Case Study: Australian Consumer Law and Consumer Rights Analysis

This case study analyzes a scenario involving a consumer, Barossa Valley Mountains Wines Pty Ltd., and the application of the Australian Consumer Law (ACL). The case examines the rights of the consumer (Betty) when a product (wine) is defective, focusing on whether the consumer can seek rem...Read More

Australian Consumer Law

Whether Betty can exercise Guarantees under ACL?
 as per section 3 of ACL, a person is
known as a consumer when he/she who
acquires some and value of such goods
is no more than $40000
(Australiancompetitionlaw, 2019).
 The definition of consumer is quite
broad and it also includes a person who
receives goods in a gift.

Cont..
 . In the case provided hereby, James
purchased the wine for his mother Betty and
in such a manner, he was the real consumer
of the case.
 Betty made payment for the same and in this
manner has the right to exercise consumer
guarantees

How Long Betty have to exercise her Rights?
 Section 259 states that claim for damages
for breach of guarantee must be made within
6 years from the date of cause of action
arising (Legislation, 2019).
 Further Section 273 of ACL states that
consumer may bring an action against the
manufacturer for recovery of damages within
3 years from the date on which he becomes
aware that the guarantee to which his action
relates has not been complied with.

Cont….
 As Betty becomes aware of the non-
fulfillment of guarantee and supplier
and manufacturer is the same person,
hence she has to bring the action within
3 years.

What remedies Betty has under ACL
 As per section 260 of the act, goods seems to
have major failures if
 are unsafe
 do not match with the description
 are not fit for the purpose disclosed by the
consumer
 As per 259 (3) of ACL a consumer has right to reject
the goods after notifying the same to supplier and
to recover the compensation for the reduction in
the value of goods because of such failure.

Cont..
 Further section 272 says that damages may also
be asked from manufacturer for the loss suffers
by the consumer if such loss was foreseeable.
 Section 236 of the act further states that a
person may ask damages for the loss suffered
as a result of a breach of ACL. Lastly, as per
section 237 of the act, a court has the power to
award the compensation to the person injured
because of consumption of goods purchased.

Cont..
 Here applying the provisions of 259 (3) of the act,
Betty can reject the goods as failure was major.
 Further, as Barossa Valley is also the
manufacturer of wine hence Betty may sue the
same for damages occurred to her because of
consumption of wine under section 272 of the
act.
 Betty also has the right to ask for compensation
under section 237 of the act.

What penalty Barossa Valley Mountains Wines Pty Ltd. could incur
 Court may impose a penalty up to $1.1
million under section 224 of the act
(Australia, 2011).
 court can also issue an injunction under
Section 232 of ACL.
 Barossa Valley may held liable for above
mentioned penalties and injunctions.

References
 Australia. (2011). Australian Competition and Consumer
Legislation 2011. Australia: CCH Australia Limited.
 Australiancompetitionlaw. (2019). Meaning of Consumer.
Retrieved from:
https://www.australiancompetitionlaw.org/legislation/pro
visions/acl3.html
 Legislation. (2019). Competition and Consumer Act
2010. Retrieved from:
https://www.legislation.gov.au/Details/C2019C00149/Ht
ml/Volume_3