Australian Consumer Law Tutorial Answers Essay

1541 Words7 Pages
QUESTION 1

Studmaster Pty Ltd was a landlord that owned a shopping complex in Bourke Street, Melbourne. Mrs Tran operated the “Vietnamese Lunch Box” outlet in the food court. She had little ability to speak or read English, which the representatives for Studmaster knew about. Studmaster proposed a three year renewal of her lease at $48,000 per annum plus GST for the first year and CPI increments in the second and third years.

A representative for Studmaster told Mrs Tran 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. Studmaster gave Mrs Tran 7 days to agree to the lease
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Law:

• Section 18 (“misleading or deceptive conduct”) • Eveready Australia Pty Ltd v Gillette Australia Pty Ltd OR Taco Company of Aust Inc v Taco Bell Pty Ltd (“objective test”) • Section 29(1)(k) (“false or misleading representation concerning the place of origin of the goods”) • Netcomm (Aust) v Dataplex Pty Ltd (p 616 of textbook)

Application:

• Explain what “place of origin” means with reference to the discussion at the bottom of p 615 top of p 616 of the textbook • Explain why the label “product of australia” was misleading as to the place of origin of the jumpers. • Apply the objective test to explain why the woollen jumpers were misleading under section 18. In particular identify the target market and why a reasonable person would be misled about the label “Product of Australia”.

Issue: What are the remedies?

Law:

• Section 232 (injunction); Section 246 (corrective advertising; management to undertake training); Section 151 (fine); Section 218 (court enforceable undertakings)

Application:

• Explain that the remedies can be covered in court enforceable undertakings or ordered by the Court. • Explain what an injunction and corrective advertising would do • Explain the maximum penalty of a fine for WWM and why the ACCC can pursue a fine.

Conclusion

WWM has made a false representation concerning the label of

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