1. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia This is the prescribed textbook for your course. Available NOW at your campus bookstore!

2. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Consumer protection legislation Chapter 13

3. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-2 Consumables Goods or services valued at $40 000 or less. Goods of any value of a kind ordinarily acquired for personal, domestic or household use or consumption. Commercial road vehicles. Not acquired for resupply or for manufacture.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-3 Scope of the Trade Practices Act 1974 (Cwlth) Corporations Individuals, sole traders, partnerships and other unincorporated bodies, if engaged in - interstate trade - overseas trade - activities in S6 (Trade Practices Act) Government utilities Professional bodies (State Fair Trading Acts cover other entities and activities.)

5. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-4 Constitutional basis Engage in foreign trade or commerce Engage in business using the post, telephone, radio, television or telegraph, or like services Engage in interstate trade, or trade within a Territory Supply goods or services to Commonwealth organisations Engage in conduct subject to international conventions

6. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-5 Trade Practices Act (TPA) Part IV  S45: Exclusionary provisions  S46: Monopolies  S47: Exclusionary dealings  S48: Resale price maintenance Part IVA  S51AA: Unconscionable conduct Part V (Prohibits corporations from engaging in unfair trade practices)  S52(1): Misleading and deceptive conduct  S53-59: False or misleading representations

7. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-6 TPA (continued) Part V (continued) S60: Harassment and coercion in relation to the supply of goods and services S61: Pyramid selling S63A: Sending unsolicited cards S64: Payment for unsolicited goods or services S65-65D: Safety of products sold to consumers; product information requirements

8. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-7 Unfair practices (part V: TPA ) S52 (1): Prohibition on misleading and deceptive conduct Advertising of goods and services or in other activities that take place before contract entered into if: - conduct prohibited is directed at conduct engaged in by corporations - conduct must occur in the course of trade and commerce - conduct engaged in must be misleading or likely to mislead or deceive Remedies:-Civil action for damages Injunction to stop misleading or deceptive conduct Probation orders Community services orders Corrective advertising orders Adverse publicity orders

9. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-8 Unfair practices (part IVA: TPA) Prohibition on unconscionable conduct, i.e. where a stronger party takes advantage of another party’s weakness or ignorance. S51AA: General duty on corporations to trade fairly in relation to consumers. S51AB: Deals with unconscionable conduct in connection with the supply of goods and services to consumers. Remedies:Contract void Contract varied Refusing to enforce contract Directing refund of money/return of property Ordering repair or provision of parts for goods Part IVB S51AC: Protects small businesses from unconscionable commercial conduct (for transactions up to $3million). S51AD: Codes of conduct

10. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-9 Unfair practices (part IVA:TPA) Unconscionable conduct is where one party to a transaction is at a disadvantage, because of: - age - sickness - sex - illiteracy - poverty - lack of explanation when required - language (i.e. non-English speaking), and the other party takes advantage of this for their own gain.

11. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-10 Basis of unconscionable conduct With regard to consumers: The relative strengths of the bargaining positions of the parties Whether the consumer is being asked to comply with conditions that are not reasonably necessary to protect the legitimate interests of the corporation Whether any documentation given to the consumer was intelligible to the consumer Whether there was any undue influence or pressure exerted The type of deal that the corporation’s competitors could have offered the consumer.

12. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-11 Conduct specifically prohibited (part V: S53 - TPA) False or misleading representations that may induce consumers to acquire goods and services with respect to: (a)/(aa): standard, quality, value, grade, composition, style, mode or history of goods or services (b): newness of goods (bb): agreement to acquire the goods (c): the sponsorship, approval, performance, characteristics, accessories, uses or benefits of goods or services (d) sponsorship, approval or affiliation of a corporation (e): price of goods or services (ea): availability of repair, facilities or spare parts (eb): origin of goods (f): a buyer’s need for goods or services (g): existence, exclusion or effect of any condition, warranty, guarantee, right or remedy (e.g. no refunds)

13. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-12 Conduct specifically prohibited (part V: TPA) False or misleading representations that may induce consumers to acquire goods or services with respect to: S53A: All types of dealings with land S53B: Persons seeking employment as to –availability –mature –terms or conditions, etc. S53C: Full cash price

14. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-13 Conduct specifically prohibited (part V: TPA) False or misleading statements with respect to: S54: Offering gifts and prizes S55/55A: Conduct that may mislead the public S56: Bait advertising S57: Referral selling S58: Accepting payment without the intention to supply goods or services S59: Misleading statements about the profits of home-run businesses

15. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-14 Conduct specifically prohibited (part V: TPA) S60: Harassment and coercion in relation to the supply of goods and services S61: Pyramid selling S63A: Sending unsolicited cards S64: Payment for unsolicited goods or services

16. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-15 Product safety and information (part V: TPA) Division IA S65-S65D: Safety of products sold to consumers Product information requirements S65F: Mandatory recall of goods

17. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-16 Comparison of TPA and Sale of Goods Act

18. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-17 Implied conditions Not necessarily applicable to auction sales S70: Goods will correspond with their description (for supply of goods by corporations to consumers) S71(1): Goods will be of merchantable quality (‘no refund’ signs are illegal) S72(2): Fit for purpose S72: Sale by sample

19. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-18 Remedies for breach of implied condition Buyer can: rescind the contract claim damages.

20. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-19 Implied warranties As to goods: - right to sell - quiet possession - free from encumbrances As to services: - rendered with due care and skill - materials supplied as part of service must be reasonably fit for their purpose

21. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-20 Remedy for breach of implied warranty Buyer can sue for damages

22. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-21 Manufacturer’s liability (part V: TPA) Division 2A Consumer may take action if: - the goods are defective - the goods have been supplied through sale/ lease/exchange/hire. 1A: Product safety and product information 2: Conditions and warranties in consumer transactions 2A: Actions against manufacturers and importers of goods 3: Miscellaneous

23. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-22 Remedies for breaches of part V - TPA Civil remedies S80: Injunctions S80A: Disclosure S82: Damages Orders S87: Ancillary Orders S163A: Declaration S163A: Prohibition S163A: Certiorari S163A: Mandamus Criminal Penalties (except S52): $1 100 000 in case of a corporation $220 000 in case of a natural person

24. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-23 S85: Defences to breaches That the contravention was due to a reasonable mistake. That the contravention was in reliance on information supplied by another person. That the default was caused by the fault of another person. That the default was due to an accident or cause beyond the control of the defendant.

25. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-24 ACCC Australian Competition and Consumer Commission Administers the Trade Practices Act. Ensures requirements in the Act are complied with by traders.

26. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-25 Powers of ACCC Administering the Trade Practices Act Investigating and prosecuting breaches of the Act Hearing disputes under the Act Conducting research, and providing consumers and traders with information on their respective rights Obtaining evidence, including documentary evidence Establishing and administering standards relevant to product safety

27. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-26 Consumer complaint CONSUMER COMPLAINT ACCC DISPUTE SETTLE BEFORE COURT ACTION COURT ACTION

28. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-27 Settle before court Pay restitution to consumers who have been affected by illegal conduct Provide an undertaking to ACCC that steps will be taken to ensure Act complied with and future breaches avoided

29. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-28 Court action Court action dependant on following considerations: Educative or deterrent effect Blatant disregard of law Significant public detriment Need to test the limits of the act

30. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-29 Australian Competition Tribunal Australian Competition Tribunal is the appeal body from the ACCC.

31. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-30 Door-to-door sales Consumer provided with ten-day cooling-off period. Supplier prohibited from receiving money until cooling-off period has expired.

32. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-31 Small Claims Tribunal - consumer vs. trader Authority to hear consumer claims Operation Limit imposed on operation Right of appeal and costs (no right of appeal) How to make a claim

33. Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e by Barron & Fletcher. Slides prepared by Kay Fanning. Copyright © 2000 McGraw-Hill Australia 13-32 Role of consumer protection agencies To educate the community about their rights as consumers To handle complaints made by consumers against providers of goods and services To provide information to consumers