Principles of Business Law Semester 2 2024 PDF

Principles of Business law Semester 2 2024 TOPIC 9: CONSUMER LAW OTHER UNFAIR BUSINESS PRACTICES Unfair business practices: Overview  The ACL identifies and prohibits various, specific business practices because they operate unfairly on consumers.  Penalties can be imposed...

Principles of Business law Semester 2 2024 TOPIC 9: CONSUMER LAW OTHER UNFAIR BUSINESS PRACTICES Unfair business practices: Overview  The ACL identifies and prohibits various, specific business practices because they operate unfairly on consumers.  Penalties can be imposed where these prohibitions are breached. Unfair business practices: False or misleading statements s 29 Section 29 prohibits the making of:  statements in connection with the supply of goods or services  in trade or commerce  which falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model. Unfair business practices: Misleading conduct as to the nature of goods or services s 33 & 34 Sections 33 and 34 prohibit conduct that is likely to mislead the public as to the nature, characteristics, suitability for purpose, quantity of particular goods or services Unfair business practices: Offering gifts or prizes s 32 Offering a gift or prize is prohibited if the offer is made by the supplier without any intention of providing the gift or prize, either at all or within a reasonable time. Unfair business practices: Bait advertising s 35 Goods or services may not be advertised at specified prices if the supplier has reasonable grounds to believe that it may not be able to supply those goods or services for a reasonable period of time and in reasonable quantities. Unfair business practices: Wrongly accepting payment for goods s 36 A person may not accept payment for goods or services if they:  do not intend to supply them at all, or if they intend to supply something materially different from what is being paid for; or  have reasonable grounds to believe that the goods or services cannot be supplied within the agreed time or within a reasonable time. Unfair business practices: Unsolicited cards s 39 A person must not send a credit card or debit card to another person unless the card:  was requested in writing; or  is replacing a card previously sent pursuant to a written request. Unfair business practices: Unsolicited goods s 40  A person is prohibited from demanding payment for goods or services that have been sent to a person who did not request them.  The person who receives unsolicited goods is not liable to pay for them, nor are they liable for any loss of or damage to those goods, unless that loss or harm results from a wilful and unlawful act by that person (for example, deliberate destruction of the goods).  Three months after the delivery of unsolicited goods, the person who sent them loses the right to recover them. Unfair business practices: harassment or coercion: s 50 Section 50 prohibits the use of physical force, coercion or undue harassment in connection with the possible supply of goods or services, or interests in land. Unfair business practices: Pyramid schemes s 45  Pyramid schemes are prohibited.  Pyramid schemes are those in which a person joining the scheme must provide a benefit to other participants, in the expectation that when new people join, that person will receive a benefit. Unfair business practices: Unsolicited consumer agreements  The ACL does not prohibit dealers from calling on potential customers at their home, or by telephone, but it regulates how such unsolicited marketing is carried out.  Section 73: A dealer is not permitted to call consumers to negotiate an unsolicited consumer agreement:  on Sundays and public holidays;  before 9:00am or after 5:00pm on a Saturday  before 9:00am or after 6:00pm on a weekday Unfair business practices: Unsolicited consumer agreements (ctd)  As soon as possible, and before beginning to negotiate the contract, the dealer must clearly advise the consumer that they intend to attempt to sell something to the consumer: s 74(a)  The dealer must advise the consumer of their right to ask the dealer to leave the premises: s 74(b)  The dealer must provide the consumer with full details of their identity: s 74(c)  The dealer must comply with any request to leave the premises: s 75 Unfair business practices: Unsolicited consumer agreements (ctd)  A copy of any unsolicited consumer agreement entered into must be given to the consumer, containing all the terms of the agreement: s 78  A consumer who has entered into an unsolicited consumer agreement has the right to terminate that agreement within specified periods if they wish to do so (ordinarily, 10 business days): s 82