BTC1110 Lecture Notes - Lecture 7: Australian Consumer Law, Vacuum Cleaner, Bmw M54
15 Jun 2018
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CONSUMER PROTECTION
• There are general standards of honesty and fairness that are imposed by the law that affect all
players in the market regardless of agreement
• Australian Consumer Law > primary focus is to protect consumers
• Very important: consumer spending accounts for roughly 60% of Australia's GDP
• Three quarters of the final spending in Australia's economy will be protected in one way or
another by ACL
The Australian Consumer Law
• Located in Schedule 2 of the Competition and Consumer Act (CCA)
• Act is administered by Australian Competition and Consumer Commission (ACCC)
o Applies very broadly to conduct engaged in and outside of Aus, by Aus citizens/persons
ordinarily resident here, to natural persons and to corporations engaged in business,
including via internet
• The ACL has the following chapters:
o Chapter 1 Introduction
• Definitions and interpretation
o Chapter 2 General Protections
• Misleading conduct and unconscionable conduct
• Unfair contract terms
o Chapter 3 Specific Protections
• Specific false representations and unfair practices
• Consumer guarantees
• *Manufacturers liability for defective goods (not examinable)
o Chapter 4 Offences
• Criminal offences relating to certain conduct
Chapter 5 Enforcement and Remedies
Consumer Guarantees
• ACL provides for statutory guarantees in contracts for the supply of goods and services to
consumers
• These are guarantees imposed by the legislation - remedies for breach are to be found in the
ACL (not private remedies)
• Goods: All chattels personal other than money, emblements and fixtures
• There are NINE guarantees re-supply of goods: ss51-59
o Guarantee as to title (s51): the supplier of the goods has the right to dispose of the
property in the goods when the goods pass to the consumer
o Guarantee as to undisturbed possession (s52): the consumer has the right to
undisturbed possession of the goods
o Guarantee as to acceptable quality (s53): the good are of 'acceptable quality'
find more resources at oneclass.com
find more resources at oneclass.com
2
o Guarantee as to fitness for any disclosed purpose (s55): the goods are reasonably fit
for: (i) a purpose for which the supplier represents they are fit; or (ii) a purpose the
consumer makes known to the supplier or manufacturer that they will use the goods for
o Guarantee relating to supply by description (s56): if goods are sold by description, they
correspond to that description
o Guarantee relating to supply by sample or demonstration model (s57): if goods are
sold by sample/demo model, they correspond to it
o Guarantee as to repairs and spare parts (s58): the manufacturer of the goods will
ensure that spare part s and facilities for repair of the goods are reasonably available
o Guarantee as to express warranties (s59(1 + 2):the manufacturer will comply with any
express warranty given by the manufacturer in relation to the goods and the supplier
will comply with any express warranty given by supplier
o Guarantee of acceptable quality of goods (s54): except where the breach is caused by
someone other than the manufacturer, or where the breach is caused by something
beyond human control, which occurred after the goods left the control of the
manufacturer, or where the breach is bc the supplier charged more than the
manufacturer' recommended retail price
o Guarantee that goods sold by description will comply with that description (s56,
ss2713 (3)-(4)
o Guarantee that the manufacturer will take reasonable action to ensure facilities for
repair of goods, and spare parts, are available (s58, s271(5))
• Consumer Guarantees regarding services: p324
o Guarantee as to due care and skill (s60)
o Guarantee as to fit for a particular purpose (s61)
o Guarantee as to reasonable time for supply (s62)
o Guarantees not to be excluded by contract (s64)
Supply: includes exchange, lease, hire-puhase of goods…ot just sales of goods - s2(1)
Consumer:
s3(1)
• amount of goods/seies is ude $, …. O‘…..
• g/s are of a kind ordinarily acquired for personal, domestic or household use or consumption
…. O‘…..
• Goods consisted of a vehicle/trailer acquired for use principally in the transport of goods on
public roads
• P324
s3(2): *A person does not acquire goods as a consumer if they acquired them for the purpose of
resupply, or for the purpose of using them up in the course of production, or in the repair
(TRANSFORMED) of other good/fixtures on the land
• Laws v GWS Machinery
o Farmworker who acquired a tyre for the purpose of using it on his tractor was held to
be a consumer
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Specific false representations and unfair practices: consumer guarantees, *manufacturers liability for defective goods (not examinable, chapter 4 offences, criminal offences relating to certain conduct. Consumer guarantees: acl provides for statutory guarantees in contracts for the supply of goods and services to consumers, these are guarantees imposed by the legislation - remedies for breach are to be found in the. Supply: includes exchange, lease, hire-pu(cid:396)(cid:272)hase of goods (cid:374)ot just sales of goods - s2(1) Consumer: s3(1) amount of goods/se(cid:396)(cid:448)i(cid:272)es is u(cid:374)de(cid:396) (cid:1004),(cid:1004)(cid:1004)(cid:1004) . O g/s are of a kind ordinarily acquired for personal, domestic or household use or consumption. Loan contracts: a(cid:373)e defi(cid:374)itio(cid:374) of (cid:858)(cid:272)o(cid:374)su(cid:373)e(cid:396)(cid:859): s (cid:1007)(cid:894)(cid:1005)(cid:895, the guarantees: Limitation of liability: general rule (cid:272)a(cid:374)(cid:374)ot e(cid:454)(cid:272)lude the gua(cid:396)a(cid:374)tees o(cid:396) li(cid:373)it lia(cid:271)ilit(cid:455) fo(cid:396) (cid:858)(cid:272)o(cid:374)se(cid:395)ue(cid:374)tial losses(cid:859) i(cid:374) contracts for supply of goods and services: s 64(1). Special order of the buyer: recreational services exception: cca s139a(1), (3) recreational activities supplier can limit liability for death or injury.
