Business Law Case Study: Unconscionable Conduct and Australian Law

This case study analyzes the concept of unconscionable conduct in business law, focusing on the legal principles and landmark cases. The assignment begins by defining unconscionable conduct and referencing the case of Lloyds Bank v Bundy to illustrate relevant factors. It then examines the case of Australia v Amadio, discussing the concept of special disability and how it relates to unconscionable conduct. Furthermore, the study explores how the factor of unconscionable conduct can make a contract invalid and how to avoid such issues. Finally, the study expands into Australian consumer law to highlight how the law protects consumers against unconscionable conduct by suppliers of goods or services, referencing key sections of the Australian Consumer Law and the remedies available to those affected by such conduct. The document includes several references to support the analysis.

Business Law
Name:-
Date:- 06 February 2020

Question 1
 In general, words can be stated unconscionable
conduct refers to an act that is against the good
conscience and is oppressive or harsh.
 In the case of Lloyds Bank v Bundy [1975] QB 326
Court of Appeal, Lord denning has considered a
few factors that further help to define
unconscionable conduct.

Question 2 (a)
 In the case titled as Australia v Amadio (1983) 151
CLR 447; [1983] HCA 14 a son of old couple, Mr.
and Mrs. Amadio taken a loan from commercial
bank of Australia for his business.
 Parents have provided a guarantee to repay this
loan.

Question 2 (b)
 In the subjective case of Amadio, the court had to prove
some factors.
 The first factor that the court needed to check and proven
was a special disability of the plaintiff.
 Special disability of plaintiff refers to their inability to
understand the terms and possible results of a contract and
the same includes age, lack of education, illiteracy and
other similar factors.

Question 2 (c)
 By the decision of the historical case of Amadio, one
may see that the factor of unconscionable conduct
makes the contract cancel and set aside the same.
 Here, a party can take some steps to ensure that the
factor of unconscionable conduct will not present in the
contract.

Question 3 (a)
 Unconscionable conduct is not only a concept of
contract law bit consumer law also provide
protection to consumers against such conduct of
supplier of goods or services. Australian consumer
law is there to protect the interest of consumers.

Question 3 (b)
 In order to determine whether conduct is
Unconscionable or not under section 21 of
Australian Consumer law, a court may determine
many of the matters that are mentioned under
section 22 of the act but are not limited up to the
same.

Question 3 (c)
 Australian consumer law does not only provide the
meaning and rules related to the Unconscionable
conduct but also lets it know that what remedies or
options a person may have in case of being a
victim of Unconscionable conduct.

References
 Andrews, N. (2011) Contract Law. UK: Cambridge
University Press.
 Australia v Amadio (1983) 151 CLR 447; [1983]
HCA 14
 Australiancompetitionlaw.org. (2020) Section 21
Unconscionable conduct in connection with goods
or services. [online] Available from:
https://www.australiancompetitionlaw.org/legislatio
n/provisions/acl21.html [Accessed on 06/02/2020]

References
Australiancontractlaw.com. (2020) Commercial Bank
of Australia v Amadio. [online] Available from:
https://www.australiancontractlaw.com/cases/amadio.
html [Accessed on 06/02/2020]
legislation.gov.au., (2020) Competition and
Consumer Act 2010. [online] Available from:
https://www.legislation.gov.au/Details/C2020C00068/
Html/Volume_3 [Accessed on 06/02/2020]
Lloyds Bank v Bundy [1975] QB 326 Court of Appeal