Business and Corporate Law: Analysis of Consumer Rights and Contracts

This report delves into the core principles of business and corporate law, specifically examining contract law and consumer rights within the framework of the Australian Consumer Law (ACL). It defines key concepts such as offer, acceptance, and the elements of a valid contract, while also outlining the rights and protections afforded to consumers under the ACL. The report analyzes a case scenario involving a car purchase, highlighting the application of consumer rights, misleading conduct provisions, and implied conditions in the sale of goods. It discusses the responsibilities of both sellers and buyers, including the delivery of goods, quality standards, and remedies for defective products. Through the examination of relevant legal principles and case examples, the report provides a comprehensive understanding of consumer rights and contract law in a business context. The report concludes with a discussion on the implications of the ACL and the importance of consumer protection in commercial transactions, emphasizing the significance of valid contracts and the rights of consumers in various scenarios.

BUSINESS AND
CORPORATE LAW

Table of Contents
INTRODUCTION....................................................................................................................................................3
TASK........................................................................................................................................................................3
CONCLUSION........................................................................................................................................................5
REFERENCES.........................................................................................................................................................6

INTRODUCTION
Business law is the legal term in which two or parties are comes in the legal
agreement must be agree same thing on the same sense. Agreement must be valid or
enforceable by law and in the written form and having stamp of both the parties. This law is
applicable to entire country and must be follow all rules and regulation which are imposed on
them. In which one party send offer and another person show his consent either accept it or
reject it (Horrigan, 2010). In present case, Adil is the buyer who purchased car from Trang
with price 44,990 dollar but as per the Australian Consumer Law he is the not consumer
because the cost of car is more than 40,000 dollar.
TASK
Contract must present offer and acceptance which are essential elements as per the
contract act. The Australian consumer law (ACL) defines various types of rules and
regulation which have to be follow by entire country. There are some points which included
in law are as aligned below:
Consumer- According to ACL a person is the consumer if they buy products and
services with the amount less then 40,000 dollars. But the person also is also consumer at
amount more then 40,000 dollar if they consume goods for their personal use. For example;
A is the buyer who purchased car for the purpose of transportation of goods and services on
road at price 45,000 dollar (Jacobs, 2011). As per the law A is not a consumer. Another
example; X buy bike for his own use at price 42,000 dollar. On the basis of law X is the
consumer because he purchased goods and services for domestic use.
Misleading- As per the section 18, the prohibits the person in trading for conducting
any misleading statement. This act is able to reduce unfair trade practices among parties.
Through this consumers are able to get best quality of goods and services which are imposed
on them.
Consumer rights- Australian consumer law frames some rules and regulation which
are related with the consumer rights for products and services. It is related with consumer
product and safety law which imposed for making safety standard. Through this issues can
easily resolve which are created regarding purchasing of goods and services. These rights are
able to protect interest of people which is beneficial for them.

As per the given scenario, Adil is the buyer who purchased a car from Trang. He likes
the look of car at price 44, 990 dollar which is black in colour Mitsubishi Pajero with having
leather seats. He is not able to understand the language of Trang and signed the written clause
which is related with the agreement waiving his protection as per the Australian Consumer
Law.
After that, he went with the car and realised that car breaks down. When he towed car and
mechanic defines that the car is driven more than 7000 km also it has defective gear box. He
wants to refund car to their Trang but he refused to accept it. Because he signed an agreement
in which he agreed to waive protection (Carroll and Shabana, 2010). As per the given case
scenario, Trang claims that Adil is not a consumer according to the law of ACL because the
cost of car is more then 40,000 dollar.
But as per the provisions of ACL, person is the consumer if he purchased products
and services more then 40,000 dollar for the domestic or for his own consumption. So that,
Adil is the consumer on the basis of law (International Business and Corporate Law LLM.
2017). He is able to file case against seller because according to sales of goods there is a
implied condition that seller have to provide best quality of goods and services otherwise
buyer can able to file case them. At the time of placing an order customer send description to
seller so they are bound to deliver product accordingly. This law is able to protect rights of
consumers which they expect. As per the law some rights of people are as defined below:
Receive products on time- Buyer has the right to receive goods and services on time
which both the parties are mutually decided.
Reject goods- If products which are deliver by the seller must be according to the
description. If products are not meet the standard quality then buyers can able to reject the
goods (Heath, 2011). As per the given scenario, Adil received defected car from Trang so that
he having a right to reject it. Rejection must be valid or enforceable by law which is easily
defines under the court.
Examine goods before payment- Buyers are able to look their goods and services
before payment.
Sue seller for damages- Buyer can able to sue seller if any damages caused to
products. In the given case, Adil is able to sue seller for the damages which are caused to the
car.

