Australian Contract Law and Consumer Rights: Car Dealership Case Study

This report provides a comprehensive analysis of a car dealership case involving a breach of contract under Australian law. The scenario involves a buyer, Jane, and a seller, Gayle, where a signed agreement for a car purchase was later disregarded by the seller who attempted to increase the price and ultimately refused to sell the car to Jane after receiving a better offer. The report examines the relevant legal frameworks, including the Contract Act Australia, Fair Trading Act 2009, Motor Dealers and Repairers Act 2013, and Trade Practice Act 1974, highlighting the importance of contract formation, offer, acceptance, and consideration. It references the case of Walton Stores Ltd. v Maher to illustrate the implications of breaching a contract. The analysis concludes that Jane has grounds to file a lawsuit against Gayle for breach of contract, misleading advertisement, and violation of consumer rights, emphasizing the importance of ethical business practices and adherence to consumer protection laws. The report also discusses the rights and responsibilities of both parties under the Competition and Consumer Act 2010.

Individual Assignment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Contract Law Australia:...............................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Laws and legislations are set of rules of regulations which is made by the government
and legal structure for the betterment of the public and society. In this report, a case scenario has
been given in regard with car dealership where two parties made a contract and breached by one
of them where it is important for an individual to know about their own rights from which they
can fight for their rights. The report will analyse the case scenario and provide a legal advise to
plaintiff to file a case against the unethical and illegal activity which is performed at the place.
MAIN BODY
Contract Law Australia:
Contract Act Australia, this is one of the most important act in the country ruling to
maintain fair trade and dealing between two parties, contract act allow parties to form a legal
written agreement. Every major deal requires dealer and buyer to form a contract under guideline
of law, this is formal process to reduce any kind of fraud and unfair dealing from both side. In
the case of Jane, Contract Law play significant role, Jane have formed a legal agreement with
Gayle in which signature of Gayle is not found. However, formal contract was made between
Gayle and Jane which means Jane is liable to file lawsuit against Gayle and Motor store.
Breaching of contract may impact dealer and their licence to trade, Gayle might have to pay
penalties and might lost their motor vehicle trade licence for further dealing 1. Beaching of
contract is considering as fraud, fraud-ing consumer is one of the major crime in business world,
dealer is also impacting consumer right of Jane which means breaching of agreement and Act is
highlighted in the case.
Issue: Laws and legislations are the rules which are created by the government and legal
authorities to protect the rights of an individual human being. In today's world, it becomes
important to be more aware of the laws which are implemented by the legal structure in order to
deal with the issues2. Fair Trading Act is one the most important act in the Australia to handle the
1
Eldridge, John Anthony (2019)
2 Wright, Chris F., and Stephen Clibborn (2020)

illegal trade of the goods and services and can deliver the equal rights to an individual. This Fair
trading act plays an important role in the given case study where a car dealing scenario is given
where a breach of contract, unfair trading are finely performed to handle this particular case for
providing the equal benefits and rights to an individual human being.
In the given case study, a car dealing case is given where seller has denied selling the car
after she got a new customer who is ready to buy the car without any additional conditions. In
detailed, Gayle who is a seller of car in the showroom, was selling a second-hand car of model
2019 at the cost of $23,999. Jane is a buyer who was looking for the exact car which she wanted
to buy it from many days and finally she identified a car. Jane was agreed with the pricing of the
car which is set by the Gayle and also filled out the standard form. Accordingly, Gayle has taken
the standard form back from Jane and change the price of car and marked it at cost $25,999. As
per the given situation and scenario, it has been clearly defined that Gayle has changed his mind
to sell the car at the previous mentioned rate as she thinks Jane was very interested in buying that
car which makes Gayle to increase the cost which is legally not correct. Afterwords, Jane agreed
with the new price but add some additional facilities and services to be done within the cost only
3. In some times, Gayle got a new customer who was ready to buy the car at the new installed
price without any conditions and additional services which makes Gayle to denied Jane for
selling the car to her. According to the situation, Gayle was not legally bounded with any
agreement as she did not sign that standard form but under the Fair Trading Act 2009, it shows
that Gayle was not allowed to breach the contract and rights of Jane as she got new customer for
car at best price.
Rule: There are certain rule of contract law and formation of contract between two parties, these
are:
An offer: Offer provided by the buyer to seller, offer is formal and legal form of contract in
which buyer show interest regarding purchase of product and service. In the case of Jane, buyer
have highlighted their interest for buying the car in provided rate, an form was signed by the Jane
highlighting the amount which act as a offer.
3 Atkinson, Violet, and et.al., (2018)

