumer Law ( ACL )_1
BUILDING LAW2IntroductionThe consumers of any nation are given the protection under the respective consumer protection laws, so that they can be safeguarded from exploitations of different manners. In Australia, the consumer protection legislation is the Competition and Consumer Act, 20101 which not only provides the protection to the consumers, but also promotes healthy and fair competition. Under this act, the provisions specifically regarding the consumers are covered under Schedule 2 of thisAct and the name given to this schedule is Australian Consumer Law, i.e., the ACL2. Since January 01st, 2011, the ACL became applicable and replaced the previous act, i.e., the Trade Practices Act, 19743. The applicability of ACL is widespread and touches any and all such fields where there is a consumer, who needs to be protected4.In the following parts, the ACL has been critically analyzed to understand the manner in which the law affects the developers selling land, with a particular reference to the provisions of unfair contract terms and misrepresentation. This would help in gaining an insight on the applicability of the provisions on the developers, which have result in penalties being attracted towards the developers. ACLThe ACL regulates the unfair terms in the standard form of consumer contracts. The ACL has particular significance for the property developers and is going to have a major impact over the contracts which developers undertake with the individuals. Further, it can particularly have an 1 Competition and Consumer Act, 2010 (Cth)2 Competition and Consumer Act 2010, sch 23 Trade Practices Act, 1974 (Cth)4Stephen G. Corones, The Australian Consumer Law (Lawbook Company, 2nd ed, 2012)(FULL NAME, STUDENT NUMBER)
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BUILDING LAW3impact over the off-the-plan sales in such cases where the discretion is provided, in general, to the developer5. Unfair Contract TermsUnder the ACL, the unfair terms contained under the standard form contracts are unenforceable as they are considered as being void. The unfair terms provisions under the ACL are applicable where the contract is a consumer contract, a standard form contract, and also contains unfair terms. The consumer contract, under the ACL includes such contracts which contain the grant or sale of an interest in land for a person in a whole or in a predominant manner for the household, personal or domestic use. This definition is more than mere covering the sales by the developer, and goes on to include the privileges, powers or rights which are given over the land by a developer6. For determining if a particular contract falls in the definition of consumer contract, the key factoris the intention of the purchaser. The selling agents of the developers are required to take the detailed notes regarding the intentions of the prospective purchaser; for instance, the intention to purchase for private or investment purpose. The ACL is not applicable in such cases where the developers make sale to the investors as this does not meet the criteria laid down under the consumer contract definition7. The contracts of sale which take place between the individuals and developers would be deemed automatically to be a standard form contract, till the time the court can be convinced by the 5 Justin Lethlean, Joanne Daniels, Murray Deakin and Travis Payne, Australia: How The New Australian Consumer Law Will Affect Property Developers (11 May 2010) <http://www.mondaq.com/australia/x/100132/How+The+New+Australian+Consumer+Law+Will+Affect+Property+Developers>6 Paul Latimer, Australian Business Law 2012 (CCH Australia Limited, 31st ed, 2012)7 Neville Allen and Cameron Sheather, The effect of the New Australian Consumer Law on Property Developers (19 August 2011) <https://www.holdingredlich.com/property-real-estate/the-effect-of-the-new-australian-consumer-law-on-property-developers>(FULL NAME, STUDENT NUMBER)
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