Claim for late payment- Both the parties are comes in the contractual relationship
with each other. The legal agreement must be in written, which include time and date of
delivery of goods and having stamp on it as well. For the purpose of delay in delivery buyer
can reject and claim for the damages.
As per the sales of goods act there are some duties of seller which are as aligned below:
Deliver goods on time- Seller is responsible to deliver goods and services on time
which they mutually decided as per the agreement (Granovetter, 2010S). This plays an
important role in this act on which entire contract is based.
Quality- Their goods needs to meet description of buyer which they send at the time
time of placing an order. Sellers are responsible to provide best quality of goods and services
to people through they can attract them. In present case, Trang not provide bet quality
product to Adil so that buyer having a right to reject them and file claim as well.
Follow terms and condition- The person is responsible to transport items must be
follow terms and condition which are mentioned under the agreement (Segrestin and
Hatchuel, 2011). On the basis of given scenario, Trang not provide car according to the
agreement because he deliver defected car.
According to the section 37 of ACL, Trang needs to provide best quality items to Adil he
failed to do so. So that, Adil is able to reject good and claim file for the damages caused him.
As per the Australian Consumer Law buyer is considered as consumer and able to sue seller
for the defected products and services and claim for the compensation.
CONCLUSION
On the basis of given report it has been concluded that, every legal promise and set of
promise is forming consideration is known as agreement. And agreement which are valid or
enforceable by law is called as contract. In which two or more parties are comes in the legal
relationship and liable to fulfil their rulers, regulation an policies which are imposed on the,
as per the law. As per the Australian Consumer Law a person is the consumer if he purchased
products less then 40,000 dollar and if purchasing is for the domestic purpose or consumption
for his own use. As per the given scenario, Adil is the consumer because he consumed car for
his own use. On the basis of sales of goods act sellers are responsible to provide best quality
of goods and services to their customers in order to meet their level of expectation.

REFERENCES
Books and Journals
Carroll, A.B. and Shabana, K.M., 2010. The business case for corporate social responsibility:
A review of concepts, research and practice. International journal of management
reviews. 12(1). pp.85-105.
Granovetter, M., 2010. 19 Business Groups and Social Organization. The handbook of
economic sociology. p.429.
Heath, J., 2011. Business ethics and the ‘end of history’in corporate law. Journal of business
ethics. 102(1). pp.5-20.
Horrigan, B., 2010. Corporate social responsibility in the 21st century: Debates, models and
practices across government, law and business. Edward Elgar Publishing.
Jacobs, J.B., 2011. 'Patient Capital': Can Delaware Corporate Law Help Revive It?. Wash. &
Lee L. Rev.. 68. p.1645.
Segrestin, B. and Hatchuel, A., 2011. Beyond agency theory, a post‐crisis view of corporate
law. British Journal of Management. 22(3). pp.484-499.
Online
International Business and Corporate Law LLM. 2017. [Online.] Available Through.
<http://www.lancaster.ac.uk/study/postgraduate/postgraduate-courses/international-
business-and-corporate-law-llm/> [Accessed On 16th May 2017.]