Consumer Law Assignment: Australian Consumer Law Issues in Weeks 5 & 6

This document presents a comprehensive solution to a Consumer Law assignment, addressing several scenarios under the Australian Consumer Law (ACL). The assignment analyzes issues related to the supply of goods, including breaches of guarantees regarding product descriptions and samples, and the remedies available to consumers. It also examines product safety standards and recall obligations, as well as the legality of 'no refund' policies. The solution applies relevant sections of the ACL, such as those concerning guarantees, safety standards, and consumer rights, to provide clear and concise answers to the problems presented. The assignment covers problems from Week 5 and Week 6, providing detailed explanations and conclusions for each scenario, referencing relevant cases and legal principles. This assignment aims to demonstrate an understanding of consumer protection and the rights and obligations of both consumers and suppliers under the ACL.

Running head: CONSUMER LAW
CONSUMER LAW
Name of Student
Name of University
Author Note

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Table of Contents
Week 5 Problem 1...........................................................................................................................3
Issue.............................................................................................................................................3
Rule..............................................................................................................................................3
Application..................................................................................................................................4
Conclusion...................................................................................................................................4
Problem 2.........................................................................................................................................4
Issue.............................................................................................................................................4
Rule..............................................................................................................................................5
Application..................................................................................................................................5
Conclusion...................................................................................................................................6
Week 6 Part 1...................................................................................................................................6
Issue.............................................................................................................................................6
Rules............................................................................................................................................6
Application..................................................................................................................................7
Conclusion...................................................................................................................................7
Week 6 Part 2...................................................................................................................................7
Answer a......................................................................................................................................7
Answer b......................................................................................................................................8
Answer c......................................................................................................................................8

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Answer d......................................................................................................................................8
Answer e......................................................................................................................................8

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Week 5 Problem 1
Issue
The issue in the current scenario is whether Fred has any rights under the Australian
Consumer Law.
Rule
As per section 56 of the Australian Consumer Law1 the guarantee of the supply of the
goods in correspondence with the description remains if the goods that have been supplied are in
compliance with both the description as well as the reference of a sample or a demonstration
model.
According to section 57 of the Act2 if any person in trade or commerce supplies goods to
the consumer by reference to any sample or any demonstration model the guarantee that the
goods would be corresponding with the sample or demonstration model in quality, condition and
state.
As per section 259 of the Act3 for the failure of complying with the guarantees related to
the goods supplied the consumer can take action against the supplier within a reasonable time.
1 Australian Consumer Law, s.56
2 Ibid, s.57
3 Ibid, s.259

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Application
Applying section 56 in the current case it can be seen that the guarantee to be supplying
the juicer by description was breached by Norma’s Whitegoods when they sent a vegetable juicer
instead of the special citrus juicer.
Applying the provisions of section 57 it can be seen that the guarantee for supplying the
juicer by sample or demonstration model was also breached as Norma’s Whitegoods did not
supply the model that had been selected by Fred from their catalog.
For the breaches of these guarantees Fred can take an action under section 259 by
claiming compensation.
Conclusion
Thus it can be seen that Fred had right to claim for breach of guarantee under the
Australian Consumer Law.
Problem 2
Issue
The issue in this case whether Hugo has any remedies available under the ACL.

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Rule
Under the provisions of sections 1064 and 1075 a person is seen to be prohibited for
supplying any goods or product related services that are not in compliance with the safety
standards.
As per section 1236 requires the suppliers to take the action stipulated in the recall notice
under section 1227 including a recall, publishing disclosure and information for the public about
the risks, the circumstances where the goods are dangerous, the procedure for disposal or return
of the goods and refund arrangements. Furthe Any person suffering loss or damage as a result of
a supplier failing to comply can bring proceedings to recover damages.
Under section 136(1)8 unless the consumer product information standard has been
complied with, any supply of goods in which the standard is applicable is deemed as an offence
as was seen in the case Hamlyn v Mark Foy’s Pty Ltd9.
Application
In this case it can be seen that Lou and Syd Pty Ltd had been in breach of the sections
106 and 107 by supplying the bionic arm that is not in compliance with the safety standards.
As per the provisions of sections 122 and 123 the responsibility of Lou and Syd was to a
recall or publishing disclosure and information for the public about the risks of the product. For
this breach Hugo can bring proceedings for the recovery of damages.
4 Ibid, s.106
5 Ibid, s.107
6 Ibid, s123
7 Ibid, s.122
8 Ibid,s.136(1)
9 Hamlyn v Mark Foy’s Pty Ltd (1982) ATPR 40-316

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As seen in the case Hamlyn v Mark Foy’s Pty Ltd10 Lou and Syd Pty Ltd can be seen to
be committing an offence under section 136(1) by being in non-compliance.
Conclusion
Thus it can be concluded that Hugo has remedies available under the ACL.
Week 6 Part 1
Issue
The issue in this case is whether Sassy has been in breach of the ACL.
Rules
The ‘no refund’ signs are made illegal by the Australian Competition and Consumer
Commission11 under the provisions of the Australian Consumer Law. The sections that would be
applicable would be section 54 of the ACL12, section 5813 and section 5914.
As per the ACL the ACCC has the right to make it mandatory for the store to specify the
content, size, form and position of the sign. The maximum civil penalty for providing false or
misleading information is:$1.1 million for a body corporate and $220,000 for an individual as
was seen in the case ACCC v Sony Interactive Entertainment Network Europe15.
10 Hamlyn v Mark Foy’s Pty Ltd (1982) ATPR 40-316
11 Australian Competition and Consumer Commission
12 Australian Consumer Law, S.54
13 Ibid,s.58
14 Ibid, s.59
15 ACCC v Sony Interactive Entertainment Network Europe [2019]

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The remedies available under the ACCC are Repair, replacement or refund and repairs as per
section 224 of the Act16.
Application
It can be seen that Sassy has contravened sections 54, 58 and 59 of the ACL and is liable
of breach of not complying with the no refund sign policy of ACCC.
As seen in the case ACCC v Sony Interactive Entertainment Network Europe17 ACCC can
charge civil penalty of maximum $1.1 million for Sassy to be not in compliance with the policy
of the ACCC.
Applying section 224 of the Act it can be seen that Mary and Yusuf can claim for refunds
and replacements.
Conclusion
Thus it can be concluded that Sassy has been in contravention of the ACL.
Week 6 Part 2
Answer a
The ‘no refund’ signs are made illegal by the Australian Competition and Consumer
Commission18 under the provisions of the Australian Consumer Law. The sections that would be
16 Australian Consumer Law, s. 224
17 ACCC v Sony Interactive Entertainment Network Europe [2019]
18 Australian Competition and Consumer Commission

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applicable would be section 54 of the ACL19, section 5820 and section 5921. So it can be said that
Sassy has contravened the ACL.
Answer b
As per the ACL the ACCC has the right to make it mandatory for the store to specify the
content, size, form and position of the sign. The maximum civil penalty for providing false or
misleading information is:$1.1 million for a body corporate and $220,000 for an individual as
seen in the case ACCC v Sony Interactive Entertainment Network Europe22..
Answer c
The remedies available under the ACCC are Repair, replacement or refund and repairs as per
section 224 of the Act.
Answer d
Sarah Sarin is liable of breach of not complying with the ‘no refund’ sign policy of ACCC.
Answer e
Mary and Yusuf can claim for refunds and replacements under the provisions of section 224 of
the Act.
19 Australian Consumer Law, S.54
20 Ibid,s.58
21 Ibid, s.59
22 ACCC v Sony Interactive Entertainment Network Europe [2019]

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