An acceptance: Acceptance is most important element where seller either accept the offer
with provided terms and condition or seller reject the deal, under free trade policy, seller have
right to reject the offer if not meeting the criteria. In the case of Jane, offer was accepted by
Gayle where Jane have provided filled form including her signature, this offer was accepted by
Gayle and kept it for several days which make it valid.
Consideration: Consideration is third and final stage in which final agreement is formed
between both parties, this consider including key modification provided by both parties. In the
case of Jane, Gayle have made certain consideration or modification but offer was accepted by
Gayle which means there will be modification. Hence, Jane is liable to file lawsuit against Gayle.
Analysis: There is a famous case of Walton Stores Ltd. V Maher 1988, where in this case
Walton has breached the contract between them which is not acceptable under the government
legislations 4. In this case, Walton decided to take Maher's land on lease for opening a store
where both of them decided to break down the existing building to create a new one for opening
the store. The agreement was done between them as 40% of work has been done, Maher decided
to break and breach the contract between them which is legally not acceptable. The Australian
government has taken action against the faulty due to non-contractual promise to be enforced
directly. In this case, a breach on contract has been performed similarly, the given case scenario
Jane has already filled out the standard form but Gayle breach the contract and do not make the
promise possible which is a breach of agreement between them.
Jane also can put a case against the Gayle through Breach of contract and can punish her
because of her faulty performance. Under the Fair Trading Act, Jane can get her right back and
can surely punish the Gayle because of her illegal activities performed within the showroom. It is
important for the business dealer to know and follow all the ethics and legal responsibilities to
handle their business reputation by providing the fair services to the customers. However, an
individual business handler should know about all the business ethics and laws made by the
government for the betterment of the customers as in the case as well Gayle should not perform
the illegal activity and breaching of the contract which may have helped her to not get the
punishment.
Contract law is one of the most important legislation providing an agreement between the
two or more parties on which the fairness should be followed and practise. Fair trade and dealing
4 Yin, Kenneth, and et.al., (2020)

between consumer and seller are certain acts and regulations in AL allowing consumer to
safeguard their rights. In the case of Jane, The Australian Law rule over fair trade between both
parties, under this legislation, Jane carry certain right to ensure Gayle provides the car. The
motor vehicle consumer and repair industry have major impact on consumer buying habit, dealer
who provide first-hand car need to follow law to ensure safety of client and their company5.
However, in the case of second hand dealing, consumer have certain responsibilities before and
after purchasing second hand vehicles. Gayle advertise about selling of second hand car, Jane
showed interest in the dealing and approached Gayle for further dealing. There was formal
agreement between both parties where Jane filled the form and sign on it to ensure deal is closed.
However, Gayle refused to continue the deal and changed the prices of the product.
Under The Motor Dealers and Repairers Act 2013, dealers have responsibility to maintain
fair trade with consumer, motor vehicle industry play vital role in the economic development.
The Australian government rule fair dealing under this act, dealers of second hand cars need to
provide complete information to the consumer. In the case of Jane, The Motor Dealers and
Repairers Act 2013 is eligible because dealing was made between Jane and Gayle for second
hand car for provided price tag 6. Jane can file lawsuit against Gayle and their motor store to
ensure their consumer protection and interest is protected. Under Clause 11 of Schedule 2 of The
Motor Dealers and Repairers Act 2013, dealer cannot change the price of vehicle after written
deal has been made between both parties, in the case of Jane, form of buying the car was filled
and signed by Jane to complete the deal.
Trade Practice Act 1974, this is important act ruling fair trade and dealing between
consumer and seller, trade practice is process of maintaining fair, legal and ethical dealing
ensuring better consumer welfare. Under this act, False advertisement is one of the major clause
impacting right of consumer, false advertisement is process of attracting consumer by falsely
promoting the product under feature specification and price tag. False advertisement impact
buyer right, seller cannot falsely advertise their product and breach terms of Trade Practice Act
1974 7. In the case of Jane, Trace Practice Act 1974 play significant role as Gayle have falsely
5 Viven-Wilksch, Jessica (2020)
6 Eldridge, John (2019)
7 Bowley, Robin (2019)

