Australian Consumer Law Tutorial Answers

A representative for Scoutmaster told Mrs. Trans that: ; “We believe the new rent is very reasonable and below the market value”; and The rent is lower than the rental paid by other tenants in the Food Court” Both statements were incorrect. Scoutmaster gave Mrs. Trans 7 days to agree to the lease renewal, but provided no reason for giving this limited time frame. Advise Mrs. Trans as to whether Scoutmaster Pity Ltd has breached the Competition and Consumer Act 2010 (previously referred to as Trade Practices Act 1974 (Act)) and if so, her available remedies.
Issue: Were the statements misleading or deceptive in breach of the Australian Consumer Law? Law: ; Section 18, Schedule 2 to the Competition and Consumer Act 2010 (Act) (or alternatively you can say Section 18 Australian Consumer Law which is the title for Schedule 2) ; Section 4 (“presumption of misleading”) ; Eveready Australia Pity Ltd v Gillette Australia Pity Ltd OR Taco Company of Status Inc v Taco Bell Pity Ltd (“objective test”) Application: ; Explain which of the statements was an opinion and why the law presumes it was misleading (e was there any basis for making the opinion? ; Apply the objective test to the second statement made by the Scoutmaster representative. In particular: (what will be the target market and why would a reasonable person from that target market be misled or deceived? Issue: Did Scoutmaster engage in unconscionable conduct? ; Section 22 Australian Consumer Law ; Miller v Gunter & Ours OR Commercial Bank of Australia v Amid ; Explain why section 21 and not section 20 applies ; Explain why Scoutmasters’ conduct was in trade or commerce ; Explain what the conduct was and why it was unconscionable, with reference to the factors listed in section 22 of the Australian Consumer Law.
In particular: o The superior bargaining position of Scoutmaster o Ability to understand documents o Undue pressure and tactics used Issue: Did Scoutmaster make a false or misleading representation? Section Australian Consumer Law ; Explain why the statements were false regarding the price of a service, in particular noting what the relevant price is and what the service is in the question. Issue: What are the remedies? Law: Section 236 (damages); Section 232 (injunction); Section 243 (other orders) ; Explain the remedies that Mrs. Trans would be seeking as you are advising her and not the AC.

In particular: o Explain what an injunction would do and why Mrs. Trans would want this remedy; o Explain when Mrs. Trans would be entitled to damages and how damages would be calculated o Explain when Mrs. Trans loud want to vary the contract and what the variation would be o Explain when Mrs. Trans would want to void the contract and what the effect of voiding the contract would be Conclusion: ; Scoutmaster has engaged in misleading and deceptive conduct, unconscionable conduct and made a false or misleading representation in respect of the price of a service.