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PROVISIONS OF THE NEW AUSTRALIAN CONSUMER LAW WITH RESPECT TO FALSE AND MISLEADING REPRESENTATIONS Essay Example

  • Category:
    Law
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    518

Commercial law 5

Section 29 of Australia consumer law contains regulation on false or misleading representation about good and service (Popat, 2010). The section replicates the provision of section 53 of the trade practice act 1974 (false or misleading representation in relation to supply of good and service. It is the 3rd addition that cover requirement of contractual right that are equivalent to statutory in section 29(1)(n) (Popat, 2010).

The section prohibits representation being made to the effect that a person must pay in order to gain particular contractual benefits, where those benefits are already available to the person by operation of law (Turley, 2001). This new prohibition intents to prevent business that are trying to ‘upsell’ product that give right that are wholly or partly equivalent to statutory conditions, guarantees, warranties, right or remedies that the customer already have (Turley, 2001).

The criminal offence provisions of the Australia Consumer Law apply to contraventions and penalties of up to $1.1m (corporations) and $220,000 (other persons) may be applied (Turley, 2001). Alternatively civil proceedings can result in similar pecuniary penalties (Turley, 2001). The new law is effective as of and from 1 January 2011 and applies to all conduct in trade or commerce across Australia (Turley, 2001). Each business bears the burden of ensuring it is compliant with the new law (Popat, 2010).

The Office of Fair Trading guidelines relating to misleading advertising

The guideline of the office of trading guideline contains a provision that relates to misleading, deceptive, false and unconscionable conduct in relation to the property service industry (Popat, 2010). Section 51 of the property, Stock Business Agent Act 2002 deals with deal with the issue publishing false or misleading statement while section 52 cover misrepresentation by a licensee or registered person (Popat, 2010).


What agents must be aware of when producing advertising or marketing material?

The agent must be aware of the rule 3 of the schedule 1 of the regulation that requires the agent or certificated holders to act honestly, fairly and professionally with all parties’ involves in a property transaction. Failure to comply with the rule of conduct also attracts penalties, which from March 2007; increase significantly (Popat, 2010).

An advice to assessor on jack Jones personal sale of residential property, a trade for the last four year which has been successful, He holds a salesperson registration certificate and he is employed has salesperson with a reputable franchisee. Jack has won highest achiever in the property.

In the light of the above discussion Jack Jones is acting within the requirements of Australian Consumer Law. He has successful conduct him according to stipulated guidelines and him not in any breach of the law. As salesperson he is required to include his income from the trade in his assessment. He is in a position to enjoy privileges that are available in the Australian Tax Department such as loan and allowances. I therefore advice him strongly to include in his personal assessment the income in earn from sales.

References:

Popat, (2010). International Product Law Manual. Kluwer Law International.

Ian Turley , (2001). Principles of commercial law. Routledge.