advertise the price of the car and attracted the consumer. However, Gayle changed the price of
car under obligation of wrong printing, although, Jane have right to proceed with first ever price
highlighted by Gayle. On the other hand, the form and agreement also highlight the price offered
by Gayle at the advertisement campaign. Jane is liable to file lawsuit against Gayle ensuring
misleading advertisement is stopped in the future, Gayle may find challenging facing different
laws for such breaching of trade with Jane.
Conclusion: The Competition and Consumer Act 2010, this is one of the most important act
ruling national law for welfare of both consumer and business. Under this act, consumer’s rights
are protected against unethical trade practice performed by business to gain competitive
advantage in the market. Australian trade demand seller and buyer to fairly trade without any
conflict and breaching of any kind of act and laws. In the case of Jane, The Competition and
Consumer Act 2010 is important which allow Jane to protect their right. Under this act, Jane
must deal with proper guideline provided by the government which means consumer need to
fairly and ethically deal with buyer. Responsibilities of consumer are highlighted in this act, Jane
have responsibility to form legal contract with Gayle, Jane is not liable for any kind of damages
because there was no exchange of goods and service. Gayle also carry certain right in this case,
under intellectual property right, Gayle still own the car because no dealing has been made
allowing Gayle to sell the car to another customer. However, after formation of contract, Gayle
cannot breach the contract and sell the car to other customer, Jane have right to file lawsuit
against such action of Gayle in the process.
Fair Trading Act 2009, is a national law which regulates the trading in Australia and
governs how all the businesses must deal with their customer, suppliers and competitors. This act
comes under the Australian Law where it indicates that unfair trading is illegal and not allowed
where consumer can take legal action against the misconduct8. In this particular given scenario,
Gayle has performed illegal activity and also done the unfair trading by representing the false
price and offers along with false advertising in the showroom just to attract the customers 9.
Accordingly, Jane can file a case against the Gayle under the Fair Trading Act 2009 which helps
8 Cott, Paul (2022)
9 Portela, Clara (2021)

and support her to get her right back and can stop the unfair trading practices performed within
the showroom. Jane also have a proof of email and calls of Gayle in which she had accepted the
additional conditions of the Jane with the new set price which can help her to provide an
evidence in the court and can get justice. Thus, as the fraudulent get found faulty they will be
liable to a penalty of higher amount and also legal structure can punish the faulty by cancelling
his licence of the business forever.
CONCLUSION
This report has discussed laws and its importance in the dealing between two parties, law
play significant role in consumer life ensure their fair trade and dealing. Later this report has
discussed case of Jane where Gayle breached the contract, falsely advertised, impacted the fair
trade act and breached trade practice act while having deal with Jane for used or second hand car.
Later this report has advised Jane to consider different laws and act highlighted in the law to
maintain fair deal and file lawsuit against such fraud dealing and practice by dealer.

REFERENCES
Books and journals
Atkinson, Violet, Viviane Azard, Julien Canlorbe, and William Van Caenegem. "A comparative
study of fashion and IP: trade marks in Europe and Australia." Journal of Intellectual
Property Law & Practice 13, no. 3 (2018): 194-211.
Bowley, Robin. "Transparency in the Insurance Contract Law of Australia." In Transparency in
Insurance Contract Law, pp. 549-572. Springer, Cham, 2019.
Cott, Paul. "Legal matters: Can a fixed-price contract become not fixed?." Plumbing
Connection (2022): 38-39.
Eldridge, John Anthony. "Codifying Contract Law in Australia: Issues and Obstacles." PhD
diss., 2019.
Eldridge, John. "Contract Codification: Cautionary Lessons from Australia." Edinburgh Law
Review 23, no. 2 (2019): 204-229.
Portela, Clara. "Trade preference suspensions as economic sanctions." In Research handbook on
economic sanctions. Edward Elgar Publishing, 2021.
Viven-Wilksch, Jessica. "Good Faith in Contracts: Australia at a Crossroads." U. of Adelaide
Law Research Paper 2020-92 (2020).
Wright, Chris F., and Stephen Clibborn. "A guest-worker state? The declining power and agency
of migrant labour in Australia." The Economic and Labour Relations Review 31, no. 1
(2020): 34-58.
Yin, Kenneth, Simon Kozlina, Kelly Green, Luca Siliquini-Cinelli, Emmanuel Laryea, and Lisa
Spagnolo. Contract Law. Cambridge University Press, 2020.